How To Invest In Stellar (Lumens) 2023: A Step-by-Step Guide

The Ultimate Beginner’s Guide to Investing in Stellar (XLM)

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Cryptoassets are a highly volatile unregulated investment product.

Last Updated April 26th 2023
23 Min Read

Stellar is a cryptocurrency that is not too dissimilar to Ripple. In fact, both projects were founded by the same smart cookie - Jed McCaleb, and both offer virtually instant and free cross-border payments. 

If you like the sound of this digital currency project and wish to invest in Stellar XLM right now - be sure to read our newbie-friendly guide first. 

Within it, not only do we walk you through the process of how to invest in Stellar, but we also discuss some of the risks that you need to consider before taking the plunge. 

 How To Invest In Stellar (XLM) - 5 Easy Steps Guide

This guide on how to invest in Stellar will break everything down in Layman’s terms so that you do not make a purchase blindly. 

If you’re strapped for time and simply want to invest in Stellar without reading our in-depth walkthrough - follow the steps below!

  • Step 1: Open an account with a regulated broker
  • Step 2: Deposit some funds with a debit/credit card, e-wallet, or bank transfer
  • Step 3: Choose the amount you want to invest in Stellar (XLM)
  • Step 4: Confirm the investment
  • Step 5: Leave your Stellar stored until you decide to cash out

As the 5-step walkthrough above highlights, the process of investing in Stellar (XLM) could not be easier. Best of all, there is no requirement to worry about cryptocurrency wallets - as regulated brokers like eToro will store the XLM tokens for you!


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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.


What Is Stellar (XLM)?

Founded in 2014, Stellar is both an open-sources payments network and a cryptocurrency, Regarding the former, the technology permits cross-border payments at lightning speed.

In fact - and irrespective of where the sender and receiver are located, it typically takes just a couple of seconds for the network to confirm the transaction as valid. 

Unlike traditional payment networks, sending and receiving money via Stellar is super cheap. In real terms, this is usually less than a cent. 

On top of its proprietary open-source payments network, Stellar is also behind a hugely popular cryptocurrency. Known as 'Stellar Lumens', it has remained a top-15 digital currency in terms of market capitalization pretty-much since it was launched.

investing in stellar 

Much like any other cryptocurrency in the space, Stellar Lumens has real-world value. This is dictated by market forces and is financially realizable via third-party exchanges. 

This leads us nicely onto the next section of our How to Invest in Stellar Guide, where we discuss the investment process in a little more detail. 

How Does The Invest In Stellar Lumens (XLM) Process Work?

In terms of the fundamentals, the easiest and most secure way of investing in Stellar is to use a regulated online broker. However, before you get to that, you first need to understand how the value of your investment will rise or fall. 

Much like any other financial asset, the value of Stellar Lumens is dictated by demand and supply. 

For example, when there is good news surrounding the project - such as a partnership with a leading financial institution, demand for Stellar will increase. In turn, as more people are looking to invest in Stellar, the price of its digital currency will rise. 

But, of course, should Stellar be in receipt of some negative news, then demand will go on the decline. Naturally, this means that the value of your Stellar investment will drop. 

Although this might be a simple principle for most of you to follow, below you’ll find a simple example of how a Stellar investment works nonetheless. 

  • You invest in Stellar at a stake of $500
  • When you make the investment, the price of 1 Stellar Lumen is $0.32
  • You hold on to your Stellar investment for 5 years
  • When the time comes to cash out, 1 Stellar Lumen is worth $4.50
  • This means that the cryptocurrency is now worth 1,400% more than you originally paid
  • You exit the position and withdraw the proceeds back to your debit card

As per the hypothetical example above, you made gains of 1,400% on your original investment of $500. As a result, you were able to withdraw a total of $7,500. 

Although returns of this magnitude might appear far-fetched, it really isn’t. In fact, as we explain in more detail shortly, early Stellar investors have since made significantly larger gains. 

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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Why Should You Invest In Stellar (XLM)?

