See More

How To Buy Stellar (XLM) and Everything You Need To Know

11 mins
Fact Checked
by Maria Petrova
Join our Trading Community on Telegram

Those who were around during the earlier days of crypto may remember Stellar. The relative veteran in the blockchain is still going strong (as much as can be considering crypto winters and an ongoing bear market). If you’re looking to invest, we’ve compiled a guide covering how to buy Stellar (XLM) and how blockchain and native crypto work. Here is what you need to know.

Buy Stellar (XLM) with just a few clicks on these secure platforms

YouHodler

Best for free BTC cloud mining
YouHodler
Explore YouHodler on YouHodler’s official website
Availability Europe & U.K.
Deposit fees 0
Trading fees rollover fee paid every fixed period of time
Limited time offer from $10 to $10,000 for the first deposit and trading volume

OKX

Best for mystery box offer
OKX
Explore OKX on OKX’s official website
Availability WorldWide
Deposit fees 0
Trading fees 0.08% (maker) / 0.10% (taker)
Limited time offer Airdrop up to $10,000

Coinbase

Best for beginners
Coinbase
Explore Coinbase on Coinbase’s official website
Availability USA & Europe
Deposit fees 0
Trading fees 0-0.4% (maker) / 0.05-0.6% (taker)
Limited time offer Bonus $10 for US users

Our methodology for choosing the leading crypto platforms for Stellar (XLM)

What is Stellar?

The Stellar XLM network is an open-sourced, second-generation blockchain platform designed to facilitate cross-border transactions and remittances. It was also created to be a low-cost alternative to the unbanked and underbanked.

Stellar lumens is the name of the native cryptocurrency to the blockchain. “Lumens” refers to the cryptocurrency coins themselves, while “Stellar” refers to the broader network or protocol.

buy stellar jed mccaleb
@BankXRP: Twitter

Stellar was created by Jed McCaleb in 2014. McCaleb also founded Mt. Gox, the infamous centralized exchange, and co-founded Ripple, a Stellar competitor.

How does Stellar work?

buy stellar explorer
Stellar block explorer: stellarchain.io

Unlike Bitcoin, which uses proof-of-work, or Ethereum, which uses proof-of-stake, Stellar uses its own proprietary mechanism called the Stellar Consensus Protocol. The mechanism works on a federated system, which some may describe as “proof of reputation.”

In other words, a trusted group of nodes called “validators” updates the blockchain. Each node on the network selects a trusted group of nodes; when enough nodes agree on a transaction, it is considered valid.

Why is Stellar popular?

Stellar became popular for a number of reasons. The first is its fast and low-cost transactions, which often settle in seconds and cost a fraction of a cent.

Furthermore, Stellar has formed partnerships with a number of notable figures and institutions. Some of these include MoneyGram, Circle (USDC Coin), which supports USDC on Stellar, and even Ukraine, which uses the Stellar Development Fund (SDF) to tokenize its currency.

Stellar vs. other cryptocurrencies

buy stellar top crypto by market cap
Top crypto by market cap: CoinMarketCap.com

Compared to other cryptocurrencies, stellar has lasted much longer than many coins that came out around the same time; as per CoinMarketCap’s historical listings, XLM is also the #23 top crypto by market cap — just below avalanche and above monero.

Stellar vs. XRP: An ultimate comparison

Regarding stellar and XRP, there are both similarities and differences. Both networks share a founder — Jed McCaleb — who, following rumors, had to clarify that Stellar is not a Ripple fork.

Jed McCaleb: Twitter
Jed McCaleb: Twitter

Beyond rumors, what is certain is that while Stellar was created to service the unbanked, Ripple was created to appeal to financial institutions to create a more efficient financial system.

Additionally, Stellar is open-source, has a community-based and philanthropic focus, and anyone can run a node. On the other hand, Ripple Labs holds a significant amount of XRP and has a more centralized role in Ripple’s promotion and development.

Stellar ecosystem 

The Stellar ecosystem is relatively thin. It wasn’t initially meant to have the same programmability as Ethereum. Many of the applications on Stellar are NFTs are decentralized exchanges. Some of these include:

  • Lumenswap
  • LumenDex
  • StellarX
  • Litemint
  • StellarNFT

Stellar wallets 

buy stellar wallets
Stellar wallets: stellar.org

Although Stellar may not have a multitude of DApps, it does have a few stellar-specific wallets. Here are a few stellar wallets that you can use to hold your XLM.

  • LOBSTR
  • Solar Wallet
  • StellarTerm
  • Keybase Wallet
  • Vibrant

Stellar staking

Stellar is not a proof-of-work (PoW) or proof-of-stake blockchain. Therefore, there is no native support for XLM staking. You cannot stake Stellar in the traditional sense to become a validator.

