Analyses
07
Sep
how to buy stellar (XLM)

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How To Buy Stellar (XLM)?

Buying Stellar (XLM) via Binance is both safe and easy. Before you can buy Stellar, you need to verify your account and add money to your Binance account.

Stellar is a decentralized peer-to-peer network where Lumens (XLM) is the native cryptocurrency unit. Stellar’s native cryptocurrency, Lumens (XLM), has attracted significant attention from investors and financial enthusiasts. A cold wallet is the best way to store your XLM tokens securely.

How to Buy Stellar (XLM): A Quick Guide

Buying Stellar (XLM) via Binance is both safe and easy. Recognized as the premier cryptocurrency exchange globally, Binance serves a clientele of over 100 million users. The buying procedure is intuitive, and you can use various currencies to buy XLM, such as USDT, BTC, EUR, and BNB. The methodology explained in this guide applies to any currency, even though it refers to euros specifically.

How to buy Stellar from Binance:

  1. Register a Binance user account using this link.
  2. Download the Binance mobile app
  3. Fulfill the KYC (Know Your Customer) requirements.
  4. Transfer euros to your Binance account.
  5. Utilize your deposited euros to buy Stellar (XLM).
  6. Either keep your XLM on Binance or transfer them to your wallet.

The image below shows the Binance main page on a mobile device.

binance

Stellar is a well-known cryptocurrency that many crypto exchanges support. If you’re considering buying Stellar, there are several good places to look. Kraken and Coinbase are two reliable US-based exchanges. To learn more about them and Binance, check out the “Reviews” section in the main menu. There, you’ll see detailed info and useful guides about these platforms.

How to Buy Stellar (XLM): A Detailed Guide

Before you can buy Stellar, you need to verify your account and add money to your Binance account. We’ve created a simple beginner’s guide titled Binance Review to help you with this. It gives you clear, step-by-step directions on how to prepare your account. If Binance is new to you or you’re unsure how it works, this guide will be helpful.

After your Binance account is set up, we’ll show you how to buy Stellar using the Binance mobile app. If you have an iPhone, you can download the app from the Apple Store, or if you have an Android phone, you can download it from the Google Play Store.

We’ll use the Binance app’s Lite mode for our guide, which you’ll see when you open it.

Open the trading menu

First, open the Binance app on your phone. On the main screen, you’ll see a yellow symbol for trading (see the image below). That’s where you want to go. Tap on it, and you’ll see the trading menu.

binance trading mobile app

Click on the Buy button that appears on your screen.

Select Stellar (XLM)

Now, a list of different cryptocurrencies will show up. You can scroll through to find Stellar or type “XLM” in the search bar, like in the provided picture.

select stellar xlm

Pick Stellar from the list to move on to the “Buy XLM” section.

Buy Stellar (XLM)

You’d now be on the Buy XLM page. You can type in how much you want to spend in euros or click the By Quantity button. If you choose By Quantity, you can enter the exact number of Stellar tokens you want, like 100 XLM.

buy stellar xlm

 

After you’ve selected the number of XLM tokens you want, click on the Buy button to proceed. This will take you to a page where you can confirm your purchase and select your payment method.

Choose how to pay

The last step in buying Stellar is choosing how you’ll pay. You can use that balance if you’ve added money to your account. Or, you can look at other ways to pay.

stellar payment method

Click Confirm to finalize the purchase. The Stellar price is locked in for 45 seconds. If you need more time or a new price, return to the Buy XLM page.

If you want to follow the price of Stellar after your purchase, check out this link: Stellar price.

What is Stellar?

Stellar is a decentralized peer-to-peer network where Lumens (XLM) is the native token. Its primary objective is to facilitate the transfer of various assets, from traditional currencies to tokens representing assets like dollars, euros, bitcoin, stocks, gold, and other valuables. These assets can be traded among users with reduced friction, powered by Lumens.

