The Stellar network was developed by Stellar Development Foundation in 2014 to facilitate cross-border transactions. It is a decentralized platform, which means no central authority figure supervises its operations. Lumens is the token used on the Stellar network and is also known as XLM.

1

What Is a Stellar Lumens Wallet and How to Set It Up?

A Stellar Lumens wallet is a cryptocurrency wallet that allows you to store your Lumen tokens. It also enables you to conduct transactions involving XLM.

In other words, it is pretty similar to real wallets. Both of them allow you to keep your currencies handy. However, stellar Lumens wallets store the digital information that helps you access your XLM.

So you have to be careful to keep your wallet details to yourself. Otherwise, you might end up compromising your XLM.

Setting up a Stellar Lumens wallet is pretty straightforward. You need to follow these steps:

  • A lot of Stellar wallets are available. Read about them, and choose one that suits your needs the best.
  • Next, you need to create an account on the platform to be able to use it. The platform would put forth some questions that you would need to answer. After you have responded to the questions, an account will be created for you. Set up a password for your account.
  • Once your account is created, deposit XLM into the wallet. With this XLM balance, you can conduct transactions on Stellar.
2

The Difference Between Hot and Cold Wallets

When looking for a Stellar Lumens wallet, you will have numerous options. But broadly speaking, there are only two types of Stellar wallets:

Hot wallet

These are wallets that need to be connected to the internet to function. It is super easy to conduct Stellar transactions using these wallets. But the internet connectivity affects the wallet’s security to an extent.

While users are connected to the internet, hackers can easily access the wallet and compromise your cryptocurrency balance. Examples of hot wallets include mobile wallets and desktop wallets.

Cold wallet

Cold wallets are entirely different from hot wallets. They do not need an internet connection to work correctly. They are like USB devices and help you store the crypto keys securely.

But that’s all; you cannot use them to conduct XLM transactions. The lack of an internet connection makes it impossible to do so. So, you have to transfer your funds from a cold wallet to a hot wallet if you want to conduct transactions.

This elongates the process and might be slightly bothersome. But in terms of security, nothing beats cold wallets. Hackers cannot access these wallets because of the absence of an internet connection.

It is impossible to hack into even when the wallets are connected to a device. Examples of cold wallets include hardware wallets and paper wallets.

3

Different Types of Stellar Lumens Wallets Available

As stated earlier, there is a wide range of Stellar Lumens wallets. Therefore, people should choose a wallet that they would be comfortable using. In this section, we take a look at the various kinds of Stellar Lumens wallets.

Digital wallets

These wallets come as apps or software and can be used on laptops, mobiles and desktops. Digital wallets also include web wallets directly accessed via your internet browsers.

You have to create an account to be able to use any of these wallets. In addition, digital wallets have to be connected to the internet to function correctly.

Popular digital Stellar wallets include CoinBase, Trust Wallet, Lobstr, Gemini, Kraken, etc.

Offline wallets

As the name suggests, offline wallets do not need an internet connection. They resemble USB devices and function similarly. They merely store your XLM keys so that your Lumens are secure.

You have to connect the wallet to a device like a mobile or laptop to be able to access the keys. Hackers cannot hack into these wallets since they are not connected to the internet 24/7.

But, make sure that you do not share the password for your offline wallet with anyone. Otherwise, it would be pretty easy to steal your wallet and access the XLM balance.

Popular offline wallets include Ledger and Trezor.

Paper wallets

Paper wallets are printed sheets of paper that allow you to access your XLM balance. Paper wallet generators help you print one of these on your own. These wallets have a private and a public key and a QR code.

Once you print a paper wallet, the virtual details are deleted from the network. So, the only means to access your XLM balance is by using the keys given on the paper. Make sure to keep the wallet safe.

4

What's the Best Wallet for Safe Storage?

There is no correct answer when it comes to the “best wallet” that can keep your Stellar Lumens safe. However, all XLM wallets provide a certain level of security. 

You can help tighten the security by adopting a few safe practices such as:

  • Using a secure internet connection.
  • Changing your wallet passwords frequently.
  • Not sharing your security pins and wallets with others.
  • Not keeping large XLM sums in your wallet.

Since the whole process is digital, it is crucial to be careful. 

FAQ

What is a Stellar Lumens wallet?

A Stellar Lumens wallet is a crypto wallet that allows you to store your XLM. It also allows you to conduct transactions on the Stellar network. 

What is a cold wallet?

A cold wallet is a crypto wallet that works even when not connected to the internet.

What are paper wallets? 

Paper wallets are crypto wallets printed on a sheet of paper. They come with security pins and QR codes that help you access your XLM balance.

Why do I need a Stellar Lumens wallet?

You cannot spend or buy Stellar Lumens if you don’t have a wallet. Stellar Lumens wallets allow you to access the crypto market.

What are popular offline wallets? 

Popular offline wallets include Trezor and Ledger.

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