Looking into buying Stellar Lumens cryptocurrency in Canada? Whether you’re an experienced cryptocurrency enthusiast or you’re just getting started in the exciting world of crypto trading, this guide is for you. We’re excited to teach you about Stellar Lumens itself and answer all your questions about buying, storing, and using it!
Stellar Lumens was launched in 2014 by Jed McCaleb. Before the launch, McCaleb published a website he called “Secret Bitcoin Project,” wherein he was looking for alpha testers. The objective of the network is to provide a platform for fast and secure transactions, especially for those in developing countries who may not have access to traditional banking services.
The Stellar network is a decentralized platform that aims to facilitate cross-border transactions and enable fast and low-cost payments. Some of its primary use cases include:
The Stellar network uses a consensus algorithm called the Stellar Consensus Protocol (SCP), a proof-of-agreement consensus mechanism, making it cheaper, more energy-efficient, and faster. This protocol prevents double-spending and other fraudulent activities, making Stellar Lumens a safe option for sending and receiving money.
You can design your digital currency or token and distribute it widely in the Stellar network. This includes representing anything from traditional currencies to assets like gold or real estate. Stellar acts as a global bridge to allow seamless transactions between different assets.
Since its network operates a ledger system, having its digital token would be easier for everyone. Stellar Lumens crypto coin, lumen (XLM), is the native Stellar crypto coin. When the network went live, about 100 billion XLM tokens were created. However, unlike other cryptocurrencies with a fixed supply, Stellar Lumens has an inflation mechanism built into its protocol. Every year, the supply of XLM tokens increases by 1% to reward network participation and growth. However, this was altered in October 2019 after a community vote, which reduced the overall supply of lumen. Currently, there are only 50 billion XLM tokens in total. While 20 billion coins are in circulation, the Stellar Development Foundation holds 30 billion XLM tokens reserved for the development and growth of the Stellar network.
Stellar Lumens lets users trade assets directly on the network. This makes it easier for people to swap one currency for another without a middleman. This also means they offer lower transaction fees. Currently, the minimum per-transaction fee is 0.00001 lumen. Users can process transactions in the network in just five seconds, making it one of the fastest cryptocurrency networks available. This makes it an attractive option for individuals and businesses looking to send money across borders without incurring high fees.
Stellar operates on a digital ledger that tracks all transactions, from account balances to pending actions. Every five seconds, this information is shared across the network. Nodes that run the Stellar software verify these transactions. The network requires that each account holds a minimum amount of 1 lumen and a small transaction fee to prevent misuse of the Stellar network. The network could be filled with spam or useless data without a small fee or barrier.
Unlike traditional payment systems, it doesn’t favour any specific currency. Using traditional currencies, such as the US dollar or Chinese Yuan for payments wasn’t ideal because it would associate the network with particular economies. For example, if the network preferred US dollars, the fees would remain constant for Americans but fluctuate for others. This way, Stellar remains independent and accessible to everyone.
Stellar Lumens has gained popularity in recent years as more people and businesses recognize the benefits of using a decentralized network for financial transactions. The Stellar network has partnerships with several major companies, including IBM and Deloitte, which have helped increase its visibility and credibility in cryptocurrency.
In terms of market performance, Stellar Lumens has seen significant growth since its launch. On January 4, 2018, XLM price surged to an all-time high of USD 0.93, driven by increased interest in cryptocurrencies and blockchain technology. However, like other cryptocurrencies, Stellar Lumens has also experienced periods of volatility, with prices fluctuating based on market demand and sentiment.
If you’re ready to buy Stellar Lumens crypto, Coinsquare is ready to help. Here’s the fastest (and easiest) way to dive in. Want more information? Skip this section and keep reading below.
You will need to go through a few sub-steps to open your account; verify your identity and answer a few onboarding questions.
You’ll use these funds to buy your Stellar Lumens (XLM)
In this step, you can check the Stellar Lumens price and convert Stellar Lumens (XLM) to CAD or USD as desired.
Welcome to Stellar Lumens ownership! The currency is now yours to hold or trade!
When you’re considering investing in something novel like Stellar Lumens (XLM) cryptocurrency, you might automatically think of big trading platforms in the USA or Europe. Here’s why it’s smart to buy from a Canadian source:
Crypto trading platforms that sell Stellar Lumens (XLM) in Canada are just as active as the platforms in any other country or international platform. You don’t need to worry that you’re missing out on key opportunities or that you won’t get the best rates or prices.
