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How to buy Stacks online
This beginner’s guide explains what the Stacks coin is and how you can earn extra Bitcoin by owning some. It also looks at the coin’s future prospects and the best places to find it.
Compare where to buy Stacks, and open an account
These platforms are the best places to get Stacks right now. You can easily sign up and open an account in a few minutes to get started. If you want to learn more about Stacks first, scroll down to keep reading.
What is Stacks?
Stacks is a platform for building decentralised applications on top of the Bitcoin blockchain. It works like a translator, allowing those apps to benefit from the security and privacy that the blockchain provides. Anyone who holds STX, the cryptocurrency that powers the platform, can earn interest that’s paid in Bitcoin.
It’s that feature which is most notable and unique about Stacks. Many platforms offer incentives to users who hold a cryptocurrency in the form of interest but usually it’s paid in kind. Stacks, meanwhile, offers up Bitcoin as a reward instead.
The other aspect that makes Stacks stand out is that it combines the features of Ethereum – essentially the ability to build apps on top of it as if it were an alternative internet – with the extreme security and payment mechanism of the Bitcoin blockchain. Most other platforms do the reverse: start with the app platform and try to increase security or add payment features on top.
How does Stacks work?
By using something called ‘proof of transfer’, or PoX, to bind itself to the Bitcoin blockchain. Instead of needing new ‘miners’ who use their computer power to create new blocks, PoX essentially pays existing Bitcoin miners to get the benefits of the work they’re doing already.
This is important because the whole thing is secured by Bitcoin miners sending Bitcoin to Stacks, and being paid in Stacks for the work they do. This exchange in value allows the Stacks platform to reward users with Bitcoin.
Stacks also has its own blockchain, which acts like a layer on top of Bitcoin so that developers can create apps. It’s created its own programming language to make the process as simple as possible.
How to buy Stacks online – a step-by-step guide
Step 1. Find an exchange
You should use a cryptocurrency exchange to get Stacks. Exchanges come in many different forms with slightly different features, but they universally offer the best place to find altcoins like Stacks. A couple of the top exchanges around are:
- Binance: Binance boasts the largest trading volume in the world and is a great first port of call for any crypto coin. Along with its marketplace, it has an academy full of useful information and a quality mobile app. Sign up with Binance now >
- Kucoin: Kucoin has more than 450 different cryptocurrency pairs available. With such a wide range, a wealth of beginner-friendly material, and a pro version for experienced users, it’s a top option whatever your level. Join Kucoin now >
Step 2. Sign up and fund your account
To use an exchange platform you need to sign up and create an account. Usually all it takes is some contact details and a form of photo ID to do this, although you might have to wait an hour or two for approval.
To fund your account, the cheapest way to do it is via a bank transfer or debit/credit card. Most platforms accept deposits in fiat currency (such as GBP or USD), although some still only let you fund an account with cryptocurrency so be sure to check before you start.
Step 3. Purchase
Find Stacks coins by searching for the ticker symbol, STX. Then you’ll see a list of ways to buy it in the form of pairs, such as BTC/STX. Choose the relevant one, put in how much you want to get, and execute the trade.
Step 4. (Optional) Get a suitable wallet
The final step depends on how security-conscious you are. Exchange accounts are fairly safe places to store your coins, but wallets offer an extra layer of security. They protect your coins so that they can only be accessed with a unique private key. Here are two of the top wallets around:
- Trezor: Trezor is a hardware wallet that looks like a USB stick. Hardware wallets offer maximum security by keeping your coins in ‘cold storage’, completely offline. Even if you plug the USB into an infected computer, the coins are safe. Get Trezor now >
- Guarda Wallet: Guarda is an online wallet that you can use to access your coins through a web browser. It also comes with an integrated exchange, so that you can buy and sell coins straight from the wallet itself. Sign up with Guarda >
How to trade Stacks – a step-by-step guide
Step 1. Find a broker
If you want to trade cryptocurrency then you should use a broker platform that charges low fees. The aim when trading is to make a lot of moves, and high fees can eat into your capital very quickly.
