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How to Buy Stellar Lumens (XLM)

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Stellar Lumens is a distributed payment infrastructure that features an open-source code. The platform entered the market with the goal to facilitate a more streamlined approach to international money transfers such as remittance payments. Today, the Stellar ecosystem is known for its affordable, fast, and reliable transfer capabilities. Specifically, the platform facilitates frictionless cross-border transactions. To learn more visit our Investing in Stellar Lumens guide.

We list the top 5 brokers that offer the ability to buy Stellar Lumens (XLM) with a credit card or debit card.

Binance

Binance is one of the largest and most well-known cryptocurrency exchanges in the world. The benefits of purchasing Stellar Lumens (XLM) here is that you benefit from the lower exchange fees than competing exchanges, and the increased liquidity enables you to buy and sell quickly to take advantage of market moving news.

Read our Binance Review or visit Binance.

Use Discount Code: EE59L0QP for 10% cashback off all trading fees.

Paybis

Paybis operate a very well-trusted Bitcoin and cryptocurrency purchase platform where you can buy Stellar Lumens (XLM) and a range of other crypto using nothing more than your credit or debit card. They have been around since 2014 and have helped hundreds of thousands of people to make Bitcoin purchases.

If you simply want to buy XLM and hold then this is one of the easiest ways to buy XLM with a credit card or debit card.

Read our Paybis Review or visit Paybis.

Kriptomat

Kriptomat is an EU-based cryptocurrency exchange and wallet service that has been operating since 2018. They are headquartered in Estonia which is a trusted European hotbed for similar companies. Having been founded by tech-savvy Srdjan Mahmutovich, they are now operating in more than 80 countries worldwide and serving users around the world. Kriptomat is an excellent option for European & Asian investors who simply wish to buy and sell Stellar Lumens (XLM) for the long-term. No USA customers.

Read our Kriptomat Review or visit Kriptomat.

Kraken

Kraken is one of the longstanding names when it comes to cryptocurrency exchanges operating in the industry.

From humble beginnings, they have now gone on to become one of the most recognizable names in the space offering an extensive selection of assets to trade including Stellar Lumens (XLM).

The trading costs are competitive with other exchanges and they have continued to evolve now offering both futures and margin trading.

Read our Kraken Review or visit Kraken.

Coinberry

Coinberry is making it easy to purchase Stellar Lumens (XLM) in Canada with no fuss and buy or sell the asset quickly through their easy to use platform. They have been around since 2017 and have a number of highly-trusted partnerships that set them up with a solid reputation for cryptocurrency. They are also registered with FINTRAC as a Money Services Business, so very trustworthy from that standpoint. No USA customers.

Visit Coinberry.

Best for

Advanced Users

Best for

Instant Purchase

Best for

European Traders

Account Minimum

None

Account Minimum

$50

Account Minimum

€35

Promotions

10% Cashback

Discount Code: EE59L0QP

Promotions

None

Promotions

None

What are Stellar Lumens (XLM)?

Stellar is an open-source, blockchain based, network.  Oversight of the Stellar network is performed by a non-profit organization, known as Stellar.org.

The Stellar network is powered by its native token, ‘XLM’ – commonly referred to as ‘Lumens’.

What does it do?

Through its structuring, Stellar is able to facilitate cheap, and quick, transfers of value.  Much of the development surrounding Stellar is targeted towards the remittance industry, and cross border transactions.  One of the benefits afforded through use of the Stellar network is integrated asset conversions.  This means that the network supports a plethora of currencies, and can seamlessly convert between them.

How does it Work?

Stellar makes use of a proof-of-stake protocol.  This means that transaction validations occur through XLM holders ‘staking’ their tokens.  This simply entails the holder to store their asset in a supported digital wallet.  This process is significantly more energy efficient than proof-of-work models, and is growing in popularity.

Compared to most networks, Stellar makes use of its native token in a unique manner.  While XLM tokens can be used to complete transactions, their original purpose was to provide ‘friction’ to the network.  This friction is achieved by introducing modest transaction fees (payable in XLM), and minimum wallet holdings.  The purpose of this is to reduce/eliminate spam from being introduced into the network, clogging data blocks.

Projected Developments?

There are various developments and upgrades expected to be seen on the Stellar network in the coming years.  The following are a few of the largest on the horizon.

  • Increase robustness and stability
  • Establish Stellar on a world stage
  • Develop and improve use cases
  • Cross-border transactions
  • Securitize assets

Underlying Ideology?

While comparisons will always exists between Ripple and Stellar, it is clear that the guiding factors for development differ between each.  Stellar, in particular, was built with financial inclusion in mind.  By bringing new efficiency to cross-border transactions, a new subset of humans can now gain access to new financial opportunities.  Underlining the idea of financial inclusion, is the fact that the SDF is run as a non-profit organization.

Acceptance and Controversies?

For projects of its kind, Stellar has managed to establish higher levels of acceptance than most. The following are but a few of the companies that have partnered with, and utilize Stellar in some shape or form.

Beyond working relationships with these companies, Stellar is one of the most commonly supported assets on cryptocurrency exchanges, and is readily accessible for many.

For the most part, Stellar has avoided any real controversy.  There are those, however, that do not agree with the sway that the Stellar Development Foundation (SDF) holds over the network – due to the SDF controlling 30M of the 50M XLM in existence.

Aside from this, many view Stellar in the same vein as Ripple.  Much of this stems from the fact that the founder of Stellar, Jed McCaleb, was also a cofounder of Ripple.  Due to variances in network structuring, and actions by the SDF, Stellar has managed to avoid much of the same criticisms of Ripple, as most do not view it as likely to be a security.

Regulation?

To date, no official statements have been made by regulators on the status of XLM.

Outside of commentary by regulators, an independent group known as the ‘Crypto Ratings Council (CRC)’, has provided its input.  Based on its assessment of the Stellar network, utilizing assessment tools similar in nature to those that would be used by regulators, the CRC has given it a score of 3.75 out of 5.  This indicates that the project does indeed share various traits with that of a security.  For comparisons sake, the CRC gave similar scores to rival projects, like Tezos (3.75/5) and Ripple (4/5).

As with any investment or asset, always practice caution with assets surrounded by unknowns.  While there are various arguments pointing towards Stellar not being a security, there is always the chance that regulators such as the SEC will have a differing perspective.

Who Made It?

Stellar was first launched in 2015 by Jed McCaleb.  This endeavour was not the first foray into blockchain by McCaleb, however, as he is also the co-founder of Ripple, and the infamous Mt. Gox exchange.

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