Stellar’s origin begins with another cryptocurrency called Ripple, which is up there with some of the most popular cryptos like bitcoin, ethereum and litecoin. Ripple was the brainchild of Jed McCaleb and Chris Larsen and their idea was to create a way to provide functioning solutions to banking institutions, however due to some philosophical differences between the founders and the rest of the Ripple board, they split and created their own cryptocurrency called Stellar.
While both currencies work in a similar way, Ripple’s direction is more of a top-down approach, whereas Stellar is considered to be more of a bottom-up approach. Stellar is more than just a cryptocurrency because of the partnerships that they have managed to secure over its lifetime, which act as anchors. These anchors are what you could call trusted entities that give lines of credit for people to use Stellar on it’s network using fiat currency like pounds, dollars or euros. An example of how Stellar works is the following scenario: Imagine that you live in the US and you have a friend that lives in England, and your friend has asked to borrow £100 off you. The Stellar network would be used when you send the equivalent amount in dollars to one of these Stellar anchors in the US, who would then update the Stellar ledger. That ledger can then be used by a Stellar anchor in England to send your friend £100, and if both of the anchors were to settle their books using Lumens the entire transaction would cost no more than a penny.
Choose a Stellar Wallet
When looking at how to buy Stellar, it is noticeable that wallet support could be improved upon. Probably the wallet of choice is Ledger which allows Lumens to be stored in its hardware wallet. If you are looking for a multi cryptocurrency wallet then the Ledger Nano S is most likely your best bet. The small hardware wallet which can fit into a pocket is as close to being unhackable as possible.
When it comes to desktop, the Stellar Desktop client enables the sending, receiving and trading of Lumens, but without the security of the hardware wallet.
Recommended Stellar Wallets
There are many digital wallets to choose from. We recommend the following wallets when discussing how to buy Stellar:
For further information and more in-depth digital wallet reviews, please visit our Crypto Wallets page.
Choosing a Stellar Platform
If you want to actually buy and hold your own Lumens you can try most crypto exchanges, which include the following:
Kraken: A popular exchange that recently expanded its selection of cryptocurrencies
Binance: a fee-trading exchange with a whole host of user friendly features and functionality
The best way to purchase Stellar Lumens (XLM) with Fiat currency is through CEX.io. An established exchange that offers a fast and friendly way to buy Stellar.
At the moment there is no definitive safe method to purchase Stellar with credit cards. Probably the easiest and quickest method is to use the Changelly platform.
Exchanges represent the easiest method of trading Stellar. All the exchanges are different, so it is important to consider the following when choose an exchange to trade Stellar:
- Check the exchange permits customers from your country.
- Check the payment methods that are available.
- Check the three different fee types -deposit, transaction and withdrawal
- Check the exchange rates as fees are often ‘hidden’ within the exchange rates
- Check the Know Your Customer (KYC) requirements.
Recommended Stellar Exchanges
Always check out the exchange’s online reputation. For full in-depth reviews, check out our best crypto exchanges.
Make a Stellar Trade
As always, it is highly recommended that as soon as the trade has been made, to store your Stellar coins in your own self hosted digital wallet.