In This Guide
- How to Buy Stellar Lumens With Canadian Dollars (CAD)
- Where Can I Use Stellar Lumens?
- Where to Buy and Trade Stellar Lumens in Canada
- What is Stellar Lumens?
- How Do Lumens (XLM) Work?
- Benefits of Stellar Lumens
- Cons of Stellar
- What’s the difference between Bitcoin and Stellar Lumens?
- What Factors Affect the Price of XLM?
- Roadmap: What’s next for Stellar?
A beginner’s guide to buying and trading Stellar Lumens in Canada.
The following guide outlines the easiest ways to buy, sell and trade Lumens for Canadian dollars and other cryptocurrencies.
How to Buy Stellar Lumens With Canadian Dollars (CAD)
The most straightforward way to get Stellar (XLM) is to buy it from an exchange that sells it. There are a number of such sites available to Canadians, but not all of them accept Canadian dollars (and many are crypto only). There are not many exchanges that support Stellar lumens for trading.
Based on my experiences, the most cost effective and lowest risk way to exchange Canadian dollars for XLM is in two stages using the following exchanges:
First Stage: QuadrigaCX – Quadriga offers a variety of methods to deposit CAD including Electronic Funds Transfer (EFT) and INTERAC Online for reasonable fees. Once the funds are in your account, they can be exchanged for any of these major cryptocurrencies: Bitcoin, Ether, Litecoin or Bitcoin Cash. These can then be transferred to another exchange such as Binance.
Second Stage: Binance – Binance doesn’t accept deposits of Canadian dollars, but it does support deposits, trading and withdrawals of 100+ cryptocurrencies. Deposits are free, trading fees are very low at 0.1% and withdraw fees are reasonable. Once your digital currency has been deposited at Binance, you can trade it for Stellar Lumens for a small fee.
For a complete comparison of these exchanges and more, check out our guide to the best cryptocurrency exchanges available in Canada.
Here’s how to buy Lumens:
Step 1) Register for QuadrigaCX
QuadrigaCX is a digital exchange for the trading of cryptocurrencies. It is the largest volume Canadian cryptocurrency exchange. It offers a variety of transfer options, especially for Canadians. Those located in other countries may find more limited options.
The exchange has vast liquidity and has the ability to handle a high volume of trades. Its security exceeds the industry standard. Some transfer methods may be slow and some options may be limited compared to other sites.
To get started, visit QuadrigaCX to create an account and fill in your name, email address, date of birth and country of residence:
Step 2) Verify Your Account
The next step is to verify your account using one or both of Quadriga’s options: verifying your identity through Equifax and providing your personal ID, bank/utility statement and selfie with a written note.
Step 3) Deposit CAD to QuadrigaCX
On the Member Dashboard, click the FUND button in the “Available Canadian Dollars (CAD)” box:
Once you’re account has been verified, you can use any of the following payment options to deposit Canadian dollars into your account. I use the INTERAC Online option through RBC that has the lowest fee of 1.5% and it works great. Unfortunately, this option is not available to CIBC/Simplii bank accounts or debit cards that double as a Visa or Mastercard.
Step 4) Buy Litecoin (or Bitcoin Cash)
On the Dashboard page, select the LTC/CAD trading pair in the drop down at the top right of the page.
In the center box, click the Buy Litecoin tab and enter the amount of Litecoin you would like to buy in CAD.
Click the Buy button.
The reason for choosing Bitcoin Cash or Litecoin instead of Bitcoin is that their network fees are considerably lower ($0.10 to $0.30) compared to Bitcoin ($5 to $10).
You’re done! For more info, you can read my full review of QuadrigaCX.
Step 5) Register for Binance
Binance is an exchange that gives customers the capability to trade cryptocurrencies. It is a pure cryptocurrency exchange, so you will need to own or buy Bitcoin and deposit it there.
Binance has support for multiple web browsers and mobile platforms. It offers a high level of liquidity and the ability to process 1.4 million trades/second. Its customer support can take a while to respond, but this is to be expected due to the massive increase in cryptocurrency interest. Binance offers the option to buy and sell Steller lumens (XLM).
