Stellar is one of the networks that store and transmit cryptocurrencies. In the past decade, as Bitcoin made headlines, many other virtual currencies and platforms amassed impressive gains and user bases. Among them is the stellar blockchain with its lumens token (XLM). This article briefly overviews the Stellar blockchain, its token, the XLM price history, and how to buy XLM in Australia.
What Is Stellar & How Does It Work?
Stellar is an open-source, decentralised blockchain platform launched by Jed McCaleb in 2014 to provide affordable and efficient banking services by connecting financial institutions on its blockchain.
Stellar’s native cryptocurrency, XLM, or Stellar lumens, serves two purposes: preventing spam and enabling multi-currency transactions. XLM has value due to its finite supply and use as fuel for transactions, with a small number of lumens (0.00001 XLM) deducted as fees.
Stellar initially copied the code used for the XRP Ledger, but it has since made technical changes that differentiate its offering. During the major update in 2015, Stellar replaced the mechanism to keep computers running its software with the custom-built Stellar Consensus Protocol.
Stellar Core is the software used to power the Stellar network and can be run in different ways depending on a user’s needs. Stellar Anchors (originally Gateways) accept deposits of currencies and assets and issue new representations of these assets on Stellar.
Stellar (XLM) Historical Performance
On its first day of trading, August 6, 2014, XLM sold for approximately $0.00265 with coins worth $36,000 traded. The lack of demand for XLM led to depressing price action over the next three years.
In the second quarter of 2017, XLM prices rallied and broke above $0.5 in mid-May, culminating with an all-time high of $0.938 on January 4 2018. However, prices soon plummeted. By the end of March 2018, XLM prices had dropped to $0.1908, ending at $0.1128 on December 31, 2018.
Throughout 2019 and 2020, XLM prices remained dismal, struggling to maintain a price level above $0.01. As the crypto market began rallying at the end of 2020, led by Bitcoin and Ethereum, XLM quickly followed suit, embarking on an ascent.
Starting the year at $0.13, XLM sharply rose to $0.31 within the first week of January 2021, then reached $0.5 by mid-February. In 2022, the Stellar price was down, and the highest price was $0.21, while the lowest was $0.072.
How to Invest in Stellar XLM?
Knowing Stellar’s historical performance, you can make an informed investment decision. It’s time to examine the various Stellar investment strategies.
Buy and Hold Stellar
One of the most common investment strategies is buying and holding cryptocurrencies anticipating a price increase. Amid the recent surge in Stellar’s price, including it in your cryptocurrency portfolio may be prudent. Notably, the price behaviour of various cryptocurrencies is highly volatile, and digital currencies bear more significant risks than traditional investments.
Stellar CFD Trading
Stellar CFD trading is yet another effective investment method. Trading cryptocurrency CFDs allows you to profit in both bullish and bearish markets. In addition to flexible lot sizes, you can access high leverage to maximise your profit potential. The best aspect is that minimal capital is required to establish a CFD position.
Day Trading Stellar
Investing in Stellar through day trading is a viable alternative. Day trading involves establishing and terminating positions within the same trading day. Most of your day trading positions will likely remain open for a while, ranging from a few seconds to a few hours and minutes. However, day trading is considered a very risky investment. To succeed as a day trader, you must have profound market knowledge and extensive trading experience.
Where to Buy Stellar XLM in Australia
Are you seeking an exchange platform to buy, sell and trade XLM in Australia? Here are some of the best places for you:
CoinSpot – Best Place for Australians to Buy Stellar Lumens
While almost all crypto exchanges in Australia offer the option to buy Stellar, not all provide secure and affordable methods to purchase XLM.
CoinSpot is among the best cryptocurrency exchanges in Australia, which has been awarded the ISO27001 Standard Security Certificate and is a registered member of AUSTRAC, Blockchain Australia and the Australian Digital Commerce Association.
The platform supports several AUD deposit methods, including free and instant PayID, POLi and Bank Transfer (Osko), and BPAY, Card, Cash and Crypto deposits. Read CoinSpot fees explained for further details.
eToro – Best Platform for Pro Traders to Buy Lumens XLM
eToro supports a wide range of over 60 digital assets, including Bitcoin, Cardano, Litecoin, Dogecoin, Shiba Inu, and Ripple (XRP). It also provides access to foreign stocks, ETFs, forex, and indices.
