Stellar and the associated foundation were established back in 2014 and the blockchain was powered by XLM token which is the native Stellar coin. XLM is crucial for processing lightning quick transactions between multiple currencies and making cross-border payments.
What Problem is Stellar Solving?
At a first glance, it appears that Stellar is just another cryptocurrency trying to deliver exactly the same services that our conventional banks provide but there are many stark differences. For starters, Stellar’s payment processing is done on a decentralized blockchain which provides much quicker processing time at a fraction of costs.
Not only the payments get processed within 5 seconds, the fee is simply nominal. Where international wire transfer would set you back $75, Stellar network gets the job done with only $0.00006 per transaction. More importantly, Stellar was launched with the idea of establishing an inclusive digital economy to fight against poverty and empower individuals with enhanced access.
Benefits of Stellar
• Similar to XRP, Stellar’s native token have been pre-mined and already exist
• There are 50 billion Lumens or XLM available in total out of which 20 billion are in circulation
• Low fees and quick transfers for cross-border payments
• XLM can be used to facilitate transactions of currency pairs that aren’t highly accessible in the market
How to Buy Stellar
Just like you buy any other cryptocurrency, purchasing Stellar or XLM coins is a straightforward process.
Step 1 – Choose Your Stellar Exchange
Stellar coin is called Lumens and is symbolized by XLM. Previously it was denoted with STR and some exchanges may not have updated their systems yet. So, look for both when reviewing different crypto exchanges. Some of the top exchanges to purchase Lumens include Binance, Coinbase, eToro and CEX.io.
These exchanges are recommended because they offer fiat currency support which makes it much easier for you to buy the cryptocurrency. Remember that if you are using eToro, you won’t need a wallet for it since it’s just a trading platform which doesn’t actually buy the currency but lets you make money through price speculation.
Step 2 – Choose Your Stellar Wallet
Stellar can be stored on a number of physical and digital wallets. If you are looking for a hardware wallet, then Ledger Nano S or Nano X (supports mobile) are great options in terms of both performance and security. They aren’t as user friendly but they’ll keep your coins secure. If you are looking for an easier to use and secure mobile wallet, then you can go with the Atomic wallet as it’s available on both mobile platforms. Lastly, if you are looking for an exceptional desktop wallet, Blockchain.com is a good choice to ensure security of your digital assets.
Step 3 – Take Precautionary Measures
• Prior to buying any currency or starting trade on an exchange, ensure you go through the following steps:
• Always use a unique email to sign up on cryptocurrency exchange
• Use a strong password that includes upper and lower case letters, numbers, as well as special characters
• Ensure your computer and mobile devices are secure and have been scanned to get rid of any vulnerabilities
• Use unique passwords for exchange account and email ID
• Ensure you’ve enabled 2-factor authentication for extra safety
Step 4 – Purchase the Cryptocurrency
Once you’ve gone through the above steps, you are now ready to purchase the currency. Simply go to the marketplace of your choice and enter the amount of Stellar coins or XLM you are looking to buy. The exchange will buy the coins for you at the best available price at that time and the cryptocurrency will be transferred to your exchange account.
Step 5 – Store Stellar in Your Wallet
After the currency is in your cryptocurrency exchange account, you can then transfer it to your digital or cold wallet to keep it highly accessible and secure. It’s the ideal way to secure your digital assets as you don’t know when your exchange might face technical issues.