There are many different Stellar (XLM) wallets out there to choose from. But which one is the best? In fact, do you even need to bother with a crypto wallet in the first place? Our Lobstr wallet review will help you decide if it’s the right option to store your XLM coins and we’ll even show you how to set it up.
Why Use A Crypto Wallet?
If you have money, you need to store it somewhere. After all, it isn’t wise to keep money lying around in full view.
Digital currency may be intangible, but it also needs to be stored somewhere safe and secure. However, each cryptocurrency can only be stored in a compatible wallet. This means you will need to find a storage option built specifically to store XLM coin.
Digital wallets look different from the ones we keep in our pockets. They are either software applications which need to be installed on your computer, or hardware variants, which look USB sticks.
When it comes to storing XLM coin, Lobstr is one of the most popular choices amongst cryptocurrency investors. This makes it one of the top Stellar wallets to consider storing your XLM coins in. In this review, we will talk about the Lobstr, how to use it, and if it is the best way to store Stellar Lumens.
What is Lobstr Wallet?
The Lobstr Wallet has been created to only store the Stellar Lumens (XLM) cryptocurrency. Although XLM hasn’t been around for too long, it has made a name for itself for two reasons.
It has been created by the same person who created Ripple – Joe McCaleb. And secondly, it has been created to bank the unbanked. Stellar wallets are exceptionally important when it comes to this second point. They essentially act like a bank account for Stellar coin owners.
Although there are other options that support XLM, Lobstr is one of the most secure and popular options. It was also released in the same year the Stellar Lumans project was founded and was one of the first ways to store this cryptocurrency.
The wallet was launched with a bang, with the Lobstr co-founder Gleb Pitsevich declaring that the wallet is designed to be a simple and secure way to manage Stellar assets, providing the best experience for both web and mobile users.
One of the main benefits of Lobstr is that it has an excellent web application, as well as offering mobile app versions for both Android and iOS. What’s more, the apps are completely free to download.
What Coins Does Lobstr Support?
Lobstr only supports Stellar Lumens (XLM) right now and actually markets itself as the wallet for storing Lumens.
Is The Lobstr Wallet Safe?
The big question that plagues every crypto investor when storing their coins is whether or not the storage method they are looking at is safe or not. Several crypto wallets have had vulnerabilities exposed over the years and have resulted in private keys being hacked and coins stolen. Although every wallet is advertised as being safe, not all of them offer top notch security.
The good news is that Lobstr has been found to be completely safe and secure. In fact, Lobstr is among only a handful of wallets recommended by the Stellar network on the official website. Although Stellar claims to not endorse any thirdy party software, the fact that it has found a place on the official Stellar website show’s that it has the project’s seal of approval.
So how does Lobstr actually work? Well, XLM coins are actually stored on the Stellar network itself, and Lobstr communicates with the network. This is a pretty smart move because the network is “unhackable” which means your coins are safely stored on the network. The private key stored on the wallet is also safe. However, just remember that if you lose your private key, there is no getting it back. You will not be able to access your funds if the private key is lost and there will be no other way to retrieve them. Remember to take good care of your private key and do not lose it.
How To Use Lobstr Wallet?
Setting up your Lobstr wallet is quick and simple. The best way to do this is from the official website of Stellar, where it lists the recommended XLM wallets.
Step 1: Visit https://www.stellar.org/lumens/wallets/ and select Lobstr from the list. Or just click the download link below:
- One of the most popular ways to store Stellar Lumens.
- Ideal for beginners.
- Offers iOS & Android apps.
Ready To Get Serious About Storing XLM Coins?
Step 2: On the next page, you will be prompted to sign up for an account. You can sign up with an email, Facebook or Google accounts. Key in your details and set your account password.
Step 3: You now have to confirm your email address. Look for the verification link sent to the email address you signed up with, and click on it.
An ‘activation completed’ message will appear on your screen. The next thing to do is to click the ‘Sign in’ button.
Step 4: Login to Lobstr. Enter the email address and password you just created.
Once you have logged into your account, the next thing to do is to create a Stellar account. To do this, choose a Username and click the Create Account button. You can also add an existing stellar account by clicking on Add an Existing Account.
To make a Stellar account active, you will need 1 XLM coin in the account. Fortunately, the nice guys at Lobstr will lend you one so you can activate your Stellar account. The credit will be returned once you deposit on the wallet. Click ‘I Agree’ to continue with the setup process.
Step 5: Next, you will see your recovery code flash up on screen. This code will allow you to regain access to your account if you forget your password. We recommend writing it down on paper and storing in a plastic ziplock bag.
After you have noted down your recovery, tick the box ‘Ok, I understand that I need to save the recovery code’. You will then be logged into your Stellar wallet.
Step 6: The first thing we recommend you do when logged in, is to set up two-factor authentication on your account.
Sending and Receiving Lumens
How to send money from Lobstr
For sending XLM from the Lobstr dashboard, you can click on Send from the menu on the left or on top. Once the Send Payment window loads, type the recipient’s username and address and also the amount you are sending. You can also add a small message. Once you are done, click Send.
How to receive money on Lobstr
Click the ‘receive’ button from the homepage menu. You will need one of two bits of information to get XLM coins sent to Lobstr. These are:
- Your Stellar username.
- Your Lumen address
Simply enter this information as the recipient address, if you are sending over your own XLM coins to the Lobstr wallet. Or send these payment details to the person that owns you Stellar coins.
You can also use the ‘Request Money’ button to ask for payment. Just provide the sender’s address and the amount to receive, and click Request.
Lobstr Wallet Fees
There are no fees for signing up, but the minimum balance you should is 1 XLM. Deposits and withdrawals are also free, but you have to pay Stellar transaction fees. This is done to prevent spam transactions. Each transaction on the Stellar network costs 0.00001 XLM.
Needless to say, some users have complained that the Lobstr could offer more features. However, the point of the wallet is actually to make storing and managing XLM as simple as possible. We find this method of storing and managing Lumens to be one of the easiest out there. The design is exceptionally simple and intuitive.
The TotalCrypto team loves how the team behind Lobstr are constantly working to make things even better. Although there are other XLM wallets out there, we think Lobstr is one of the best because of their great mobile support and how simple it is to use and set up.