Learn how to choose a safe and secure wallet to store and manage LSK tokens.
The Lisk platform is a blockchain ecosystem for the development and distribution of decentralized applications (dapps). Initially released in May 2016, it was officially rebranded and relaunched in February 2018.
If you’re thinking of buying LSK, the native token of the Lisk network, you’ll need to find a wallet that allows you to safely store and manage your funds. However, there are only a few wallets that support these tokens, so let’s take a look at the features the best Lisk wallets have to offer.
Compare wallets for LSK
What to look for in a Lisk wallet
Choosing a wallet can be a difficult and confusing task. To help make the process easier, consider the following factors when comparing the pros and cons of different wallets:
- Ease of use. If you’re not an experienced technophile or cryptocurrency expert, using crypto wallets can take a little getting used to. This means that searching for a wallet that’s simple and straightforward to use is crucial.
- What you want in a wallet. Think about how you’ll be using your wallet to manage your tokens. Is it a “set and forget” option for long-term storage or do you want to make regular trades? This could help determine which type of wallet is right for you as some wallets are better for easy access and others offer higher levels of security.
- Security features. Do your research to find out how safe a wallet is. Does it offer features like 2-factor authentication or multisig functionality? Has it ever been hacked?
- Backup and restore options. Does the wallet feature a convenient backup facility so you can recover your funds in the event that something goes wrong? What’s involved in restoring your wallet?
- Private key control. Your private key allows you to access your crypto tokens, so look for a wallet that lets you retain control of your private key.
- Ongoing development. The cryptocurrency world is constantly changing, so check to see whether the wallet is backed by a development team that is constantly working to make upgrades and improvements.
- Dedicated support team. Finally, make sure you’ll be able to quickly get in touch with customer support if you ever have a problem with your wallet. This can provide a much-needed boost to your peace of mind when storing LSK.
Three wallets that store Lisk (LSK)
Lisk Hub (desktop and web wallet)
- User-friendly interface, combines a wallet with a blockchain explorer and other features
- Still in beta phase at the time of writing, high transaction fees
With a pleasing user interface and design, the Lisk Hub is simple to set up and use straight away. One of its standout features is Lisk Identity, which uses an algorithm to create a unique visual representation of each user. Once that’s done, you’re presented with a 12-word passphrase. This passphrase is not stored on any third-party servers, so you’ll need to write it down and store it in a safe place.
However, Lisk Hub is still in beta at the time of writing (3/9/18), and some users have complained about the transaction fee of 0.1 LSK.
Lisk Nano (desktop wallet)
- Security, easy to use, good choice for beginners, no need to synchronize with the blockchain
- No support for 2-factor authentication
The wallet connects directly with the Lisk network, which means there’s no need to worry about blockchain synchronization. The Nano wallet contains features to suit everyone ranging from beginners to more advanced users. A hierarchical deterministic wallet, Nano makes it easy to send and receive tokens and to check the status of your LSK balance.
Unfortunately, features like 2-factor authentication and multisig functionality are not included and may concern some users.
Storing LSK in an exchange wallet
One other option you may want to consider after buying LSK is to store your tokens in an exchange wallet. This is a convenient and quick solution, and it allows you to easily access your tokens if you need to place a trade.
However, there are some key security risks associated with this approach. Cryptocurrency exchanges are popular targets for hackers, and there have also been incidences of less reputable exchange operators stealing from their customers. Also, the private keys for these wallets are usually owned by the exchanges, not by users, so you won’t have full control of your funds.
As a result, it’s recommended that you store your tokens in a secure wallet.
Lisk Core (desktop wallet)
- Designed for advanced technical users
- Complicated, not suitable for beginners, synchronizing takes time
If you’re a developer wanting to build on the Lisk platform, this wallet may be the correct choice for you. However, if you’re a tech novice or simply looking for a simple way to manage your LSK tokens, you’ll probably be better served by one of the first two wallets on this list.
Tips for securely storing your Lisk
Keep the following tips in mind to help ensure safe storage of your LSK tokens or any other digital currency:
- Only use reputable wallets. Before transferring your tokens or coins to any wallet, make sure you’ve thoroughly researched that wallet to make sure it’s legitimate and secure.
- Test the waters. If you’ve got a large balance of tokens you’re thinking of transferring to a new wallet, do a test run first. Transfer a minimal amount of tokens over and if they arrive successfully, you can then think about moving the rest of your balance to the wallet.
- Make use of all available security features. If a wallet supports 2-factor authentication, enable this feature. If you can set up a secure PIN for an extra layer of security, do it. The more security measures you put in place, the less likely you are to lose your funds.
- Back it up. Backing up your wallet is an essential step that allows you to recover your funds if something goes wrong.
- Update your antivirus protection. Make sure that any device you will use to manage your cryptocurrency wallet is protected by the latest antivirus software.
- Use strong passwords. Don’t be lazy when setting up account passwords; create strong passwords that feature multiple different characters, upper and lower case letters and numbers.
- Stay up to date. Keep an eye out for news of any new wallets announcing support for Lisk. For example, while hardware wallets are widely considered to be the most secure storage option, at the time of this writing (3/9/18), there are no hardware wallets that support LSK tokens. However, this is expected to change in the future.
At the time of writing, the author holds IOTA and XLM.