How to Buy Stellar Lumens in South Africa – Beginner’s Guide

Stellar Lumens (XLM) was created by the founder of Ripple to enable anyone to make international payments instantly.

In this guide, we show you how to buy Stellar Lumens in South Africa and explain where to buy Stellar Lumens.

How to Buy Stellar Lumens South Africa – Step by Step Guide 2021

Want to buy Stellar Lumens right away? You can get started with eToro, our top-rated cryptocurrency exchange in South Africa, in just 4 quick steps:

  1. Open an Account with eToro – eToro is a South African cryptocurrency exchange that offers low fees and 16 popular cryptocurrencies. To get started, head to the eToro website, click ‘Join Now,’ and create a new account.
  2. Upload ID – eToro requires you to verify your identity to comply with Know Your Customer (KYC) rules. Upload a copy of your passport or driver’s license along with a copy of a recent financial statement or utility bill.
  3. Deposit – Add at least 3,000 ZAR (200 USD) to your trading account by debit card, credit card, bank transfer, PayPal, Neteller, or Skrill.
  4. Buy Stellar Lumens – Search for ‘Stellar’ or ‘XLM’ and click ‘Trade’ when it appears. Enter how much money you want to invest, set a stop loss or take profit price, and click ‘Open Trade’ to buy Stellar Lumens.

What is Stellar Lumens?

Stellar LogoStellar Lumens is a cryptocurrency created in 2014 by Jed McCaleb, the founder of Ripple (XRP). The two cryptocurrencies have a lot in common. Both are based on the Ethereum blockchain, and both are designed to facilitate international payments.

The difference between Stellar and Ripple is that Stellar is designed to allow individuals to make payments internationally, whereas Ripple is designed for financial institutions such as banks. The Stellar blockchain allows anyone to send money anywhere in the world in under 5 seconds.

One thing to know about Stellar Lumens is that Stellar is the name of the cryptocurrency project and the decentralized blockchain over which transactions are processed. Lumens is the cryptocurrency that trades on the Stellar blockchain.Stellar Homepage

The purpose of Lumens is to facilitate international payments over the Stellar blockchain. If you want to send, say, ZAR to someone in India, you’ll be hard-pressed to find a ZAR/INR forex trading pair. So, your ZAR will be converted to Lumens on the Stellar blockchain and then to INR after being matched with other transactions on the blockchain. Thanks to Lumens, it’s possible to send currencies around the world even when convenient forex pairs aren’t available.

Why Buy Stellar Lumens? Stellar Lumens Analysis

Stellar Lumens is one of a handful of cryptocurrencies that helps people move money around the world.

It’s hard to understate how significant the market for international money transfers is. PayPal, which is fundamentally a fintech company built to help people send money quickly and with low fees, is now the 19th largest company in the US. Three of the companies that are even larger than PayPal are Visa, Mastercard, and Bank of America.

Of course, Stellar isn’t the only cryptocurrency occupying this niche. Bitcoin, the original digital currency, was also created to facilitate international payments. While Bitcoin remains the dominant cryptocurrency by a significant stretch, Stellar does have some significant advantages over it.

Compared to Bitcoin, Stellar is able to process transactions much faster. Most international payments are completed in less than 5 seconds – faster than a traditional wire transfer. Better yet, the Stellar network can handle about 10 times as many payments per second as the Bitcoin blockchain.

Sending money with Stellar is also incredibly cheap. Users are charged just 0.00001 XLM – much less than one cent – for international transactions. Bitcoin, on the other hand, can charge upwards of 300 ZAR depending on how busy the blockchain is.

Perhaps the most important thing about Stellar is that it enables you to send fiat currency from one place to another. You don’t have to send Lumens, although you can using a cryptocurrency wallet. With Bitcoin, it can be a headache to change fiat currency for Bitcoin, send Bitcoin, and then change back to another fiat currency.

Right now, Stellar boasts about 4.3 million users compared to over 100 million Bitcoin users worldwide. That means the cryptocurrency has a long way to go if it wants to catch up in the race to dominate global payments. So, carefully consider whether you think this cryptocurrency can continue to attract investors before jumping onboard.

Stellar Lumens Price

The price of a single Stellar Lumens hovered around $0.002 from the coin’s launch in 2014 until mid-2017. At that time, the price of Lumens began to rise as interest in Bitcoin increased. By the end of the year, the price of Bitcoin surged past $18,000 and Lumens followed suit, reaching as high as $0.88. For early investors, that represented a gain of 44,000% in the span of just a few months.

