How to cash-in and cash-out of Stellar Network?

How to cash-in and cash-out of Stellar Network?

By Answerly app | Answerly | 14 Feb 2021


Introduction

It is not until when circumstances are bad that one thinks about selling an asset they love. Members of the Stellar Lumens community, this discussion is for you. Yes, yes, we know that Stellar has a great future, but you just never know when things might change dramatically. The uncertainty of time and fate is something that you must keep in mind, always. Hence, in today’s discussion, we talk about how you can cash out XLM in simple steps. This knowledge is also important for Stellar users if they don’t wish to fall prey to fraud methods that DO NOT work at all. Once we are done discussing cash-out methods, we will discuss cash-in methods briefly as well. 

Cashing out Stellar Lumens

As promised, let us first show you the path which leads to the exit door of the Stellar Lumens network. Follow these steps, if you are willing to sell XLM. 

First step

In the first step, those willing to sell XLM will have to find a cryptocurrency exchange that supports fiat transfers. The residents of the USA can rely on the two most popular crypto options without any scam fears. These are Coinbase BinanceBoth these platforms support crypto trading with fiat as a medium. Once users have registered on any of these platforms, they can then move to the second step of selling XLM. If you are not entirely familiar with Binance or Coinbase, you can read more about these online as well. 

Second step

This is the crucial step of cashing-out XLM, so please pay attention. In this step, users have to transfer Lumens from their wallet to the exchange wallet. To do that, follow these mini-steps. First, look for the deposit panel on the exchange. Then, search for XLM in the list of supported cryptocurrencies. If you have registered on Binance or Coinbase, you will be relieved to know that both platforms support XLM. Once you have retrieved the deposit address, you can send your Lumens to this address. To avoid going through the exchange’s support for getting your XLM back, users must enter the memo from their wallet as well. Once the users have gone through all these steps, they can easily sell XLM for fiat. This is made possible by clicking on Trade and then choosing Stellar Lumens. It is imperative to mention account for withdrawing money. 

Alternatives

On the other hand, if this sounds something a little too complicated to some of you, you can follow another route to sell your XLM as well. Instead of cashing out to a bank, users can convert XLM to Anchor USD. For those of you who are not familiar with Anchor USD, this Stellar Lumens asset is pegged to USD. So, if this sounds like something that you want to do rather than following the step by step guide that we described for you, you will need to join an SDEX like StellarTerm, and then trade your XLM for Anchor USD. 

Buying Stellar Lumens using fiat

Now, if the glare of XLM suddenly takes over you, Stellar Lumens doors are always open for you. Follow the simple steps which we have listed below to buy Lumens using fiat money like USD or EUR. 

First step

Can you recall the names of the exchanges which we mentioned earlier? Coinbase & Binance, in case some of you forgot about them already. Well, to purchase XLM, you will need to rely on the services of these crypto platforms once more. These allow users to purchase Stellar Lumens using fiat money. So again, in the first step of purchasing XLM, users have to register on these platforms and place their orders. It is advisable to move your fiat assets off the exchange once you have placed your order. This is just a routine act, nothing to worry about too much! 

Second step

Once you have purchased XLM, you are going to need a wallet where you can store your purchased Lumens, right? It might be a good idea to invest in a crypto wallet before you complete the order for XLM. There are many choices for the users, but the ones that we love the most include Trezor One and Ledger Nano S. The latter choice is particularly suitable for XLM since it features native Stellar Lumens integration. The fact that SDEXs like Stellarport support these wallets add further credence to them. Hence, managing XLM using these wallets becomes super easy. 

On the other hand, you can also go for the Stellar network’s XLM wallet. All that you have to do is create a new account. Important to note here that there are two keys, public and private. The private key is sort of a password that users must not share with anyone. Losing this key will mean that users cannot access their funds, so it is advisable to store this key in someplace safe. 

Alternatives

On the other hand, if you don’t feel like following these simple steps, you can also opt for P2P exchanges like Paxful to purchase cryptocurrencies and then convert BTC to XLM. However, this is a rather complicated route that can be difficult to follow for the newbies. So, it is advisable to stick to the route that we have discussed in detail already. However, crypto exchanges have a role to play in this process as well. Read a bit more about these in your spare time, that’s a good investment of time! 

Conclusion

Well, folks that would be all from this discussion. Of course, this is a simplified narration of the events involved in the selling and purchasing of XLM. There are a few nitty-gritty associated with these methods that we wish we could have talked a bit more about in detail. But unfortunately, we have run out of time and space we had for this discussion. Nevertheless, we are sure that there was something if not everything new that you might have learned from this discussion. And on that optimistic note, we bid you farewell from this discussion!

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