What is Stellar lumens?
Stellar is an open-source network and protocol aiming to provide efficient and low-cost global financial
services.
The network allows cross-border transactions between any pair of currencies. Lumens (XLM) are the native
asset of
the Stellar network that help to secure the network and provide liquidity for transactions. One lumen is a
unit of a
digital currency, like a bitcoin.
How to buy Stellar lumens?
Lumens can be bought on cryptocurrency marketplaces. Simply open an account with one and verify your
identity. The
duration of the verification process can take from minutes (by showing your ID to an agent using videochat)
to
several weeks. After successful verification you can transfer money to the marketplace with your preferred
payment
method to buy Stellar lumens. Additionally, you may also need to setup a wallet to store your lumens if your
chosen
marketplace does not provide a wallet service.
Where to buy Stellar lumens?
There are two major types of marketplaces that offer lumens.
Exchanges resemble traditional stock exchanges (e.g. New York Stock Exchange) where
individuals can trade
lumens
directly with other buyers and sellers. Cryptocurrency exchanges thereby employ a matchmaking algorithm
which is
responsible for determining the price of lumens and finding enough sellers and buyers. As a result, there is
no
personal contact between sellers and buyers. Exchanges are tailored towards the needs of professional
traders which
is reflected in their features and user interfaces which may be confusing for beginners.
Brokers, by contrast, offer lumens out of their own asset stock. This means that when you
buy Stellar lumens
from a
broker, there is no transaction between two individuals and no matchmaking algorithm, but only a transaction
between
you and the broker. Cryptocurrency brokers align their prices on current marketplaces, but charge a markup
or
markdown that is more expensive than trading fees charged by exchanges. Their services are usually
beginner-friendly
and easy-to-use.
In addition to exchanges and brokers, you may be able to buy Stellar lumens on peer-to-peer (P2P)
directories
where
individuals can trade lumens directly between each other, without an intermediary like an exchange or
broker.
However, most P2P directories do not list lumens.
What to consider when buying Stellar lumens
After learning about cryptocurrency marketplaces you might wonder: “What is the best marketplace for me?”
Rest
assured, Cryptoradar has you covered: We list the best places to buy Stellar lumens from all over world. All
you
have to do is define what’s important to you and use our filters to find an exchange or broker of your
liking.
Verification: Most marketplaces require identity verification (e.g. through a passport copy
as well as a copy
of a
recent utility bill) before you can buy Stellar lumens. This process can take anywhere from a few minutes to
several
weeks.
Wallet Service: A lumen wallet is a piece of software to store your lumens. Some
marketplaces have a
beginner-friendly, built-in wallet service where you can store your lumens. However, storing lumens in a
wallet that
you manage yourself is usually a safer option, but it requires some learning effort. You can find more
information
about different types of wallets here.
Prices & Fees: The price of a lumen is determined by supply and demand and will rise or fall
depending on the
number
of people willing to sell or buy Stellar lumens. Exchanges usually have lower prices and fees than broker
services.
Additionally, there may be fees for depositing and withdrawing fiat and cryptocurrencies.
Payment method: Before you can buy Stellar lumens you need to deposit money on a
marketplace. Exchanges
usually offer
fewer payment methods such as wire transfer, while broker services may offer a multitude of faster payment
methods
such as credit card or Skrill.
Security: Before buying cryptocurrencies, or any other financial investment, the security of
the assets
should be
taken into consideration. Cryptoradar helps you filter marketplaces based on security features like
two-factor
authentication (2FA) or cold storage. Also, we advise you to not keep significant amounts of fiat (USD or
EUR) and
cryptocurrencies stored on marketplaces, as they are frequently targets of cyber attacks.
When to buy Stellar lumens?
Is now a good time to buy Stellar lumens? We don’t know. However, if you are looking at a specific price at
which you
would like to buy Stellar lumens, we can help you to not miss a favorable opportunity: sign up for a Cryptoradar
account and set up a price alert to be notified when lumens trades below or above your target price.