To get started, visit Binance to create an account and fill in your email address and a strong password:
Step 6) Verify Your Email
Click the link in the email they send you to activate your account:
Step 7) Transfer Litecoin (or Bitcoin Cash) from QuadrigaCX to Binance
The next step is to transfer the cryptocurrency you bought through QuadrigaCX over to Binance. Click on Deposits in the Funds menu at the top right:
Select the cryptocurrency you bought on Quadriga from the drop down menu:
Copy the Deposit Address provided by Binance. Be sure it is for the right coin:
Back over on QuadrigaCX, on the Dashboard click the Withdraw button next to your Litecoin (or Bitcoin Cash) balance:
Enter the amount you would like to send to Binance (or simply click Maximum) and paste the Litecoin address given to you by Binance in the previous step and click Submit:
The transfer will take a bit of time as the transaction needs to be confirmed. You can see the status of the transfer on Binance’s Deposit History page.
Step 8) Buy Stellar Lumens
Once the transaction is complete and the funds are available in your Binance account, you can now trade them for Bitcoin and then for Stellar Lumens. The reason you have to convert to Bitcoin first is that Binance offers all trading through Bitcoin as the central currency.
Click on Basic in the Exchange menu at the top left:
Don’t be overwhelmed! There is lot going on on this page, but the steps are simple and we’ll go through them here.
In the top right hand box, search for LTC if you bought Litecoin or BCC if you bought Bitcoin Cash and click on the Pair shown:
At the bottom of the screen, click the Market tab and enter the Amount of LTC or BCC you would like to trade for Bitcoin into the Sell box and click the Sell button:
Next, search for XLM in the box on the top right and click the XLM/BTC pair:
And finally, enter the amount of XLM you would like to buy in the Buy box on the Market tab and click the Buy button:
And that’s it! You can see your Lumens on the Balances page under the Funds menu. You can read my full review of Binance here.
How to Sell Stellar Lumens for Canadian Dollars (CAD)
Selling Stellar Lumens is the same process as buying it – just in reverse.
Here’s how to do it:
Sell on Exchanges: Binance and then QuadrigaCX
In addition to buying Stellar Lumens, you can also sell it using the 2 stage process above – just in reverse.
Step 1) Sell XLM for Bitcoin on Binance
Step 2) Trade Bitcoin for LTC or BCC
It’s recommended to convert the Bitcoin to Litecoin or Bitcoin Cash as they both have considerably lower withdrawal and network fees than Bitcoin.
Select the LTC/BTC trading pair:
Enter amount on the Market tab and click the Buy button:
Step 3) Transfer LTC or BCH From Binance to QuadrigaCX
Click Withdrawals option under the Funds menu:
Select the digital currency you want to send to Quadriga:
Step 4) Sell LTC or BCH on QuadrigaCX
On the Dashboard page, select the LTC/CAD (or BCH/CAD) trading pair from the drop down at the top right and on the Sell Litecoin tab, enter the amount and click the SELL button:
Step 5) Withdraw CAD to Your Bank Account
Here are all of the options available to withdraw Canadian dollars as well as their limits, timeframes and fees:
Where Can I Use Stellar Lumens?
Companies like IBM, Deloitte, and several others accept lumens (XLM) as payment. There is more business interest in Stellar than there is for most mainstream cryptocurrencies. Due to Stellar’s network of international anchors, it is easy to convert your lumens to virtually any cryptocurrency or fiat currency in the world, and then use the fiat currency to purchase items.
