Stellar Day Trading – Tutorial, Brokers and Buying guide

Stellar is a distributed, hybrid blockchain. It works as a decentralised cryptocurrency based on Lumens, with the ticker symbol ‘XLM’. This page will break down everything you need to know about Stellar, including the cryptocurrency’s history, wallets and future price projections. Finally, some top tips on how to start day trading with Stellar coins will be given.

Stellar Brokers

#1 - eToro USA

Why We Chose eToro USA

eToro US offers 24 tradeable cryptoassets, with just a 1% buying/selling fee added to the spread. Additionally, there are 80 different coins available through the broker’s proprietary wallet service. You can also practice your crypto strategies easily by switching between live and demo mode. Crypto asset investing is highly volatile and unregulated. No consumer protection. Tax on profits may apply.

"eToro remains a top pick for traders looking for leading social investing and copy trading services. With a low deposit, zero commissions and an intuitive platform, the broker will meet the needs of newer day traders."

- DayTrading Review Team
  • Coins: BTC, ETH, BCH, DASH, LTC, ETC, MIOTA, XLM, EOS, NEO, ZEC, XTZ, MKR, COMP, LINK, UNI, YFI, DOGE, AAVE, ALGO, MANA, ENJ, BAT, MATIC, FLR, SHIBxM
  • Crypto Mining: No
  • Auto Market Maker: No
  • Crypto Spread: BTC 0.75%
  • Crypto Lending: No
  • Platforms: eToro Trading Platform & CopyTrader
  • Crypto Staking: No
  • Minimum Deposit: $10
  • Regulator: SEC, FINRA

About eToro USA

eToro is a social investing platform that offers short-term and long-term trading on stocks, ETFs, options and crypto. The broker is well-known for its user-friendly community-centred platform and competitive fees. With FINRA and SIPC oversight and millions of users across the world, eToro is still one of the most respected brands in the industry. eToro securities trading is offered by eToro USA Securities, Inc.

Pros

  • eToro USA Securities is a trustworthy, SEC-regulated broker that is a member of FINRA and SIPC
  • Investors can access Smart Portfolios for a more hands-off approach, covering a range of sectors and markets such as renewable energy and artificial intelligence
  • A free demo account means new users and prospective day traders can try the broker risk-free

Cons

  • The proprietary terminal doesn't support trading bots and there are no additional stock market analysis tools
  • There's a narrower range of day trading instruments available compared to competitors, with only stocks, ETFs and cryptos
  • Average fees may cut into the profit margins of day traders

#2 - IG

Why We Chose IG

IG's modest selection of 11 crypto CFDs trails top crypto brokers like Vantage which offers 40+ tokens. That said, it stands out with its crypto index, which tracks the value of the top 10 digital currencies by market cap and provides a holistic way to speculate on the value of the crypto market.

"IG continues to provide a comprehensive package with an intuitive web platform and best-in-class education for beginners, plus advanced charting tools, real-time data, and fast execution speeds for experienced day traders."

- DayTrading Review Team
  • Coins: BTC, BCH, LTC, ETH, ADA, DOT, DOGE, LINK, UNI, XLM
  • Crypto Mining: No
  • Auto Market Maker: No
  • Crypto Spread: Variable
  • Crypto Lending: No
  • Platforms: Web, ProRealTime, L2 Dealer, MT4, AutoChartist, TradingCentral
  • Crypto Staking: No
  • Minimum Deposit: $0
  • Regulator: FCA, ASIC, NFA, CFTC, DFSA, BaFin, MAS, FSCA

About IG

Founded in 1974, IG is part of IG Group Holdings Plc, a publicly traded (LSE: IGG) brokerage. The brand-US offers spread betting, CFD and forex trading across an almost unrivalled selection of 17,000+ markets, with a range of user-friendly platforms and investing apps. For 50 years, IG has maintained its position as an industry leader, excelling in all key areas for traders.

