How To Buy Stacks (STX)?

A common question you often see on social media from crypto beginners is “Where can I buy Stacks?” Well, you’ll be happy to hear it is actually quite a simple and straightforward process. 

Step 1: Create an account on an exchange that supports Stacks (STX)

First, you will need to open an account on a cryptocurrency exchange that supports Stacks (STX).
We recommend the following based on functionality, reputation, security, support and fees:

In order to sign up, you will need to enter some basic information, such as your email address, password, full name and, in some cases, you might also be asked for a phone number or address.

Note: On specific exchanges, you might need to complete a Know Your Customer (KYC) procedure in order to be able to purchase cryptocurrency. This is most commonly the case with licensed and regulated exchanges.

Step 2: Deposit funds into your account

Many cryptocurrency exchanges will allow you to purchase Stacks (STX) with fiat currencies, such as EUR, USD, AUD and others. Furthermore, they will also provide you with multiple deposit methods through which you can fund your fiat account, such as credit and debit cards, ewallets or direct bank transfers.

Note: Some payment methods will have higher fees than others, such as credit card payments. Before funding your fiat account on your chosen exchange, make sure to do your due diligence to find out the fees involved with each payment method to avoid unnecessary costs.

Step 3: Buy Stacks (STX)

This process is similar across almost every cryptocurrency exchange. All you have to do is find a navigation bar or a search bar, and search for Stacks (STX) or Stacks (STX) trading pairs. Look for the section that will allow you to buy Stacks (STX), and enter the amount of the cryptocurrency that you want to spend for Stacks (STX) or the amount of fiat currency that you want to spend towards buying Stacks (STX). The exchange will then calculate the equivalent amount of Stacks (STX) based on the current market rate.

Note: Make sure to always double-check your transaction details, such as the amount of Stacks (STX) you will be buying as well as the total cost of the purchase before you end up confirming the transaction. Furthermore, many cryptocurrency exchanges will offer you their own proprietary software wallet where you will be storing your cryptocurrencies; however, you can create your own individual software wallet, or purchase a hardware wallet for the highest level of protection.

For more in-depth instructions, our ‘Absolute Beginner’s Guide To Cryptocurrency Investing‘ will take you through the process step-by step. In addition to providing instructions for sending and receiving your cryptocurrency.
And if you’re completely new to crypto our beginner, intermediate and advanced level articles will get you up to speed with everything you need to know about the cryptocurrency space starting out. 

Simplecryptoguide.com

What Is Stacks (STX)?

Stacks is a layer-1 blockchain solution that is designed to bring smart contracts and decentralized applications (DApps) to Bitcoin (BTC). These smart contracts are brought to Bitcoin without changing any of the features that make it so powerful — including its security and stability.

These DApps are open and modular, meaning developers can build on top of each other’s apps to produce features that are simply not possible in a regular app. Since Stacks uses Bitcoin as a base layer, everything that happens on the network is settled on the most widely used arguably the most secure blockchain in operation — Bitcoin.

The platform is powered by the Stacks token (STX), which is used for fueling the execution of smart contracts, processing transactions and registering new digital assets on the Stacks 2.0 blockchain.

The platform was formerly known as Blockstack, but was rebranded to Stacks in Q4 2020 in order to “separate the ecosystem and open source project from Blockstack PBC” — the company that built the original protocols.

The mainnet for Stacks 2.0 launched in January 2021.

Who Are the Founders of Stacks?

Stacks was initially funded by a range of prominent venture capital funds, including Y Combinator, Digital Currency Group and Winklevoss Capital. It was developed by Blockstack PBC, which has its headquarters in New York. Blockstack PBC now operates under the name Hiro Systems PBC and joins a wide range of companies building on Stacks’ platform.

Blockstack PBC was founded by Muneeb Ali and Ryan Shea. After graduating from Princeton University with an MA and PhD in computer science, Muneeb Ali co-founded Stacks in 2013, and still works with the platform today as the CEO of Hiro Systems PBC.

The second co-founder of the platform, Ryan Shea, also served co-CEO between 2013 and 2018, before disembarking from the project to pursue other ventures — including co-founding a new tech startup that is currently operating in stealth. Prior to his role at Stacks, Shea worked as a software engineer.

What Makes Stacks Unique?

Stacks looks to take what makes Bitcoin so powerful, and extends it with additional functionality, without needing to fork or change the original Bitcoin blockchain.

It does this by connecting directly with the Bitcoin blockchain through its proof-of-transfer (PoX) consensus mechanism, which has miners pay in BTC to mint new Stacks (STX) tokens. Moreover, STX token holders can also stack (not stake) their tokens to earn Bitcoin as a reward.