Where to Buy and Trade Stellar Lumens in Canada
|Name||Description||Currencies||Deposit Methods & Frees||Trading Fees||Top Trading Pairs||Withdrawal Methods & Fees|
|Canada's largest digital currency exchange. Next day and free deposit and withdrawal options available.||BTC, LTC, ETH, BCH, BTG||CAD, USD free to 2.5%. Free for supported crypto.||0.2-0.5% on completed trades||Click Here||CAD, USD free to 2%. Free for supported crypto.|
|One of the most popular, trusted and secure cryptocurrency exchanges and wallet platforms.||BTC, LTC, ETH, BCH||CAD Debit/Credit 3.99%||Not Available||Not Available||Free crypto transfers to other exchanges/wallets only. Cannot withdraw CAD.|
|Largest Euro volume Bitcoin exchange founded in 2011.||BTC, BCH, DASH, EOS, GNO, ETH, ETC, ICN, LTC, MLN, REP, DOGE, XMR, XRP, ZEC||CAD, USD, EUR, GBP, JPY. Free CAD wire deposit. Free for crypto.||0.16% to 0.26% for less than $50,000 volume.||BTC/EUR, BTC/USD, ETH/EUR||CAD EFT $10 flat fee. 18 cryptos, fees vary|
|Crypto to crypto exchange based in the US founded in 2014. 14th largest by volume.||60+ cryptocurrencies including XRP, STR, XMR, ZEC, NEM, DOGE, LSK||Any of the 60+ supported digital currencies for free.||0.15% to 0.25% for less than 600 BTC volume.||BTC/USDT, XRP/BTC, ETC/BTC||Any of the 60+ supported digital currencies fees depend on coin (0.0001 for BTC)|
|Fastest growing crypto exchange in the world and second largest by volume.||100+ digital currencies including NEO, XRP, NANO, BNB||Any of the 100+ supported cryptocurrencies for free.||0.1% on completed trades.||Click Here||Any of the 100+ supported cryptocurrencies for free.|
|Canadian owned & operated based in Toronto. 72nd largest by volume.||BTC, ETH, LTC, BCH||2.5% for Interac online, e-transfer, bank draft, money order of CAD.||0.1% maker (providing liquidity) to 0.2% taker (removing liquidity).||BTC/CAD, ETH/BTC, LTC/BTC||1% for bank deposit, 0.5% for wire transfer (min. $10,000) of CAD.|
|Fast to list new cryptocurrencies. Founded in 2014 built and operated in the US. 10th largest by volume.||190+ digital currencies including OMG, BNT, POWR, ADA||Does not support CAD. Network transaction fee only (varies by coin)||0.25% on completed trades||ETC/BTC, BTC/USDT, ADA/BTC||Network transfer fee only (varies by coin).|
|Advanced trading features including margin trading. 5th largest by volume.||38 cryptocurrencies including IOTA, EOS, ZEC, TRX, ZRX, USDT||Does not support CAD. Fee varies by coin deposited (eg. 0.0027 ETH) Free for >$1000 USD worth.||0.1% maker (providing liquidity) to 0.2% taker (removing liquidity) for less than $500,000 per month.||BTC/USD, ETH/USD, XRP/USD||Does not support CAD. Fee varies by coin withdrawn (eg. 0.0008 BTC).|
|Robot that finds the best price on the largest exchanges including Bittrex and Poloniex founded in 2013.||USD, EUR & 90+ digital currencies including SALT, FUN, POT, STEEM, GAME||Does not accept deposits. Trades are between two wallet addresses directly.||0.5% on completed trades||N/A||Funds are not held on the platform.|
|Founded in 2017. 27th largest by volume.||100+ cryptos including REQ, NANO, DENT, FLIXX||Free to deposit any supported currency.||0.1% on completed trades||R/BTC, R/ETH, ETH/BTC||70+ supported digital currencies fees depend on coin (0.001 for BTC)|
|Peer to peer Bitcoin trading with 1 million users in 248 countries.||BTC||Cash, e-transfer, Moneygram, PayPal, Vanilla, etc.||Fees vary by user.||BTC with dozens of fiat currencies.||Cash, e-transfer, Gift Cards, Paypal, etc.|
|Top 10 exchange by volume founded in 2011.||BTC, ETH, XRP, BCH, LTC||USD, EUR 0.05% for international wire. (min. $7.5) Free for crypto.||0.25% for less than $20,000 trade volume per month||USD to BTC, XRP, ETH, LTC, BCH, EUR to BTC, LTC, XRP||USD, EUR 0.09% for international wire. (min. $15) Free for crypto.|
|Private & fast exchange - no account needed.||70+ digital currencies including DASH, FUN, MAID & BNT||45+ cryptocurrencies to trade between. No deposits/accounts.||~0.5% + network fees||45+ cryptocurrencies including BTC, ETH, LTC, EOS & XMR||45+ cryptocurrencies to trade between. No deposits/accounts.|
What is Stellar Lumens?
Stellar began in 2014 when Ripple’s co-founder, Jed McCaleb, disagreed with Ripple’s board’s philosophy of focusing on providing payment solutions to banks and financial institutions. In contrast to this, Stellar was launched on the premise that the global community needs ” a worldwide financial network open to anyone.”
How Do Lumens (XLM) Work?
