Table of contents:
- 1 Buy Stellar Lumens 2020: Trading with XLM CFDs as an alternative to Stellar Lumen Coins
- 1.1 Stellar Lumens – good to know
- 1.2 Digging lumens – is that possible?
- 1.3 Buy and sell – trading XLM via crypto stock exchange
- 1.4 How does trading with XLM via CFD work
- 1.5 Which payment methods can be used to buy XLM
- 1.6 Trade via regulated broker Stellar CFDs
- 1.7 Chances and risks in crypto trading
- 1.8 Determine target price of Stellar Lumens
- 1.9 Stellar fundamental valuation
- 1.10 Can Stellar hold its own in the crypto-universe
- 1.11 Positioning – Stellar vs. Bitcoin
- 1.12 Cooperation partners good for the image?
- 1.13 Alternative Crypto-Coins
- 1.14 Conclusion: Buy Stellar or trade via CFDs
Buy Stellar Lumens 2020: Trading with XLM CFDs as an alternative to Stellar Lumen Coins
In the meantime, the crypto market has numerous participants, including the crypto currency Stellar Lumens (XLM) since 2014. The Stellar Network was developed based on the Ripple Protocol. By the advancement of the network in the past years Stellar could assert itself at the market against many other Altcoin. Who would not like to participate actively in the payment transaction over the Stellar platform, can be interested nevertheless in the innovative crypto currency. The reason for this can be seen in the volatility of the crypto market, which is particularly interesting for trading CFDs.
- Lumens are payment unit in the Stellar Network
- to be found under the abbreviation XLM on Krypto-Börse
- leveraged stellar lumens trading
- Assess price development through analysis tools
Stellar Lumens – good to know
As an introduction, we would like to provide some key data on Stellar before we focus on buying Stellar Lumens. The Stellar network was launched in 2014 and comparisons to the Ripple protocol are made for a good reason, since Stellar was based on the Ripple protocol at least in the beginning. Stellar was founded by Joyce Kim and Jed McCaleb. Stellar’s protocol is open source and can be used for international payment transactions. Usually transactions are executed in up to 5 seconds. Users have to pay a fee of 0.00001 lumen for a transaction.
For many, handling crypto currencies is still new. At Stellar, the operation is quite simple, at least when it comes to sending money. This process should be as simple as sending an e-mail. In the user-friendly Stellar network the currency conversion is done automatically. Transactions can take place between, for example, Euros and US dollars, that is – between different currencies. The Stellar Lumens are used for internal billing. The lumens are used as payment units within the network.
Stellar sometimes has significantly different structures than its competitor Ripple. Stellar is a non-profit organization. In such an organization, profit intentions are not the main focus. Even users with a small purse should be able to use the Stellar network so that the fees are as low as possible. The social aspect is unmistakable with Stellar. The network should address a broad target group and enable fast and cost-effective payment transactions.
Digging lumens – is that possible?
Mining shows a possibility to make money with crypto currencies. A well-known example is Bitcoin mining. New blocks can be created by providing computing power. This in turn creates new Bitcoins. Successful miners are rewarded with Bitcoins, which in turn can be sold for fiat currency. A sale is of course particularly worthwhile if the Bitcoin rate is high. However, “classic” mining is not possible with every crypto currency. This is also the case with Stellar Lumens. On the other hand, there is a similarity in the subject of mining with the crypto currency Ripple (XRP), which also does not offer Ripple Mining.
The number of Bitcoins is limited. A maximum of 21 million Bitcoins can be generated. Exactly when the last Bitcoin will be generated can only be limited to a certain time period. When Stellar Lumens was started, all XLMs were output. This shows a similarity to Ripple, because XRP cannot be mined by the public either.
If you want to put Stellar coins in your wallet, you have to buy Stellar Lumens. Since Stellar Lumens are not minebar, Stellar Lumens Coins can not be earned by provided computing power. Mining itself has advantages and disadvantages. Miners not only have to buy powerful hardware, but also have to take into account the power consumption. Besides, the earnings depend on the exchange rate of the crypto currency.
Buy and sell – trading XLM via crypto stock exchange
Where can I buy Stellar Lumens? – this question is in focus when traders want to trade with the crypto currency. Online there are many providers where Stellar Lumens can be purchased. Here it applies to provide itself first a meaningful overview. Purchase and sale of XLM is possible over an appropriate crypto stock exchange. The crypto exchange is where supply and demand meet.
Who would like to know, how the current Stellar-Euro exchange rate stands, finds in addition on-line many possibilities. It can also be worthwhile to compare the prices of the different crypto exchanges in order to trade at the best possible price. Before you can use the services of a crypto exchange, you must register there. Verification may also be required as part of the registration process. However, this depends on the regulations of the respective crypto exchange.
