How to Buy Stellar Lumens (XLM) in the UK in 5 Easy Steps

Stellar is a digital blockchain-based currency developed by Stellar Development Foundation. Created in 2014 by Jeb McCaleb, Stellar focuses on peer-to-peer transactions rather than institutions, as seen in Ripple.

The network is powered by Lumens (XLM), and it connects people, payment systems and banks to facilitate cross-border, low-cost, and cross-asset payment.

Ranked one of the most traded cryptocurrencies, XLM is priced at £0.2 per coin presently. It has a market cap of less than £6 billion.

Although trading cryptocurrency is simple, the numerous ways have raised confusion on the best way to buy Stellar Lumens in the UK. However, this article will clear up the confusion by providing insight on the best exchanges to buy Stellar Lumens.

How to Buy Stellar Lumens in the UK Using Our Preferred Trading Platform: eToro

1. Sign up with eToro

Before buying, investing or trading Stellar with our preferred trading platform, eToro, you must visit www.etoro.com to create an account.

You can create a new account by clicking the JOIN NOW option on the homepage and completing the pop-up registration form.

How to buy Stellar Lumens UK using eToro. Sign up page.

2. Account Verification

After filling up the registration form, proceed to the next stage by verifying your email address. Also, you will be prompted to complete your profile information before completing the KYC.

Afterward, you’ll need a clear image of a valid proof of identity (passport or driver’s licence) to verify your identity and a valid proof of address (bank/credit card statement, internet bill) to verify your address.

eToro account verification UK.

3. Deposit fiat currency

Once your KYC has been completed, link your e-wallet or bank account to deposit fiat currency. You can also choose other options as provided in the image below.

eToro payment methods for buying Stellar Lumens in the UK.

4. Navigate to Stellar Lumens and make a purchase

Once your fiat deposit has been confirmed, simply navigate to the CRYPTO section and select Stellar Lumens. Input the desired amount and buy Stellar Lumens.

How to buy Stellar Lumens UK using eToro.

5. Stellar Lumens is now added to your eToro portfolio

After your BUY transaction has been completed, the equivalent value of Stellar Lumens will appear in your portfolio.

Stellar Lumens in an eToro portfolio.

Best Ways to Buy Stellar Lumens in the UK

1. eToro

eToro is a world-class exchange platform and the best place for buying Stellar Lumens in the UK. Founded in 2006, eToro continues to be a forerunner for other exchange platforms as a leading low-fee and commission-free exchange.

Along with 41 other coins, eToro supports buying XLM to power the Stellar Lumens network and also trading XLM for profit at a lower cost.

Purchasing Stellar Lumens with eToro.
ProsCons
Straightforward account registrationFiat deposit is limited to USD only
Large crypto listings of 42 cryptocurrenciesDoes not offer non-crypto investments to US traders
Social trading and copy trading functionHigh withdrawal and non-trading fees
Low deposit and withdrawal threshold
Availability of non-crypto investments like ETF, commodities,
stock, and forex trading

Another reason for choosing eToro is its zero commission charge on all trades. This is especially beneficial to traders investing in the growth of XLM rather than a usage as a utility.

This gives traders the opportunity of executing trades without the fear of incurring additional costs. Also, eToro offers a copy trading feature that allows new investors to copy experienced traders for free to improve their profit and knowledge further.

Additionally, eToro offers a fixed withdrawal charge of $5. Although this can be too high for small-scale traders, it is more beneficial for users trading XLM for utility rather than as an investment.

Apart from cryptocurrency, eToro also offers fiat, bonds, stocks, ETFs, commodities and other investments that can be managed, all from one dashboard. This is also beneficial for traders interested in other markets apart from cryptocurrency. 

Furthermore, there is a built-in wallet, high security, an understandable user interface, and optimum functionality, making it a perfect option for both new and experienced traders.

2. Binance

Binance, the largest crypto exchange platform globally, is a good alternative to eToro. Binance makes a good choice because of the wide range of cryptocurrencies it supports.

It offers more than 350 coin listings and up to 1400 trading pairs. Also, it supports 7 different train pairs for Stellar Lumens alone. Its large number of users also provides a high level of liquidity to enable traders to execute trades swiftly and efficiently.

Buying Stellar Lumens on Binance.
ProsCons
Swift and free account fundingAlthough the trading commission is cheap, other exchange
platforms do not include these fees
Extremely wide range of coin listings, the largest in the
crypto market
Complicated UI mainly designed for experienced users
A wide range of supported transaction types

In contrast to other exchange platforms, Binance offers meagre charges on withdrawals, making it an exceptional choice of exchange for trading Lumens.

Although exorbitant withdrawal fees offered by other platforms may not be an issue for long-term holders or investors who are not planning to withdraw, it will undoubtedly impact traders planning to use XLM to power the Stellar Lumens network.

