Table of contents:
- 1 Stellar Lumens Wallet 2020 – XLM Wallet setup
- 1.1 Large selection at the crypto market
- 1.2 Introduction of Stellar
- 1.3 What does a transaction in Stellar cost?
- 1.4 Important facts at a glance:
- 1.5 What is a wallet?
- 1.6 Paper Wallet – Save Lumens offline
- 1.7 Hardware Wallet – generate private key offline
- 1.8 Software Wallet – no purchase of hardware necessary
- 1.9 Mobile Wallet – carry out transactions on the road
- 1.10 Which Stellar Lumens Wallet to choose?
- 1.11 Buy Stellar Lumens via crypto-wallet
- 1.12 No wallet required for CFD trading
- 1.13 XLM CFDs – the first steps for traders
- 1.14 Volatility holds opportunities and risks
- 1.15 Conclusion: Cold or Hot – numerous wallet types available
Stellar Lumens Wallet 2020 – XLM Wallet setup
A wallet is required to store Stellar Lumens. The wallet can be used to receive and send coins from Stellar. The different wallet variants have sometimes serious differences. The difference is whether the wallet can be accessed via the Internet or not. The security of the stored Stellar Lumens represents an important aspect, which is to be considered with the choice of the correct Wallet. On the other hand, if you have decided to speculate on the price of Stellar Lumens via CFDs, you will need a trading account with a broker, but not a wallet.
- Unit of payment is called Lumens since 2015
- Manage Lumens in Wallet
- different wallet variants available
- Stellar trading via CFDs – no wallet required
Large selection at the crypto market
In 2009, Bitcoin laid the foundation for today’s crypto market. Measured by market capitalization, Bitcoin is the clear leader among crypto coins. Meanwhile, there are more than 2,500 crypto currencies, which speaks for a large selection. But which crypto currency is actually worth a close look? The approaches of the different crypto currencies sometimes differ considerably, so that a quick overview is quite difficult. With Stellar Lumens, interested parties will find a network that wants to enable fast and inexpensive transactions for users even from poor regions.
The non-profit approach of Stellar differs from the concept of its competitor Ripple. The open source Stellar protocol was initially based on Ripple, but soon evolved. The upgraded Stellar network has been available to users since the end of 2015. The founders behind Stellar are Joyce Kim and Jed McCaleb. Stellar is an altcoin that is not minebar-at least not to the public. Bitcoin, however, is minebar.
Even if the different cryptos on the market have differences, there is usually a common ground. To store coins, a wallet (electronic purse) is required. With a Stellar Lumens Wallet, coins of the well-known crypto currency can be managed. Regarding the possibilities it is quickly noticeable that not only the crypto-universe offers a large selection, but also in the area of crypto-wallets different variants are offered. There are many choices in the offered hard- and software wallets alone. In addition, there are also paper wallets that can be created to store Stellar Lumens.
Introduction of Stellar
Stellar (XLM) was launched in 2014 and has since achieved significant success in terms of collaboration. Stellar received special attention from Lumens when it attracted the cooperation of software giant IBM. Anyone who has been following the development of Stellar for some time and wants to carry out transactions over the network themselves must first set up an XLM wallet to which the purchased lumens can be sent. The lumens are the virtual payment unit in the Stellar network, which ensures that the network also functions. When Stellar was introduced, even coins were distributed free of charge.
If you want to know what a Stellar lumen currently costs, you can find exchange rates on numerous charts. A price increase as with the Bitcoin could not register Stellar lumens since the introduction. The Coins of Stellar are clearly more favorable than Bitcoins. Nevertheless Stellar Lumens is interesting in many respects. Not only the non-profit basic idea attracts many prospective customers. Stellar is, like other Kryptowährungen also, as speculation object in demand. The remarkable fluctuation range of crypto currencies makes them interesting for CFD trading.
In the meantime the frequent comparisons between ripple and stellar, which were often heard at the beginning, might have flattened. The approach of Ripple shows significant differences to Stellar. Ripple is not a non-profit organization, but specifically addresses banks. Ripple has already been able to win over well-known partners.
What does a transaction in Stellar cost?
Stellar has also attracted attention in the financial world, which is probably due in no small part to the low transaction fees. Cross-border payments are also part of the payment traffic, which in Stellar entails only low fees. A transaction through the Stellar network costs only 0.00001 XLM. The transactions made are managed in a kind of account book. In the Stellar Network, this “account book” is called a ledger. If you own Stellar Lumens Wallet, you can make transactions via Stellar Network. However, an account must have at least 20 lumens to participate in the network.