When you invest in Stellar Lumens, you are backing the wider project. That is to say, if Stellar as a payments network eventually becomes mainstream, the value of your investment is likely to benefit greatly. 

With that said, we now need to explore some of the reasons why you might be motivated to invest in both Stellar and its Lumens cryptocurrency. 

Astronomical Financial Returns Since its 2014 Launch

One of the main reasons why people invest in cryptocurrencies is that they are hoping to make significant profits. After all, digital currencies are most speculative and highly volatile, so investors expect above-average returns for taking on a greater level of risk. 

In the case of Stellar, this cryptocurrency has grown exponentially since its 2014 launch. Back then, you would have paid a fraction of a cent for a single Lumen. 

To be more precise, Stellar Lumens first hit a third-party cryptocurrency exchange at $0.002. This means that for just $1, you would have got 500 Stellar Lumens. 

Now let’s fast-forward slightly to January 2018 - which is when Stellar last hit all-time highs. This peak saw the digital currency surpass the $0.89-mark. 

In simple terms, this means that in comparison to its initial listing price of $0.002, the value of Stellar Lumens grew by over 44,000%. In other words, had you invested $2,500, your money would have been worth over a million dollars during this peak. 

Although Stellar Lumens has since cooled off, the cryptocurrency had a remarkable 2020. Hitting lows of $0.03 in March, Stellar breached $0.22 in November. That's a speculator rise of over 630% in 7 months of trading. 

The Technology is Revolutionary

When it comes to the underlying product itself, the Stellar payments network is nothing short of revolutionary. 

For those unaware, the main target market of the Stellar network is businesses that have a need to transfer funds across borders. As you can likely imagine, this is a multi-trillion dollar industry. 

At present, businesses are forced to go through banking intermediaries. The traditional process is slow, costly, and full of red tape - especially when emerging nations are involved. This is because cross-border transactions need to go through SWIFT. 

The SWIFT ‘network’ isn’t really a network at all. On the contrary, the Belgium-based facilitator is simply a conglomerate of financial institutions. In turn, cross-border payments often need to through heaps of stakeholders - including corresponding banks. 

When it comes to Stellar, its payments network is fast, cheap, and super convenient. Transactions typically take just a few seconds to arrive, and fees are a fraction of a cent. 

The network is especially useful when sending ‘exotic’ currencies, as Stellar Lumens acts as a bridge of liquidity. 


A cryptocurrency project can claim to have the best technology known the humankind. But, if it isn't endorsed by any large-scale players, it isn't going to go very far. In the case of Stellar, the project has formed some super-notable partnerships since it was launched in 2014. 

At the forefront of this is leading tech giant IBM. Crucially, IBM is actually using the Stellar network right now to facilitate some of its cross-border payments. This is internal payments that are sent between IBM regions. 

Stellar Lumens is Cheap

On the one hand, the cost of a single cryptocurrency doesn’t dictate how much it is worth per-say. Instead, you need to base your valuation on the market capitalization of the respective digital coin. 

However, investing in a ‘cheap’ cryptocurrency like Stellar Lumens does have its benefits. After all, there is nothing attractive about buying a small ‘fraction’ of one Bitcoin. Bearing in mind that Stella Lumens has never surpassed $0.94, this allows you to build a huge holding in terms of quantity. 

For example, based on a price of $0.21 at the time of writing this guide, a $210 investment would get you 1,000 coins. If Stellar does one day make it big, then you will have a sizable stake in the project.

Don't Miss: Stellar Lumens Price Prediction

Would you consider investing in Stellar XLM?

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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

How To Invest In Stellar (XLM) - Various Options Available

Bearing in mind that Stellar Lumens possesses a multi-billion dollar valuation, it makes sense that there are several methods you can take to invest. Whilst we strongly believe that the easiest way to do this is via a regulated broker, other mechanisms do exist. 

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As such, we are now going to discuss some of the popular ways that you can invest in Stellar. 

