How to Buy Stellar Lumens in South Africa

Fact Checked by Gary McFarlane

Stellar Lumens (XLM) is a bit different from Bitcoin or any of the other cryptocurrencies out there. In essence, its main strength is actually the underlying blockchain system, which is designed to allow people to move currency across borders with meagre fees quickly.

As luck has it, South Africa is a country that relies heavily on the Stellar system, especially when it comes to banking. Obviously, this helps Stellar in terms of reputation, especially when you consider that it was created by one of the people involved in Ripple.

If you are interested in buying Stellar Lumens in South Africa, follow the steps in this article and choose one of the many exchanges that have this coin on offer.

#1 Broker to Buy Stellar Lumens – Capital.com

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How to Buy Stellar Lumens in South Africa

The steps required for buying Stellar in South Africa are quite straightforward. Here is what you need to do:

  1. Open an Account with Capital.com – The easiest way to buy Stellar in South Africa is through Capital.com. a CFD broker. Sign-up for an account using your details to enjoy 0% commission on trading on the platform.
  2. Upload ID – Simply upload any government-issued ID (passport or driver’s license) and a recent utility for your account verification process.
  3. Deposit Funds – Deposit your funds using any supported payment option on the platform.
  4. Buy Cryptocurrency – Search and select the crypto Stellar, then purchase some.

Where to Buy Stellar Lumens in South Africa

After all that, you should now be ready to choose a broker and start buying Stellar Lumens. The point of this article is to present you with the best platforms currently available, so here are our top recommendations:

1. Capital.com – Best Platform to Buy Stellar Lumens in South Africa

Capital.com

Capital.com is a global CFD and forex broker with physical offices in Cyprus, London, and Belarus. It is referred to as a fintech company founded on April 7, 2016, with Ivan Gowan.

The company aims to enhance the world of finance by making it more helpful, accessible, and engaging.

This broker has lots of financial assets apart from Bitcoin. You can access stocks, commodities, ETFs, Forex, Indices, etc. Bear in mind that Capital.com allows investors to trade crypto as CFDs. So, you don’t have to worry about the storage or ownership of your Bitcoin.

Capital.com is regulated by the Financial Conduct Authority(FCA) UK and the National Bank of the Republic of Belarus (NBRB).

It’s also regulated by the Cyprus Securities and Exchange Commission (CySEC) and operates in over 183 countries globally. Capital.com is regarded as a reliable broker because it’s regulated by the top-tier FCA.

A table of the broker’s fees.

Items Fee Fee Terms
Deposit 0 No Deposit fee
Withdrawal 0 No Withdrawal Fee
Trading fee $3.1-$6.4

(45.2SGD -93.46SGD)

varies
Inactivity low No inactivity fee

 

 Pros

  • It has excellent customer support that provides a quick and detailed response.
  • The account opening process is easy, user-friendly, and fast.
  • It has low stock CFD fees.
  • It takes as low as $20 (27.04SGD) direct fund deposit, and $250 (338.01SGD) for bank transfers.
  • com charges a zero-commission fee for deposits and withdrawals.

Cons

  • The price alerts are not included in the web trading platform
  • The available product range is limited to CFDs like shares, cryptos, etc.
  • Minor account base currencies are also missing in the platform.

2. Binance – Simplest way to Buy Stellar Lumens

Binance can also hold its own when it comes to cryptocurrency trading platforms, with more and more features being added on a regular basis. Its customer base is also increasing at a pretty fast pace, making it one of the most attractive platforms you can register with nowadays.

One of the downsides you have to deal with while using Binance is the fact that the withdrawal fees are never set in stone. They are instead dictated by an automatic algorithm, which makes them difficult to predict. It’s in your best interest to check these fees before any withdrawal and perhaps wait a bit if they are too high.

Lastly, Binance is a purely crypto-based platform, with no other assets to speak of. This can be a great thing if this is all you are interested in, but as any good investor knows, the key to a healthy investment strategy is asset diversification. 

Pros

  • Great user interface with plenty of graphs and charts
  • The possibility to move all sorts of coins directly to your online wallets
  • A plethora of cryptocurrencies to choose from

Cons

  • The annoying withdrawal fees

3. CEX.IO – Trusted method to Buy Stellar Lumens

CEX.IO makes trading crypto look pretty easy, even if you are not a professional trader. It doesn’t take long to get started, and there are plenty of different cryptocurrencies to choose from if Stellar is not the only coin you are interested in.

More advanced tools are available too, although you do need to have a grasp on the market in order to make proper use of them. Things like margin calls can be quite risky if you don’t know how they work or when they make sense, so it’s always a good idea to do your research before venturing into unknown territory.

