What is Stellar?
Stellar is a blockchain based platform released in 2014. The Stellar network facilitates global cross-asset transfers and boasts very fast transactions. The native currency on the Stellar network is called Lumens (XLM). Lumens are a part of the new wave of cryptocurrency deviated from the Ripple code. Although, Lumens have become its own unique asset over the years.
How Does Stellar Work?
Similar to Bitcoin and other networks, at its core concept – Stellar is a decentralized network utilizing blockchain technology. The information is distributed among interconnected nodes in the Stellar network – instead of being gathered at one centralized source.
However, there are a few factors that separate Stellar Lumens from other networks. For instance, Lumens cannot be mined as the coins are already existent on the network. Although, every year an additional 1% are distributed to certain coin holders. This is because other cryptocurrencies utilize Proof of Work (PoW) to achieve consensus whereas, Stellar does not.
The Stellar team realized the shortcomings of operating a closed system. Thus, they designed their core innovation – the Stellar Consensus Protocol (SCP) to replicate an open network to reach consensus. Essentially, anyone can operate a node and become a validator. This results in, the Stellar network becoming more robust and decentralized.
How Do I Buy and Store Stellar Lumens?
1. Fund your account
The first step required to actively start trading is to fund your Coinsquare account in CAD. Coinsquare offers multiple ways to fund your account for free. For instance, you are able to fund your account using Flexepin, Credit Cards, Interac e-Transfer, Money Order, Bank Draft, and Wire Transfer. Each method has a different processing time and a minimum and maximum amount required to fund your account.
2. Trade CAD for XLM
After successfully funding your Coinsquare account with CAD, you are now able to purchase any asset offered on the Coinsquare platform using our Quick Trade feature. Coinsquare has a simple interface, and user friendly features that allows consumers to easily follow along. In order to trade CAD for XLM, simply fill in CAD in the “Trade” section, the numerical amount you want to trade, and XLM in the “For” section. After you enter the correct information, click on “Get a Quote” to receive the exact price you are trading CAD for XLM. Once you are happy with your quote, click on “Make this trade” to complete the process.
3. Store XLM in your Digital Wallet
After purchasing Stellar Lumens, you need to store them! Similar to a tangible wallet which is used to safely store your cash – You would store your digital currency in your digital wallet to keep it safe. Luckily, Coinsquare provides web-based wallets to secure your funds when you purchase assets on our platform. However, you have the option of withdrawing your assets from Coinsquare’s web-based wallet and transferring them to another digital wallet service or application of your choosing.
How Do I Sell XLM to Redeem CAD?
1. Fund your account with XLM
The first step required to successfully sell XLM in exchange for CAD – is to fund your Coinsquare account directly with XLM from another digital wallet or application of your choosing. The process is quite simple, as shown in the picture below – you must copy the XLM address and the XLM memo and paste them into the digital wallet from which you will be transferring funds from. It is very important to include the memo as it enables Coinsquare to identify which account to credit the deposit into. Similarly, the user can also directly scan the QR code – but remember to manually input the XLM memo, because scanning the QR code will only obtain the XLM address.
Note: If the wallet you are depositing from asks for the memo type, do not worry – the type of memo does not matter.
2. Trade XLM with CAD
After successfully funding your Coinsquare account with XLM, you are now able to trade XLM for CAD. We previously discussed how to trade CAD for XLM, with this information in mind – the process only differs a little. To elaborate, simply input XLM in the “Trade” section, the numerical amount you want to trade, and input CAD in the “For” section. The rest of the process is the same – click on “Get a Quote” to receive an exact price you will be trading XLM for CAD. Once you are satisfied with your quote, click on “Make this Trade” to complete the process.
3. Withdraw CAD to your bank account
After you have completed trading XLM for CAD, the last step for successfully redeeming CAD is to withdraw the CAD and transfer it to your bank account. Coinsquare offers several withdrawal methods such as, Direct Bank Deposit, Wire Transfer, Wealth Wire and Rushed Wire. It is important to note that each withdrawal method requires a different minimum and maximum withdrawal amount, and the withdrawal fee is subject to change depending on the amount that is being withdrawn. Additionally, each withdrawal method has a range of 1-9 days for processing time – besides the Rushed Wire withdrawal method which only takes 1 day for processing.
Furthermore, after you have selected your preferred withdrawal method, the next step is to add your bank account. Coinsquare allows the user to add multiple bank accounts. Coinsquare requires basic information, similar to what a direct deposit form requires in order to successfully add your bank account onto our platform.
Equally as important, the next step is to input the numerical amount you would like to withdraw from your account and click on “Request a Withdrawal” when you have finished. Finally, the last step is to verify the email confirmation in order to ensure that your funds will go to the right place.
For more information on funding, verification, withdrawals and more – please visit our FAQ page: http://bit.ly/faq-coinsquare