Investors can purchase XLM by paying a commission on a spread-only basis, which is more cost-effective than many other platforms. eToro also offers discounts for high-volume traders.
The CryptoPortfolio is one of the Smart Portfolios that allow investors to diversify their portfolio by investing in the best tokens. It does not charge management fees for its copy portfolio or copy trading features.
Crypto.com – Best Place to Buy XLM With Debit Card in Australia
Crypto.com offers a user-friendly and cost-effective approach to investing in cryptocurrencies like XLM. It features a straightforward process for buying Lumens by registering, verifying identity, and completing basic tasks.
Users can purchase XLM tokens using Visa or Mastercard payments, and a prepaid Visa debit card is also available for online shopping and ATM withdrawals.
The platform offers a 30-day trial period and interest on idle cryptocurrency investments through Crypto Earn.
Binance – Best Stellar Lumens Trading Platform for Day Traders
Binance is a top crypto exchange with many alternative currencies, including XLM. It handles a daily trading volume of billions of dollars with simple deposit methods like credit/debit cards or bank transfers.
The platform charges high fees for deposits and withdrawals but minimal trading fees of 0.1%, which can be further lowered with BNB.
Binance also offers a variety of cryptocurrency-specific tools and technologies, making it an attractive option for experienced traders.
Coinbase – Best Stellar Lumens Exchange Platform for Beginners
Coinbase is a reputable platform regulated by Financial Conduct Authority, with over 35 million customers from 100+ countries since its 2012 launch. The platform has a crypto wallet and NFT wallet, supporting other assets besides XLM.
To invest in XLM, register and open an account, and use a Visa or Mastercard to purchase with high fees of 3.99%. Bank account transfers have lower fees, and using Coinbase Pro for a limit order incurs 0.5%.
Coinbase employs institutional-grade security measures, with most coins in cold storage. Customers appreciate its user-friendly UI and customer service, and XLM can be withdrawn to a private wallet.
How to Buy Stellar (XLM) in Australia
Here are the most popular methods to purchase Stellar on crypto exchange platforms that list XLM.
Buy Stellar XLM With Debit/Credit Cards
Using a credit or debit card is a quick and widely used method to purchase Stellar Lumens. Deposits are instant with no additional fees.
Follow these three steps to buy XLM:
- Choose an exchange platform.
- Verify your credit card information.
- Select XLM and the desired amount.
Buy Stellar XLM With Bank Wire
Bankwire is not only the most secure method for purchasing Stellar but is also extensively acknowledged on most platforms. However, clients typically reserve it as a secondary option because deposits and withdrawals take longer than other payment methods.
The average duration of a wire transfer is three to seven business days. Bank deposit is the only way to contribute unlimited funds to your eToro account.
Buy Stellar XLM with eWallets (Skrill, Neteller)
E-wallets like Skrill and Neteller are popular payment methods for buying Stellar (XLM). However, remember to check if your country is not in one of the restricted jurisdictions for these services.
Some platforms, such as eToro, may set a maximum limit for e-wallet payments, and you need to have an active and funded account with the e-wallet provider to use it as a payment method. Alternatively, you can link your debit or credit card with your e-wallet account.
Buy Stellar XLM with PayPal
Although it’s impossible to buy Stellar directly from PayPal, you can use it with a trading platform like Ledger Live or a peer-to-peer marketplace to purchase Stellar tokens.
Funding your exchange account using PayPal is straightforward, as many platforms accept AUD. AUD deposits incur no fees, but you’ll be charged a conversion fee for transactions made in other currencies. To use PayPal, you must have an active account with sufficient funds.
Buy Stellar XLM Without ID Verification
On eToro, you can also purchase Stellar anonymously without ID verification. You have some time after account registration to verify your account.
You can purchase XLM tokens during this time, but there’s a limit. For example, the maximum deposit amount for unverified eToro accounts is $2250.
How to Buy Stellar XLM Lumens on CoinSpot
Stellar Lumens can be purchased on CoinSpot’s centralised exchange. It is fast, safe, and straightforward. Here is a detailed guide to buying Stellar Lumens on CoinSpot.
Step 1: Sign Up with CoinSpot and Get Verified
To begin registering with CoinSpot, follow this link to access a page as shown in the screenshot. Click the “Register” button in the top right corner, provide your email address and password, and complete the captcha verification to proceed.