Stacks introduces a new smart contract programming language known as Clarity, which is designed to be both secure and easy to build with thanks to its unambiguous syntax. This smart contract-centric programming language is also used by the Algorand (ALGO) blockchain. On top of this, Stacks was the first cryptocurrency to receive SEC qualification for a sale in the United States, allowing it to launch a $28 million Reg A+ sale cash offering for its STX tokens in July 2019.

Stacks development updates in 2023

Stacks, a layer-1 blockchain built on top of Bitcoin’s blockchain, has made significant progress in 2023. The key developments for Stacks include:

• Enhanced Blockchain Functionality: Stacks continues to empower developers to create smart contracts, decentralized applications (dApps), and digital assets. Its unique infrastructure, running atop Bitcoin’s blockchain, provides robust security and reliability for these applications.

• Proof-of-Transfer (PoX) Consensus Protocol: Stacks utilizes the PoX consensus protocol, which is a notable aspect of its network. This protocol rewards miners with both Bitcoin and STX for validating transactions, ensuring the security and decentralization of the network.

• Active STX Token Utilization: The STX token, which fuels the Stacks network, is used for various purposes, including paying miners for transaction validation and executing dApp transactions. STX tokens can also be staked to earn rewards, buy digital assets, and pay for services. Moreover, STX holders have voting rights on key network decisions.

• Ecosystem Growth and Community Engagement: The Stacks ecosystem comprises the network, the STX token, and the wallets and applications built on Stacks. The ecosystem is known for its vibrant community of developers, holders, and investors, with a variety of tools, partners, and communities being part of this growing ecosystem.

• Performance and Market Response: In the last few months of 2023, STX showed a significant increase in performance and volume. The rising interest and volume in the STX token indicate growing confidence and engagement in the Stacks ecosystem.

These advancements position Stacks as a prominent player in the blockchain space, especially in leveraging Bitcoin’s blockchain for smart contract and dApp development. The ecosystem’s focus on empowering developers and engaging the community continues to drive its growth and adoption​​​​​​.

Official website: https://www.stacks.co/

Best cryptocurrency wallet for Stacks (STX)

There are plenty of different crypto wallets available. The best one for you depends on your general trading habits and which provides the most security in your situation. There are two main types of wallets: hot storage wallets (digital) and cold storage or hardware wallets (physical). Both have their pros and cons, and there is not necessarily a right or wrong answer when it comes to figuring out which crypto wallet is best for you.

HOW DO I DECIDE WHICH cryptocurrency WALLET TO USE for Stacks (STX)?

Deciding which type of wallet to use depends on a variety of factors, including:

• How often you trade. In general, hot wallets are better for more active cryptocurrency traders. Quick login ability means you are only a few clicks and taps away from buying and selling crypto. Cold wallets are better suited for those looking to make less frequent trades. 
• What you want to trade. As mentioned earlier, not all wallets support all types of cryptocurrencies. However, some of the best crypto wallets have the power to trade hundreds of different currencies, providing more of a one-size-fits-all experience.
• Your peace of mind. For those worried about hacking, having a physical cold wallet stored in a safe deposit box at the bank or somewhere at home, provides the safest, most secure option. Others might be confident in their ability to keep their hot wallets secure.
• How much it costs. It is important to investigate the costs associated with each wallet. Many hot wallets will be free to set up. Meanwhile, cold wallets, like any piece of hardware, will cost money to purchase.
• What it can do. While the basics of each cryptocurrency wallet are the same, additional features can help set them apart. This is especially true of hot wallets, many of which come with advanced reporting features, insights into the crypto market, the ability to convert cryptocurrencies and more. Security features can also be a good differentiator.

For a more in-depth overview of cryptocurrency wallets visit our “Cryptocurrency Wallets Explained” guide.

If you’re going to be dealing in larger volumes of crypto, investing in cold storage might prove advantageous.
Most widespead examples of this being the Ledger Nano and the Trezor.

Ledger manufactures cold storage wallets designed for users who want increased security. Their wallets are a physical device that connects to your computer. Only when the device is connected can you send your cryptocurrency from it. Ledger offers a variety of products, such as the Ledger Nano S and the Ledger Nano X (a bluetooth connected hardware wallet).

Trezor is a pioneering hardware wallet company. The combination of world-class security with an intuitive interface and compatibility with other desktop wallets, makes it ideal for beginners and experts alike. The company has gained a lot of the Bitcoin community’s respect over the years. Trezor offers two main models – The Trezor One and Trezor Model T (which has a built in touch screen).