At the moment, Stacks isn’t available through a broker. That’s not unusual for altcoins, as they only tend to be added once they get much more popular. When that happens, you’re likely to find it on eToro or Plus500 first.
Step 2. Deposit money
To use a broker you need to create and fund an account. Along with the main payment methods, some platforms accept deposits from PayPal and the like too, so if that’s important check before you start. You should also check the fees for deposits and withdrawals as well as for trading.
Step 3. Decide how you’d like to trade
Most traders speculate on cryptocurrency using contracts for difference (CFDs) or by spread betting. You can learn more about each method by going through our courses, but in both cases you’re trying to predict future price movies – in either direction – rather than taking ownership of any coins yourself.
Step 4. Start trading
If this is your first time in crypto, it’s best to start with a demo account. You can usually find this feature in your account settings, and it’s simply a way to make trades with virtual money to get to grips with the market before you put the real thing at risk.
In terms of the trading itself, you’re going to be taking a long (buy) or short (sell) position based on how you expect a coin to perform. You should use the latest news and analysis, along with your own research, to influence your predictions.
If you’re particularly confident, you can make bigger trades than usual by using ‘leverage’. This is an advanced strategy that lets you borrow money from your broker and can result in much bigger wins. It can also lead to huge losses, however, and you should steer clear until you have much more experience.
Still undecided?
It’s always a good idea to take time over an investment, and that’s particularly the case with cryptocurrency. Below we’ve summarised all of Stacks’ pros and cons, and followed it with a few more pointers on how to time your move and what its future might look like.
Pros
- Stacks holders can earn interest paid in Bitcoin
- The platform is extremely secure because it’s linked to the Bitcoin blockchain
- The STX coin’s performance is likely to be closely linked to Bitcoin
Cons
Finally, here are three questions to help you decide whether to invest in Stacks.
1. Is it a good time to buy Stacks?
If you want to own it as a way to earn Bitcoin, it likely is a good time. Likewise, if you think the Stacks price is going to go up over the next few months or years and you want to hold it for a while, you might want to make a move.
For short term traders, it all depends on whether your analysis suggests that this is a window of opportunity or whether you should wait. Along with technical analysis of the price chart, you want to consider the wider state of the market – is it doing well or going through a lull? Use the news and analysis in the links below to help you.
2. What problem does Stacks solve, and what are the coin’s investment prospects?
It makes it possible for apps to be built on the Bitcoin blockchain and offers a way for holders to be paid rewards in a desirable currency. Its strong links to Bitcoin provide more security, and it has a unique approach compared to many other decentralised platforms in the cryptocurrency space.
That’s good for its outlook, as is the fact that it can succeed alongside Bitcoin rather than being a competitor. Increased exposure and mainstream acceptance of that cryptocurrency could bode well for Stacks.
There are a couple of issues, however. One is the fact that established platforms like Ethereum or Polkadot offer similar features in a different way. The other is that it’s so closely tied to Bitcoin that it takes on some of its flaws as well, such as its environmental record and mixed reputation. These factors are worth keeping an eye on, and you can find any updates to them in the links below.
Stacks price analysis: Should you invest in Stacks (STX)?
Is Stacks (STX) a good investment in June?
3. Do you want to hold Stacks for the long term?
The answer is yes if you want to earn Bitcoin rewards. Otherwise, it depends on what sort of investor you are. How soon do you want to see returns? How active are you going to be? Below are some final considerations for each strategy.
Considerations for a long term investment strategy
The best approach to succeed long term is to head to an exchange, get some coins and then store them in a wallet. That way you can benefit from an increase in price over time without having to make lots of moves.
Considerations for a short term trading strategy
Short term traders do want to make a lot of moves. If that’s you, then the most important thing is to find a broker that charges low trading fees. You should brush up on your technical analysis and be prepared to open and close positions quickly to make a small profit each time.
Fact-checking & references
Our editors fact-check all content to ensure compliance with our strict editorial policy. The information in this article is supported by the following reliable sources.
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