Buy Stellar Lumens (XLM) 2021 - Guide, Price & Forecast

Among the altcoins, Stellar Lumens could probably have emerged as a shooting star in recent weeks. Headlines, news and announcements literally sent the altcoin flying to the stars.

Were the developers of the Ripple competitor right to use the rocket as a symbol? Will Stellar become the new star in the crypto sky? We have examined price charts, forecasts and the project itself and summarised our impressions here.

We also took a look at where and how you can best buy Stellar and provide a detailed buying guide for those who want to add XLM directly to their portfolio.

What speaks for a Stellar Lumens (XLM) purchase?

  •    Symbiosis with strong partners such as IBM, Deloitte and new: Vonovia
  •     Enables international payments fast around cheaper
  •     Ukrainian government wants Stellar Lumens as basis for digital currency
  •     Provides a real-world solution for payments between fiat currencies
  •     Profits from current lawsuit against Ripple

Where to buy Stellar Lumens (XLM)? The best platforms

XLM tokens can be traded both physically and as CFDs. We have compared the best platforms for buying Stellar here:

etoro

Trade real cryptos and crypto CFDs
Licensed broker with deposit protection
Integrated wallet

libretex

Broker fully regulated
Numerous awards
Libertex experience for more than twenty years

Plus500

Many tradable assets
Excellent trading platform
European license

capital

Deposit management in Stablecoin USDT offers protection against volatile price movements
Lower trading fees than most crypto exchanges
AI-based trading signals

xtb

Many tradable assets
No minimum deposit
Very good customer service

What is Stellar Lumens (XLM)?

Stellar Lumens is an open source network that is designed to facilitate international payments cheaply and quickly. Stellar was created in 2014 as a fork of Ripple and serves almost the same purpose as its big competitor. The difference:

Ripple creates solutions for banks, while Stellar Lumens found solutions for the real economy. Stellar's project or financial service is mainly aimed at wholesalers and retailers who need to carry out frequent foreign transactions of fiat currencies.

Stellar uses its own native token, XLM, as a bridge that enables international trade of assets more cheaply and quickly than is currently the case.

Blockchain

Stellar Lumens

Coin / Token

XLM

company

Stellar Development Foundation

founder

Jed McCaleb & Joyce Kim

Founded

Early 2014

begin

July 2014

Maximum care

50.001.803.146 XLM

Circulating supply currently

23,126,290,528 XLM (as of 06/06/2021)

Important Stellar Lumens (XLM) information at a glance

    Market capitalisation: currently over €7.1 billion
    Market Rank: #19
    Current share price: 0.3093 Euro (as of 06.06.2021)
    Trading with XLM CfD via online broker possible
    Most important Ripple competition

Stellar Wallet

How does the technology behind Stellar Lumens work?

Of course, the technology behind the blockchain should not be forgotten when looking at the project as a whole. As a fork of Ripple, Stellar used the Ripple protocol at the start of the project, but after a short time it no longer met the requirements.

Since November 2015, the Stellar Census Protocol has existed, which has an independent and innovative algorithm. Decentralisation, short waiting times, flexible trust and provable security are characteristics that distinguish SCP. The protocol allows everyone to participate in the decision-making process, so that no single majority can obtain the corresponding powers.

What makes Stellar unique?

Nowadays, international money transfers still cost a lot of time and money. It is not uncommon to find cases where the recipient has to wait up to 14 days for money to arrive from abroad. Payment service providers that act faster are usually charged high fees.

Stellar is unique in terms of transaction costs in addition to the speed of transfers, which take between 2 and 5 seconds. Each transaction on the Stellar Blockchain costs users just 0.00001 XLM.  This means that recipients of monetary benefits can keep much more of their money.

Number of XML tokens maximum and in circulation

What makes Stellar
Stellar Lumen's tradingThe maximum supply of XML tokens at the launch of the enhanced network was 100 billion XML, all of which were issued. At the insistence of the community, more than half of the tokens were wiped out in 2019 in an unparalleled coin-burn. The whole thing was done with a promise from the Foundation that this was a one-off.

According to the foundation and the community, the burnt tokens would not have contributed to the spread of Stellar. The work that is supposed to be done can also be done with considerably fewer tokens.