Short Stellar Lumens buy instructions:
- Step 1: Compare the conditions and services of the crypto exchanges and select suitable providers.
- Step 2: Register and verify if necessary
- Step 3: Deposit money to make a purchase
- Step 4: Place order
- Step 5: Stellar lumens are sent to the Lumens Wallet after purchase.
Another way to purchase Stellar or other crypto currencies is to visit crypto marketplaces. On such a market place the participants can deal with suitable purchase or sales offers and/or adjust these themselves on the market place. The service is not free also here. Anyone who trades via a crypto-marketplace must expect a trading fee.
How does trading with XLM via CFD work
CFD trading is possible with underlying assets from asset classes such as shares, indices and currencies. In recent years, interest in Bitcoin and other crypto-currencies has grown, prompting many CFD brokers to include digital currencies in their trading offerings. Some brokers also list Stellar Lumens for trading CFDs. Unlike buying Stellar Lumens, when trading CFDs with XLM, traders do not purchase the coins themselves. When trading CFDs, traders can speculate on the performance of the underlying asset – the price of Stellar Lumens.
Important terms in CFD trading:
- long and short
Whoever deals with CFD trading should first understand important terms. When Stellar Lumens are traded via CFDs, there is leverage that can be used. For retail investors, there has been a leverage limitation for some time now, which is dependent on the asset class traded, among other things. With regard to crypto CFDs, this means that a leverage of maximum 2 can be used. Even the smallest price movements can be multiplied by the leverage. The leverage effect, however, works in both directions and thus on both profits and losses.
When trading Stellar CFDs, traders can go long or short. When a long position is placed, there is speculation that the price of Stellar will rise. When traders go short, however, prices are expected to fall. In order for the broker to execute the placed CFD position, a security deposit (margin) must be deposited in the CFD account. Trading fees can take the form of spreads or commissions.
Which payment methods can be used to buy XLM
There are some aspects that are worth knowing for trading Stellar. This includes the point payment methods. It is not uncommon for payments to be made as quickly as possible. Certain payment methods are more suitable than others. Payments by bank transfer can take longer than credit card payments. Also different eWallets can be used for the fast payment method. Especially here the Stellar Lumens buy PayPal is on the agenda for many traders. The online payment service PayPal has the advantage that non-business payments in euros are free of charge.
PayPal customers from Germany can realize payments in this country and within the EU free of charge. If, however, payments are to be made in a currency other than Euro, there are fees for currency conversion. The currency conversion is relevant if the crypto exchange does not accept payments in Euro. It can be useful to find out about the payment options of a crypto exchange before registration. PayPal is not always among the accepted payment methods, but Bitcoin offers PayPal. On the other hand, many providers accept payments by credit card such as Visa or MasterCard.
The question of the appropriate payment method also arises when choosing a broker. Before Stellar can be traded via CFDs, the trading account must be capitalized. Some CFD brokers require a minimum deposit, but this is usually not an insurmountable hurdle for retail investors. Online payment services can also be found in the CFD brokers’ payment options. Less frequently represented is the payment service PayPal.
Trade via regulated broker Stellar CFDs
The possible regulation of the crypto market is much discussed. A regulated trading environment is important for traders. Strict controls by the responsible supervisory authorities are already experienced by regulated brokers. Anyone who opens his trading account with a broker based in Germany should know that regulation in this country is carried out by the Federal Financial Supervisory Authority (BaFin). The supervisory authority checks whether a broker complies with the prescribed regulations.
This benefits the protection of customers. The fact that a broker is regulated is important due to various aspects. In order to prevent customer deposits from flowing into the insolvency estate in the event of the broker’s insolvency, the deposits must be kept separate from the company assets. The statutory deposit insurance within the EU is important with regard to customer funds in the settlement account. If the clearing account for the deposit account is located at a German bank, the deposit protection scheme covers an amount of 100,000 euros per customer. Many banks even work with a multi-level security system, so that the customer’s money is protected up to a certain amount, which goes far beyond the legal deposit protection. Whether the Stellar Lumens XLM buy in the near future worldwide via fully regulated crypto stock exchanges will become apparent.
Tip: Those who are not yet familiar with CFD trading can open a free demo account to explore the trading environment without risk. A demo account is used to trade virtual stakes, so that users cannot lose real money – but they cannot win either. Such an account is for practice purposes and is not only suitable for beginners.