Stellar Lumens ATMs

There are over 13,000 cryptocurrency ATMs scattered around the world - most of which allow you to buy Bitcoin. While there are a sizable number of ATMs that also allow you to buy other popular digital coins - namely Ethereum, Ripple, and Litecoin, there is no support for Stellar. 

Stellar Lumens Exchange Platform

You might be tempted to invest in Stellar Lumens via a third-party exchange. However, in the vast majority of cases, these cryptocurrency exchanges operate without a license. Platforms are able to bypass this when they have no relationship with fiat currency. 

Although this does allow you to invest in Stellar anonymously and often alongside leverage, your capital is at severe risk. After all, you wouldn’t use an unregulated stock broker to invest in shares, ETFs, or mutual funds.

In addition to being overly risky, unregulated cryptocurrency exchanges offer a highly cumbersome investment process. 

For example, you will need to initially fund your account with a cryptocurrency like Bitcoin. Upon transferring the funds from your private wallet, you then need to manually trade BTC with Stellar Lumens. 

Then, as you likely wouldn’t want to keep your Stellar coins in an unregulated exchange, you’ll need to withdraw them to a private wallet. This in itself isn’t going to be suitable for the beginners in the room. 

Stellar Lumens Broker

If you’re wondering how to buy Stellar in a regulated environment - while at the same time benefiting from low fees and heaps of convenient payment methods - look no further than an online broker. 

Once again, there are several players in this space - some better than others. Nevertheless, the process of investing in Stellar via an online broker is usually very simple. 

If using eToro, for example, you can open an account in minutes and then make an instant deposit with a debit card, credit card, Paypal, Skrill, or Neteller. Then, it’s just a case of selecting Stellar Lumens from the platform’s 16 supported cryptocurrencies and entering the amount you wish to invest. 

Once you have completed the process - which should take you no more than 10 minutes from start to finish, you can then leave your Stellar Lumens at eToro. 

This is because you have the backing of three regulatory bodies - the FCA (UK), ASIC (Australia), and CySEC (Cyprus). If you’re an American investor, you’ll be pleased to know that eToro is also registered with FINRA. 

How To Choose A Platform To Invest In Stellar (XLM)

So now that you know that the best way to invest in Stellar Lumens is via a trusted online broker, we now need to help you separate the wheat from the chaff. 

Once again, this is because there is a selection of online platforms that support Stellar purchases - so you need to know how to choose one that is right for your needs. 

Let’s start with regulation.

Licensing and Reputation

As we discussed earlier, the vast majority of cryptocurrency platforms - even those that dominate the space, are unregulated. As such, your first port of call will be to assess whether or not the broker is in possession of a license. 

If it is, you need to determine how reputable the respective body is. For example, a Stellar Lumens broker regulated in the UK by the FCA is going to be significantly more credible than one based in Panama or the Cayman Islands. 

Additionally, the regulatory body in question might need to be based in your country of residence. 

For example, if you’re based in the US, you’ll need to make sure that the Stellar Lumens broker is registered with FINRA. Once again, this is why we suggest eToro - as it is home to an abundance of reputable licenses. 

Fees to Invest in Stellar

You will always be charged a fee of some sort when you invest online - and Stellar Lumens is no different. You might, for example, be charged a fee to fund your brokerage account. At eToro, this will cost you just 0.5%, and nothing if you are depositing in US dollars. 

Binance is much more expensive, charging a 2% fee on debit/credit cards. Coinbase is even more costly, as the popular broker charges 3.99% on debit card purchases. 

Once you have assessed what the platform charges on payments, you then need to look at trading commissions. This will usually come in the form of a percentage fee that is calculated against your stake. 

For example, Coinjar charges 1% on cryptocurrency investments, while Coinbase charges 1.49%. These variable fees are charged when you invest in Stellar and again when you cash out. 

These fees will ultimately eat into your potential profits. As such, if you are wondering how to invest in Stellar Lumens is the most cost-effective way possible - eToro charges zero commission. 

