[This guide was updated in August 2019]
Stellar Lumens (XLM) is one of the largest cryptocurrencies out there in terms of valuation. Despite the fact that it is currently in the top 11 digital assets, there are many investors around the world who do not know how to buy this virtual currency. At the same time, XLM still has plenty of room to grow.
Many are excited about Stellar’s potential to transform the world’s financial systems, and we could soon see it follow in Ripple’s footsteps – in fact, IBM is using Stellar to compete with Ripple.
In this guide, we’re going to show you how to invest in XLM on one of the largest exchanges in the world, Binance.
What is XLM?
First of all, a classification must be made. Similar to Ripple and XRP, Stellar is the blockchain network and Lumens (or XLM) is the cryptocurrency used on the Stellar network.
The similarities between Stellar and Ripple don’t end there, however. Both networks perform the same role to enable instant, low-cost cross-border transactions focused on the banking and financial sectors. In fact, Stellar inventor Jed McCaleb was one of the co-founders of Ripple. He served as CTO there before leaving the company to start Stellar.
The main concept of Stellar is to act as a currency exchange protocol. It will allow people to easily switch between different currencies using Lumens as an intermediary. In short, if someone wants to convert USD to EUR, Stellar will do so by converting USD to Lumens and Lumens to EUR. The network is backed by companies that operate individual nodes, which makes it a little different from regular mining cryptocurrencies.
Stellar works very similarly to Ripple. The aim is to make it easier and cheaper for financial companies and private individuals around the world to process cross-border transactions. The virtual currency used on the Stellar network is quick and cheap to use, which means that it is very efficient for financial companies and retail investors looking to move funds.
To use the Stellar Network, users will need Lumen (XLM) to pay transaction fees and open accounts on the Live Stellar Network.
While it is currently one of the largest coins in the world, not many Fiat Lumen pairs are available. So the best way to get XLM is to first buy a currency like Bitcoin or Ethereum and trade it for Stellar Lumens on an exchange like Binance.
Although there are many cryptocurrency exchanges around the world, Binance is one of the largest digital asset exchanges out there. As reported by CoinMarketCap, the platform had a market cap of $ 800 million for the past 24 hours. This makes the stock exchange one of the largest in the world.
XLM has different trading pairs in the market and can be bought for Binance Coin (BNB), Bitcoin (BTC), Ethereum (ETH), Paxos Standard (PAX), TrueUSD (TUSD), USD Coin (USDC) and Tether (USDT). .
How to invest in Stellar Lumens:
Step 1: Register with Binance
If you have not already done so, you need to register with Binance. Their interface is very user-friendly and the process shouldn’t take long.
Step 2: Confirm your account
Binance requires you to submit several Know Your Customer (KYC) verification documents before you can start trading. You also need to set up secure 2-factor authentication to protect your account.
Step 3: Submit BTC or ETH to your Binance account
Once your account is active, you will need to deposit Bitcoin or Ethereum into your Binance wallet.
If you don’t already have any of these coins, you can buy with a credit or debit card from Coinmama or Changelly or a fiat-backed exchange like Coinbase.
Once you have BTC / ETH and are ready to send to Binance, go to the top navigation bar, select “Funds” and “Deposits”.
From the drop-down menu, choose whether you want to deposit BTC or ETH. This will give you an address to send your coins to. Make sure to send only the selected currency to this address (i.e. only send bitcoin to the bitcoin address). If you send another coin, it could be lost.
Step 4: wait for confirmation
Depending on the network load, it may take a few moments for the transaction to complete.
Binance also enables users to purchase digital assets with a credit card. However, some digital assets may not be available for purchase using this method.
Step 5: Find and select the BTC or ETH pair
Once you’ve deposited Bitcoin or Ethereum into your Binance wallet, you’ll need to switch to Binance’s exchange section. To do this, move the mouse over “Exchange” in the top bar and select “Basic”.
Now you are in the switching area, go to the right hand side which shows pairs for BTC, ETH, BNB and USDT. Select the coin you previously deposited and look for XLM. Click on the pairing to enter the XLM trading screen.
Optional: Use Binance’s advanced tools to buy when the time is right
Binance offers a number of tools and data charts that you can use to track the performance of coins over time. Using this information you can rest assured that you are buying low and selling high.
The trading screen shows you the price and order history for each pair. It also gives you the option to set limits on buying or selling. This means that you can set a price at which Binance will automatically close a trade for you.
Step 6: choose the XLM quantity you want to buy
Below the price chart you can set the price at which you want to buy or select “Market”. If you buy at the market price, your transaction will be executed at the value that XLM has at that moment.
With both order types, you can choose how much XLM you want to buy or spend 25%, 50%, 75% or 100% of the coins in your BTC / ETH wallet.
Step 7: buy Stellar Lumens!
Click the “Buy XLM” button and you are done!
Step 8: Move your coins to a secure Stellar wallet
The best thing you can do is move the funds to a cryptocurrency wallet specially designed to store digital assets. This is very important as it allows users to keep their funds safe and use them when needed. The most useful and secure wallets include hardware devices like Ledger Nano S.
You need a wallet that supports Stellar Lumens. An official list of wallets that support XLM can be found here. Popular options are the Interstellar Wallet, a multi-platform wallet specially designed for the Stellar network, or the Ledger Nano S Hardware Wallet, one of the most secure types of wallet available.
Once you have your Stellar Lumens wallet set up and ready, go to “Funds” again and select “Withdrawals”. From here you can find XLM in the drop-down menu. Now add your XLM wallet address and choose how much you want to withdraw.
Click “Submit” and wait for the transaction to be confirmed. Your coins should show up in your wallet shortly, depending on the activity on the network.
Buying XLM with Binance is one of the best decisions investors can make rather than using iliquid exchanges with little security. In addition, in the event that there are problems with the funds, Binance has an emergency fund that has already been used once when the exchange was hit by an attack.
After purchasing the funds, sending the XLM to a hardware or offline wallet would be the best decision for storing the digital asset.
At the time of this writing, XLM has a market cap of $ 1.44 billion and a price per coin of $ 0.073227.
Now you are ready to invest in Stellar Lumens, the currency behind the global financial network of the future.
Andreas is a writer and digital marketer from New Zealand who now lives in Southeast Asia. In addition to working in many areas of the e-commerce space, Andrew has a keen interest in cryptocurrency, especially altcoins and projects that focus on bringing cryptocurrencies to the mainstream