There are about 23 billion XML in circulation today. The Foundation accordingly holds 27 billion Stellar tokens, some of which is earmarked for marketing and support of the Foundation. About a third of the tokens held are earmarked for investments in other blockchain projects.

What ensures security in the Stellar network?

By charging a transaction fee and a minimum amount of 1 XML, which must be available in a wallet, Stellar protects itself against spamming attacks that flood the network with a high number of microtransactions and thus cause it to overload. So far, the protection against hackers has worked; there has not yet been a comparable attack on the Stellar network.

The Stellar Consensus Protocol is a special form of the Federated Byzantine Agreement. Transactions are first confirmed by a few trusted nodes, which in turn are further confirmed by other nodes. A transaction is considered verified when the vast majority of nodes have accepted it as confirmed.

Buy Stellar Lumens Guide: Step by step to buy at eToro.

We recommend buying XLM tokens at our test winner eToro. At eToro, XLM can be traded as a real coin and as a CFD. As a state-regulated provider, eToro is subject to European supervisory authorities and there is deposit protection through the European Deposit Fund of the financial authorities. Buying Stellar at eToro is possible in a few steps and with little preparation:

Step 1: Register

In order to trade at eToro, you first need to register and open an account. To register you need your email address and a secure password. Registration is even faster with your Facebook account or Google account.

You will receive an email asking you to verify your email address. Simply click on the "Verify my email address" button to confirm your registration with eToro.

Step 2: Deposit money

Next, you need to make your first deposit with eToro in order to start trading. eToro requires its users to pay a minimum deposit fee of $200. To deposit money, the platform accepts a variety of payment methods, including PayPal, Neteller, Skrill or Trustly, as well as all major credit and debit cards and of course bank transfers.

Payment method

Possible

Buy Stellar with bank transfer

ok

Buy Stellar with a credit card

ok

Buy Stellar with Neteller

ok

Buy Stellar with Skrill

ok

Buy Stellar with PayPal

ok

Buy Stellar with Online Banking

ok

Buy Stellar with Rapid Transfer

ok

Buy Stellar with Sofort

ok

Buy Stellar with a debit card

ok

Step 3: Buy Stellar

To buy real XML tokens or XLM CFD, search for XML using the search function on the screen interface. Click on the "Open Trade" button. A window will open.

Here you select the "Buy" tab and choose one of the payment methods offered. By clicking on "Open Trade" you complete the trade and now own Stellar Token or Stellar CFD.

Buy XML with PayPal, credit card, instant bank transfers and more.

Stellar is available on many different platforms for buying, selling and trading. Those who want to buy XML must first load their respective trading account with fiat currencies. For this purpose, different payment options are available on the various platforms. We have summarised the most important ones:

Credit card

PayPal

Instant bank transfer

Bank Transfer

  • Immediate availability
  • Sometimes high fees
  • Often accepted
  • Offers a high level of convenience and security through buyer protection
  • Hardly accepted on exchanges
  • Payment option at eToro
  • Fees are relatively low
  • In contrast to a bank transfer, the amount on the trading account is immediately available

  • Most popular method
  • Usually cheaper than other options
  • Takes approx. 4 working days for the amount to be available for trading
  • Is Stellar mining possible?

    Stellar mining

    Most cryptocurrencies can not only be bought, but also generated by means of mining itself. This requires special hardware and also consumes a lot of electricity, which makes mining unprofitable in most countries. In countries with low electricity prices, there are entire mining farms that provide enormous computing power to generate new coins.

    At the start of the improved Stellar network in November 2015, the maximum supply of tokens was completely allocated, so that token generation via conventional mining is not possible. Currently, the Foundation still holds about 27 billion Stellar tokens, which are to be distributed to the world by 2024. The current distribution can be viewed at any time on the Stellar Public Dashboard.

    mining possible

    Stellar Lumens storage: Which Stellar Wallets are available?

    rezor Wallet secure
    Anyone who buys real coins or tokens must ensure that they are stored safely. So-called wallets exist for this purpose, which function like a kind of daily account. When choosing a wallet, users should pay attention to the compatibility with the respective coin or token and also to how securely coins are to be stored.

    Special hardware wallets and paper wallets offer the highest level of security. These so-called cold wallets are not connected to the internet and cannot be attacked by hackers.

