The Stellar network is an open source blockchain-based distribution ledger that focuses on storing and transferring money across currency values while reducing fees. The main goal of the Stellar network is to connect banks, payment systems and customers at faster speeds and without many of the standard transfer fees that must be paid when transferring money using standard methods.Stellar’s native cryptocurrency is known as” lumens”, although many traders and investors use the terms” Stellar”,” lumens “and its ticker” XLM ” interchangeably when referring to the cryptocurrency.If you are interested in growing your cryptocurrency holdings beyond large projects like Bitcoin and Ethereum, investing in Stellar may be right for you. Our guide will show you how to open a cryptocurrency trading account, make your coin purchases, and keep your coins safe. We’ll also introduce you to some of our favorite brokers and wallets so you can start investing today.Step 1: Open an online account.In most cases, you will need to open a brokerage account with a cryptocurrency broker before buying or selling any stablecoin or altcoin. A cryptocurrency broker is similar to a stock broker in that your broker is responsible for buying and selling coins on your behalf according to your instructions.There are two main types of cryptocurrency brokers: those that provide access only to Cryptocurrencies, and those that combine market access for cryptocurrencies with the ability to buy and sell other types of assets as well. Brokers that specialize in cryptocurrency markets generally offer access to more coins and tokens only than brokers that combine access to cryptocurrencies with stock and forex trading. Brokers that offer access to multiple markets can provide you with a single source for all your investment needs.The best platform for you will depend on the assets you need to access, the coins and tokens you want to buy, and more. Let’s take a look at some of our favorite cryptocurrency brokers that currently offer access to Stellar.CoinbaseOne of the most popular cryptocurrency exchanges for beginners, Coinbase is best known for its simple Account setup, easy order placement, and intuitive fee schedule. When you choose Coinbase, you can place an order and buy cryptocurrencies via direct fiat transfers in as little as a minute.This can make it easier for beginners who don’t own cryptocurrency to make their first purchase without having to invest in bitcoin and transfer to another exchange. With Coinbase, you can even earn some cryptocurrency by taking quizzes through the unique Coinbase Earn feature.eToroeToro is another popular cryptocurrency broker and offers a comprehensive trading platform suitable for beginners. eToro provides access to 15 of the most popular cryptocurrencies, including Stellar, Tether, Bitcoin and many more.
If you are new to cryptocurrency trading, you may enjoy learning about eToro’s virtual wallet, which offers you 100,000 currencies in fake coins to practice your trading strategy. This is a great way to learn more about eToro’s order types and platform. eToro also offers CopyTrader technology that allows you to automatically copy trades from high level investors.Step 2: Purchase a wallet.After opening a brokerage account, you should purchase a cold storage wallet if you want to keep your coins for the long term. A cold storage wallet is a physical device that stores your coins offline with a private key. Cold storage wallets are more secure than hot storage solutions, which are wallets that must connect to the internet to view your coins and manage your account.We recommend storing your coins in a Stellar network compatible cold storage wallet to avoid the risk of hacks and theft. Explore some of our favorite cold storage solutions below.Best for quick setups: Trezor Model T.If you’re looking for a cold storage wallet to track and manage your coins on the go, look no further than the Trezor Model T. With a brilliant touchscreen design, the Trezor Model T makes it easy to view your inventory when you’re away from your computer.The Trezor Model T can also be an excellent choice for investors who are new to cold storage. To start your wallet, simply connect to your computer or phone and follow the instructions. From a connection cable to seed retrieval cards, the Trezor Model T includes everything you need to safely store your coins offline.Best Touch Screen: SecuX V20The SecuX V20 is a refrigerator hardware wallet with a 2.8-inch full-color touchscreen display that makes it easy to manage your coins. The device even features an on-screen keypad and address verification that helps it better resist hacking and theft attempts.In addition to its impressive touch screen, the SecuX V20 has top-notch security features, including a military-grade CC EAL 5+ certified secure element to ensure that only you have access to your coins. The SecuX V20’s housing is also exceptionally secure, with a solid aluminum casing that allows you to travel with the device without worrying about damage.Step 3: Make your purchase.Once your account is opened and your wallet is set up, it’s time to place your purchase order through your brokerage account. A buy order is a set of instructions that tells your broker what cryptocurrency you are buying, how many coins you are buying, and sometimes the price at which you want the order to be executed. Most cryptocurrency brokers offer a range of order types to give you more control over the price you pay per coin.After placing your order, you can sit back and relax: your broker will take care of completing the order according to your instructions. When the order is completed, you will see your coins in your trading account. If your order cannot be completed, your broker will usually cancel it at the end of the day.Trade or sell your cryptocurrency.After you have made your purchase and your broker has completed the order, you will see your coins in your brokerage account. From here, you need to decide if you want to hold your Stellar for the long term or if you want to become an active trader.If you wish to store your coins for more than a week, you must transfer your tokens to a cold storage wallet. Your cold storage wallet has an address that allows you to direct your coins from your brokerage account. You may want to send a small amount of cryptocurrency to your wallet before settling your account to make sure you have the correct address. If you send your coins to the wrong address, it is virtually impossible to get them back.Unlike long-term traders, active traders benefit from small stellar price movements during the day or week. You convert your Stellar to a stable currency (such as Tether) when Stellar prices rise, and then buy it back when the price falls again. This way you can accumulate more coins to cash out or continue trading.Becoming an active trader requires a fast and responsive trading platform. Explore some of our favorite brokers for short-term investors and get started.
