If you are interested in investing in the Stellar cryptocurrency (XLM), it is worth gathering more information about this project. Stellar is a blockchain platform that enables fast and cheap money transfers around the world.
What is worth knowing about Stellar?
Stellar was created by the non-profit Stellar Development Foundation (SDF). The project has its origins in 2014. It is a cryptocurrency that was created to facilitate international payments. The goal of the creators was to fight poverty and increase access to financial services in countries where most citizens have limited access to bank accounts.
Stellar allows fast and cheap transactions between wallets located around the world. From the information that can be found on the Internet, it comes out that the cost of a transaction is generally around 0.00001 XLM, which is a very affordable rate compared to the transaction costs that are known from the Bitcoin or Ethereum networks. In addition, the network is very efficient, as it can process 1,000 transactions per second. Which means it has much greater scalability than Bitcoin, which processes only 10 transactions per second.
The Stellar network has its own cryptocurrency called Stelar Lumens (XLM). 100 billion units of this currency were put into circulation at one time. It’s important to note that this is a cryptocurrency vulnerable to inflation, as another billion units are introduced into circulation every year. Since the number of units introduced is rigidly set at 1 billion per year, the amount of inflation is about 1% per year.
A distinguishing feature of the Stellar network is that it allows, among other things, the processing of transactions in traditional currencies. To make this possible, the creators decided to bet on an unconventional solution in the form of so-called anchors (“anchors”). We are talking about deposit-taking entities in fiat currencies. Entities of this type operate on a similar basis to banks – the user deposits cash and in return receives an entry appearing on the account, which allows the user to withdraw cash at any time. In other words, once the deposit is accepted, digital tokens are issued (functioning for the duration of the deposit). Who can become the said anchor? Basically any institution, assuming it integrates its own services with the Stellar network.
The project itself looks very intriguing, and it will undoubtedly be interesting to see if in the near future the adoption of cryptocurrency trading in developing countries will take off to the point where projects like Stellar can provide real competition to traditional bank accounts. However, not everyone is looking at Stellar as a project with much utility in the context of international transfers. Many people see XLM tokens primarily as an investment asset. To address this, here’s how to buy XLM on popular cryptocurrency exchanges.
How to buy Stellar cryptocurrency (XLM) on the Bybit exchange?
How to buy Stellar? Stellar cryptocurrency can be bought on various exchanges, including Bybit, which is one of the leading cryptocurrency exchanges. It is trusted by users, among other things, due to the security solutions used and the intuitive trading platform
Buying Stellar cryptocurrency through Bybit requires several standard steps. The first of these steps is to register by clicking the registration icon in the upper right corner of the page. When filling out the form, you will need to provide, among other things, your phone number and email address.
After setting up an account with Bybit, you can transfer funds. To do this, you can use a credit card or you can make a bank transfer. Admittedly, you can’t buy XLM directly this way, so it’s necessary to first purchase another cryptocurrency (e.g. ETH, BTC, USDT or other) in order to then make an exchange on the spot market.
How to buy Stellar (XLM) cryptocurrency on the OKX exchange?
Buying cryptocurrencies on the OKX exchange, which is also considered an intuitive exchange platform, works on a similar basis. Here, too, you need to start by registering an account. As on the Bybit exchange website, you will find a button for registration in the upper right corner. A verification code will come to the email address or phone number you provide, which you must enter to complete the registration. That’s not all, however, as verification with a valid ID is required for full registration.
After successful registration, select “Buy cryptocurrency” in the menu and choose a convenient payment option. For example, buying with a credit card (Visa, MasterCard, etc.) or paying with a payment broker (Simplex Banxa Coinify, Itez, MoonPay, etc.)
What are the other ways to buy Stellar (XLM) cryptocurrency?
Where to buy St ellar besides the exchanges mentioned above? You can buy Stellar Lumens cryptocurrency on various exchange platforms – Binance, Kraken, Bitfinex, among others.
Besides, the purchase can be made at some cryptocurrency exchange offices. An alternative option is also to buy and sell Stellar Lumens directly from other users (e.g. on online forums) or on P2P-type services, but this way may not be entirely safe. Therefore, if possible, it is easier to make purchases on exchanges.
How to buy Stellar cryptocurrency without going through the KYC procedure?
Is it possible to buy Stellar cryptocurrency without going through the KYC procedure? In practice, it is possible to buy cryptocurrencies without going through KYC on some exchanges. However, it should be noted that fewer and fewer exchanges offer this possibility.
Interestingly, it is possible to make a purchase without verification through Bybit, but only if the withdrawal does not exceed a certain amount (until now it was the equivalent of 2 BTC).
In addition, you can purchase Stellar cryptocurrency at bitmachines or exchange offices. In most cases, transactions up to a certain amount do not require verification, although this depends on the policy of the respective bitomat or exchange office operator, so before making such a transaction, it is worth finding out what the conditions and limits are for making a transaction without KYC.
Where to hold Stellar (XLM) cryptocurrency after purchase?
Storage of the purchased cryptocurrency is another question of interest to those considering its purchase. Of course, you can store Stellar on an exchange, but keep in mind that this is not a place designed to hold long-term savings, but rather to rotate funds on a regular basis. Therefore, if you are looking for a wallet to store XLM or other cryptocurrencies for the long term, as a rule, cold wallets are the best, and safest, place.
Wallets of this type do not need constant access to the Internet for their operation, which makes them much more resistant to possible hacking attacks (compared to so-called hot wallets, i.e. applications (web and mobile) that need access to the network for their operation. Popular and also generally recommended examples of cold wallets are so-called hardware wallets such as Ledger or Trezor.
