Buy Stellar in Canada

A free beginner guide on how to buy Stellar in Canada.

What is Stellar?

Put simply, Stellar is an open network that allows money to be moved and stored. When it was released in July 2014, one of its goals was boosting financial inclusion by reaching the world’s unbanked — but soon afterwards, its priorities shifted to helping financial firms connect with one another through blockchain technology.

The network’s native token, lumens, serves as a bridge that makes it less expensive to trade assets across borders. All of this aims to challenge existing payment providers, who often charge high fees for a similar service.

If all of this sounds familiar, it is worth noting that Stellar was originally based on the Ripple Labs protocol. The blockchain was created as a result of hard fork, and the code was subsequently rewritten.

Jed McCaleb founded Stellar with the lawyer Joyce Kim after leaving Ripple in 2013 over disagreements about the company’s future direction.

In explaining the rationale behind Stellar in September 2020, McCaleb told CoinMarketCap: “The whole original design of Stellar is that you can have fiat currencies and other kinds of forms of value run in parallel with each other and with crypto assets. This is super important to drive this stuff mainstream.”

McCaleb’s goal is to ensure that Stellar can give people a way of moving their fiat into crypto — and eliminate the friction that people normally experience when they are sending money around the world.

He currently serves as the CTO of Stellar, as well as the co-founder of the Stellar Development Foundation. This not-for-profit organization aims to “unlock the world’s economic potential by making money more fluid, markets more open, and people more empowered.”

Stellar is a non-profit blockchain project that utilizes blockchain technology and digital identity to digitize assets, to automate the management of digital assets using smart contracts, and to realize a "smart economy" with a distributed network. On the Stellar blockchain, users are able to register, trade, and circulate multiple types of assets. Proving the connection between digital and physical assets is possible through digital identity. Assets registered through a validated digital identity are protected by law.

1. Create accounts

In order to buy Stellar in Canada we will first need to create an account on a local exchange to buy Ethereum or Bitcoin. Then you will need to create an account on a global exchange to trade the Ethereum or Bitcoin for Stellar.

  • Create Local Exchange Account

    The first step in this process is to gain the ability to buy Bitcoin or Ethereum with CAD dollars. For this you will need a local exchange account, currently we recommend Newton or Shakepay .

    If you want to buy Stellar right now (with a verification delay), and if you want to buy only a small amount ($375 CAD or less) use Coinbase.

    For a more comprehensive guide and comparison of the various exchanges, see the Exchanges Guide. We offer a pretty good pro and con list of each exchange.

  • Create Global Exchange Account

    Next, you will need to create an account on a global exchange. This will allow you to trade the Bitcoin or Ethereum for Stellar. Unfortunately, it's not possible yet to do it all on the same exchange. Which is why you need to use multiple exchanges.

    We recommend using Binance

    For a more comprehensive guide and comparison of the various exchanges, see the Exchanges Guide.

  • Verify and Fund

    In order to fund your local exchange accounts you will need to verify your identity. This often involves sending in copies of your drivers license, a utility bill, and in many cases a selfie of you holding your ID. This is normal ask for verification on exchanges.

    As for verification on global exchanges, the verification is usually faster and less intense. For example on Binance you do not need to verify if you are withdrawing 2 BTC or less.

2. Buy your cryptocurrencies

Now that you have both a local exchange account and a global exchange account it's time to make your purchases. You need to buy XRP or ETH, transfer it to the Global exchange, and then place an order to trade it for Stellar.

  • Buy a Cryptocurrency

    The first step is buy one of the main cryptocurrencies that you can trade for alt coins. If you are on Newton I'd buy XRP. However if you are on Shakepay buy ETH.

    If you are not using Binance, it is a important to verify that your global exchange will trade the cryptocurrency you are buying in this step, for Stellar.

    Login to your local exchange and buy your desired amount of Stellar in XRP or ETH. We currently recommend buying with XRP as it provides a faster and cheaper transaction than Bitcoin/Ethereum, as long as your exchange supports it. Ethereum is ok if you are using Shakepay as they will cover the network fees to transfer to Binance or another exchange.

  • Transfer Cryptocurrency to a Global Exchange

    The next step is to transfer your XRP or ETH from your local exchange account to a global exchange. For example, from your Newton or Shakepay account to your Binance account.

    This involves getting the funding wallet address from Binance account and withdrawing to it from your Shakepay account.

    You will need to wait for the transaction to complete. Once you see the funds appear in your global exchange account you are ready to proceed to the next step.

  • Trade for Stellar

    The next step is to actually buy Stellar. On your global exchange place an order to trade the crypto currency for Stellar. You will most likely need to buy USDT or BTC so you have the correct currency for the trading pair offered.

    The fastest way is to place a market order which buys Stellar for the current market price on the exchange. However, consider using a limit order to get a better price, but remember if the market price does not hit your limit price your order will not be filled.

3. Storing your Stellar

If you just bought some Stellar you are currently storing it on the exchange you bought it on. This is OK if the value is small. However, if you own a significant amount it is best practice to transfer your cryptocurrencies to a wallet that is not an exchange.

  • Software Wallets

    If you are just getting started you will probably want to use a software wallet. They are typically free and are considered more secure than leaving Stellar on a exchange.

    Feel free to do a google search to research what wallets are available and know what the options are.

    Once you have decided on a wallet, follow the instructions to get it setup then withdraw your Stellar from your exchange account. It is common for a small fee to be associted with the withdrawal.

  • Hardware Wallets

    The safest way to store Stellar, or any cryptocurrency, is with a hardware wallet that is not connected to the internet. This is to prevent it being stolen or hacked from a exchange or a wallet connected to the internet.

    Consider looking at the Ledger line of hardware wallets. They have been in the industry a number of years and offer one of the widest selections of devices.

  • Leaving it on an Exchange

    This is generally not recommended. However, you might want to do this if you are actively trading Stellar. Be aware you are taking an extra risk. Exchanges have been known to get hacked or disappear, search QuadrigaCX scandal.

    The main advantage of doing this is instant access to your Stellar, and saving the fees associated with transactions and withdrawing.

    Always consider the reputation and size of the exchange if you are storing a cryptocurrency asset on it.

    Generally speaking, I do not keep a balance on any of the local exchanges. If I am going to hold a balance of a cryptocurrency coin/asset on an exchange it will be Binance as they have the most robust platform. However, use this information at your own risk. The safest place for your crypto assets is a hardware wallet like Ledger.

    Regardless of the exchange, if you are holding assets on the exchange, make sure you enable two factor authentication and use a separete secure password on the account.

Summary

  1. Create an account on a local exchange.
  2. Create an account on a global exchange.
  3. First buy ETH or BTC on the local exchange.
  4. Next trade that ETH or BTC for Stellar on the global exchange.
  5. Store your Stellar, consider getting a software or hardware wallet.