There are all sorts of payment methods you can use, including credit cards. Thankfully, you can start out with as little as $20, which is great news if you are just trying to learn the ropes.

Pros

  • Very responsive trading platform with many advanced options
  • Diverse payment methods
  • Supports local currencies as well

Cons

  • A limited number of available coins

4. Paybis – Easy way to Buy Stellar Lumens

Paybis is a pretty established name in the crypto-trading world, and it’s also one of the brokers that offer Stellar Lumens as an investment option, along with many others. You also get a full page of research regarding every cryptocurrency, which is great if you want to know more about where your money is going.

Unlike many similar platforms, Paybis allows you to keep the coins you buy in a non-custodial wallet instead of an online account. This can significantly increase the security of your investment, and it’s our recommended method as well.

Pros

  • Keep your coins in a personal wallet
  • Regulated by governmental agencies
  • Many payment options to choose from

Cons

  • Prohibitive credit card fees

5. Kraken – Cheap way to Buy Stellar Lumens

Kraken is an up-and-comer in the world of crypto-trading, but it has already managed to gain a loyal fanbase. Top-notch security is one of the main reasons people trust the platform above many others, so it’s nice to know that your coins are safe even if you do not keep them in a non-custodial wallet.

The security comes at a cost, however, since trading fees are a bit higher than average. On the other hand, it usually takes only a couple of clicks to buy the desired coins, so maybe the higher fees are worth it if you don’t want to deal with convoluted interfaces.

Pros

  • A great choice for newcomers
  • You can buy a lot of different cryptos
  • Some advanced options for experienced traders

Cons

  • Above-average trading fees

 

6. Bittrex – Accessible method to Stellar Lumens

Just like Kraken, Bittrex has a soft spot for beginners and newcomers, which is why the platform was designed to be as easy to operate as possible.  Not only that, but you can also transition into more serious trading later on since you can also make use of a couple of advanced tools as you learn more about how things work.

Depositing and withdrawing money is where Bittrex is a bit of a nuisance, although there are definitely worse offenders out there. Hence, you might end up leaving a bit more cash on the table whenever you move funds around, so try to avoid withdrawing too often.

Pros

  • An impressive number of cryptocurrencies to choose from
  • An excellent choice for beginners
  • Responsive interface

Cons

  • Not that many payment options and fairly high fees

7. Wirex – Versatile way to Buy Stellar Lumens

Wirex is actually an interesting payment method that allows you to use cryptocurrencies instead of fiat money for a variety of purchases. As it happens, Stellar is one of the supported cryptos, together with a handful of other choices. 

There are many types of account types to choose from, each one of which offers various benefits, although they may end up costing a lot more. On the other hand, you can also receive all sorts of rewards for using the platform, especially if you take advantage of various promotions and rebates.

It is also possible to create debit cards and load them up with Stellar, which is great if you are not getting into XLM purely for trading purposes.

Pros

  • Multiple account types to choose from
  • Debit card creation for Stellar coins
  • The cards are usable almost anywhere in the world

Cons

  • Requires a bit of research in order to figure out which account is right for you

8. Changelly – Effective way to Buy Stellar Lumens

Even though it’s actually an exchange platform, Changelly also offers you the means to buy Stellar, as well as exchange it for a variety of other coins. This service can be quite useful if you don’t want to lose a lot of money in the process since many regular trading platforms do not offer this option.

To make things even better, you are free to use a credit card for the initial purchase. As always, there are many fees to consider when doing so, but there’s no denying that it’s a lot faster than many of the alternative methods. 

Since this is not a P2P platform, you do not have to deal with strangers when it comes to buying or exchanging your cryptos, which is good news.

Pros

  • Low fees when buying or exchanging coins
  • Simple interface
  • Support for credit card payments

Cons

  • You still lose some money with every exchange

9. Crypto.com – Quick way to Buy Stellar Lumens

Most crypto traders have probably heard of Crypto.com, given the fact that it has been around for a very long time and it has a pretty decent track record in terms of security. The platform even has its own crypto that you can buy and trade, and you can even take advantage of it in order to receive gifts and rewards.

Ease-of-use is one of the most attractive prospects when it comes to Crypto.com. The whole platform was designed from the ground up with mobile phones in mind, which is why it’s very easy to navigate the interface, make deposits, or buy crypto.

Since the company takes security seriously, there is a KYC verification process you have to go through in order to start trading. If you don’t want to give out your personal information, this may not be the platform for you.