Pros

  • IG offers an extensive collection of professional and engaging educational resources, including webinars, articles, and analysis
  • The IG app offers a superb mobile trading experience with a clean design that helped it secure Runner Up at our Best Trading App award
  • IG is amongst the best in terms of its range of instruments, which includes stocks, forex, indices, commodities, and cryptocurrencies, providing ample diversification opportunities

Cons

  • Stock and CFD spreads still trail the cheapest brokers like CMC Markets based on tests
  • Beginners might find IG’s fee structure complex, with various fees for different types of trades or services, potentially leading to confusion or unexpected charges
  • While there is negative balance protection in the UK and EU, there is no account protection or guaranteed stop losses for US clients

#3 - Pocket Option

Why We Chose Pocket Option

Pocket Option offers a modest crypto offering with 10+ digital currencies including Bitcoin and 65+ tokens if you deposit $1000. The integrated analytics feature in the platform is helpful for finding opportunities, while the daily signals service makes it straightforward to act on short-term crypto opportunities.

"Pocket Option excels for its easy-to-use web platform which provides a best-in-class user experience for short-term binary traders. The $50 minimum deposit is also accessible for beginners while opening an account is really easy. Looking at the negatives, Pocket Option still trails alternatives in its market offering and regulatory credentials."

- DayTrading Review Team
  • Coins: BTC, ETH, BCH, LINK, AAVE, ALGO, TLM, ALPP, ANT, AVAX, AXS, BNB, ADA, CHZ, COMP, ATOM, DASH, MANA, DGB, DOGE, ENJ, EOS, FIL, GLMR, ILV, ICP, KAVA, LTC, MKR, MASK, MIOTA, XMR, ALICE, NEAR, NEO, NULS, OMG, DOT, MATIC, QTUM and many more
  • Crypto Mining: No
  • Auto Market Maker: No
  • Crypto Spread: N/A
  • Crypto Lending: No
  • Platforms: Web, MT4, MT5
  • Crypto Staking: No
  • Minimum Deposit: $50
  • Regulator: MISA

About Pocket Option

Established in 2017, Pocket Option is a binary options broker offering high/low contracts on forex, stocks, indices, commodities and cryptocurrencies. With over 100,000 active users and a global reach, the platform continues to prove popular with budding traders.

Pros

  • The MetaTrader platforms offer integrated analysis with helpful technical summaries for short-term traders
  • Well-funded traders who deposit $1000+ can qualify for a 2%+ payout boost, more tradable assets and exclusive perks
  • The range of payment methods beats the majority of rivals, providing fast, secure and convenient deposits for traders in most countries

Cons

  • The MISA is a weak regulator with limited investor protection for retail traders
  • The maximum binary contract length of 4 hours is restrictive for longer-term trading strategies. Alternatives like Videforex offer binaries up to 1 month
  • Pocket Option offers a slimmed down iteration of the MT4 and MT5 that doesn't provide the full charting package for advanced traders

#4 - CEX.IO

Why We Chose CEX.IO

CEX.IO offers hundreds of popular cryptocurrencies including big names like Bitcoin, Ethereum and Litecoin. The trading platform is well-designed with sophisticated charting and analysis tools, including 50+ in-built indicators. Traders can also reduce their monthly volumes through the tiered pricing structure.

"CEX.IO continues to serve a range of crypto investors looking to buy, sell, trade, hold and earn with low fees. The tiered pricing structure will appeal to active traders while rookie investors will enjoy the straightforward platform interface and excellent education."

- DayTrading Review Team
  • Coins: ZRX, 1INCH, AAVE, BTC, BCH, ADA, LINK, COMP, ATOM, DAI, DOGE, ETH, GUSD, ICP, LTC, LRC, MATIC, MKR, DOT, SHIB, SOL, XLM, SUSHI, SNX, USDT, XTZ, USDC, UNI, WBTC, ZIL
  • Crypto Mining: Yes
  • Auto Market Maker: No
  • Crypto Spread: 0.15% maker & 0.25% taker (Standard)
  • Crypto Lending: Yes
  • Platforms: TradingView
  • Crypto Staking: Yes
  • Minimum Deposit: $20
  • Regulator: GFSC

About CEX.IO

CEX.IO is one-stop-shop for crypto investors where you can buy and sell popular digital tokens, speculate on prices with margin trading and earn rewards through staking. Since it launched in 2013, more than five million traders have deposited over $7.5 billion. CEX.IO is registered with the FinCEN in the US and the GFSC in the EU.

