How to Buy, Sell, or Trade Stellar Lumens (XLM): A Comprehensive Guide
In the time that it takes for a Bitcoin transaction to be processed, another coin, Stellar Lumens, can execute anywhere between 120 to 200 transactions.
Are you thinking about adding Stellar Lumens to your portfolio? These days, you can buy and sell Stellar Lumens (XLM) on quite a few exchanges, so keep reading for step-by-step instructions on how to start trading this popular cryptocurrency.
Unlike Bitcoin (BTC) and Ethereum (ETH), Lumens is created with the idea of meeting the needs of individuals in poorer countries. Lumens users can transfer and receive money from anywhere in the world over the Stellar network instantly and at a reduced cost. XLM serves as the bridge between the transfer of digital and fiat currencies like Euros-Lumens-Dollars. XLM does not use nodes to mine blocks of transactions. Instead, miners need to confirm if transactions have taken place.
In terms of market cap, XLM is now among the world’s top cryptocurrencies, as per XLM News. The potential rewards of trading Lumens are many and enough to tempt traders to invest in it. By the end of this guide, you’ll understand what Stellar Lumens is and how it can be used. You’ll also get a firmer sense of the security features and potential uses for the coin.
How To Buy XLM?
Buying XLM with cash is complex, and that is why you will have to buy some BTC or ETH from a crypto exchange to purchase it. To do that, first, it is essential to know about its availability and where and how you can buy it.
XLM is available for sale at every major cryptocurrency exchange, including Coinbase, Binance, Bitfinex, and Huobi. Note that those living in the U.S. can buy Lumens with dollars on Coinbase and Kraken, while non-U.S. residents can buy it from Binance. Here is a step by step guide to how you can buy XLM.
- Open an account with a crypto exchange such as Coinbase that supports XLM to BTC or ETH trading pairs.
- Purchase some cryptocurrency, such as BTC or ETH, in exchange for the amount of fiat currency.
- Sign in to another exchange like Binance and create an account.
- Click the “Funds” tab, enter BTC or ETH, and then click “Deposits.”
- Copy the deposit address.
- Click back on the Coinbase tab.
- Click on “Accounts” and select BTC or ETH.
- Paste the copied address and click “Send.”
- Wait for the BTC or ETH to arrive at the Binance account.
- Click the “Exchange” tab and “Basic” on the Binance account.
- Search for BTC or ETH/XLM.
- Choose between the Limit Order and Market Order.
- Enter the amount of XLM and click “Buy.”
- Find a digital wallet that supports XLM.
- Transfer XLM into the wallet.
It is best not to leave XLM on a crypto exchange to avoid unexpected loss of money due to theft or cyber-attacks. Instead, withdraw tokens into hardware or digital wallets. Stellar provides a wide range of wallets available to store Lumens, including Ledger, Lobstr, and Stronghold.
How To Trade XLM?
XLM can be traded directly on the Stellar network or any other cryptocurrency exchange. Being able to trade XLM, you need to have a small number of Lumens in your trading account. Once you have bought and deposited XLM, it will reflect into your brokerage account. Now that you are all set to trade XLM, here is a breakdown of the complete XLM trading process.
- Sign in to your Binance account.
- Click on the “Trade” tab and select “Classic.”
- Click on the “BTC” or “ETH” tab.
- Search for XLM.
- Locate the XLM/BTC or ETH trading pair.
- Click on the XLM/BTC or ETH.
- Review the buying and selling prices for XLM on the Trading Window.
- Navigate to the order placement section.
- Choose between the Limit Order and Market Order.
- Enter the amount of XLM you want to trade.
- Place your trade.
Tips To Trade XLM
Cryptocurrencies are highly volatile, so trading becomes a bit complicated. A few things you should keep in mind before you trade XLM.
- The first thing that you must consider is to find a crypto exchange that is trustworthy and offers the highest liquidity.
- Decide whether you want to buy or sell XLM based on its price movements.
- Use a leveraged trading account.
- Speculate on XLM price.
- Make a solid trading strategy beforehand to maximize profits.
- Select a trading style from day trading, swing trading, position trading, or scalping.
- Analyze the cryptocurrency markets and the performance of different assets.
- Assess the risk-to-reward ratio.
- Create a risk management strategy to minimize losses.
- Activate the Stop Order or Limit Order to protect your trade against unfavorable market movements.
- Open a position to trade XLM.
Cryptocurrencies are highly volatile and complicated assets, so there’s significant risk involved in any crypto purchase. If you’re thinking of buying any XLM, remember to consider factors like supply, distribution, ICOs, competition, and partnerships. All these aspects could potentially affect the price of a currency before you buy, So you must check out XLM Price Prediction before buying. The main challenge for Stellar in the months and years ahead will be whether it can achieve widespread adoption. Thoroughly research and assess the ins and outs of the Stellar network, its technology, and its purpose so that you can make an informed decision about whether you should buy any XLM.