Where to buy stellar

As one of the top 25 cryptocurrencies by market cap, a number of platforms allow you to buy stellar. Here are the top places to buy XLM.

Availability
100+
Cryptos
200+
Trading fees
0.26%
Bonus
No bonus
Availability
100+
Cryptos
250+


Trading fees
0.00%-0.001%
Bonus
up to $200 for US
Availability
100+
Cryptos
300+
Trading fees
Maker fee. 0.080%. 0.075% ; Taker fee. 0.100%
Bonus
Guaranteed airdrop up to $100
Availability
100+
Cryptos
350+
Trading fees
0.00% and 0.01%
Bonus
Up to $600
Availability
100+
Cryptos
40+
Trading fees
$3.99 or 4.5%
Bonus
No

All of the above platforms have good market reputations and solid security measures. Kraken offers a highly secure CEX, while Coinbase PRO offers enticingly low fees. Binance has deep liquidity, making it the platform of choice for many people looking to buy XLM. All of the listed platforms are highly usable for beginners but also cater to an advanced audience. If you want to buy stellar anonymously, you can choose a number of decentralized exchanges, including Lumenswap.

How to buy stellar

Here’s how to buy stellar lumens on Kraken.

1. Open the Kraken app. Select the purple button with the arrows.

buy stellar step 1

2. Select “Buy.”

buy stellar step 2

3. Select an amount to buy.

buy stellar step 3

4. Slide the slider at the bottom to complete your purchase.

buy stellar step 4

How to sell stellar

1. Open the Kraken app.

buy stellar sell step 1

2. Select the purple button with the arrows and select “Sell.”

buy stellar sell step 2

3. Enter the amount you would like to sell.

sell xlm step 3

4. Slide the slider at the bottom of the phone to complete your order.

sell step 4

5. You have successfully sold XLM.

sell xlm complete

Stellar: Should you buy into the hype?

We’ve covered key elements of the blockchain and native coin. But should you buy stellar? Let’s review some of its strengths and weaknesses to answer this question.

Pros and cons of investing in Stellar

Pros

  • Low-cost and fast transactions
  • Innovative consensus mechanism.
  • Natively backed USDC on blockchain
  • Smart contract functionality

Cons

  • Proof of reputation mechanism
  • Low trading volume and liquidity
  • More successful alternatives

Is stellar a good investment for you?

Stellar was initially created to be a low-cost (in this, it has succeeded), an alternative to the traditional banking system, and a facilitator of cross-border transactions

However, despite the fact that many people think that its competitor is Ripple, its actual competitors are stablecoins. Because of this, Stellar doesn’t have much of a use case in its current iteration, making it difficult to find a good reason to invest in the network.

Stellar price prediction 2023/2025/2030

The network still aims to become a worthy alternative to traditional banking setups. If it achieves this, the future might be promising for the price of stellar. But what can we realistically expect? Our stellar price prediction posits that XLM could be worth $0.22 in 2023, $0.38 in 2025, and $0.76 in 2030. However, do note that price predictions are conditional on a number of factors, including the health of the broader markets.

Stellar has to keep up

Stellar has stood the test of time, unlike many of its competitors. This, coupled with its position as one of the top 30 cryptocurrencies by market cap, is impressive. If you choose to buy stellar, do so because you believe in the long-term worth of the project. While its initial use case was circumvented with the rise of stablecoins, note that the network has since pivoted to allowing more programmability to keep up with the times. While there is hope for a resurgence of stellar in the future, never invest more than you can afford to lose, and be sure to research the coin and network thoroughly.

Frequently asked questions

How can I buy stellar cryptocurrency?

Is stellar coin worth buying?

Will Stellar reach $10?

Can I buy stellar on Coinbase?

Is stellar on Binance?

Is stellar better than Bitcoin?

Is stellar a coin or token?

Can I use my credit card to buy stellar crypto?

What is the minimum investment for stellar staking?

Top crypto projects in the US | May 2024

Trusted

Disclaimer

In line with the Trust Project guidelines, the educational content on this website is offered in good faith and for general information purposes only. BeInCrypto prioritizes providing high-quality information, taking the time to research and create informative content for readers. While partners may reward the company with commissions for placements in articles, these commissions do not influence the unbiased, honest, and helpful content creation process. Any action taken by the reader based on this information is strictly at their own risk. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.

Ryan1.png
Ryan Glenn
Ryan Glenn is a journalist, writer, and author. Ryan is motivated to educate as many people as possible on the benefits of web3 and cryptocurrency. He has authored “The Best Book for Learning Cryptocurrency,” and runs an educational platform, web3school.us, dedicated to demystifying the crypto space. Ryan built the platform to transition tech-savvy and non-tech individuals into crypto and give everyone a baseline understanding of the different fields in the cryptosphere. Ryan is also an...
READ FULL BIO
Sponsored
Sponsored