How to Buy Stacks (STX)

Want to know how to buy Stacks? You can Buy STX on Coinbase!

Stacks has ignited excitement among Bitcoin maximalists due to its potential to deliver smart contract functionality to the Bitcoin blockchain while preserving the integrity and performance of the Bitcoin mainnet. Unlike Ethereum, where smart contracts directly on the mainnet have led to network congestion and spiraling fees, Stacks operates as a second layer, allowing for efficient execution of smart contracts without overwhelming Bitcoin’s core system.

This innovative approach not only enhances scalability but also opens the door to decentralized finance (DeFi) solutions on Bitcoin. Learn more about Stacks and how to buy STX below.

How to Buy Stacks (STX)

If you're interested in purchasing Stacks coin, you can follow these easy steps.

1. Open an Online Account

Opening a crypto account is the first step to acquiring STX tokens. As a U.S. resident, you’ll have to comply with the Securities and Exchange Commission (SEC) know your customer (KYC) regulations. For tax purposes, you’ll need to supply the cryptocurrency exchange with your Social Security number, address and a photo of your driver's license. The verification process usually takes a few days.

2. Fund Your Account

Before you can start buying cryptocurrency, you'll need to fund your trading account. Most platforms offer a variety of payment methods to facilitate this process. You can choose from funding options such as wire transfer, credit card, debit card, or even crypto deposits.

It's important to follow the platform's specific instructions for your chosen payment method. After entering the amount you wish to deposit, take a moment to review any transaction fees that may apply, as these can vary depending on the payment method and the platform. Once you’ve ensured that everything is correct, you can complete the transaction and begin your journey into the world of cryptocurrency trading.

3. Purchase Stacks (STX)

Now that you have funded your account, you’re ready to make your purchase. Access the trade section of the platform. Search for Stacks or STX. Place a buy order for your desired amount. Carefully review all details before finalizing the transaction.

What Is Stacks?

Stacks is a Layer 1 blockchain that leverages the security of the Bitcoin blockchain using a novel consensus mechanism called Proof of Transaction (PoX). Essentially, the Stacks blockchain acts as a computation layer while using Bitcoin’s blockchain as a settlement layer.

STX is the native asset of the Stacks blockchain. The Stacks blockchain is unique — it has both miners and stakers, or at least a version of both. 

In the Stacks ecosystem, you have two options that let you earn interest on your digital assets: 

Mining: Stacks’ miners incorporate BTC into the ecosystem for the purpose of leveraging Bitcoin’s proof of work (PoW) security. You can commit Bitcoin to the chain for the chance to earn the Stacks block reward, known as mining. This Bitcoin will be given to stackers as a reward for achieving consensus. 

Stacking: You can stake STX and earn BTC provided by miners, known as “stacking.” Similar to most proof of stake (PoS) blockchains, stacking allows holders to provide security and earn interest. Unlike most PoS chains, STX stakers earn BTC as a reward. 

Brief History of Stacks 

Stacks was founded as “Blockstacks” at Princeton in 2013 by Muneeb Ali and Ryan Shea. Blockstacks received seed funding from Y Combinator in 2014, and completed a $4 million Series A capital raise in 2016. A year later in 2017, Blockstacks raised $50 million via a private token sale.

In 2018, Stacks launched its testnet and integrated with Gaia, the decentralized storage platform, for data management. Later that year, the Stacks blockchain went live.

Stacks‘s 2019 public token sale was the first ever ICO commissioned by the SEC. The token became officially recognized as a security and therefore unable to be traded on U.S. based cryptocurrency exchanges.

As of writing, the token is trading for around $1.53 and has market capitalization of over $2.2 billion. STX is currently ranking 35th among the top cryptocurrencies in terms of market capitalization.

Where to Buy Stacks (STX)

Consider below options for some of the best crypto exchanges that support Stacks coin.

How to Store Stacks Safely

While most crypto exchanges are happy to take custody of your assets for you, best practice is purchasing your own cryptocurrency wallet. There are two types of crypto wallets: software wallets, which are user-friendly and internet-connected, and hardware wallets, which are physical devices that store private keys offline for better security. The choice of the best wallet type is subjective as each has its unique advantages.

• Best hardware wallet: Ledger

Ledger is a well-known hardware wallet that primarily operates offline but also offers Bluetooth and USB connectivity for computer or mobile use. Its application simplifies the security, storage, and management of assets.

• Best software wallet: Coinbase Wallet

Coinbase Wallet is a user-friendly app that allows users to store cryptocurrencies in their own custody, separate from the Coinbase platform. It enables easy management of digital assets, including DeFi and NFTs, all from one location.

Trade, Sell or Convert Your Stacks

If you want to exit your STX position, you can follow the purchasing process in reverse order. First, transfer your STX from your wallet back to your exchange wallet, then place a sell order. Now that you’re back in USD, you can transfer your funds back to your bank account. 

Current Crypto Prices

The cryptocurrency market is highly volatile, with daily price fluctuations, especially among smaller coins. This can result in significant gains or losses quickly, making real-time data essential for investors. Today's price changes reflect this volatility, influenced by market sentiment, regulations, and technology. Investors need to stay alert and continuously track live updates to make informed decisions and protect their portfolios.

Is Stacks a Good Investment?

Stacks promises to enable decentralized finance (DeFi) on Bitcoin. If they’re at all successful in achieving their goal, the network could grow exponentially in the coming years. If Ethereum’s success is any indication of the potential of blockchain smart contracts, then Stacks could be the most lucrative investment of the next decade. 

That being said, Ethereum’s comparatively mature DeFi ecosystem and loyal community will be hard to displace. Stacks is a high-risk investment, so only invest money you’re okay with losing. 

Frequently Asked Questions