How to Buy Stellar in the USA
A beginner’s guide to buying, selling and trading XLM cryptocurrency in the USA
Thinking about adding Stellar to your portfolio?
Stellar (XLM) is an open-source and blockchain-based protocol that is designed for financial institutions and payment providers, which enables users to transfer all types of assets. Its token, XLM, is used when transferring funds using standard methods. Now, it has expanded to the extent of being traded on top cryptocurrency exchanges.
More traders and investors are purchasing XLM than ever before. That’s because of the increasing price of the token and its future outlook as well.
Buying Stellar in the USA has now become easier than in the past, as most exchanges now offer XLM order services on their platforms. So, if you’re looking to buy Stellar, going through an exchange is the right way. Hang on let’s walk you through the step-by-step process.
What's in this guide?
- QUICK GUIDE: HOW TO BUY STELLAR IN THE USA
- A Step-by-Step Guide to Buying Stellar
- Trading or Selling your Stellar
- Things to Consider When Buying Stellar in the USA
QUICK GUIDE: HOW TO BUY STELLAR IN THE USA
- Choose an exchange
- Open an account
- Verify your account
- Deposit Funds into your account
- Buy Stellar XLM
A Step-by-Step Guide to Buying Stellar
Set up an account with an exchange that supports Stellar in three steps:
Step 1: Open an online account
In most cases, opening an account with a cryptocurrency exchange is the surest way to buy or sell any type of crypto asset or altcoin. The crypto exchange performs a similar role as a stockbroker because your broker plays the role of buying and selling stocks on your behalf. In the case of a crypto exchange, you deposit with them and ask them to carry out certain buying or selling orders.
However, registering with an exchange for the first time means you need to submit certain information. This includes your details like name, email address, proof of address, and employment detail.
Note that two major types of cryptocurrency brokers exist: those that offer a wide range of assets and those that offer only access to cryptocurrencies. The latter group provides more liquidity for crypto assets, so you should go for this group of brokers.
If you’re interested only in Stellar (XLM), you need to choose an exchange that gives you the opportunity of selling the token very fast whenever you want.
Step 2: Get a crypto wallet
After opening an account with your preferred crypto exchange, the next step is to buy a crypto wallet for storage. There are two types of crypto wallets you can buy: the hot storage wallet and the cold storage wallet. Cold storage is a physical device that stores your tokens and keeps them safe using a private key offline. On the other hand, hot storage wallets are the online methods of storing your wallets. They are less secure compared to cold storage wallets.
It’s recommended to store your wallet in a cold storage wallet that is compatible with the Stellar network. This will help you avoid the risks from theft and hack that are gradually increasing in the crypto industry.
Step 3: Buy Stellar
The next step is to buy the Stellar token. You can decide to buy at market prices or use a buy limit order to purchase the Stellar. The buy order is a set of instructions that inform your crypto exchange which crypto asset you want to buy, at what price, and how many coins you want to buy.
With the market buy order, your instruction is executive almost immediately after filling the order form.
Once the order form is filled, you are asked to review the order before it is accepted and executed. Once the order is filled, the number of coins you ordered will appear on your exchange account.
Afterwards, you can decide whether to start trading with the Stellar tokens or withdraw them to your crypto wallet if you intend to store them for a long time.
But if you’re using the buy limit order, you have to indicate at what price the order should be filled. This type of order is allowed by some exchanges, as a means to give you’re the option of buying Stellar when it hits a particular price.
Remember here that your order will not be filled until the token reaches or go below the limit you have selected. The feature can be useful if you expect a further decline in the price of Stellar before it starts moving upwards.
Trading or Selling your Stellar
Selling Stellar is not a big deal anymore, unlike in the past when the market is not liquid enough. Now, you can place your sell order and it will be filled in minutes.
Once you’re ready to sell, go to the sell page on your exchange and select the right Stellar pair you want to trade. Fill out the amount and other necessary details before placing the order.
Once the transaction is complete, the number of tokens you sold will be debited from your exchange account while the equivalent fiat currency value will appear on your account. You can decide to withdraw the funds directly to your bank via the same method you used when depositing to the exchange. That is how easy t is to sell your Stellar tokens.
Things to Consider When Buying Stellar in the USA
Going into the cryptocurrency industry is not something to be taken likely. You need to consider certain things even before you choose an exchange and register with them. Here are some things you need to have in mind.
Future growth of Stellar
If you’re looking to keep stellar for weeks before selling, you need to look at the present activities around Stellar and what the future holds for the project. This will enable you to predict whether the token will perform better shrink in its value in the future.
Protect your wallet keys
Your wallet keys give you complete access to your crypto funds. If lost or misplaced, there is no way of getting your funds back. That is why it’s important to secure your wallet keys by all means possible.
Consider the liquidity of an exchange
Before you link your account to any exchange, make sure the selected exchange is seeing enough market activities. While Bitcoin is the most liquid cryptocurrency across all exchanges, buying and selling tokens like Stellar in some exchanges may not be very swift.
That is because, for every buy order placed on the platform, there must be a sell order for the exchange to take place. So, it’s important to choose an exchange with lots of users on the platform. This will come in handy if you are going to trade regularly on the exchange.
The cryptocurrency industry is booming at the moment. Everyone wants to have a share of the crypto windfall, but it’s important to conduct proper research before investing in any token. With the present developments happening around the Stella platform, investors are buying more of the token with high hopes of a future rise in its price.
If you’re looking to buy Stellar in the USA, the above tips will guide you all the way.
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