Platforms registered with the Canadian Securities Administrators (CSA) and the Canadian Investment Regulatory Organization (CIRO) are subject to local regulatory oversight and accountability. Always check with the CSA and CIRO for their list of registered crypto trading platforms as well as their banned platforms.
Customer service operates within Canadian time zones and provides service in both official languages to answer any questions about your Stellar Lumens (XLM) transactions.
Stellar Lumens (XLM) transactions can be done in CAD, which saves money on currency exchange rates and makes it less complicated to see the value of your assets.
Local funding options like Interac e-transfers can be used to purchase Stellar Lumens (XLM). There’s no need to set up offshore accounts or use payment services that you’re not familiar with.
There are no deposit fees when you use local banks and local payment methods like Interac e-transfer, giving you security and peace of mind that your money isn’t going through offshore financial institutions.
Deposit and withdrawal times are faster because you’re not relying on international transfers. You want your valuable assets working for you full-time without delay!
Legal recourse and dispute resolution are easier. It’s much simpler to research Canadian regulations and laws concerning your crypto assets and to find local representation for your concerns.
Tax reporting of your Stellar Lumens (XLM) profits is simpler, and the platform you use may help you with reporting requirements. You only have to concern yourself with Canadian taxation rules.
Now that you’ve got them, what do you do with them? Here are some common uses for cryptocurrency:
If you need to transfer money internationally, you may be able to do it more quickly and with lower fees compared to going through your bank. Peer-to-peer transactions can also be simpler with Stellar Lumens (XLM) cryptocurrency.
Some online retailers might accept Stellar Lumens (XLM) along with other cryptocurrencies as payment for goods and services, and some physical stores also accept crypto. You may also be able to pay utility bills, rent, or other recurring expenses, as well as use Stellar Lumens cryptocurrency for travel expenses.
Additionally, you might be able to use cryptocurrency for in-game purchases and other digital assets in some platforms, such as NFTs.
It’s become mainstream for investors to hold cryptocurrency in anticipation of a price increase, the same way you might hold stocks or bonds. This requires knowledge and familiarity with the way crypto markets work, including their inherent and dynamic risks.
You can also trade Stellar Lumens (XLM) for other cryptocurrencies, such as Bitcoin, Ethereum, XRP, Dogecoin and many other crypto coins. These transactions are straightforward on the Coinsquare platform.
Decentralized finance (DeFi) involves financial services and applications that operate on blockchain networks without relying on traditional financial organizations such as banks or individuals like brokers.
As cryptocurrencies become increasingly accepted as currency, their uses will continue to grow. If you’re a cautious investor, you can always start small and continue to educate yourself on the ins and outs of trading Stellar Lumens (XLM) and other cryptocurrencies. Coinsquare offers you the opportunity to get into crypto investing and trading in an easy, accessible way, with plenty of support!
You have plenty of options for buying Stellar Lumens (XLM) cryptocurrency. Here are some places you can make your first purchase:
There are Canadian-based platforms as well as international ones. Some international crypto platforms offer support for Canadian dollar transactions; check on this before you sign up if you plan to use Canadian funds. Look for a platform that has a user-friendly interface high security, and that allows you to make your purchases in the currency of your choice. Keep in mind that transacting on non-Canadian platforms can involve additional fees and mark-ups on exchange rates, as well as investor protection risks. Choosing a Canadian platform like Coinsquare means that you can avoid these currency exchange fees and mark-ups, and make sure that your accounts are safely maintained to the highest security standards as any other financial institution in Canada.
P2P platforms allow you to buy, sell, and trade digital assets like Stellar Lumens (XLM) crypto directly with other people without the involvement of an intermediary like a bank or a centralized platform.
To use a P2P platform for trading cryptocurrencies like Stellar Lumens, you may need to invest time to learn how they work, and you should be prepared to spend more time on each transaction due to the manual work involved.
You can find cryptocurrency ATMs in major cities across Canada. You can use these machines to buy Bitcoin and other cryptocurrencies using cash or debit. There are numerous websites and smartphone apps that you can use to locate these machines.