    The situation is different with online wallets. Online wallets are also called hot wallets and are permanently connected to the internet or store the coins on the net. Resourceful hackers thus have the opportunity to illegally access the wallet at any time. Hot wallets are unsuitable for the long-term storage of coins and tokens. A desktop wallet also belongs to the so-called hot wallets and can easily be targeted by hackers. The following wallets, for example, are compatible with XML tokens:

        Ledger Nano S (Hardware Wallet)
        Trezor (Hardware Wallet)

       Lobstr (Web / Mobile Wallet)
        Solar Wallet (Online Wallet)

       Keybase (Mobile Wallet)
        Coinbase (Online Wallet)

    If you want to store different coins and tokens within one wallet, you have to pay attention to the multifunctionality of the individual wallets.

    Should I buy real Stellar Coins or Stellar CFDs?

    XLM tokens are among the cryptocurrencies that can also be traded at CFD brokers. Anyone interested in investing in XLM should be clear about their own goals in advance.

    Because of the natural volatility of the token, cryptocurrencies are perfect for trading with so-called CFDs. CFDs are securities with which speculators can bet on rising or falling prices of a digital asset. In addition, there is the possibility of using so-called levers and multipliers, with which even small investments can lead to high profits. However, in addition to high profits, a total loss of the invested capital is also possible. Investors must also note that no transactions in the Stellar network are possible with the purchase of CFDs.

    Those who want to actively use the blockchain for their payment transactions must buy real XML. However, investors should note that in order to buy real coins, a secure wallet should be in place for storing coins and tokens.

    After investors have faced the question of whether buying real coins or investing in CFD is better, the next decision also emerges. Is it better to buy from an online trading platform like eToro or from an exchange? We have summarised the advantages of both options:

    Online Broker

        State supervised
        Trading available at any time
        Possibility of social trading
        No additional wallet required
        Deposit protection up to 20,000 euros
        High profit potential when trading CFDs (but also risk of loss)

    Crypto Exchange

        Availability of countless cryptocurrencies
        Trading of currency pairs is possible
        Suitable wallet must be set up
        Genuine Stellar in self-administration

    We recommend trading XLM tokens with our test winner eToro. At eToro, trading with CFDs is possible, but also the purchase of real coins. Comparisons with other platforms show that eToro charges low fees and offers many currencies to buy. In addition, eToro is state-regulated and deposits of up to 20,000 euros are protected by the European Deposit Fund.

    XLM Token Price Development & Forecast

    • XLM launch in July 2014
    • Stellar is little noticed by investors and remains between 0.018 USD and 0.022 USD.
    • All-time low on 18.11.2014: €0.001009
    • Launch of improved network with innovative algorithm
    • Announcement of partnership with IBM brings a short-term rise in the share price in October 2017
    • XLM reaches its all-time high during the crypto boom on 04.01.2018: €0.7714
    • After the market correction, Stellar is in a sideways movement until the summer of 2018, the price ranges between USD 0.20 and USD 0.30, and then falls permanently below the USD 0.10 mark again.
    • In June 2020, the Ukrainian government announces that it will use Stellar as the basis for the development of a state-owned digital currency. A few weeks later, it is announced that the real estate giant Vonovia will settle a new bond for 20 million euros via the Stellar Blockchain. The price slowly picks up and currently remains at € 0.3135 per XML (as of 06.06.2021)
    Token Price Development

    Stellar Lumens (XLM) forecast: Is an XLM investment worthwhile?

    From our point of view, Stellar Lumens brings a lot of positive facts that make the future look bright for the native token:
    • Partnerships

    • Solutions suitable for the masses

    • Confidence of the Ukrainian government

    • Confidence of the masses

    IBM, Deloitte and Stripe, and now Vonovia. These are all well-known companies and global players that already trust in Stellar Lumens' technology.

    When is the best time to buy XML?

    Since cryptocurrencies are extremely volatile, it is difficult to predict whether a time to buy Stellar Tokens is good or bad. Predicting positive and negative price movements is next to impossible. To get maximum profit from the highly - volatile market, we recommend monitoring the market over a longer period of time.

    Stellar Lumen's forecastBasically, it can be said that it is always worth buying cryptocurrencies when the market or the desired currency is on a correction course after a high. The market recovers and usually a price increase is the result after a longer sideways movement.

    In the specific case of the Stellar Token, it can be helpful to pay attention to news. The foundation is working diligently to find strong partners that underpin confidence in the currency. We have observed that the price initially climbed after announcements, only to correct itself afterwards.

    buy XML

    Stellar Lumens short-term speculation or long-term investment?