Pros

  • A recognizable brand with a long history
  • Simple interface, fully usable on smartphones as well
  • Credit card payments are supported

Cons

  • A KYC verification process is required to start trading

10. Poloniex – Alternative way to Buy Stellar Lumens

Although Poloniex has had its issues in the past (mainly because it got hacked back in 2014), the platform is still going strong. Not only that, but it also offers a huge number of cryptocurrencies to buy and sell, some of which are harder to get on other platforms. Because of this, many people prefer to take the risk and purchase crypto on Poloniex.

There are some upsides when it comes to payment methods, which is thanks to the Simplex system that allows you to use a credit card to make purchases. This feature is available in South Africa as well, although you should still keep in mind the extra fees you have to put up with while using a card.

A KYC verification is also mandatory if you want to use a credit card, although that is not surprising. Credit card fraud is probably the most widespread kind of fraud on the Internet, so the extra security of having to provide your identity is a godsend in terms of peace of mind.

Pros

  • Many different cryptos on offer
  • The Simplex system allows you to use a credit card for deposits
  • Withdrawal fees are pretty relaxed

Cons

  • The company was hacked in the past
  • Customer support is lacking

11. Bisq – Decentralized way to Buy Stellar Lumens

If you are not interested in dealing with a trading platform when it comes to buying or selling Stellar Lumens, Bisq allows you to get in touch with other people. As such, this is a decentralized P2P platform where you can buy all sorts of cryptocurrencies from complete strangers, usually with no extra fees to drag you down.

Buying Stellar this way means that you can remain anonymous, at least as long as you remember to keep your personal details hidden while dealing with other people. Dealing with strangers also means that you have to be extra careful when setting prices, since there is no way to get refunds if the person simply disappears.

On the other hand, Bisq does provide a dispute mediation platform for such cases. Keep in mind that this is mostly used if you disagree with another user since Bisq cannot really reimburse you if you happen to get scammed.

Pros

  • No unnecessary fees when buying crypto
  • Great for maintaining anonymity
  • Deal with other people instead of a company

Cons

  • Not the best solution for beginners

12. Huobi – Well-known way to Buy Stellar Lumens

In case you don’t mind dealing with a Chinese-based trading platform, Huobi is one of the biggest Asian platforms out there, with millions of traders. Not only that, but the liquidity involved is impressive, to say the least. Hence, this is a perfect choice for experienced traders who want to move a lot of Stellar and need a market that can support such volumes.

Granted, if you are in South Africa and you are trading on a Chinese platform you can expect a few inconveniences. The first one of them is the lackluster English support, which means that you may have a hard time figuring out what certain features are supposed to do due to poor translation.

After that, there’s also the fact that the Yuan is the preferred currency, with everything else being subject to significant fees. Converting your USD or GBP to Yuan in order to trade is not very advantageous if you don’t make a decent profit at the end of the day.

Pros

  • Huge market with high liquidity
  • An impressive selection of cryptocurrencies
  • Many advanced trading features for experts

Cons

  • English support needs some work
  • Difficult to deposit and withdraw money

 

13. Avatrade – Reputable way to Buy Stellar Lumens

Just like Huobi, Avatrade is not a particularly beginner-friendly platform. In fact, Avatrade also deals with various other types of assets, including Forex and CFDs. With that being said, you shouldn’t feel disheartened if you are not an expert. There are plenty of guides to get you started, and the user interface is actually quite pleasant and easy to understand.

Given the fact that the platform handles a lot of different commodities, it is also heavily regulated by various governmental agencies. This should make you feel more at ease in terms of safety, although that doesn’t mean you cannot lose a lot of money due to bad investments.

It’s not possible to transfer any kind of cryptocurrency to a personal wallet, which is also true for Stellar Lumens, unfortunately. This is not an issue if you are not planning on actually using XLM for anything other than trading, however.

Pros

  • A great way to learn about advanced trading techniques
  • Great safety record
  • Clear and helpful user interface

Cons

  • Can’t move Stellar Lumens to personal wallets
  • Difficult to operate by beginners

Is Buying Stellar Lumens a Good Investment?

Investing into XLM seems like a pretty good idea, even if the price-per-coin is currently measured in pennies. The fact that the company behind it is pushing for the network to be adopted by financial institutions all over the world means that a lot of people are trusting it enough to run real-world systems.

The other thing that’s worth considering is that Stellar is actively trying to distinguish itself from Bitcoin and all the other cryptocurrencies currently populating the market. This is in order to make it clear to investors and potential users that XLM should not be affected by the wild price fluctuations that plague Bitcoin.

However, that has not necessarily been the case so far – at least not completely. Stellar Lumens prices have oscillated quite a lot in the last couple of years, doubling and halving on a regular basis. This means that you should still exercise caution when it comes to investing money into XLM.

