Buy Stellar (XLM): The Ultimate Guide To Stellar Lumens
Published: November 1, 2020 by Valentina
This emerging cryptocurrency has become very popular thanks to its extraordinary speed in transactions and its numerous possibilities of use. All this has led analysts to believe that to buy Stellar is an investment to consider, but what are the reasons for this success?
These are numerous and in this guide, we will examine them thanks to a research done by TradingCourseOnline, a reference point in the cryptocurrency market.
Buying Stellar is not difficult, but it is necessary to follow these 3 basic steps:
- Register with a regulated CFD Broker, which is preferable to Exchanges.
- Better to practice on the Demo account to familiarize yourself with the platform.
- After that, you can make the minimum deposit required and start investing on the real market.
These steps are essential to buy Stellar without paying commissions and in a safe and regulated manner.
Thanks to CFD brokers like eToro , we can trade the main cryptocurrencies, such as Stellar, in total safety, avoiding the risks associated with Exchanges. Here are the best platforms available:
Min. Deposit: 50€
Min. Deposit: 100€
Min. Deposit: 10€
Min. Deposit: 250€
Min. Deposit: 100€
Min. Deposit: 250€
Buy Stellar: History and Origins
Stellar Lumens (XLM) was founded by Jed McCaleb and Joyce Kim while they were still working on Ripple in early 2014.
Stellar, like many other emerging cryptocurrencies, is also based on blockchain with a very well distributed network connecting banks and payment networks to facilitate low-cost transactions.
Stellar’s cryptocurrency, its token, is called Lumen and is traded under the XLM symbol.
These names: Stellar, Lumen, and XLM are used in the same way to indicate the cryptocurrency; even if, specifically, Stellar indicates the network, Lumen the cryptocurrency, and XLM the symbol to trade it.
Unlike many other crypto-based payment systems, Stellar uses a consensus protocol other than that used by Bitcoin, which uses confirmations from the entire network.
Stellar uses an algorithm called FBA (Federated Byzantine Agreement), which allows for faster transaction processing, using only part of the network and saving time. The shortened process has made Stellar’s network extremely fast and is reported to be able to process up to 1,000 transactions per second.
Stellar: Quotation and value in real time
Is buying Stellar convenient?
Is buying Stellar convenient? This is a complex question and we hope that at the end of our guide, you will have a satisfactory answer.
Let’s start by saying that according to leading cryptocurrency experts, Stellar’s market value will increase regularly. This trend is directly related to the growing popularity of cryptocurrencies in general.
Furthermore, the advantages of XLM, such as its speed, make this cryptocurrency among the most interesting in the whole market. In fact, Stellar, thanks to its network, has entered into partnership agreements with numerous companies and banking groups.
Despite this, the cryptocurrency quotation in recent years has shown a very flat trend, as we can see in the graph below. Now, we need to understand if it is a good time to buy Stellar or not.
Let’s go ahead in our guide and try to find it out.
How to buy Stellar
To buy cryptocurrencies there are two main trading methods, which have substantial differences: One is based on Exchanges and the other on CFD brokers.
Let’s say right away that with CFD Brokers you don’t really buy cryptocurrencies, you only speculate on the price fluctuations of these digital currencies. This type of trading eliminates all the security problems that have affected the Exchanges and that have led users to be wary of these websites.
In the table below, you can see a comparison between these two investment methods, with their strengths and weaknesses:
Pros > You “really” buy cryptocurriences
Cons > Commissions to be paid
> No license
> You can only invest upwards
> Serious security concerns
> Slow transactions
Pros > They are safe and licensed
> You can invest both up and down
> There are no commissions
> There is no risk of cryptocurrency theft
> Immediate transactions
Cons > You don’t “really” buy cryptocurriences
The Exchanges are ultimately expensive (commissions to be paid), unsafe (they suffer frequent cyber attacks), and allow you to earn only in the event of a rise in prices.
CFD brokers, on the other hand, are safe and regulated, do not charge commissions and also offer the possibility of earning when prices fall (short selling).
Buy Stellar with the best platforms
After the analysis of strengths and weaknesses seen in the previous table, you will have a clearer view of the advantages of CFD Brokers, but we must immediately point out that these intermediaries are not all the same. To choose the best platforms, we must make sure that the brokers chosen are duly authorized by FCA or by another international control body.
On the operating platforms provided by CFD Brokers, it is traded in this way:
- Buy Stellar CFDs to profit from price growth
- Sell the Stellar CFDs to profit from the price drop
Once the desired price has been reached, you can close the transaction and withdraw the net profit, without commissions.
For OnlineTradingCourse, the best platforms to buy Stellar safely are those offered by eToro, ForexTB and IQ Option.
eToro: Intuitive platform to buy Stellar
eToro has reached an incredible level of popularity thanks to its intuitive platform and its very innovative services.
This Broker is regulated by FCA on the UK market, while at an international level, it has obtained numerous other licenses.
Below, we can see a screenshot of the Stellar XLM cryptocurrency on the eToro platform:
To buy Stellar Lumens (or sell it), you need to click on “Invest”, decide whether to buy or sell the cryptocurrency and how much to invest in the single operation.