The crash in Bitcoin that followed hurt the Stellar Lumens price as well. Lumens fell gradually to a low of $0.045 by the end of 2019, and the coin dropped to $0.35 when the COVID-19 pandemic hit last year.Stellar Lumen Price Chart

Prices remained at that level until November 2020, when the price of Bitcoin began to surge higher again. Lumens made a sawtooth-like series of moves higher – to $0.20 in November, $0.30 in December, $0.50 in February 2021, and then to $0.70 in April.

At the time of writing, Stellar Lumens is in a trough and the coin is trading at $0.50. This coincides with a similar drop in Bitcoin as investors begin to cash in their gains from the past several months. XLM is the 17th biggest cryptocurrency by market cap and is valued at $11 billion.

It’s too early to tell whether the current trough will lead to another price spike or whether Lumens will start to give back some of its massive gains from the past several months.

Ways of Buying Stellar Lumens

When it comes to how to buy Stellar Lumens, you have a couple of different options. Let’s take a look at the payment methods you can use to buy Lumens tokens.

Buy Stellar Lumen with PayPal

You can buy Stellar Lumen using funds in your PayPal account simply by using a cryptocurrency exchange that accepts PayPal. eToro makes it easy to fund your account and buy Stellar Lumen with PayPal, and you can get started with as little as $200 (3,000 ZAR).

Buy Stellar Lumens with Debit/Credit Card

Another way to buy Stellar Lumens is by using a debit card or credit card. Most major cryptocurrency trading platforms, including eToro and Libertex, accept Visa and Mastercard debit/credit cards for payment. In addition, when you fund your account with a card, you can start trading right away.

Buy Stellar Lumens with Bitcoin

You can also use Bitcoin to buy Stellar Lumen. Almost every major crypto exchange, including eToro, accepts Bitcoin for payment. Just connect your Bitcoin wallet to your trading account and then exchange your coins for Stellar Lumen.

Where to Buy Stellar Lumens in South Africa

You can buy Stellar Lumens using a crypto exchange, crypto broker, or CFD trading platform. Let’s take a look at 2 of the best places to buy Stellar Lumens in South Africa.

1. eToro – Overall Best Place to Buy Stellar Lumens South Africa

eToro LogoeToro is, in our opinion, the best place to buy Stellar Lumens in South Africa. This multi-asset trading platform and cryptocurrency exchange offers 16 of the most popular cryptocurrency for trading, including BTC, ETH, DOGE, XRP, and XLM. Better yet, you can choose between buying cryptocurrencies outright or trading them with leverage through CFDs.

eToro makes it easy to exchange from fiat currencies like USD to Stellar Lumens. The broker requires a minimum deposit of just $200 (3,000 ZAR) and you can buy Stellar Lumens with PayPal, credit or debit card, or a bank account. eToro also has its own crypto wallet for iOS and Android devices to make it easier to manage your coins.

Another great thing about eToro is its trading platform. This broker’s web and mobile interfaces are simple to get started with and offer in-depth technical charts for price analysis. You also get a news feed and economic calendar to help you stay on top of the cryptocurrency market.Stellar Lumen Chart eToro

Our favourite thing about eToro is the broker’s social trading network. You can connect with tens of thousands of traders from around the world to share ideas and trading strategies or discuss the latest news around Stellar Lumens. The network also allows you to monitor changes in trading interest around XLM or other cryptocurrencies. To automate your trading, you can mimic the moves of more experienced traders.eToro cryptoportfolio

eToro is regulated by the UK’s Financial Conduct Authority (FCA) and is widely considered to be trustworthy. The broker also offers 24/5 customer support in case you ever need help with your trading account.

Pros

  • Trade 16 top cryptocurrencies including XLM
  • Accepts credit cards, debit cards, and PayPal
  • Built-in cryptocurrency wallet for mobile devices
  • Includes a global social trading network
  • Supports copy trading
  • 24/5 customer support
  • Regulated by the UK FCA

Cons

  • Small $5 withdrawal fee
  • No access to XLM order book or depth charts

67% of retail investor accounts lose money when trading CFDs with this provider.

2. Libertex – Trade Stellar Lumens with CFDs

Libertex LogoLibertex is a great option for traders who want to speculate on the Stellar Lumens price without owning the coin directly. With this CFD trading platform, you can trade XLM on margin with 2:1 leverage and there’s no need to set up a cryptocurrency wallet. In addition, you can open an account in just minutes with a minimum deposit of only $10 (150 ZAR).