Even so, things are looking good. This is clearly not just another attempt at a cash grab, especially when you consider all the infrastructure development that is currently underway with the Stellar network.

At the end of the day, the choice to invest in Stellar is really up to you since there is no hard data that can predict how the coin is going to fare in the future.

The Advantages of Investing in Stellar Lumens

As mentioned before, there are plenty of upsides when it comes to Stellar Lumens that are simply not true for many other cryptocurrencies. If you are seriously considering an investment, here are some of the advantages you can expect:

  1. Very strong underlying network – The Stellar network is currently being used by multiple multinational companies and institutions, which should tell you a lot about its resiliency. That’s not something you can get from many other cryptocurrencies.
  2. Above-average market cap – XLM’s market cap is one of its biggest strengths, mainly because it means that a lot of people are trading it on a regular basis.
  3. It may not be tied to Bitcoin’s volatility in the future – As of right now, Stellar Lumens are still affected whenever Bitcoin prices go down. The company’s goal is to make it clear that BTC and XLM are very different things, which should put an end to this.
  4. Constant infrastructure and algorithm upgrades – Since the network is being integrated by so many reputable companies, the developers are actively working on making it safer, faster, and more reliable for everyone.
  5. Very low transaction fees for everyone in the world – This is actually one of Stellar’s core tenets. The whole system was designed to allow people to exchange all sorts of currencies fast and with little-to-no fees attached.

The Disadvantages of Investing in Stellar Lumens

Since there are always two sides to every coin, Stellar Lumens have their flaws and drawbacks as well. Here are some of the more negative things you should consider before investing:

  1. It’s still as volatile as Bitcoin for the time being – Until people are convinced that XLM is a different kind of digital currency, Bitcoin prices are still going to influence Stellar’s value.
  2. The ties to banking institutions may not be everyone’s cup of tea – The truth is, cryptocurrency and traditional banking are two concepts that don’t really go well with each other. Many people are going to be against this partnership, that’s for certain.
  3. It’s as unsafe as any other crypto for now – Despite its integration with various institutions, you still don’t have any sort of buyer protection incorporated into the system. 

How Much Does It Cost to Buy Stellar Lumens in South Africa?

Cryptocurrency prices do not really differ depending on the country, so that’s not an issue when it comes to Stellar Lumens and South Africa either. However, some other factors can influence the amount of money you have to invest to get a certain number of coins.

Hence, the payment method you use can incur additional fees, which may raise the price of XLM. After that, there is also the fact that some platforms may not accept your local currency, which means that you will have to convert it to USD/EUR/GBP in order to start trading.

Conversions are usually never advantageous to you, so that’s another way you end up paying slightly more for crypto. 

As for the actual price of an XLM coin, the price right now is around 28 cents, which is not bad. It reached 80 cents during the 2018 bubble, so there is still a lot of room for growth in the future, that’s for certain.

Purchasing Stellar Lumens – How to Pay for Them

Getting your hands on Stellar Lumens is not difficult after you create an account with a trading platform, but actually getting some funds deposited into your account can be a bit tricky if this is your first time. 

The one thing you should always keep in mind is the fact that you can always be hit with hidden fees if you are using specific payment methods. Credit card fees are notoriously abusive, so it’s almost never a good idea to use them.

Here are some of the options you can use:

Buying Stellar Lumens with PayPal

Since most people already have a PayPal account anyway, many trading platforms allow you to use it in order to deposit funds. Granted, not all of them are PayPal-friendly, but it’s definitely one option if you have nothing better at your disposal.

In case you do not have a PayPal account yet, setting one up is relatively easy, but you should be aware of the fact that a verification process is required in order to start transferring funds to or from your bank account. 

This process doesn’t take too long, but you do need to provide pictures of various documents, such as an ID card, passport, or other means of proving your identity. Once all that is done, you are free to start moving funds and using them to start buying Stellar Lumens.

PayPal does have some limitations as well, especially in terms of fees. These fees depend on where you are in the world, especially when you receive or withdraw funds. Try to be aware of these fees before making a transaction.

Buying Stellar Lumens With a Credit/Debit Card

Credit and debit cards are even more common than PayPal accounts, which is why this is the first method everyone thinks about when it comes to depositing money into their Capital.com account, for example.

Unfortunately, they are rarely the best choice. As we all know, there’s a minefield of fees you have to go through every time you move money using a card. Even something as simple as making a payment can incur hidden processing fees, so it’s almost never a good idea to rely on them for your investment activities.

To illustrate this point, many popular trading platforms actually do not support credit cards at all, mainly because they also have to deal with these fees on their end. In some cases they are passing these costs onto you as well, which is yet another way you lose money while trading.