One of the services that have made eToro famous is a patented system, called Copy Trading, which allows you to copy the operations performed by the best traders in the world (on eToro) automatically and free of charge.
To use Copy Trading there are some steps to follow:
- Register on eToro
- In the section “people”, you can choose the traders to copy based on the performance.
- With a click, Copy Trading will copy exactly the same operations of the chosen traders in your account.
- At this point, you will get the same returns as these trading experts (of course, in proportion to your investment), without doing anything else.
Here, you can see some of the eToro Traders that can be copied.
Both Copy Trading as well as traditional trading can also be tested on a free Demo account, without taking real risks.
For more details you can read our full eToro review.
ForexTB: Trading signals to buy Stellar
ForexTB is an intermediary that has tried to stand out from the crowd of CFD brokers thanks to the focus on training and operational support.
The CySEC authorization makes ForexTB safe and legal to operate throughout Europe. Among the advantages of this broker, you can count the choice of trading platforms which are two, both free:
- The web platform is easy to use and can be entered from any browser without downloading any software.
- Metatrader 4 is more technical and full of professional indicators and meets the needs of the more experienced traders.
Here is a screenshot of the ForexTB web platform with the Stellar CFD:
Buying Stellar Lumens is very easy, just click on buy or sell and decide how much to invest in the operation.
ForexTB has created a free trading course considered among the best in the market. This ebook allows you to learn the basics of technical analysis and online trading in a very quick and simplified way.
In addition to theory, ForexTB also thinks about practice by sending the free Trading Signals to all its investors. These are indications developed by Trading Central that have a success rate of 70% and with the link below you can get them for free:
IQ Option: Buy Stellar with 10 Euro
IQ Option has become one of the most popular brokers thanks to its focus on less capitalized investors. This broker tries to solve one of the problems that most “stop” these traders from accessing the markets: The initial deposit.
With IQ Option, it is possible to open a real account with a 10 Euro deposit, an amount that is truly within everyone’s reach.
Thanks to this possibility, with IQ Option you can buy Stellar Lumens by investing even a few euros, but at the same time experiencing the feeling of the real market, which provides very different sensations from the Demo account.
FCA has issued an operating license for IQ Option which can offer its services throughout the UK and, thanks to other licenses, also in many other countries.
The IQ Option trading platform is very technical but at the same time simple and clear; packed with tools and indicators that make trading with this broker fast and professional.
Novice traders also appreciate an educational area accessible for free, full of material and courses to improve their knowledge on online trading.
Buy Stellar: Forecast
To offer a broad assessment of the performance of Stellar Lumens and the expected future for this cryptocurrency, we have reported the analysis of some industry experts:
- Beincrypto by analyzing Stellar’s coin price history, predicts the value of XLM will rise to around $ 45 in 2021.
- WalletInvestor is based on Stellar’s current trends and expects XLM to trade at $ 0.0165 in 2021.
- LongForecast says we shouldn’t expect anything good from XLM’s value over the next few years. Stellar, according to this analyst, will continue to fall at the price of $ 0.028 at the end of 2021.
- AltPocket, despite the obvious current trend, expects long-term growth, with the price of Stellar coins reaching $ 10 in 2021 and $ 30 in 2025.
- Crypto Rating sees the price at $ 0.462117 within a year and $ 0.690293 in 5 years. A decidedly moderate forecast compared to those of other analysts.
Stellar pros and cons
After the detailed analysis of XLM, we have clearer ideas about the success of this cryptocurrency on the market. But to better understand if buying Stellar is a good investment for the future, let’s try to summarize the pros and cons of this cryptocurrency.
- Stellar is a successful working product, integrated into companies like IBM, Microsoft, Wirex, etc.
- The current price seems underestimated when comparing it to the growth in Bitcoin’s price this year.
- It offers a much faster transaction system than most cryptocurrencies on the market.
- The growth prospects are long-term, so in the short term the price may move little.
- With the volatility of the cryptocurrency market, it is important to keep up with changes and any competitors that may outperform Stellar in terms of innovation and diffusion.
Stellar is a very innovative cryptocurrency that targets the real market and has forged alliances with numerous international companies and banks, all of which are interested in the speed and security of transactions that this decentralized network offers.
Analysts are mainly optimistic about Stellar’s future, but even if their forecasts are not met, with CFDs you can also aim downwards if you evaluate that this cryptocurrency will lose value over time instead of growing.
Whatever your idea of the future of Stellar, we always recommend starting with a Demo account, without risk, and then moving on to the real market by making the minimum deposit required by the broker.
Here are the official links to access the Demo accounts of the best cryptocurrency trading platforms:
- Practice the eToro Demo account for free by clicking here
- Register for free on ForexTB and access the Demo account from this link
- Access the IQ Option Demo account for free with this link
Stellar (XLM) is a decentralized network that offers a very fast Lumens coin transaction system.
The main advantages of Stellar Lumens are the speed of transactions and partnership agreements with some large companies.
According to the main analysts, yes, but the cryptocurrency market is very volatile, so before investing, read our guide.
CFD Brokers offer the best platforms to invest in Stellar XLM safely and without paying commissions.