When choosing digital storage, each crypto investor makes the protection of their assets a priority. Today we will look at one of the first XLM crypto wallets to store - LOBSTR Wallet. How secure is LOBSTR? Is it reliable enough to store XLM there or it is a scam? All of these questions will be reviewed in this article.
- What Is LOBSTR?
- Features
- LOBSTR Fees
- How to Get Started
- How to Use LOBSTR
- How to Withdraw from LOBSTR
- How to Deposit on LOBSTR
- Customer Service and Reviews
- Is LOBSTR Safe?
- Conclusion
What Is LOBSTR?
LOBSTR is one of the first XLM wallets on the cryptocurrency market that was founded in 2014 and officially registered in Belarus. LOBSTR wallet is provided by Ultra Stellar, LLC, an independent commercial entity unaffiliated with the Stellar Development Foundation.
When using LOBSTR wallet, you are directly communicating with the Horizon Stellar API and the Stellar network operated by a decentralized network of several trusted organizations running validators.
LOBSTR can be called almost the most convenient wallet for mobile gadgets since it is an easy-to-use mobile wallet with an attractive interface. Through the LOBSTR wallet, you can easily send and receive Stellar. A comfortable and simple user interface is perfect for beginners, as you can quickly navigate it.
LOBSTR co-founder Gleb Pitsevich said that the wallet is designed for a simple and secure way to manage Stellar assets, providing the best opportunities for both web users and mobile users.
Features
The LOBSTR wallet was created to store the Stellar Lumens (XLM) cryptocurrency only. Although XLM has existed not so long ago, it has become one of the most popular currencies in the cryptocurrency market. However, in the crypto-assets list you can find not only XLM but Stellar based tokens, Bitcoin and Ethereum.
When you send funds to another Stellar address, there is a built-in price converter that gives you an approximate value in a raw currency based on current market rates. The security system also includes features such as two-factor authentication, support for fingerprints and PIN protection.
LOBSTR wallet has a bunch of advantages compared with other services. Among them are the following:
- Integrated exchange. LOBSTR offers a built-in exchange for trading XLM and its tokens with both bitcoins and fiat currencies. It's understood that Lobstr won't provide as rich functionality as popular exchanges like Binance or HitBTC. Nevertheless, in-built exchange can be a useful feature.
- Fiat option. You can buy Lumens with fiat using your VISA/Master Card debit or credit card. The service is provided by Indacoin.
- Two-factor authentication (2FA). This is an additional level of security, requiring you to enter some additional information to access your wallet.
- Open-source. All users of the Stellar network can read the code and suggest changes.
- Merge tool. LOBSTR provides you an option to withdraw all your balance without any restrictions to any Stellar address of your choice. The system will merge your Stellar account and send your funds to any destination you'll set.
- Touch ID support. You can easily get access to your wallet without entering the password.
- Real-time cryptocurrency price updates. You will always get the latest price updates in your wallet.
- Mobile app. Available for iOS and Android.
- Help desk. The XLM community is very responsive and active when it comes to solving problems and answering questions.
LOBSTR Fees
LOBSTR wallet does not charge any fee for deposit or withdrawal of funds. The only fee that applies is the sending or receiving of transactions. You have to pay Stellar for transactions that are very minimal. Each transaction on a Stellar network costs 0.00001 XLM.
However, LOBSTR notifies us that when the number of operations submitted to a ledger exceeds network capacity (currently 1,000 ops/ledger), the network enters surge pricing mode, where a transaction may cost up to 0.001 lumens. Transactions that offer a higher fee per operation make it onto the ledger first.
How to Get Started
Before starting work with any service, you need to register. And LOBSTR is no exception. To sign up press on the “Get Started” button in the upper right corner.
Registration
The registration form is quite simple. LOBSTR asks us to provide a valid email address and password (twice). Once the form is filled press on the “Create Account” button.
At the next step, the service will send us a confirmation message to the email address indicated to verify the account. After opening the message, click ”Verify Email”.