    Buy Stellar and invest for the long term or rather trade and make quick profits? Which option suits better depends mainly on your own trading strategy.

    Stellar is one of the cryptocurrencies that can be traded not only as a real coin, but also as a CFD. Due to the natural volatility of digital currencies, speculation with CFDs makes perfect sense. If investors are aware of the risks, we can recommend trading with CFDs. Making a high profit with a small amount of capital can be quite possible given the fluctuations of the market. On the other hand, the total loss of the invested capital is also possible.

    Long-term investments in Stellar make sense in our view if there is an interest in the project or in the usability of the blockchain. Likewise, we can well imagine using Stellar as a long-term store of value. The project meets all the criteria to step out of the shadow of Ripple and achieve mass acceptance. Strong partners in the background and the trust of the Ukrainian government are good reasons why we can imagine investing in XML Token in the long term.

    Tips for buying Stellar Lumens (XML)

    •    Get thorough information about Stellar Lumens and its background
    •     Compare trading platforms
    •     Set an investment maximum to limit the risk of loss.
    •     Find out about price trends and forecasts of the XML
    •     Decide whether to invest in CFD or real coin (determine trading strategy)
    •     Do not keep Stellar as the only currency in the portfolio, but focus on diversity.
    •     Do not be irritated by market fluctuations - they are normal!
    •     Keep private keys and passwords for Stellar wallets safe and do not share them with anyone.

    XML token advantages and disadvantages

    Pros

    • Direct trading possible
    • Offers mass-market international payments
    • Marginal transaction fees
    • High transaction speed
    • High acceptance with strong partners
    • Solution for Ukrainian government digital currency
    • Profits from the lawsuit against Ripple

    Cons

    • Ripple as main competitor
    • No mining possible
    • Strongly dependent on mass acceptance

    Conclusion: To buy or not to buy Stellar Lumens?

    In our eyes, Stellar Lumens (XML) has great potential to replace payment service providers on the internet.  The pacts signed with strong partners and the trust of the Ukrainian government speak for themselves and require no additional explanation on our part.

    If Stellar manages to hang on to its competitor Ripple, then we can well imagine that Stellar Lumens can develop into a fixed and reliable factor in the crypto world.

    If you are now convinced and want to buy Stellar Lumens, we recommend our test winner eToro. Both real XML and XML CFDs can be traded here. Furthermore, you can test your trading strategies here on a free demo account and test the practical social trading function. Users can easily buy a variety of cryptocurrencies here, such as Bitcoin, using various payment methods.

    Social trading function
    Fair and transparent fee structure
    State regulated and licensed
    Wide range of cryptos, incl. Stellar
    Free demo account

    FAQ

    What is Stellar?

    Stellar is an open source network that aims to make payments across countries and borders fast and affordable.

    Where can I buy Stellar?

    You can buy Stellar on various trading platforms and crypto exchanges such as Coinbase and Binance. At our test winner eToro, XML can be traded as a real coin and as an XML CFD.

    Real coins or CFD?

    Depending on what goals investors are pursuing, they can invest in real coins or in XML CFDs. Those who want to achieve high profits with a small investment are well advised to invest in Stellar CFD. But beware, here it can also come to high losses. Those who are interested in the technology and the applications in the network should buy XML tokens directly.

    How is the price development of Stellar?

    Since its launch in July 2014, Stellar Lumens has risen to a current price of around 0.31 euros. The token is very volatile, analogous to the crypto market, so there can be many ups or downs in the price.

    What is the forecast for Stellar?

    Because of its suitability for the real economy and the strong partners in the background, market experts see an extremely positive future for the native token in the Stellar network. Currently, Stellar Lumens is already outperforming forecasts that were only supposed to occur in 2022. For the coming years, experts predict a price increase to an average of €0.70 per XML token.

    About the author

    Hi there, my name is Zalman Weinberg. I'm enthusiast with over 7 years of experience in cryptocurrencies and blockchain. Professional Trader providing Blockchain solutions to Startups and Enterprises. Expert in all cryptocurrency exchange APIs (BitMEX, Bittrex, Binance, Bitfinex, Kraken, Poloniex, Gdax etc.). I have also worked with multiple Forex broker APIs.