Chances and risks in crypto trading
Those who invest their money first inform themselves about risks and return opportunities. Also before the Stellar Lumens XLM buy, it is advisable to deal with the chances and risks. The fact that crypto currencies can put down in shortest time strong exchange rate fluctuations is not only well-known since the Bitcoin Rallye of the past years. The volatility of Stellar and other digital currencies makes the crypto market interesting for CFD trading. Due to the leverage effect, traders can profit from even small price movements.
Despite all the euphoria that some people show when trading crypto currencies, it should not be forgotten that an investment in this asset class is highly speculative. There are a multitude of factors that can influence the price of a crypto currency. It is difficult to estimate the future course of the exchange rate. Who would like to convert day trading with Stellar CFDs, trades with short term investment horizon. Depending on the investment strategy, a CFD position is only held for a few minutes. If the price takes the forecasted direction, traders can make a profit with the position. Otherwise there is a loss.
Stellar’s volatility accommodates many traders, as it can also create promising opportunities. It takes a certain amount of risk to trade in the crypto market. Compared to frequently traded fiat currencies such as the euro and US dollar, many crypto currencies show a significantly higher fluctuation range.
Determine target price of Stellar Lumens
Chart analysis can also be used when trading with Stellar as a tool to weigh up possible price movements. In order to be able to carry out the technical analysis properly, one should be familiar with the subject matter. The goal of a chart analysis or Stellar Lumens price forecast is to determine a good time to buy or sell. A chart is used to show the course of the price. The presentation is based on historical price data. Different time intervals can be visualized to inform about price breakouts. The selectable time intervals can be found in the chart settings. It only takes a few clicks to select a time interval or another chart display. There are many different chart types. One of the best known forms of display are:
- Line Chart
- Bar chart
- Candle Stick Chart
- Point & Figure Chart
The basis for CFD trading is the trading platform. Which platform is offered depends on the respective broker. When choosing a broker, the trading platform is an important criterion, as it usually still contains numerous tools and features that can be used for technical analysis. If access to the trading platform is also possible via a trading app, users can also analyze the price on the move via a mobile device.
Who would like to buy Stellar Lumens Euro, can inform first with the help of a live chart about the current rate. Real-time price information is especially important for short-term trading with XLM. Usually, information is provided on whether the displayed price is real time or whether it is displayed with a time delay.
Stellar fundamental valuation
An analytical tool in the financial market is not only technical analysis, but also fundamental analysis. In order to find out whether an investment is worthwhile in the long run, some traders use fundamental analysis. As mentioned earlier, there are many factors that can influence the Stellar price. In addition to political and economic news, there are other factors that can cause Stellar to fluctuate. Relevant news can influence the price of crypto currencies in the short term. Which course Stellar takes in the long run is of interest especially for long term oriented traders.
When trading stocks, fundamental analysis is performed to find undervalued stocks. For this purpose, the fundamental data of the company are used instead of the stock market price of the respective share. For example, business indicators are considered in order to determine a favorable time to buy or sell. With the fundamental analysis an attempt is made to determine a real value. The fundamental evaluation of crypto currencies sometimes does not turn out to be easy, if at all meaningful possible.
Both analysis tools show strengths and weaknesses. There are also traders who use both tools in order to derive an estimation of the future price development. However, neither technical analysis nor fundamental analysis can provide a reliable forecast. Therefore, there are also critical voices regarding both approaches.
Can Stellar hold its own in the crypto-universe
Stellar could maintain itself since its introduction clearly against different other crypto currencies and ranks therefore among the most well-known Altcoins. But is the Stellar Lumens worth buying? Behind Stellar is the idea of offering a fast and inexpensive payment system, even for users from poor regions. The non-profit thought differentiates Stellar besides from other crypto currencies and also the competitor Ripple. Who already made an international bank transfer, which made a currency conversion necessary, knows, around the costs and the duration of the transaction.
Which concerns the use of the respective Krypto platform, then Stellar and Ripple aim at a different target group. Unlike Stellar, Ripple is not a non-profit organization, but is aimed at banks. Ripple has already been able to convince well-known banks to join its network. Thus also Ripple can show important cooperations, which are not unimportant for the positioning on the market. Compared to Ripple, Stellar is currently valued even more favorably.
CFD traders have a different view on crypto currencies. Not the approach is decisive here, but the possible price development. To keep the market in view is therefore an important element for traders. An XLM euro chart offers a simple possibility, in order to inform about the price development. If the chart shows only little movement, traders should ask themselves the question whether the current market phase is suitable for short-term trading.