Below is a screenshot from stellar.org.

stellar

The Stellar Network operates as a decentralized collection of servers on the blockchain. Each server functions independently, ensuring every node is interconnected without central monitoring. Transactions are processed as the network synchronizes and reaches consensus, allowing the ledger to be distributed uniformly. Anyone can become a verification node on the Stellar Network by utilizing the Stellar Consensus Protocol (SCP).

SCP, or the Stellar Consensus Protocol, is the algorithm verifying transactions within the Stellar Network. Unlike many proof-of-work blockchains, such as Bitcoin, SCP enables the network to scale more efficiently and quickly. The network also boasts a higher degree of decentralization through a unique feature known as “anchors.” These anchors are trusted entities that handle people’s deposits and issue credits into the blockchain, acting as bridges between various digital assets and the Stellar blockchain.

Jed McCaleb, the creator of Lumens and co-founder of Stellar, is also the founder of the Stellar Development Foundation, the team driving the project. McCaleb’s contributions to the crypto world are significant, creating the first major Bitcoin exchange, Mt Gox, and serving as Ripple’s Chief Technology Officer.

Read more about Stellar from our in-depth beginner’s guide: What is Stellar (XLM)?

Stellar as an investment

Stellar’s native cryptocurrency, Lumens (XLM), has attracted significant attention from investors and financial enthusiasts. Like any investment, it comes with its set of advantages and drawbacks. Next, we’ll review the strengths and weaknesses of the Stellar ecosystem any investor should consider.

Strengths:

  1. Utility and Adoption: Stellar’s primary function is to facilitate cross-border transactions and remittances. Its partnerships with big financial institutions and payment gateways, such as IBM’s World Wire, indicate a growing adoption rate.
  2. Speed and Cost: Stellar boasts transaction times of 2-5 seconds and minimal fees, making it attractive for real-world use, especially compared to traditional banking systems or even some other cryptocurrencies.
  3. Stellar Consensus Protocol (SCP): Unlike energy-intensive proof-of-work systems, SCP provides a faster, more eco-friendly consensus mechanism.

Weaknesses:

  1. Market Volatility: Like most cryptocurrencies, XLM is subject to high volatility. Its price can swing dramatically quickly, which might not suit all investors.
  2. Competition: Stellar faces stiff competition from other cryptocurrencies aiming to solve similar problems, like Ripple’s XRP.
  3. Dependence on Partnerships: While partnerships can be a strength, any negative news or termination of significant partnerships can adversely affect the price and perception of XLM.

In conclusion, while Stellar presents a promising investment opportunity, given its unique features and growing adoption, potential investors should be aware of the inherent risks associated with cryptocurrency investments. Conducting thorough research and consulting with financial advisors before making investment decisions is essential.

How to store Lumens safely?

A cold wallet is the best way to store your XLM tokens securely. This is like a special USB stick that you only connect to your computer or phone when you want to approve a transaction. This method gives your Lumens top-notch safety.

The Ledger Nano X is a highly trusted cold wallet. It costs around 150 euros. You can buy it from the official site through this link.

There are also no-cost wallets to keep XLM, but they might not be as protective as a cold wallet. If you are a beginner, you might keep the Lumens where you bought them. But if you’re thinking of holding onto them for a while, it’s better to move them.

Some popular free wallets, such as Trust Wallet, Exodus, and Coinomi, also support XLM. They’re easy to use and handy, but their safety is good compared to the extra security a cold wallet like the Ledger Nano X offers. You can also download a free wallet from Stellar’s website.

Antti Hyppänen

Antti Hyppänen is a Finnish cryptocurrency expert and financial analyst. He is the founder and editor-in-chief of <a href="https://bitcoinkeskus.com/">Bitcoinkeskus</a>., the largest crypto portal in Finland. Antti regularly shares his views on finances and investing at <a href="https://asialinja.com/">Asialinja.com</a>. Antti has followed the financial markets since 2010, focusing on the US markets. He has also had a particular interest in gold and silver. In 2017, he discovered Bitcoin and launched Bitcoinkeskus.com, now Finland’s biggest crypto website. Antti is considered one of the leading crypto experts in Finland.