Important facts at a glance:
- Transaction speed between 2 to 5 seconds
- Fee for transaction 0.00001 XLM
- Transactions managed in ledgers
Whether it makes sense to use the Stellar network for one’s own payment transactions is a matter for everyone to decide. The amount of the fees does not depend on the value of the transaction, which is worth knowing. Another advantage of transactions in Stellar is the speed at which the transactions are executed. A transaction only takes up to 5 seconds. Sometimes it can even be faster.
Stellar is decentralized, so no banks or other institutions are involved. For example, users can send US dollars to an addressee and the addressee receives the target currency, the euro. The payment unit lumen facilitates payments between two different currencies. This is often compared to a bridge, which is represented by the lumen.
What is a wallet?
A wallet is a digital purse that can be used to manage the lumens. The wallet can be used to make “transfers” or transactions. In order to receive Stellar Lumens via the wallet, a Stellar receiving address is required. A receiving address must also be known for sending. There are different variants of wallets that can be used via the home PC, tablet or smartphone. There are also other options that rely on external hardware or even on paper. Roughly outlined, there are the following wallet variants:
- Paper Wallet
- Hardware Wallet
- Software Wallet
- Mobile Wallet
Some people have several different crypto currencies in their possession. So that these can be administered as simply and time-saving as possible, there are also so-called multi-wallets. A multi-wallet supports different crypto currencies. Not all Wallets are available in German. Depending on the functionality of the wallet, the user interface can be personalized, which can be an advantage. Thus all Wallets can be indicated, which the user possesses.
No matter for which Stellar Lumens Wallet one decides, it is important that the Coins of the crypto currency are kept safe. A wallet must be set up to interact with the network. Not every wallet is compatible with Stellar. Besides the different possibilities point different pro and cons out, about which one should inform oneself first exactly.
Paper Wallet – Save Lumens offline
One method to store crypto currency offline is through paper wallets. Paper Wallets are “wallets made of paper”, which are one of the most popular wallet variants. In your own wallet you will find bills and coins in fiat currency. On a Paper Wallet of course the Coins of the crypto currency cannot be stored. Rather the private key (private key) is there. With the private key, users can access the wallet and release transactions. What information is stored on the Paper Wallet?
- Private Key
- Receiving address
A Stellar Lumens Paper Wallet has the advantage that users store important data such as their private key on paper. The data is sealed off from the Internet. It is important to keep the Paper Wallet in a safe place. The private key is needed to access the wallet.
In general, the wallet variants are distinguished between “Hot” and “Cold”. Unlike cold wallets, hot wallets can be accessed via the Internet. Many people fear an attack by hackers, so the decision is often made to use a cold wallet. When choosing a suitable wallet, one should always consider how often transactions should be carried out. A paper wallet can be used for long-term storage. However, this variant is less practical when it comes to making frequent transactions via the wallet.
Hardware Wallet – generate private key offline
The hardware wallets are also counted as cold wallets, since contact to the Internet is only established when the wallet is to be used. The private key is stored in a hardware wallet on an electronic device. The devices sometimes resemble a USB stick and are usually quite handy. The active use of hardware wallets is possible without having to import the private key, as is the case with paper wallets. Hardware wallets can score points when it comes to security. Especially those who keep larger amounts in the wallet should consider a cold wallet solution.
With a Stellar Lumens Hardware Wallet, private keys can be generated off-line, so hackers can’t find a place to attack. In addition, the private keys are also stored offline, contributing to security. The device can be connected to a compatible PC, smartphone or tablet. To be able to restore its wallet if the hardware device is lost, for example, a backup is advisable.
Hardware wallets come in different versions. The Ledger Wallet Stellar Lumens is only one possibility. Setting up a hardware wallet should also be relatively easy for users with less technical affinity. With this Wallet variant the price is a criterion that should not remain unmentioned. The acquisition of such a device is usually associated with costs. The device should not only impress with a simple user interface, but also with a convincing price-performance ratio.
Software Wallet – no purchase of hardware necessary
If the crypto-coins are to be stored in a software wallet, it is not necessary to purchase additional hardware. This means that there is no need to purchase the required device or hardware wallet. There are also different versions of software wallets, including mobile wallets and desktop wallets. A generous range of functions is sometimes an argument for a desktop wallet. With a desktop wallet, the private key is managed by a program that is stored on the computer. There are software wallets for the following operating systems:
Another type of digital wallet is online wallets. In this variant, the wallet is managed via the Internet. The constant connection with the Internet holds the danger that the entrance data are spied out, in order to steal the Coins in the Wallet.