Cryptocurrency brokerage services serve as intermediaries between buyers and sellers. They provide services for both beginning traders, experienced traders, and everything in between.
Brokerage companies are designed to be user-friendly, and many of them provide educational resources such as tutorials and customer support. They can be a valuable resource for people who are short on experience, knowledge, or time.
These services also offer custodial functions such as storage and insurance for assets they hold for their clients. They may also offer portfolio management, similar to other investment service providers.
Unsurprisingly, it can be more expensive to use a brokerage than to trade directly on a trading platform. Users also relinquish some control over their funds and their private keys.
Crypto apps are smartphone applications that give you access to trading platforms but also provide additional functionalities to help you manage your holdings and stay up to date when you’re on the go. Many of these apps also have desktop versions for your convenience. Some of the additional functions of crypto apps are wallet services, portfolio management, and news alerts.
Exchange-traded funds (ETFs) are pooled investments that can be bought and sold the same way stocks can. ETFs are not actively managed the way mutual funds are because their function is to track the performance of the underlying group of assets rather than trying to outperform it. You might think of it as similar to an index fund, but ETFs can be traded throughout the day, whereas index funds can only be traded once a day after the market closes.
Crypto ETFs use one or more cryptocurrencies, such as Ethereum or Bitcoin, as the underlying asset. They are traded on regular stock exchanges and, therefore, subject to the same regulatory oversights as other assets traded on that exchange.
Although you don’t directly own the cryptocurrency when you invest in an ETF, the additional liquidity, ease of tax reporting, regulatory oversight, and added security make them an attractive option for many investors.
As of August, 2024, Stellar Lumens is not approved for ETFs. Fortunately, there’s always Coinsquare when you want to purchase XLM in Canada.
Storing cryptocurrency securely is crucial for protecting your digital assets from theft, hacking, and loss. With the increasing use of cryptocurrencies, these threats are ever more prevalent.
When you store cryptocurrency yourself, you are given two keys. The first is your public key, which is used to generate your public address. This key can be shared with others, like an account number. The second key is your private key, a secret alphanumeric code that allows you to access your cryptocurrency. Your private key is similar to a password. The private key is what you are safeguarding in storage because access to your private key means access to your funds.
Storing your Stellar Lumens in your Coinsquare wallet is easy and straightforward. Coinsquare does all the heavy lifting in terms of security and keeping your crypto safe in cold storage. You’ll even benefit from a comprehensive insurance policy on your crypto holdings.
Hot wallets store private keys on devices that are connected to the Internet. Hot wallets are suitable for frequent transactions, but they are more vulnerable to hacking and malware and should not be used exclusively. Hot wallets can be web-, app-, desktop- or hardware-based (held on an external storage device such as a USB).
Cold wallets are offline and, therefore, more secure. They are also called offline wallets or hardware wallets. In general, the safest way to transact with your Stellar Lumens holdings is to keep them in a cold wallet and transfer the amount you need to a hot wallet just before you plan to use it. A special type of cold wallet is the paper wallet, which entails recording your private key manually on a piece of paper (carved in a rock, engraved in a ring, etc), but this has obvious vulnerabilities. Paper wallets should be securely stored in multiple locations.
Custodial wallets are provided by third-party services that store your cryptocurrency on your behalf. Custodial wallets make it easy to buy, sell, and store your Stellar Lumens cryptocurrency, but it means giving a third party your private key. You must be certain of the security measures the third party uses before storing your cryptocurrency with them.
Non-custodial wallets, in contrast, are wallets that don’t involve a third party. Non-custodial wallets can be either hot or cold.
If you choose not to store your XLM in your Coinsquare wallet where it is protected in cold storage and insured, there are a few things you’ll need to do to increase the security of your digital assets.
Here are some important tips that will help keep your Stellar Lumens holdings safe and secure:
Ready to dive in with your first Stellar Lumens purchase? Coinsquare offers a user-friendly platform that gives you access to over 53 cryptocurrencies, no fee deposits, free withdrawal options, and unmatched customer support. We are the most trusted crypto trading platform in Canada, built by Canadians for Canadians.
With the Coinsquare trading platform, you can start transacting with cryptocurrency in as little as five minutes. Download our app from the Apple App Store or Google Play today and join the exciting world of cryptocurrency trading!