That’s it! Now you need to sign in with the email and passwords confirmed to get started with LOBSTR service.
How to Use LOBSTR
LOBSTR is clear and very easy to use. After successfully registering with LOBSTR, users need to create a Stellar account.
How to Setup LOBSTR Wallet
Press on the “Create Wallet” button in the "Settings" tab to create an account at LOBSTR wallet. There in the form LOBSTR will ask you to indicate a Username that will be used in the Stellar ecosystem.
You will be notified that all active Stellar accounts must maintain a minimum balance of lumens, which will be reserved by Stellar network. To make things easier for you, LOBSTR can provide you with 1.50 XLM loan to create an active Stellar account right now.
You will need to return the 1.50 XLM loan within 30 days after you’ll deposit more lumens to your account. Until this XLM loan is paid off certain restrictions are applied. If the loan is not paid off within 30 days, it will be returned automatically by LOBSTR. You will be notified in advance.
At the moment when the account is created on the official website, the wallet provides users with a seed phrase. This seed phrase must be stored separately in a safe place.
That’s it! Now all the LOBSTR functions are ready to use.
How to Withdraw from LOBSTR
To send assets directly from the LOBSTR wallet to any other device is easy. Go to the “Send” tab and choose the recipient type (Stellar wallet, Phone Number, Email address). In a case with a Stellar wallet, you need to indicate the recipient address (e.g. your Binance wallet), amount, currency and memo message (if you have). Check everything twice and press “Next”.
How to Deposit on LOBSTR
To top up your account is also very fast and easy. All that you need is to send to the address given the funds and wait till it arrives to your wallet (it depends on the blockchain load and sum sent).
Customer Service and Reviews
LOBSTR wallet has a developed Help Center in Zendesk system where you will be able to find all information related to your query. In the search bar, you can use the keywords to find the information you need, the service will find all references to your question in the FAQ, Troubleshooting or Best Practices sections.
If you could not find any information on your issue and you need assistance, then you can submit the request and describe your case in detail. The friendly customer support team will provide you with an answer during the day. Also, you can subscribe to LOBSTR Twitter and ask your question in DM. All the updates and news will be posted on this official page.
Generally, users are satisfied with the service work and interface. However, LOBSTR is missing the (HD) feature, so you’re supposed to create yourself a new address every time when you receive coins if you want to keep your balance private.
Is LOBSTR Wallet Safe?
LOBSTR wallet is considered to be a safe wallet by many members of the Stellar community. However, there are known cases of coins thefts from the LOBSTR wallets, too. It is important to figure out if the vulnerabilities were addressed by the dev team.
One of the factors making LOBSTR wallets a bit safer is the fact that this software is open-source. Any skilled person can analyse the code and find vulnerabilities himself and/or offer the improvements. More than that, it’s a sign saying that LOBSTR isn’t a scam.
The private keys are stored on the Stellar servers. The lack of access to private keys is considered to be a flaw by some. It decreases the user's control over his assets while guarding the funds from the mistakes users can make themselves (losing private keys, and so on). On the other hand, if the company's servers get hacked, the funds become compromised. To avoid this risk, LOBSTR wallet encrypts all the user data.
On the user's side, there are such options to safeguard the funds: setting a strong password and turning 2-factor authentication (2FA) on. The latter requires the installation of the authenticator app to the user's mobile device. It will make it impossible to access the account and withdraw money without providing a one-time password from the user's mobile device (there is no other source where this password can be taken). 2FA is a serious security measure that shouldn't be neglected. It drastically decreases the risk of money theft.
Conclusion
This wallet is a universal solution for all Stellar currency lovers since you can store, send, receive, change and buy this currency directly in the wallet on your mobile phone or your computer. The interface of this service is very clear and easy to use, it is suitable for both professionals and beginners.
However, if you are looking for a multi-currency wallet, then you need to look for another wallet with the function of storing different assets in one place. At LOBSTR wallet you can store XLM and Stellar based assets in addition with Bitcoin and Ethereum only.