Minimum Stellar Lumens Investment and Payments

Each and every financial instrument comes with a risk and reward ratio. That is to say, the more you expect to make from an investment, the more risk you should be prepared to take. 

At the lower end, you have the likes of US Treasuries and high-grade stocks. At the other end of the spectrum, you’ve got cryptocurrency like Stellar Lumens. As such, we would suggest finding an online broker that allows you to invest small amounts. 

Crucially, the broker in question should not charge a flat commission - otherwise, your small purchases are going to get eaten away by fees. And don’t forget - the broker must accept your preferred payment type. 

eToro stands out in this respect for three key reasons. Firstly, the minimum amount that you can invest in Stellar Lumens is just $25. This is an inconsequential amount that allows you to invest on a regular basis.

Secondly, the platform is commission-free, so you won’t get penalized for investing small amounts. Thirdly, eToro accepts debit/credit cards, bank transfers, and even e-wallets - so you’re sure to find a payment method that you like. 

Storage and Cashing Out

We noted earlier that using an unregulated exchange is dangerous for several reasons. At the forefront of this was the prospect of the platform getting hacked - meaning that there is every chance that your Stellar Lumens coins will be stolen. 

In order to counter this, you are advised to withdraw your digital coins to a private wallet. Not only is this cumbersome when it comes to cashing out, but you also need to have a basic understanding of wallet addresses, private keys, are safe storage. 

This is why it’s best to use an online broker that is regulated. In doing so, you can rest assured that the platform follows institutional-grade security practice in keeping your investment safe. 

And of course, when it comes to selling your Stellar Lumens, you can do so at the click of a button without needing to transfer the coins from an external wallet!

Ready to invest in Stellar XLM?

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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Tips On How To Invest In Stellar (XLM) And Make A Profit

There is no guarantee that you will make a profit when you invest in Stellar. However, to give yourself the best chance possible, there is a range of simple strategies that you can follow. 

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We have hand-picked three  - which you will find below!

Tip 1: Set Some Financial Goals

It’s always wise to at least have a rough idea of how much money you seek to make from your Stellar investment. After all, there will eventually come a time when you choose to cash out. Rather than leaving this to fate, why not set yourself a clear financial target?

This can be based on the future value of Stellar Lumens itself or the amount of profit that you seek to make before cashing out. 

For example: 

  • Say you invested in Stellar when the digital currency was worth $0.15
  • You want to cash out your position when your investment has made gains of 500%
  • As such, your cash-out point would be $0.89

If you have set a clear price target like in the example above, it’s best to set up a take-profit order at your chosen broker. This means that if Stellar Lumens does hit a price of $0.89, the broker will automatically close your position. 

Tip 2: Dollar-Cost Average Your Stellar Investments

Dollar-cost averaging is the process of investing small, but regular amounts into an asset. The overarching concept is that you can avoid the complexities of short-term volatility, as every time you invest you will ‘average ‘ out your cost price. 

However, in order to do so, you will need to use a broker that supports small minimum investments. As we covered earlier, this is just $25 when investing in Stellar Lumens. 

If you do decide to take up a dollar-cost averaging strategy, it’s best to be systematic about it. For example, you might decide to invest $50 on the 20th of each month or $100 every Friday. 

Tip 3: Diversify Your Stellar Investment

Stellar is one cryptocurrency out of thousands, the same way that Apple is one stock out of thousands. You wouldn’t invest your entire portfolio into Apple - or any single stock for that matter. Instead, you are likely to diversify across a full range of companies and sectors.

This risk-averse attitude towards investing should also be applied with Stellar Lumens. That is to say, instead of putting all of your eggs in this cryptocurrency, you should consider diversifying into other projects, too. 

For example, you might allocate 10% into Stellar, 30% into Bitcoin, 20% in Ethereum, and the balance elsewhere.

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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

How To Invest In Stellar (XLM) Today - Step-by-Step Walkthrough

To conclude our guide, we are now going to walk you through the process of how to invest in Stellar Lumens with regulated broker.