Also with software Wallets exists the possibility of administering several crypto currencies over it. Before the software is downloaded, it should be checked whether it is the official provider site. A backup – i.e. a backup copy – is also useful for Software Wallet. The security of the computer or smartphone plays an important role in securing the coins. Here it is also your own responsibility to take precautions. An anti-virus program that is up to date can be a relevant tool.
Mobile Wallet – carry out transactions on the road
Nowadays, many people have a mobile device with them when they are on the road. With Stellar Lumen’s Mobile Wallet, users can perform transactions via their smartphone or tablet. The mobile solution’s features are practical and time-saving. The Mobile Wallet belongs to the Hot Wallets and has a connection to the Internet, which can be a point of attack. Who would like to use the advantages of the Mobile Wallet nevertheless for itself, can make even precautions and not hold all Lumens on the mobile digital purse.
The Mobile Wallets are usually available for smartphones with Android or iOS operating systems. To use such a wallet via your smartphone, you must first install the appropriate software. The smartphone with the installed Mobile Wallet is quickly at hand, which is the attraction of this wallet variant. However, you should provide your smartphone with a strong password so that unauthorized persons cannot gain access to the installed programs.
Traders buy crypto currencies to speculate on a price increase. If the crypto currency serves as an object of speculation, it is not uncommon for it to be held for a long time without any transactions being made. A mobile wallet is not necessarily the best choice for this purpose. Storing the private key offline can present itself as a secure alternative.
Which Stellar Lumens Wallet to choose?
When choosing a suitable wallet, crypto-owners do not have to limit themselves to a wallet variant. It may make sense to store the Stellar Lumens or other crypto coins in different types of wallets. Those who frequently carry out transactions in Stellar can easily do so using a mobile wallet. A mobile wallet is located on the mobile device via an app. Nowadays, the smartphone is usually always handy, so that the mobile wallet can be accessed quickly from on the road. If, on the other hand, lumens are to be kept untouched in the wallet for a longer period of time, so-called cold wallets may prove to be more suitable.
The connection to the Internet carries the danger of hacker attacks. The target of such attacks is the private key, which is needed to transfer crypto currencies. In order to secure the wallet, many rely on cold wallets, which do not have constant contact with the Internet. Hardware wallets such as the ledger wallet Stellar Lumens are well known. With a hardware Wallet usually costs for the acquisition of the necessary equipment result. With a hardware wallet, the storage can be done offline.
The private key printed on a sheet of paper. Also this possibility exists in the world of crypto wallets. To prevent the private key from getting lost, the paper should be stored securely. To use the private key, however, it must be imported into an electronic wallet.
Buy Stellar Lumens via crypto-wallet
The entrance into Kryptowährungen is frequently accompanied by the question whether Coins are to be actually bought. In order to buy Stellar Lumens, a registration on a crypto stock exchange is necessary. Many prominent Krypto stock exchanges make meanwhile the exchange possible of Bitcoin, ether and other Kryptowährungen against Stellar lumens. As soon as the purchase and/or exchange was realized, Coins should be sent promptly to the Wallet Stellar Lumens. In a crypto exchange, the purchase or sale is done automatically after the “order” is placed. In crypto-marketplaces, traders can respond to buy or sell offers themselves.
The purchase of Stellar Lumens via one of the relevant trading places is usually not free of charge. Trading fees are incurred. It is not possible to make a general statement about the amount of the fee, as it is usually a percentage of the traded value. The fee structure can differ from exchange to exchange. Furthermore, the conditions can also include limits, so that with a certain payment method only a certain value can be bought per day or month. The pricing of crypto currencies is determined on crypto exchanges, by supply and demand or from the orders that are implemented via the platform.
An online wallet is not part of the range of services offered by each crypto exchange, so that a separate wallet must be set up. This need not prove to be a disadvantage, as you can choose a wallet that suits your personal needs. Anyway, not everyone prefers an online wallet.
No wallet required for CFD trading
A quick way to trade with Stellar is through CFD trading. CFD traders do not need a Stellar Lumens Wallet to speculate on the performance of the crypto currency. Those who trade in Crypto CFDs can participate in the performance of the underlying crypto currency. No crypto coins are bought. When trading Stellar CFDs, traders can speculate on rising or falling prices. A long position can be placed if it is expected that the stellar price will rise. In contrast, traders go short when falling prices are expected.