Admittedly, it is extremely easy to use a card, especially for beginners. Hence, if you truly have no alternative and you don’t want to complicate your life with wire transfers, they can at least serve as a starting point for your investing career.

How to Create Stellar Lumens Wallets in South Africa

Stellar Lumens are no different than most other cryptocurrencies when it comes to wallets, which means that you have a few options at your disposal. You can either store them in online wallets and rely on the security of the website in question, or you can take matters into your own hands and get a personal wallet that is stored on your computer. Of course, both options have their pros and cons, so here is our breakdown:

Online/Hosted Wallet

Although you can usually just keep your XLM in the automatically-created wallets whenever you buy them on Capital.com or similar platforms, there are also special online solutions. Some of these online wallets can even be used to store multiple types of cryptocurrency, which means that you don’t have to keep track of multiple wallets if you are investing in more than one coin.

Here is what you have to do in order to get an online Stellar Lumens wallet:

  • Create an account with Capital.com or any other platform that offers online wallets. Once you do that, a wallet should be automatically created in your dashboard. The funds can also be transferred to a personal wallet later on.
  • Create a passphrase and secure your wallet. Regardless of whether you are using Capital.com or a special online wallet, a strong passphrase is recommended in order to keep your coins safe from hackers. 
  • Deposit the funds into your wallet after purchasing them.

Non-custodial/Personal Wallet

Security is paramount when it comes to cryptocurrency, and you can never be too cautious nowadays. All it takes is for one platform to get hacked in order for your coins to be stolen, and there is no way to get them back after they get transferred to other wallets.

Because of this, one of the easiest ways to keep your investment safe is to get yourself an offline wallet – otherwise known as a non-custodial wallet. These are basically software apps that you can keep on your PC or mobile device, and where you can transfer your newly-purchased coins.

As always, remember that losing access to this wallet means that your coins are gone forever. You can delete them by mistake, or your PC can suffer a hard drive failure for whatever reason. Hence, it’s wise to create multiple backups and store them on multiple devices.

To create a personal wallet, follow these steps:

  • Search for a wallet on the Internet. The official Stellar website offers a couple of options, and that’s always a good place to start.
  • Download the software and install it on your device. The installation instructions should be very easy to follow, regardless of which wallet you choose.
  • Create a passphrase and commit it to memory. It is never a good idea to write the password down, and it’s definitely not recommended to store it on your computer.
  • Transfer your Stellar Lumens to the newly-created wallet. This step is only possible if the platform where you bought your coins from allows you to transfer cryptocurrency to a personal wallet.

Hardware Wallet

The last option is also the most drastic – a special piece of hardware designed to function as a portable wallet. Many different companies offer wallets that work with Stellar as well, including Ledger and Trezor. They are usually not very expensive, but they are not free either, unlike software wallets that can be downloaded at no charge.

Hardware wallets are a bit too advanced for beginners as well, so make sure to do your own research if you are new to cryptocurrencies or computer security as a whole. In order to set up a hardware wallet, here is what you have to do:

  • Find a nearby store that offers hardware wallets for purchase. Make sure the wallets support Stellar since not all of them do. As mentioned before, both Trezor and Ledger offer a few models.
  • Get the software installed on your computer – Hardware wallets require special software in order to work, so check the official documentation on how to set them up properly.
  • Transfer the coins to your wallet – Just like with a regular personal wallet, the next step is to send the coins to your wallet’s address and wait for the transaction to be validated by the blockchain.

All in all, Stellar Lumens are definitely here to stay, and they seem to be a pretty good investment. The developers are pushing very hard in terms of new features and improvements, and the blockchain system has also been adopted by many different institutions.

Conclusion

With that being said, you should still exercise maximum caution when it comes to investing in cryptocurrencies. Stellar has big plans for the future, and the creators are also actively trying to move away from Bitcoin in terms of volatility, which would be a huge win in terms of stability.

1
£20Exclusive promotion
Our score10
  • No commission or hidden fees
  • Officially regulated by FCA, CySEC, and NBRB
  • Hedging mode available

FAQ

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About James Diko PRO INVESTOR

James Diko is a content writer and also a Crypto enthusiast with years of experience as an investor/trader in the crypto market. James believes Cryptocurrency is the future of the Fintech industry, and it is his passion to enlighten people about it. As a result, James has written articles on many aspects of the Cryptoverse through thorough research and analysis, reviewing different trading platforms including crypto trading, forex, and stock trading. Now, James writes honest reviews about trading platforms and automated trading tools to guide inexperienced traders and help intending users make good choices.