Step 1: Open an Account

open trading account

First and foremost, visit the eToro website and open an account. You’ll need to provide a range of personal information and contact details. You’ll also need to choose a username and password, before verifying your mobile number. 

Step 2: Upload Some ID

eToro will ask you to upload a copy of your government-issued ID. You’ll also be asked for proof of address - which can be a recently issued bank account statement or utility bill.

This request ensures that eToro remains compliant with its license issuers. Once you upload the requested documents, eToro is usually able to validate them in less than a few minutes.  

Step 3: Make a Deposit

You will now need to deposit a minimum of $200.

As we briefly covered earlier, eToro supports a wide selection of payment methods. If you want to invest in Stellar instantly, opt for a debit/credit card, Paypal, Skrill, or Neteller. 

If you prefer funding your account with a local bank transfer, this is going to delay the investment process by several days. 

Don’t forget, if you are using a payment method that is not denominated in US dollars, a 0.5% FX fee will apply. 

Step 4: Search for Stellar

Once your eToro deposit has been credited, enter ‘Stellar’ into the search box at the top of the page. When ‘XLM’ loads up, click it. On the next page, click on the blue ‘Trade’ button. 

Step 5: Complete Stellar Investment

Now it’s just a case of entering your stake into the ‘Amount’ box. This can be any amount above $25. 

You will find other order types available to you - such as switching from a market order to a limit order. Additionally, you can also set up a stop-loss and take-profit order, which is great for risk-management purposes. 

Finally, to complete your commission-free Stellar investment - hit the ‘Open Trade’ button.

Step 6: Cashout Your Stellar Investment

Once you have completed the investment process, you can leave the coins safely in your eToro portfolio. There are no monthly or annual maintenance fees at the platform, so you can keep hold of your Stellar Lumens for as long as you wish. 

When you do decide to cash out, all you need to do is head over to your portfolio and click on the 'Sell button next to Stellar. The proceeds will then be available for withdrawal. 

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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

How To Invest In Stellar (XLM) - The Bottom Line

Stellar is one of the most exciting cryptocurrency projects to date - with its technology carrying the required characteristics to challenge SWIFT. This is evident in the fact that IBM is already using the Stellar network - with more large-scale providers sure to follow suit in the next future. 

In terms of how to invest in Stellar is the easiest, safest, and most cost-effective way possible, consider using eToro. This heavily regulated trading platform allows you to invest in Stellar commission-free - at a minimum of just $25. 

Best of all, the process takes less than 10 minutes when you use an instant payment method - with eToro supporting debit/credit cards and e-wallets. 

eToro – Best Broker To Buy Stellar XLM

eToro have proven themselves trustworthy within the crypto industry over many years – we recommend you try them out.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

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How To Invest In Stellar FAQs

How much should I invest in Stellar?

The best thing about Stellar Lumens is that it is one of the ‘cheapest’ cryptocurrencies to buy. In fact, the digital coin has never breached $0.89. As such, you can invest a small amount and still obtain a sizable number of Lumens. With that said, just make sure that you never invest more than you can afford to lose.

Is Stellar a good investment in 2023?

Stellar saw gains of over 96% in 2021. However, there is no knowing what 2023 holds for this digital currency. The most important thing for Stellar is that it continues to form partnerships with companies of the same magnitude of IBM.

How do I start investing in Stellar?

To invest in Stellar Lumens right now - open an account with eToro, deposit at least $200 with your debit/credit card or e-wallet, and decide how much you want to invest. The end-to-end process takes just minutes.

Can I invest $100 in Stellar?

Yes, but the minimum Stellar Lumens investment amount will be dictated by your chosen broker. It’s just $25 at eToro.

Can you lose money on Stellar?

Cryptocurrencies are a highly speculative asset class and Stellar Lumens is no different. Put simply, if you sell your coins for less than you originally paid - this will result in a financial loss.