Pros

  • The proprietary terminal features an advanced charting package from TradingView, including 50+ technical indicators
  • The range of 200+ cryptocurrencies is competitive and will serve more experienced traders
  • The broker offers 24/7 support with fast response times during tests

Cons

  • The Exchange Plus platform delivers a cluttered interface compared to competitor platforms
  • A maintenance fee applies after 12 months of no activity
  • It's a shame that there's no demo account for traders looking to practice strategies

#5 - Uphold

Why We Chose Uphold

You can buy and sell 250+ crypto assets with fiat currencies or in crypto pairs using the straightforward mobile app or through Uphold's browser-based account homepage. This is significantly more than many rivals. You can also earn up to 16% APY by staking one or more out of 32 valid tokens, or send tokens to an external wallet.

"Uphold remains a top choice for crypto investors looking for a one-stop-shop solution to accessing the markets. There are over 250 tokens to buy, sell and trade through flexible platform options."

- DayTrading Review Team
  • Coins: BTC, BTCO, AAVE, ALCX, DYDX, INH, XYO, API3, GHST, LSK, AUDIO, GLMR, NMR, CAKE, GODS, REQ, CHR, TRB, DAO, ROOK, XRP, ETH, BAT, ADA, ALGO, ATOM, AVAX, AXS, BCH, BAL, BTG, CSPR, COMP, CRV, DASH, DCR, DGB, DOGE, DOT, EGLD and many more
  • Crypto Mining: No
  • Auto Market Maker: No
  • Crypto Spread: Up to 1.5%
  • Crypto Lending: No
  • Platforms: Desktop Platform, Mobile App
  • Crypto Staking: Yes
  • Minimum Deposit: $0

About Uphold

Uphold is a digital asset platform offering a range of services, from crypto trading and staking to payment cards that provides rewards and easy multi-currency payments. The company was established in 2015 and has enabled $4+ billion in transactions. Uphold is now active in 180+ countries and deals in 200+ crypto and fiat currencies.

Pros

  • Two-step authentication bolsters user security
  • Uphold is 100% reserved which helps to protect client funds
  • Uphold continues to remain ahead of the industry, often being one of the first platforms to list new crypto tokens

Cons

  • Customer service is slow based on tests, with limited contact options
  • The charting analysis features on the platform trail specialist exchanges
  • Uphold operates with limited regulatory oversight

What is Stellar?

Before considering the cryptocurrency’s potential, how precisely it works needs to be explained. Essentially, Stellar is an open-source payment technology that seeks to connect financial institutions, while seriously reducing the cost and time associated with cross-border transfers. For that reason, it is somewhat like the Ripple network. In fact, they both share the same initial protocol.

The stellar protocol is actually supported by a nonprofit, the Stellar Development Foundation. The Stellar blockchain enables users to generate their own tokens and Stellar can manage as many as 1,000 transactions each second.

day trading with Stellar

The cryptocurrency itself is based on Lumens. Each Lumen is a single unit of the currency. Initial supply was to be around 100 billion. 18 million or so XLM were swiftly in circulation.

One of the clear advantages of the cryptocurrency is that buying Lumens allows users to interact with a number of fiat currencies with ease. For example, both forex traders and travellers can capitalise on swift and straightforward access to the US dollar or Euro.

Overall then, their vision is clear if not challenging – they seek to revolutionise global financial transactions. Specifically, they want to allow developing nations to take part in global finances, starting in the South Pacific.