Stellar’s blockchain network is composed of decentralized servers provided by an international consortium of entities and individuals. The distributed ledger that tracks the network’s transactions is driven by these servers.
Stellar works with partner organizations that provide lines of credit to people in fiat currency. These partner organizations are known as anchors. This design allows you to immediately have access to your funds on the Stellar network as opposed to waiting for a bank transfer.
Since Stellar has anchors all over the world supporting many currencies of the world, it is very simple and quick to transfer payment across currencies, like saying from U.S. dollars to Euros. The Stellar network will attempt to find the best exchange for you through its built-in Decentralized Exchange. This Exchange matches offers to buy and sell from the anchors which hold the target currency.
Stellar’s decentralized exchange makes it possible to trade a cryptocurrency for any anchor-supported fiat currency in an instant, which makes the ability to create tokens on the Stellar network very desirable.
While Ethereum’s scalability problems have caused havoc when trying to support the expanding ICO market, Stellar can support roughly 70 times the number of transactions per second that Ethereum can. This means that fees to operate on the network have remained small, while Ethereum’s continue to rise.
Benefits of Stellar Lumens
Since Stellar has anchors all around the world as part of its network who deal in a vast multitude of world currencies, it is very easy to pay someone who wants to be paid in a different currency. Stellar has acquired impressive partnerships with companies like IBM.
The Stellar network’s ability to process transactions quickly requires less CPU time and this means that fees have remained low while those of other currencies are rising. Stellar’s built-in Decentralized Exchange automatically finds the best exchange with the anchors for you.
Thanks to Stellar’s design that calls upon anchors to provide credit on the network, transactions are settled very fast and long waits for bank transfers to complete is not something that happens.
Cons of Stellar
Large percentage owned by founders
Up to 90% of Stellar’s nodes is owned by the project’s founders. This leads to worries about centralization and goes against the themes of decentralization that most digital currencies are predicated on. Furthermore, with no mining, there is no direct incentive to run a node.
100 billion lumens were created on the Stellar Network at inception, so there is no way to earn the coins from mining. 95% of these coins are planned to be given away for various seemingly random reasons. 19% of these coins are reserved to be distributed to people who simply own Bitcoin. This arbitrary method of coin distribution worries those concerned about centralization. New lumens are created at an annual rate of 1%. Some consider the lack of mining a positive due to economic and environmental concerns.
Price closely tied to that of Ripple
As Stellar came out of the Ripple project, investors have noticed that the price of the two cryptocurrencies practically mirror each other. This causes investors to question what value there is in buying one versus the other.
What’s the difference between Bitcoin and Stellar Lumens?
Bitcoins are created, distributed and verified through a process called mining. Most lumens were created at the Stellar network’s inception with a 1% annual creation rate going forward. The Stellar Development Foundation distributes lumens through a series of giveaways. Transactions are verified by network servers, 90% of which are owned by the network’s founders.
Bitcoin is very decentralized in comparison with Stellar in terms of creating, distributing and verifying transactions. Stellar also relies on partner organizations to provide credit for its users. Stellar’s nodes operate in a more decentralized fashion, but the fact that that founders own so many of the nodes is quite unlike Bitcoin.
Stellar could be seen as a middle way between the decentralization of Bitcoin and the centralized design of Ripple. The lack of decentralization makes it appear more stable and “real-world” than Bitcoin and attracts for Stellar more business appeal.
What Factors Affect the Price of XLM?
XLM prices are susceptible to the same forces that impact other cryptocurrencies.
• General interest
Buying XLM not only offers benefits from possible rise or fall in XLM prices, but you will also be contributing to the perception of Stellar, and helping the cryptocurrency gain respect and increased utilization. Stellar is still very young and any increase in market adoption will have a dramatic effect on the underlying factors that affect price.
Roadmap: What’s next for Stellar?
Stellar’s team believes that its platform is perfect for ICOs and startup fundraising. The vast international reach of its network supports fundraising in a wide array of currencies, both fiat and crypto, and long waits for wire transfers would become a thing of the past.
If you want to learn more about Stellar Lumens, we recommend the following resources:
Disclaimer: Investing in cryptocurrency is always a risk and there is no guarantee of returns. Nothing on this page should be taken as financial advice of any kind.
Over to You
How do you buy Stellar Lumens? What do you think of the digital currency? Is it worth investing in?