Because of the leverage, CFD positions can lead to high profits even from small price movements. However, the risks in CFD trading should not be underestimated. The leverage works in the same way in the direction of losses, so that it can come to a total loss for private investors. To protect small investors, the European Securities and Markets Authority (ESMA) introduced a leverage limitation. Since then, crypto-CFDs can only be traded with a maximum leverage of 2. The regulations regarding the amount of leverage also apply to other asset classes. For example, a maximum leverage of 30 is available for CFD trading with major pairs. The leverage restriction does not apply to professional clients.
The trader’s trading account must have the required security deposit (margin) for the broker to execute the CFD position. When trading CFDs, traders can move larger volumes through relatively small stakes. This is possible because the broker finances the remaining value of the position. The spread indicates the spread between the bid and ask price and is one of the most important cost factors in CFD trading.
XLM CFDs – the first steps for traders
CFD trading is usually done over the counter and thus not directly over the stock exchange, but over an issuer. Although no Ledger Wallet Stellar Lumens or any other Wallet variant is required for trading crypto-CFDs, some steps are required. First of all, it is necessary to find a CFD broker who can offer convincing services and conditions. To help traders prepare for CFD trading, many brokers offer free demo accounts. With a demo account, the trading conditions can be tested without risk. For this purpose, the demo account is equipped with virtual credit.
In the context of the information acquisition a view of the trading offer of the broker is important, because not every offerer leads Stellar under the tradable basic values. Regarding the costs a free account and depot guidance is in demand and is with so some on-line broker. The fact that trading fees on crypto stock exchanges are computed, is already mentioned before. The broker also charges fees for CFD trading, which can take the form of spreads and/or commissions. If a CFD position is held overnight, additional fees may apply.
Trading can be started when the trading account is capitalized. Accepted payment methods usually include credit card and bank transfer. Online payment service providers may also be among the payment options. Depending on the broker, a minimum deposit is required for the first deposit.
Good to know: The advantage of CFD brokers within the EU is regulation. In the case of crypto exchanges, regulation is a discussed topic. Brokers, on the other hand, are already subject to strict controls by the responsible supervisory authority.
Volatility holds opportunities and risks
The high volatility on the crypto market makes many people shy away from an investment. It is certainly true that strong and unpredictable price fluctuations carry risks. However, price fluctuations also bring with them opportunities that traders can take advantage of. Stellar’s price is determined by supply and demand, so price fluctuations can occur. If you look at the Stellar Euro Chart, fluctuations can also be seen in this crypto currency. There are a variety of events that can cause the price to move in a very short time.
Especially when the price of a crypto currency rises over a longer period of time, many investors consider an investment. When trading crypto CFDs, traders can profit from even small price movements, which gives them additional room to maneuver. Even short-term oriented traders can realize the trading strategy with CFDs. Crypto-CFDs do not have a maturity limit, so the investment product appeals to a broad target group in terms of investment horizon. However, CFDs are often used for short-term trading.
The volatility of crypto-currencies is unpredictable, so traders must be willing to take some risk. There are many opportunities in the market so that diversified investments can be made. The capital can be spread over several investments to spread the risk. On the other hand, if you invest all your capital in one financial product, you are putting everything on one card – profit and loss depend on it.
Conclusion: Cold or Hot – numerous wallet types available
A Stellar Lumens Wallet is required to interact with the Stellar Network. When looking at the wallets on offer, it quickly becomes clear that there is a wide range of choices. First of all, a distinction can be made between Cold Wallets and Hot Wallets. If you want to seal off your lumens from an Internet connection, you can choose one form of cold wallet. In the case of a hardware wallet, the data is stored offline on an associated device. With a paper wallet, the private key is even on a piece of paper.
Faster access can be achieved with mobile wallets that have a permanent Internet connection. The crypto coins have a certain value and are therefore often the target of hacker attacks. In order to protect the wallet, owners can also become active themselves and, for example, ensure good anti-virus protection. If possible, a backup copy should be made to restore the wallet.
To deal with the topic of crypto wallets in detail, a certain amount of time is required. This is not necessary if the investment in Stellar Lumens is made through CFDs. Once you have a trading account with a CFD broker that carries Stellar Lumens in the trading offer, trading can begin. There is no need to set up a wallet because the lumens are not purchased when trading CFDs. Traders can participate in the performance of Stellar Lumens without having to own them. If you have no previous CFD trading experience, open a CFD Demo Account. Please note that it is free and non-binding.