Learning how to buy Stellar lumens is a must for anyone new to crypto.
Bitcoin and Ethereum have their uses, but the real world potential of the Stellar network and its xlm coin are unmatched. It’s our best option for creating a truly global economy.
After reading this step-by-step guide, you’ll know exactly how to exchange your dollars for lumens (XLM). From there, it’s up to you to dig deeper into the XLM coin, learning what you can from the awesome Stellar Reddit community or through your own research.
Since this guide focuses on XLM and how to buy Stellar lumens with USD (although you can buy lumens with any currency), we’ll first do a quick dive into the background of Stellar and why it’s unique.
Why Stellar? What are lumens?
All cryptocurrency networks are built on the blockchain, but they each have different functions. We’re seeing now that each network is best suited to solve certain types of problems.
Bitcoin is being used more as an investment asset. Ethereum’s main value is in smart contracts. Zcash is great for privacy.
And then there’s Stellar.
In the words of Jed McCaleb, founder and CTO of Stellar, they are creating “a worldwide financial network open to anyone.”
Fast, cheap, and reliable transactions, regardless of geography or economic level.
Stellar is best suited to streamline global payments — to connect people and financial institutions across the entire world. Stellar’s near-instant transactions and nominal fees give it a big advantage, especially in underserved areas.
Stellar’s partnership with IBM and KlickEx was a huge step in showing the real world utility of the network, and gave a glimpse into the future potential of cross-border payments.
Lumens (XLM) are the digital asset used to transfer value on the Stellar network. Owning the xlm coin makes it easier to facilitate trades between currencies that are less liquid.
The Importance of Anchors
Stellar bridges existing currencies with their network using “anchors.” Anchors are entities trusted to hold deposits and issue credits into the Stellar network.
Stellar is the technology that powers the next generation of financial organizations and Stronghold is helping set the foundation.
If you want to buy Stellar lumens, Stronghold is where you do it.
How to Buy Stellar Lumens
Once you’ve created a Stronghold account, exchanging your dollars for lumens is a pretty straight forward process.
1. Create a Stronghold account
First, create your Stronghold account. Submit a photo ID to complete the account verification process — after we’ve confirmed your identity, you can start trading.
2. Buy Stronghold USD
After we’ve verified your ID, log in to your Stronghold account, browse to the Trade page and click “Stronghold USD.”
On the next page, click “Deposit,” and select a preferred payment method:
- Bank Transfer: U.S. customers only
- Wire Transfer : U.S. and international customers
Click “Start” to begin the deposit process and enter your banking details — as soon as your account is approved to hold USDS, we’ll send you an email.
3. Buy XLM with USD
Once you have a balance of Stronghold USD in your wallet, return to the Trade page and select the XLM/USD market from the drop-down menu.
Fill in the order form with the price you’re willing to pay and the amount of XLM you want to purchase, then click “Place Buy Order.”
After your order is placed, it will appear with “My Open Orders.” When the order is filled, you’ll see your XLM balance listed in your Stronghold wallet on the My Wallets page.
If your order remains open for an extended period, you may want to adjust your price; orders with the lowest ask tend to execute quickly.
If you’re set on the price you want to buy at and believe that it will be met, you can wait for it to get filled. A bit risky, but waiting allows you to get in at your desired price. If you want your order to execute immediately, raise your price to the lowest ask.
Your order will remain in ‘Open Orders’ (found on your trade page) there until it is filled. Once filled, the funds will appear in your wallet.
Remember, if your order remains open and does not get filled, you may need to adjust your price.
And that’s it! That’s how you buy Stellar lumens. You now have XLM in your Stronghold account. Remember to always keep your Two-Factor Authentication on for added security.
Stellar’s Bigger Picture
Stellar is playing a huge part in connecting the world financially. We recommend looking over the Stellar Foundation’s official mandate to learn about their direct-signup program for individuals and see what they’re doing to drive institutional adoption.
Remember, everyone started off as a beginner. If you’re really interested, dig deep and learn as much as you can about all the networks, not just Stellar. Here’s a great resource to get you started.Stellar Trading