In short, Binance offers low fees, a wide range of cryptocurrencies, and many transaction types that can support different traders of different trading patterns and strategies.

3. Coinbase

Coinbase is another good alternative for buying Stellar Lumens in the UK. It is the largest US-based cryptocurrency exchange, and it is a great option as it offers loads of features.

Also, Coinbase offers a highly secured platform for your investment.

Buying Stellar Lumens with Coinbase.
ProsCons
Free and swift payment that supports GBPComplicated fee structure
Good number of coin listingsFairly impressive features that are mainly useful for
beginners and not experienced traders
Availability of built-in cryptocurrency wallet

As a top US-based exchange, Coinbase maintains its position as a top crypto exchange with its reliability, stability and uptime. It is also a regulator-compliant exchange that protects its users’ interests by staying on the regulators’ good side.

Coinbase also offers a high level of security for its users and their investment. It also features a built-in wallet with a high encryption level for asset security, making it quicker and effortless to trade and store Stellar Lumens.

Coinbase also features a Pro version that offers experienced traders advanced charting features and trading tools, a wider range of transaction types, extremely low fees, and the ability to trade an unlimited amount of assets.

Coinbase Pro is an excellent option for experienced traders looking to explore Coinbase.

What Is Stellar Lumens?

Like Ripple, Stellar Lumens is a payment network created to make payments quicker, easier and cheaper.

However, in contrast to Ripple, Stellar Lumens aims to serve individuals rather than institutions.

This makes Stellar more or less like a Fintech solution like Venmo or PayPal powered by blockchain technology. It incorporates the power of crypto technology to make financial transactions wider and better.

Lumen token is the currency that powers Stellar.

Why Buy Stellar Lumens?

Stellar Lumens provides many high reward opportunities due to its huge potential. Also, it powers a lot of potential in the financial world and has begun revolutionising the way we transact financially. Therefore, its huge ability could make an enormous impact on finance globally.

Stellar Lumens is focused on developing Financial Technology applications at low cost globally, especially in an emerging market. Therefore, with several Fintech solutions emerging daily, XLM is also ideally suited to enjoy this global adoption.

Also, Stellar Lumens gives a low-cost perk to its users. Therefore you can benefit from a low-cost and swift transaction compared to those who don’t use the network.

Stellar Lumens Price Analysis and Prediction

Currently trading at £0.2 per coin, XLM is in a bearish direction, although this seems like the general condition of the crypto market. This means XLM will most likely recover as soon as the whole crypto market swings.

Meanwhile, despite this general bearish condition, XLM is rallying at a fairly good price from its previous price of £0.5. Also, analysts have speculated that the price may reach £0.39, nearly double its current trading price. This rallying shows that the market is moving in a supportive direction for XLM as investors support large market cap coins like ETH and Bitcoin.

Despite a fairly good market cap of £5 billion, XLM still makes a good investment.

Furthermore, expert analysts believe its price may hit £1.08 to £1.43 per coin within the next 5 years. However, many people are sceptical about this growth. Meanwhile, there are still low chances of XLM gaining momentum for an uptrend soon.

Things to Remember Before Buying Stellar Lumens

Don’t put in more than you can afford to lose – Cryptocurrency and other financial investments are potentially risky, although they can be highly rewarding. Stellar Lumens, like other coins, has unpredictable price actions, and therefore, you must have sound risk management before delving into crypto investment.

Also, you should not risk more than you can afford to lose when trading cryptocurrency, as all your investments are continuously exposed to the risk of loss. 

Resist ‘fear of missing out‘ – A common mistake many traders make is trading on emotion. Fear of missing out is the fear of missing out on a potential price rise. Avoid jumping into a trend without proper market analysis, as you might end up losing your investment quickly.

Understand tax consequences – cryptocurrency is taxable like any other owned property. Ensure you know the financial complications of trading cryptocurrency and comply with them.

Long vs. short-term investment – As a newbie, it is crucial to determine whether you are going for a long or short-term investment. It’s also essential to choose a suitable platform that works perfectly with your strategy.

FAQs

Is Stellar Lumens legal in the UK?

Yes, trading Stellar Lumens and other cryptocurrencies is legal in the UK.

Will Stellar Lumens become the most valuable cryptocurrency?

As mentioned earlier, crypto price movements are unpredictable. However, it is improbable for Stellar Lumens to overtake Bitcoin to become the most valuable cryptocurrency.

Can you buy less than 1 Stellar Lumen?

Yes, you can buy less than a unit of Stellar Lumens with fractional trading.

Is it too late to buy Stellar Lumens?

Generally, crypto markets are in a bearish trend therefore it is not too late to buy Stellar Lumens. Also, Stellar Lumens has a lot of use cases and applications which may gear up exponential adoption and drive its price up.

Team

Our UK-based team writes articles to help beginners understand the world of cryptocurrency. We are firm believers that Blockchain technology has great application in our future.

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