Buying cryptocurrency can be a confusing process for first-timers. But it doesn’t have to be with the right instructions. We make it easy with this step-by-step tutorial on how to buy XLM. Follow along to get started today.
How to Buy XLM: Step by Step
Since it’s not possible to directly buy XLM with US currency, we have to do it in a roundabout way. This involves purchasing another type of cryptocurrency first and using it to buy Stellar Lumens (XLM).
As a side note, this method can be used to purchase any digital currency on Binance. Once you get the hang of it, you might want to invest in other types as well.
USD > Coinbase > ETH > GDAX > Binance > XLM
Step 1: Create an Account on Coinbase
A free account at Coinbase allows you to buy, sell, transfer, and store digital currency. Their platform is secure and insured. Coinbase users have exchanged over 50 billion in digital currency.
The first step is to create an account and then link your bank account to it. You can use a credit card too, but they incur credit card transaction fees. Using a bank account lets you avoid the fees.
Using the Coinbase smartphone app makes this entire process more manageable. If you’d like to use it, look for it in your phone’s app store.
Step 2: Buy Ethereum on Coinbase
XLM is not available on Coinbase yet, so you’ll have to buy Ethereum (ETH) first. We will then exchange it for XLM in the next steps. Ethereum is a better option than Bitcoin because it has lower transaction fees and faster processing times.
On Coinbase, or using their app, buy the USD amount of ETH that you want. Your balance will appear in the ETH Wallet soon.
Step 3: Transfer ETH to GDAX
You’ll be using GDAX to avoid all transfer fees from Coinbase to Binance. Log in to the GDAX exchange using your Coinbase account. You’ll have to verify your identity with a photo ID before being able to transfer anything.
After verification, deposit your ETH from Coinbase. In the source field, choose your ETH Wallet.
GDAX is a regulated US-based digital asset exchange service. This is Coinbase’s exchange service, and they’re FDIC insured.
Step 4: Create an Account at Binance
Next, you will need to create a free account at Binance.
Step 5: Transfer ETH to Binance
Once in your Binance account, click on the “Funds” link at the top and choose “Deposits & Withdrawals.” Look for ETH in the “Coin” column and click on the deposit button on the right side.
Copy the ETH deposit address shown. Go back to the GDAX Order Form and choose the withdraw option. In the ETH address tab, paste the ETH deposit address you just copied into the destination field.
Choose the maximum button so the amount will pre-fill for you. Click on “Withdraw funds.”
Now you’ll have to wait for the ETH to transfer to Binance.
Step 6: Buy XLM
After the transfer is complete, buy XLM at the bottom of the ETH to XML exchange page. You’ll want to choose the 100% option.
You are now the proud owner of XLM digital currency.
What’s the Bottom Line?
Learning how to buy XLM isn’t hard. There are a few necessary steps to follow, but once your accounts are set up, it’s easy. You’ll be a pro in no time!
Try your hand at buying Ripple XRP next.