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Simple ways to Buy Stellar Lumens with Credit Card

Buy XLM with Credit Card

By Chris Morris
Updated 24 March 2023

Stellar (XLM)

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Stellar Lumens has become one of the most popular cryptocurrencies in the last few years, since it was first envisaged by Jed McCaleb, founder of Mt. Gox and co-founder of Ripple. By January 2015, Stellar had attracted nearly 3 million registered user accounts, and the token has since gone from strength to strength.

One possible payment method for purchasing Stellar Lumens is credit card, and indeed this is extremely popular. So in this article we’re going to assess how viable it is to buy Stellar Lumens via credit card, and also compare the payment method to some of the others available.

Where to buy Stellar Lumens with Credit Card?

Stellar Lumens is one of the most special and unique cryptocurrencies, as it features a very distinct method for purchasing the token with a credit card.

Usually this is done through digital exchanges, but with Stellar Lumens there is also the option to purchase the token via user interfaces from the Stellar Lumens platform that have enabled USD deposits.

Advantages and Disadvantages of Buying Stellar Lumens with Credit Card

Pros

Usually the fastest payment method available
Compatible with virtually every exchange in the world
Purchasing insurance and guarantees come complete with credit cards
Many credit cards offer rewards, making purchases more attractive
Credit card companies are associated with banks, and offer excellent customer service
Credit cards are ideal for online purchases

Cons

Credit cards attract interest rates and fees
Not everyone can obtain a credit card, due to credit ratings

Buying Stellar Lumens with Credit Card Fees

Credit cards can attract fees for purchasing Stellar Lumens, although these vary depending on the Stellar exchange and method chosen to acquire the token. However, it can be said with some authority that the fees associated with credit cards are usually around 3% to 4%. This can be a deterrent for some people choosing credit cards as a payment method for Stellar Lumens.

Is Buying Stellar Lumens with a Credit Card the Best Method?

There are definitely advantages and disadvantages for choosing credit cards to purchase Stellar Lumens. One of the most attractive aspects of credit cards is that they attract rewards, which means you can actually make a profit from any purchases. The fact that credit cards are associated with banks is also advantageous, and this affords credit card consumers better customer service than other payment methods generally.

However, there are downsides to credit cards. Firstly, they do attract interest rates, although these can usually be avoided by paying back balances in a timely fashion. However, credit cards do tend to attract fees as well, meaning that they may not be the most affordable way to purchase Stellar Lumens.

Nonetheless, credit cards are a valid purchase method for Stellar Lumens, and one that is useful for making large lump purchases due to their convenience.

Frequently Asked Questions

What is Stellar Lumens (XLM)?

Stellar Lumens is a major cryptocurrency project, run by a non-profit foundation. The Stellar Development Foundation was founded in 2014 to run the Stellar Lumens project, with XLM having been created as a cryptocurrency token for the platform.

How do I protect myself from scammers?

Keeping your Stellar Lumens off exchanges is an important part of keeping your holdings safe. Store your Stellar in a wallet and never share your private keys or login details with anyone and make sure they are not stored on a device that is connected to the internet.

Why do people choose credit cards for Stellar Lumens purchases?

There are a variety of reasons that people choose credit cards for Stellar Lumens purchases, but possibly the most compelling is that they are simply widely available. Of all payment methods, credit cards are probably the most commonly used, certainly in the western world. Credit cards are also almost universally accepted online, which makes them ideal for Stellar Lumens purchases.

Are credit cards the most popular payment method for Stellar Lumens?

While there is no official data on this subject, it is probable that credit cards are used more than any other payment method for Stellar Lumens. Credit cards naturally suit internet transactions, and considering that 99.9% of Stellar is purchased online, credit cards are the natural payment method for this purpose.

Why might you avoid using a credit card for Stellar Lumens purchases?

There are several reasons that you may avoid using a credit card for purchasing Stellar Lumens. The first could simply be that you are unable to gain access to a suitable payment method, possibly due to your age or credit history. Consumers also consider credit cards to be disadvantageous due to the interest rates that they attract, although these can be avoided by paying off the balance straight away. Furthermore, using credit cards can potentially make you vulnerable to identity theft. This shouldn't be an issue if credit cards and computers are used responsibly, but it is something to be aware of.

Why does Stellar Lumens exist?

Stellar Lumens is simply intended to be an improvement on Bitcoin. This digital payment system is run as a completely non-profit entity, and features a raft of innovative technology.

Is there a minimum transaction amount associated with Stellar Lumens?

In theory, it is possible to send any transaction amount via Stellar Lumens. But it should be noted that some exchanges will set a minimum transaction amount, and this must be adhered to.

What is a Memo and how does it relate to Stellar Lumens?

Memo is a destination tag that is important in the adequate functioning of the Stellar Lumens platform. When using Stellar Lumens for transactions, consumers must use the memo they have been provided to make purchases from their personal wallets.

What do I do if I forget my Stellar memo?

This shouldn't be considered the end of the world, but it should also be noted that losing a memo can cause issues with recognising and locating transactions. If this issue occurs, users of Stellar Lumens are recommended to access the payment locator on Stellar.Expert. It is also generally advisable to send a small transaction as a test before making any major payments.

How can I be certain that the Stellar Development Foundation is a non-profit?

The Stellar Development Foundation has been registered as a non-profit entity, and features no stocks or shares whatsoever. It doesn't have any shareholders, and doesn't pay out value or dividends, but it does pay taxes in common with any corporation.