What Is Stellar?
Lumen’s coins (XLM) are the crypto-asset of the Stellar network, a shared public ledger on a distributed database or blockchain. The technology can move money (any currency) across the globe quickly, reliably and cheaply using the Lumens as a bridge. When converting this currency, the network automatically seeks the best exchange rate for all users using a decentralized exchange. This exchange matches buy and sell offers from the partner corporations who hold the currency. The project is continuously building partners with major corporations and is becoming progressively globalized.
In summary, Stellar cryptocurrency is a quick cryptocurrency which charges very low transaction fees. Like most other cryptocurrencies, Stellar has a built in decentralized exchange, which also enables the ability for users to host Initial Coin Offerings.
How To Buy Stellar (XLM)
1. Buy your Bitcoin or Etherium on Coinbase using your usual currency
2. Send your newly purchased BTC or ETH to Binance
3. Buy Stellar on Binance
Step 1. Set up a Coinbase account
Go to the Coinbase website here. Click sign up for a new account. Enter your details and password to create an account.
You will be sent an email and asked to verify your account by clicking on a link in the email sent to you.
Following this, you will be redirected to complete another verification step. This step involves typing in your phone number onto Coinbase. You should then receive a code sent via text message to your phone. Enter this code onto the website — this should take no longer than 30 seconds.
Once you have confirmed your account via the email link and phone code, you will need to present a form of identification (such as a drivers licence or passport). You may also need to provide an additional photo of yourself for extra security. Follow the steps, but you may wish to read the tips on the Coinbase website about this process first.
Step 1.1 Fund your Coinbase account
There are various options available to fund your Coinbase account. You can read about the different payment methods available from different countries on the Coinbase support page.
Login to your Coinbase account:
Once in, you should see the Coinbase dashboard. Click on the Settings tab as shown below.
Next, click on the Linked Accounts subtab.
Choose a way to fund your Coinbase wallet using one of the following methods:
After you’ve transferred some money to your Coinbase account, it will appear in your usual ‘fiat’ currency wallet under the Accounts tab. This may take a while depending on your payment method, so check the support on the website so you know what to expect.
Step 1.2 Buy Bitcoin (BTC) and Etherium (ETH) coins
Once you have your account with funds in it, it is time to buy some Bitcoin (BTC) or Etherium (ETH). Click on the Buy/Sell tab as shown below.
When you are at the Buy/Sell page, simply choose the cryptocurrency you want to purchase (Bitcoin or Ethereum), the payment method and the amount you want to buy, then click “buy”.
Note: It is a common misconception that in order to purchase Bitcoin, you must buy an entire Bitcoin. This dissuades people from entering cryptocurrency market (and buying Bitcoin) because it may seem too expensive to purchase. However, you can actually buy any amount of Bitcoin. This could range from 0.0000008 of a Bitcoin to simply $5.00 worth of Bitcoin — it’s really simple to enter the market without spending thousands of dollars.
Once you purchase your cryptocurrency, you can view your coin holdings in the individual currency wallets found under the Accounts tab. Use this process to buy any other currencies on Coinbase.
2. Transfer Bitcoin and Etherium to an altcoin exchange like Binance
Step 2.1 Open a Binance Account
After opening an account with Coinbase, simply open an account with Binance.
Go to the Binance website here: https://www.binance.com/ and register for a new account.
You will be sent an email and asked to verify your account by clicking on a link in the email sent to you. It should look something like this:
Once you have confirmed your account via the email link, set up the level of authentication you want and you’re ready to fund your account using Bitcoin or Etherium.
To help keep your account secure, you should set up 2- factor authentication and read the tips about security from Binance here.
Step 2.2 Transfer the BTC or ETH to Binance from Coinbase
To transfer cryptocurrencies anywhere, you have to provide the address (alphanumeric code of about 30 characters) of the wallet where you want the coins to be deposited. Note that different currencies use different wallets with different addresses. For example, you will be withdrawing BTC coins from your Coinbase wallet and depositing them in to your Binance BTC wallet. Follow these steps:
Open and login to your Coinbase and Binance accounts in separate tabs.
Go to your Binance account and get your BTC or ETH wallet address. On the Binance dashboard, click on the Funds tab then click on the Deposit/Withdrawals as shown below.
Here, you will see the list of wallets for all the cryptocurrencies that are traded on Binance.
Scroll down to find your Bitcoin wallet (or Ethereum wallet if you want to transfer Ethereum), click on the Deposit button and copy the address given. Note that this is your unique wallet address on Binance, it will be the address you will use to send coins from your Coinbase account.
Now go to your Coinbase account. Click on the Accounts tab, and click the Send button for the coin you wish to send over to Binance, such as BTC. You should see a form as follows:
Paste the address you copied from your Binance BTC wallet. Check the address you copied is correct (or at least the first and last few characters). This is important, because if you enter the wrong address, you can lose your coins permanently!
Enter the amount to transfer and continue. A small amount of BTC are deducted for the transaction fee which funds the verification process (ETH fees tend to be smaller than BTC).
You can check the balance in your Binance BTC wallet (or ETH wallet if you transferred ETH). Bear in mind it can take several hours to arrive, so don’t panic if you can’t see it straight away (Etherium typically takes less time). You can check by navigating the tab – Funds – History – Deposits History – and tick the check after the Txid address. Any problems, refer to the Binance support page.
3. Buy Stellar on Binance with Bitcoin (BTC) or Etherium (ETH)
With your Binance account funded with BTC or ETH you can start buying Stellar.
Step 3.1 Find Stellar
Simply go back to the list of cryptocurrencies on Binance, choose Stellar, and click on the desired trading pair as follows
Step 3.2 Open the trading exchange
You should see a page similar to the screenshot below which shows the action on the trading exchange. Alternatively, you can click on Exchange on the home page and open the basic or advanced display. This is where you place your buy order. An explanation of the elements on the page is outlined on Binance here.
Step 3.3 Place an order
If you want to buy at around the current price being offered, then click the Market tab, enter the amount you want to buy and click buy — this is the easiest way.
If you want to enter your own price, click the Limit tab and enter a price below the current buy order price displayed in green on the left of the screen. In the example above, you might enter 0.00000081 if you expect the price to fall to this level in which case your order will be filled at this price. Enter the quantity and press buy.
Step 3.4 Confirm your order
Check your order is complete by looking at the open orders and order history at the bottom of the exchange page. Go to the Accounts page and check that the new Stellar coins show up in your wallet. The number of coins in your BTC wallet should have decreased.
CONGRATS!!! You now own Stellar!
On a side note, Binance has its own cryptocurrency called Binance or BNB which you can buy and use to exchange for other altcoins. There are rewards for doing so. More information can be found on the Binance website.