After successfully creating your account, you must verify it. Click the “Complete Verification” button and follow the necessary steps. First, verify your email address, provide your identification information, and upload a copy of your driver’s licence.
Step 2: Deposit AD into Your CoinSpot Account
After verifying your account, you can deposit AUD into your CoinSpot account. Look for the “Deposit Funds” button in the top left corner of your account page. Click on it to access the deposit page, as shown in the screenshot below.
You can choose any deposit method from the list, but we suggest using POLi. This method incurs no fees, and the funds are deposited instantly. Enter the amount you want to deposit, choose your bank, and click the “Continue to POLi” button to complete your deposit.
Step 3: Purchase Stellar XLM on CoinSpot
After funding your CoinSpot account, you can buy XLM Stellar. Go to the top menu, click “Buy/Sell,” and search for XLM. Once you find it, click on Buy XLM to access the purchase screen, where you can see the current price of XLM.
Choose the amount of AUD you want to spend on XLM and click the Buy button. A pop-up will appear with the details of your purchase, including the fee and the amount of XLM you will receive. After reviewing the information, click “Confirm Buy” to complete the transaction. Congratulations! You now own some XLM.
Step 4: Store Your Stellar XLM Securely
After purchasing XLM on CoinSpot, you can find it in your wallet by clicking on “Wallets” at the top of the page. You can view the amount of XLM you own and its value in AUD there. CoinSpot offers a flexible Multicoin Wallet, regarded as Australia’s most secure crypto exchange.
However, if you intend to hold XLM as a long-term investment, consider a cold storage wallet that is entirely offline and not connected to the internet. This is a popular option among individuals who prefer to hold their coins instead of trading them regularly.
Is Stellar a Good Investment?
Stellar’s decentralised system allows transactions free from traditional finance network drawbacks, making it an appealing long-term investment with potentially high returns. As a deflationary coin, its value is projected to grow over time, which makes it an alternative to gold. Additionally, Stellar’s equity potential makes it worthy of consideration for modern portfolios.
However, buying Stellar has its downsides, including volatility and the risks of rug-pulls, blockchain attacks, and wallet hacks. The legal crackdowns and regulatory policies aimed at crypto could also affect its growth and adoption rate.
In summary, Stellar is an attractive digital asset that can be used as an asset class when building a diversified portfolio, but investors should weigh its pros and cons carefully and make an informed decision based on their risk tolerance and investment goals.
FAQs About Stellar XLM
How many XLM coins are there?
According to CoinMarketCap, the Stellar network has a market capitalisation of $8.2 billion, ranking it the 20th largest cryptocurrency. After burning over half of the initial token supply, it has a circulating supply of 23 billion coins and a maximum supply of 50 billion Stellar Lumens.
Can I mine or stake XLM?
XLM cannot be mined or staked for rewards to expand the asset supply. The Stellar Consensus Protocol (SCP), not the “proof of work” mining method, secures Stellar. This protocol restricts the transaction authentication process to a reliable set of nodes rather than allowing access to the entire node network.
Can I buy Stellar with PayPal?
Although buying Stellar directly from PayPal is impossible, you can use it with a trading platform like Ledger Live or a peer-to-peer marketplace to purchase the Stellar tokens.
Where to purchase Stellar (XLM)?
You can buy actual XLM coins or their derivatives through exchanges such as CoinSpot, Binance, and Coinbase, as well as peer-to-peer trading platforms. Alternatively, you can purchase XLM CFDs from cryptocurrency brokerages like Capital.com.
Is Stellar legal in Australia?
Yes. Buying Stellar tokens is legal in Australia but is regulated under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF 2006). Under this regulation, Stellar is classified as property rather than currency. AUSTRAC-registered exchanges are permitted to sell Stellar and other coins to Australian residents.
Is Stellar XLM taxable in Australia?
Cryptos like Stellar, considered property under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006, are subject to Capital Gains Tax in Australia. Stellar transaction fees can also have tax consequences, as they are included in the cost base, which is the total cost of acquiring, exchanging, or selling the coin.
Should I buy Lumen XLM coins?
Whether to purchase a Stellar Lumen coin depends on your financial plan and investment targets. Although investing in the bear market for long-term gains may be advisable, cryptocurrencies are still subject to high volatility and risks. You should research and consult with industry experts to determine if XLM can benefit your portfolio.