Positioning – Stellar vs. Bitcoin
Usually informed traders know, around the position of the prominent crypto currencies at the market. By measuring the market capitalization, digital currencies can be compared with each other. Regarding the market capitalization the Bitcoin lies far before the next placed Altcoins. Bitcoin’s share is approximately 67.4 % (as of December 2019). To illustrate Bitcoin’s presence in the market, we list the share of the second placed crypto currency. Ether (ETH) has a share of 8.1% measured by market capitalization. Among the next-placed crypto currencies are
- Ripple (XRP)
- Bitcoin Cash (BCH)
- Tether (USDT)
- Litecoin (LTC)
- Binance Coin (NBB)
Among the 10 top crypto currencies Stellar also finds again. In the period under review, Stellar Lumens took tenth place with a share of about 0.6%. Not only Stellar and Ripple are compared by interested ones gladly with one another. With the comparison of Stellar with Bitcoin immediately the price of the two crypto currencies is noticeable, which differs clearly from each other. In 2017, Bitcoin could show an exchange rate of about 20,000 USD at times. The current price for a coin of Stellar is less than 1 USD. Stellar Lumens has never seen a price increase as enormous as that of Bitcoin.
When comparing different crypto-currencies, it always depends on the benefit the digital currency is supposed to have for oneself. Whoever is looking for a suitable crypto network for fast payment transactions will use different criteria than a trader who wants to implement CFD trading with crypto currencies.
Cooperation partners good for the image?
Finding interested parties for an innovative concept can sometimes prove to be laborious and initially slow to get started. Also with Stellar the Macher for the market start considered themselves somewhat. At the beginning, coins were available free of charge. So not only users could be won for the network. Besides the action had the effect that one became attentive to the Stellar Lumens Kryptowährung. Good advertisement is in many ranges in demand and straight, where the competition is large. Further attention became the Stellar network to part, when the co-operation with the software giant IBM became well-known.
It can certainly create trust when a large company like IBM cooperates with Stellar. Many traders are still unsure whether buying the Stellar Lumens XLM makes sense. Ultimately, it is up to each individual to decide whether Stellar will be included in their portfolio. Risk diversification can be achieved by investing capital in multiple assets. A good risk management should also exist when trading crypto currencies.
A novelty such as cooperation with well-known companies can also influence the price of a digital currency. There are online news about Stellar and other crypto currencies, so that interested traders can keep up to date with the latest news. Whether the cooperation of IBM with Stellar will pay off for traders in the long run can certainly not be answered here. However, such a cooperation can advance the concept.
There are traders who prefer to invest in a crypto currency that has already established itself in the market. It is out of question that the Bitcoin is the probably most well-known crypto currency. Since its introduction in 2009, Bitcoin has been able to hold its own against the following Altcoins in terms of market capitalization. In the time after the market launch, much has changed in the Bitcoin world. There was already a bifurcation of Bitcoin. Hard-Forks of Bitcoin is Bitcoin Cash and Bitcoin Gold. A fork of Bitcoin Cash is again Bitcoin SV. Meanwhile, the market for crypto-currencies provides many opportunities that can be used for investment purposes.
Stellar lumens rank among the most well-known Altcoins, which should not be underestimated, because finally there are more than 2,000 different digital currencies. The approaches of the different cryptos sometimes differ strikingly. If you are looking for promising Altcoins, you should always look at the concept behind the respective crypto currency. With some crypto currencies there is a limitation of coins. Others however are minebar and offer thereby a further possibility to earn money. In order to be able to evaluate interesting crypto projects, a comprehensive information gathering is necessary.
Not every project has a non-profit aspect, as is the case with Stellar. It is difficult to say which Altcoins have real potential to remain in the market in the future. Further development is an important keyword here.
Conclusion: Buy Stellar or trade via CFDs
Should Stellar Lumens be bought or traded? Anyone who buys Stellar Lumens can make transactions over the network. Where can I buy Stellar Lumens? – you can take possession of Stellar coins through a crypto exchange and manage them in a previously set up Stellar Lumens Wallet. Leveraged trading with Stellar is possible with CFDs. Not every CFD broker offers a wide range of crypto trading opportunities to their clients, so a suitable broker must first be selected. Many online brokers do not charge any fees for account and securities account management. Cost factors in CFD trading can be spread, commissions and overnight fees.
Behind Stellar is an interesting concept based on a non-profit approach. Users from poor regions should also have access to cheap and fast payment transactions. Cooperation with large companies can also be important for survival in the market. Here Stellar could win IBM, one of the leading companies in the hardware and software sector. The market capitalization shows that Stellar is behind competitors such as Ripple, but can still position itself well.
The topic crypto currencies is complex and can fill many hours with content. Over a Chart the course development of the past is indicated, so that Trader can make itself a picture over course breakouts and the development altogether. To make it easier for traders to enter CFD trading, brokers sometimes offer demo accounts. These allow traders to practice trading crypto-CFDs without taking any risk. When trading CFDs, traders have the option of choosing a regulated provider.