History

The Stellar team came to life in 2014. The cryptocurrency creators were the co-founder of the Ripple, Jed McCaleb and former lawyer Joyce Kim. In fact, the company was launched when McCaleb left Ripple after a number of disagreements. But while this may have dampened the outlook of Ripple, it ensured the Stellar owner had a point to prove.

At the initial launch, Stellar was built on the Ripple protocol. However, forking took place once a number of changes to critical consensus code were made. The Stellar Development Foundation built an updated version of the protocol, boasting a new consensus algorithm, based on a totally new code. April 2015 then saw the release of the white paper. The updated coin network then went live in November 2015.

Stellar Partnerships

Future value predictions for this cryptocurrency often hinge on information about potential partners. Fortunately, the company has secured investment and deals with a number of high profile enterprises, including:

 

Stellar Live Chart

Architecture

Take the Stellar cryptocurrency vs Ripple and Bitcoin and a couple of clear differences arise. Firstly, Ripple is a closed system, whereas Stellar is open source. Servers run a software implementation of the protocol while using the internet to interact with other Stellar servers, creating a global value exchange network.

Each server makes a record of every account on the network. These details are then stored in a database, also known as a ledger. Servers will put forward changes to a ledger by suggesting transactions which move accounts from one location to another, by spending an account’s balance or altering a property of an account. All servers will then reach an agreement on which transactions to apply to the current ledger, known as ‘consensus’. This mechanism takes place regularly, every two to four-seconds in fact. As a result, each server’s copy of the ledger is synced and kept exactly the same.

The consensus protocol also means Stellar does not require coin mining pools, unlike the Bitcoin cryptocurrency.

On top of the protocol difference, Stellar’s CEO also seeks different customers. Ripple focuses on established banking institutions to enhance their cross-border transfer technology. Whereas Stellar is concerned with developing markets and has a number of uses for its technology, from money remittances to bank loan distribution to the unbanked.

Inflation

The coin’s rate is kept stable as Stellar has a built-in inflation system. Small amounts of free XLM are given to members. A tiny fraction of the Lumens taken from each operation goes towards inflation, as well as all other Lumens dispensed into circulation.

Benefits

There are a number of advantages to the Stellar cryptocurrency, including:

Drawbacks

Before you decide to purchase any of this cryptocurrency, coin reviews have highlighted a number of drawbacks, including:

So while coin reviews are mostly positive and their purpose admirable, market history shows us price can tumble at a moments notice. Not to mention, maintaining and gaining market share when competition is so fierce is challenging to say the least.

Where to Buy Stellar Coins

Fortunately, as a result of an increasing number of coin exchanges becoming available, buying Lumens is relatively straightforward. The cryptocurrency exchanges Binance, Bittrex, Poloniex, Kraken and Coinbase all have Stellar coins available for purchase. It is also possible to speculate on price movements without using an exchange, many brokers now offer single click access to crypto trading. IQ Option offer access to over 20 different coins and tokens.

Wallets

Now you know where to buy Stellar coins. However, you will also need to store your new coins in a wallet. You get a choice between mobile, desktop and web wallets. In fact, all of the following wallets support Lumens:

Faucets

There is also an option for those looking to get free stellar coins. Cryptocurrency faucets, usually found on websites or apps, are effectively reward systems. They simply give away coins in return for completing a captcha or task detailed on the website. If used correctly, faucets can help increase your total number of coins, which you can then use to day trade.

What’s Next for Stellar?

Trading reviews impress with the cryptocurrency’s price history and performance. Strong partnership deals and a focus on a stronger lightning network are likely to increase the coin’s future price predictions. Furthermore, The Stellar Decentralised Exchange (SDEX) is set to enhance scalability and security. It aims to bring cheaper rates between assets as well as low trading fees.

Despite the number of positives, coin and price graphs often fail to signpost potential pitfalls. Stellar certainly does come with risks. Strong competition and a monopoly on coin ownership could all prove dangerous for aspiring traders.

For further crypto guidance, see our cryptocurrency page.