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It says on this page [How to buy Stellar Lumens (XLM) in the US].

If you live in the United States, you won’t find a cryptocurrency exchange offering Stellar Lumens for direct purchase.

You have to first purchase BTC or ETH and only then can you exchange that for XLM.


The question:

Why is that? Are there any pros/cons of allowing someone to purchase using (say) USD.

Rather than making them go through the process of purchasing other crypto currencies first and then trading them in for stellar tokens.

  • This is not the place for asking trading questions - if you were trying to build an anchor or an exchange and had specific technical questions, it could have been a good candidate – MonsieurNicolas Jan 17 '18 at 20:35
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    @MonsieurNicolas I believe I've updated the question to be more on topic. – WELZ Jan 17 '18 at 20:49
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    Another thing is, whatever my intentions are, if it "could have been a good question" I think that it can almost always be edited to be a good question. – WELZ Jan 17 '18 at 20:50
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To take fiat currency in the first place seems to involve a a bit of financial regulatory work and keeping things in order ( Coinbase , Kraken ) while it is much easier from a compliance standpoint to open up a crypto to crypto exchage. This does mean it cuts down on the number of exchanges that can offer USD pairings.

Coinbase currently offers ETH/USD , BTC/USD , LTC/USD and last week added BCH/USD. They could add more coins but with each new coin added they would need to do a nice bit of work to support it. They have indicated interest in adding more coins in the future, but ultimately if they do not want to offer an XLM/USD right now or they don't believe to be as profitable as options that is their choice.

Aside from the trade off above, there could also other issues at play like liquidity - is there enough trading going on so it has a somewhat stable price, etc.

There are talks of a stellar based exchange https://fairx.io/ but from what I've heard it's in very early stages that may be relevant.

  • I'm specifically asking about standard (non-crypto) currencies. – WELZ Jan 17 '18 at 20:54
  • To take fiat currency in the first place seems to involve a a bit of financial regulatory work and keeping things in order ( Coinbase , Kraken ) while it is much easier from a compliance standpoint to open up a crypto to crypto exchage. Coinbase currently offers ETH/USD , BTC/USD , LTC/USD and last week added BCH/USD . They could add more coins but with each new coin added they would need to do a nice bit of work to support it. They have indicated interest in adding more coins in the future, but ultimately if they do not want to offer an XLM/USD that is their decision. Updating my post – Cathal A. Dinneen Jan 17 '18 at 21:08
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In addition to @Carl Anthony D.'s answer re: fairx.io,

Fiat ramp to purchase XLM is limited to CNY (Chinese Yuan) at https://ripplefox.com/. As @Carl Anthony D. already mentioned, the regulatory hurdle often proves to be vexatious depending on geopolitical backgrounds.

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