Buying Stellar Lumens (XLM) is a foundational step for participating in the Stellar ecosystem. Once you own XLM, you can start trading, send remittances, or earn yield. You have several options; you can buy Stellar from centralized exchanges (CEX), decentralized exchanges (DEX), and peer-to-peer marketplaces. This guide will help you choose the best option that fits your needs, taking into account accessibility, control, and cost.
Centralized Exchanges vs. Decentralized Options
Centralized exchanges (CEXs) are hosted by companies that manage user accounts, custody assets, and often require identity verification. In contrast, decentralized exchanges (DEXs) run on blockchain-based smart contracts, giving users full control over their funds at the cost of a more hands-on experience. Here’s a table showing you a comparison of both:
Feature | Centralized Exchange (CEX) | Decentralized Exchange (DEX) |
Custody | Exchange holds private keys | You maintain ownership via wallet |
Ease of Use | Intuitive UI & support available | Requires wallet setup & gas management |
Fiat On‑Ramp | Usually available | Rarely available & mostly crypto to crypto only |
Fees | Around 0.1–0.5% trading + withdrawal/network fees | Low platform fee + network fees |
Liquidity | High (low slippage) | Moderate to low, depending on pair |
Examples | Binance, Kraken, Coinbase | Stellar DEX, Uniswap, PancakeSwap |
How to Buy XLM from CEXs
Centralized exchanges (CEXs) act as intermediaries between buyers and sellers of cryptocurrencies. They provide user-friendly platforms where you deposit funds and handle the processing of trade matching, custody, and withdrawals on your behalf. Here’s what you need to do when you are buying XLM.
- Choose a Trusted Exchange: Binance, Kraken, Coinbase, and MEXC are some of the biggest centralized platforms today. These platforms support fiat-to-XLM purchases and have user-friendly interfaces.
- Create Your Account: Fill in the necessary information including the Know Your Customer (KYC) requirements. A government-issued ID is usually required, along with proof of residency or a selfie.
- Deposit Funds: Since CEXs support fiat-to-crypto purchases, you can deposit your money via bank transfer, credit or debit card, and other digital payment methods like PayPal.
- Buy Stellar Lumens (XLM): Look for the USD/XLM trading pair in the spot market page. Choose either market or limit order to place an order. Once you confirm, your XLM will be credited to your account and ready for use.
- Withdraw Your XLM: For added safety, you may transfer your XLM to your hard wallet that supports Stellar.
How to Buy XLM from DEXs
Decentralized exchanges (DEXs) allow you to trade cryptocurrencies directly from your wallet, without surrendering custody to a middleman. Here, you manage your private keys and funds securely. You can start buying Stellar in DEXs by following these:
- Set up a Compatible Wallet: Start by choosing a wallet that supports the Stellar network such as Feighter or LOBSTR. Cross-chain wallets, such as Trust Wallet or MetaMask, are also good choices. Ensure that your account recovery settings on these wallets are fully configured for security.
- Acquire an Intermediary Token: To do this, you will need to add funds to your wallet and purchase ETH or a stablecoin, such as USDT or USDC. Then, you will use these tokens to swap for XLM.
- Connect to a DEX: You can choose between Stellar DEX or cross-chain DEX. The former is ideal when trading within the Stellar ecosystem due to its speed, security, and cost-effectiveness. Choosing a cross-chain DEX will enable you to access assets across multiple blockchains.
- Swap Your Token: You will then exchange the intermediary token acquired for XLM. Check the rates, transaction fees, and final amount received. Once you do, you may proceed, and the XLM should appear on your dashboard.
How to Buy XLM from P2P Crypto Marketplaces
Peer-to-peer (P2P) marketplaces connect buyers and sellers directly, allowing you to acquire Stellar Lumens (XLM) using various payment methods without relying on a centralized exchange. These platforms utilize escrow services to secure trades, thereby minimizing the risk of fraud and offering flexibility in payment options, such as bank transfers or credit cards. To get started, here’s what you need to do:
- Choose a P2P Platform: Choose a platform that has escrow protection. This ensures that the seller will not receive payment unless he proceeds with the transaction. Symlix is known to provide escrow services on XLM deals.
- Browse the Listings: Look for XLM by using the filters. Check for your preferred price per XLM, payment methods, seller location, amount, and seller ratings. It’s best to choose sellers with high ratings to reduce risk of fraud.
- Initiate Trade: Enter the amount of XLM and payment for the offer you have chosen. Once you confirm, the exchange rates on the listing will be locked and the XLM will be placed in escrow. Then, follow the payment instructions given by the seller.
- Received the Escrowed XLM: After the seller confirms the payment, you will receive the XLM. You may now use the XLM to stake and trade.
Fees
The three types of XLM exchange platforms have their transaction fee structures
Type of Platform | Fee Structure |
Centralized Exchanges (CEX) | – Around 0.1% to 0.5% per trade – Fiat deposits may cost 1% to 2% XLM – Withdrawals incur 0.00001 XLM per transaction |
Decentralized Exchanges (DEX) | – Platform fee is usually low or even zero- Network fee is fixed at 0.00001 XLM per transaction |
Peer-to-Peer Crypto Marketplaces (P2P) | – Buyers pay a spread over market rates- Escrow services may include a small fee |