What is Stellar?
Stellar is a blockchain based platform released in 2014. The Stellar network facilitates worldwide cross-asset transfer and transacts very quickly. The native currency of the Stellar network is called lumens (XLM). The lumen is part of a new wave of cryptocurrency deviating from the ripple code. However, Lumens has become its own unique asset over the years.
How does stellar work?
Like Bitcoin and other networks, Stellar is a decentralized network using blockchain technology. The information is distributed between interconnected nodes in the Stellar network – instead of being collected in a centralized source.
However, there are several factors that distinguish Stellar lumen from other networks. For example, lumens cannot be mined because coins already exist in the network. However, an additional 1% is distributed among certain currency holders each year. This is because other cryptocurrencies use Proof of Work (PoW) to reach consensus where Stellar does not.
The Stellar team has noticed errors in operating a closed system. Thus, they designed their original invention – the Stellar Consensus Protocol (SCP) to replicate an open network to reach consensus. Basically, anyone can manage a node and be a validator. As a result, the Stellar network is becoming more powerful and decentralized.
How do I buy and store stellar lumens?
1. Fund your account
The first step in starting active trading is to pay CAD in your Coinsquare account. Coinsquare offers multiple ways to fund your account for free For example, you are able to fund your account using Flexpin, Credit Card, Intrac e-Transfer, Money Order, Bank Draft and Wire Transfer. Each method has a different processing time and requires a minimum and maximum amount of funds to be credited to your account.
2. Trade CAD for XLM
After successfully financing your Cinsquare account with CAD, you can now purchase any assets offered on the Coinsquare platform using our QuickTrade feature. Coinsquare has a simple interface and user-friendly features that make it easy for consumers to follow. To trade CAD for XLM, just fill in the CAD in the “Trade” section, the number you want to trade, and the XLM in the “For” section. After you enter the correct information, click “Get a quote” to get the exact price you are trading CAD for XLM. Once you’re happy with your quote, click “Trade This” to complete the process.
3. Store XLM in your digital wallet
After buying Stellar lumens, you need to save them! Like a real wallet that is used to store your cash safely – you will store your digital currency in your digital wallet to keep it safe. Fortunately, Coinsquare provides a web-based wallet to secure your funds when you purchase assets on our platform. However, you have the option to withdraw your assets from Coinsquare’s web-based wallet and transfer them to another digital wallet service or application of your choice.
How do I sell XLM to redeem CAD?
1. Fund your account with XLM
The first step in successfully selling XLM for CAD is to transfer money directly to your Coinsquare account with XLM from another digital wallet or application of your choice. 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 transfer funds. The inclusion of memos is very important as it enables Coinsquare to identify which accounts should be credited. Similarly, the user can scan the QR code directly – but keep in mind that the XLM memo must be input manually, as scanning the QR code will only reveal the XLM address.
Note:: If you want to know the type of memo from the wallet you are depositing, don’t worry – the type of memo doesn’t matter.
2. Trade XLM with CAD
After successfully financing your Coinsquare account with XLM, you can now trade XLM for CAD. We discussed earlier how to trade CAD for XLM, with this information in mind – the process is only slightly different. In detail, simply input XLM in the “Trade” section, the amount you want to trade, and input CAD in the “For” section. The rest of the process is the same – click “Get a quote” to get the exact price you would trade XLM for CAD. Once you are satisfied with your quote, click “Trade This” to complete the process.
3. Withdraw CAD to your bank account
After you have completed XLM trading for CAD, the last step to successfully redeeming CAD is to withdraw the CAD and transfer it to your bank account. Coinsquare offers a variety of withdrawal methods, such as direct bank deposits, wire transfers, wealth wire and paid wire. It is important to note that each withdrawal procedure requires a separate minimum and maximum withdrawal amount, and the withdrawal fee is subject to change depending on the amount being withdrawn. Additionally, each withdrawal method has a range of 1-9 days for processing – in addition to the rashed wire withdrawal method which only takes 1 day for processing.
Additionally, after you select your preferred withdrawal method, the next step is to add your bank account. Coinsquare allows users to add multiple bank accounts. In order to successfully add your bank account to our platform, you need the basic information of Coinsquare just like you need a direct deposit form.
Equally important, the next step is to input the number you want to withdraw from your account and click “Request withdrawal” when you’re done. Finally, the last step to ensure your funds go to the right place is to verify email confirmation.
For more information on funding, verification, withdrawal, and more – please visit our FAQ page: http://bit.ly/faq-coinsquare