Libertex has CFDs available for 35 popular cryptocurrency-fiat pairs, so there’s no shortage of tokens to trade with this broker. In addition, the platform offers trading on stocks, indices, forex, and commodities. So, Libertex can be a good choice if you’re interested in trading a wide range of assets, not only cryptocurrencies.Trade cryptocurrencies in South Africa

Libertex has its own trading platform for web and mobile. It includes an economic calendar, news feed, and technical charts with dozens of indicators and drawing tools.

On top of that, more advanced traders can take advantage of Libertex’s MetaTrader 4 integration. MetaTrader 4 enables you to build your own custom technical studies and to backtest strategies with historical price data so you can see how effective they are.Libertex Mobile Trading App

Libertex is regulated by the Cyprus Securities and Exchange Commission (CySEC). The broker offers customer support by email and typically responds within 1-2 trading days.

Pros

  • Trade 35 crypto pairs with CFDs
  • Get started with just $10 (150 ZAR)
  • Custom web and mobile trading platform
  • Integrates with MetaTrader 4 platform
  • Regulated by CySEC

Cons

  • No phone or chat support
  • Cannot buy cryptocurrencies outright

83% of retail investor accounts lose money when trading CFDs with this provider.

How to Buy Stellar Lumens Tutorial

Now that you know where to buy Stellar Lumens, let’s take a closer look at how the process works. We’ll walk you through how to buy Stellar Lumens at eToro, our top-rated cryptocurrency broker in South Africa.

Step 1: Open an Account with eToro

Head to the eToro website and click ‘Join Now.’ Enter your email and a password to create a new account.Create a trading account on eToro

67% of retail investor accounts lose money when trading CFDs with this provider.

Step 2: Upload ID

eToro requires you to verify your identity in order to comply with anti-money laundering regulations. Upload a copy of your passport or driver’s license along with a copy of a recent financial statement or utility bill to complete this step online.eToro Verify Your Identity

Step 3: Deposit

Next, deposit funds to your trading account. eToro requires a minimum deposit of $200 (3,000 ZAR), which you can pay by debit card, credit card, bank transfer, PayPal, Neteller, or Skrill.Deposit funds to your eToro account

Step 4: Buy Stellar Lumens

Now you’re ready to buy Stellar Lumens. Search for ‘Stellar’ or ‘XLM’ and click on the coin when it appears in the drop-down menu. On the Stellar Lumens trading page, click ‘Trade’ to open a new order form.eToro Buy Stellar Lumen

Enter the amount of money you want to invest in XLM. Then enter a stop loss or take profit price if it fits your trading strategy. When you’re ready, click ‘Open Trade’ to buy Stellar Lumens.

How to Stellar Lumens Currency in South Africa – Conclusion

Stellar Lumens is a cryptocurrency designed to help individuals send money around the world quickly and with low fees. This currency was created by the founder of Ripple, which serves a similar purpose for financial institutions. While there’s no guarantee that XLM can become more popular than Bitcoin, Stellar makes it faster and cheaper to send money.

Ready to buy Stellar Lumens in South Africa? Click the link below to get started with eToro today!

eToro – Best Trading Platform to Buy Stellar Lumens in South Africa

eToro Logo

67% of retail investor accounts lose money when trading CFDs with this provider.

FAQs

How is Stellar different from Ripple?

Stellar and Ripple were created by the same development team. Stellar is designed to help individuals send money internationally, while Ripple is designed to help financial institutions send money around the world.

How much Stellar Lumens should I buy?

The amount of Stellar Lumens you need to buy depends on your broker. eToro requires a minimum deposit of $200 and you must buy or sell at least $50 worth of XLM per trade.

Should I buy Stellar Lumens?

Stellar Lumens has great potential to make it easier and cheaper for individuals to send money around the world. However, the coin is still far less popular than Bitcoin, which could hold its price down for some time.

Do I need a Bitcoin wallet to buy Stellar Lumens?

If you want to buy XLM and hold it, you will need a cryptocurrency wallet like the one from eToro. If you simply want to trade around the price of XLM, you can do so with CFDs without a crypto wallet.

How do I buy Stellar Lumens stock?

Stellar Lumens (XLM) is a digital currency, not a stock. The best way to buy Stellar Lumens is through a cryptocurrency exchange like eToro.

About Michael Graw

Michael Graw is a freelance journalist based in Bellingham, Washington. He covers finance, trading, and technology. His work has been published on numerous high-profile websites that cover the intersection of markets, global news, and emerging tech.