Stellar Lumens (XLM) is a bit different from Bitcoin or any of the other cryptocurrencies out there. In essence, its main strength is actually the underlying blockchain system, which is designed to allow people to move currency across borders with meagre fees quickly.
As luck has it, South Africa is a country that relies heavily on the Stellar system, especially when it comes to banking. Obviously, this helps Stellar in terms of reputation, especially when you consider that it was created by one of the people involved in Ripple.
If you are interested in buying Stellar Lumens in South Africa, follow the steps in this article and choose one of the many exchanges that have this coin on offer.
How to Buy Stellar Lumens in South Africa
The steps required for buying Stellar in South Africa are quite straightforward. Here is what you need to do:
- Get yourself an eToro account – eToro is one of the most trusted trading platforms out there, with millions of traders relying on it every day. It offers a lot of other cryptocurrencies besides Stellar as well, not to mention the fact that you can also go into other types of assets.
- Verify your account to get started – The first thing you need to do after creating an account is to verify it in order to prove your identity. This doesn’t take long, and it’s a mandatory step.
- Load up some cash into your account – Depositing fiat money is quite simple on eToro, and there are multiple payment methods to choose from. However, a minimum of $200 is required for your first deposit.
- Buy Stellar Lumens – The last step is to actually search for the XLM listing and make a purchase, after which the coins are added to your online wallet.
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What Are Stellar Lumens?
As mentioned before, Stellar is actually more about the underlying digital infrastructure than it is about the XLM coins themselves. As such, the network is designed to support a high number of concurrent transactions, and it’s also engineered to be used for more than operating a cryptocurrency.
The Stellar network is currently being used by various other businesses and companies, including Deloitte Digital Bank, ICICI bank in India, and Tempo Money Transfer, a French remittances company. The goal is to set the whole system apart from something like Bitcoin since the ultimate goal is to escape the ties to Bitcoin’s volatility.
As you can expect, the project is still being worked on even today, with more features and improvements being added all the time. Nevertheless, more and more companies and institutions seem to be interested in the Stellar network, which bodes well for cryptocurrency as well.
Speaking of which, XLM is doing rather well in terms of market capitalization. As of writing this article, it sits at a comfortable $6.5 billion market cap, which makes it one of the most popular cryptocurrencies you can buy.
Is Buying Stellar Lumens a Good Investment?
Investing into XLM seems like a pretty good idea, even if the price-per-coin is currently measured in pennies. The fact that the company behind it is pushing for the network to be adopted by financial institutions all over the world means that a lot of people are trusting it enough to run real-world systems.
The other thing that’s worth considering is that Stellar is actively trying to distinguish itself from Bitcoin and all the other cryptocurrencies currently populating the market. This is in order to make it clear to investors and potential users that XLM should not be affected by the wild price fluctuations that plague Bitcoin.
However, that has not necessarily been the case so far – at least not completely. Stellar Lumens prices have oscillated quite a lot in the last couple of years, doubling and halving on a regular basis. This means that you should still exercise caution when it comes to investing money into XLM.
Even so, things are looking good. This is clearly not just another attempt at a cash grab, especially when you consider all the infrastructure development that is currently underway with the Stellar network.
At the end of the day, the choice to invest in Stellar is really up to you since there is no hard data that can predict how the coin is going to fare in the future.
The Advantages of Investing in Stellar Lumens
As mentioned before, there are plenty of upsides when it comes to Stellar Lumens that are simply not true for many other cryptocurrencies. If you are seriously considering an investment, here are some of the advantages you can expect:
- Very strong underlying network – The Stellar network is currently being used by multiple multinational companies and institutions, which should tell you a lot about its resiliency. That’s not something you can get from many other cryptocurrencies.
- Above-average market cap – XLM’s market cap is one of its biggest strengths, mainly because it means that a lot of people are trading it on a regular basis.
- It may not be tied to Bitcoin’s volatility in the future – As of right now, Stellar Lumens are still affected whenever Bitcoin prices go down. The company’s goal is to make it clear that BTC and XLM are very different things, which should put an end to this.
- Constant infrastructure and algorithm upgrades – Since the network is being integrated by so many reputable companies, the developers are actively working on making it safer, faster, and more reliable for everyone.
- Very low transaction fees for everyone in the world – This is actually one of Stellar’s core tenets. The whole system was designed to allow people to exchange all sorts of currencies fast and with little-to-no fees attached.
The Disadvantages of Investing in Stellar Lumens
Since there are always two sides to every coin, Stellar Lumens have their flaws and drawbacks as well. Here are some of the more negative things you should consider before investing:
- It’s still as volatile as Bitcoin for the time being – Until people are convinced that XLM is a different kind of digital currency, Bitcoin prices are still going to influence Stellar’s value.
- The ties to banking institutions may not be everyone’s cup of tea – The truth is, cryptocurrency and traditional banking are two concepts that don’t really go well with each other. Many people are going to be against this partnership, that’s for certain.
- It’s as unsafe as any other crypto for now – Despite its integration with various institutions, you still don’t have any sort of buyer protection incorporated into the system.
How Much Does It Cost to Buy Stellar Lumens in South Africa?
Cryptocurrency prices do not really differ depending on the country, so that’s not an issue when it comes to Stellar Lumens and South Africa either. However, some other factors can influence the amount of money you have to invest to get a certain number of coins.
Hence, the payment method you use can incur additional fees, which may raise the price of XLM. After that, there is also the fact that some platforms may not accept your local currency, which means that you will have to convert it to USD/EUR/GBP in order to start trading.
Conversions are usually never advantageous to you, so that’s another way you end up paying slightly more for crypto.
As for the actual price of an XLM coin, the price right now is around 28 cents, which is not bad. It reached 80 cents during the 2018 bubble, so there is still a lot of room for growth in the future, that’s for certain.
Purchasing Stellar Lumens – How to Pay for Them
Getting your hands on Stellar Lumens is not difficult after you create an account with a trading platform, but actually getting some funds deposited into your account can be a bit tricky if this is your first time.
The one thing you should always keep in mind is the fact that you can always be hit with hidden fees if you are using specific payment methods. Credit card fees are notoriously abusive, so it’s almost never a good idea to use them.
Here are some of the options you can use:
Buying Stellar Lumens with PayPal
Since most people already have a PayPal account anyway, many trading platforms allow you to use it in order to deposit funds. Granted, not all of them are PayPal-friendly, but it’s definitely one option if you have nothing better at your disposal.
In case you do not have a PayPal account yet, setting one up is relatively easy, but you should be aware of the fact that a verification process is required in order to start transferring funds to or from your bank account.
This process doesn’t take too long, but you do need to provide pictures of various documents, such as an ID card, passport, or other means of proving your identity. Once all that is done, you are free to start moving funds and using them to start buying Stellar Lumens.
PayPal does have some…
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