Best Cryptocurrency Wallets for Terra (LUNA) Tokens

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Contributor, Benzinga
May 4, 2022
verified by Ryan McNamara

Luna is a crypto token used to stabilize the Terra blockchain protocol; it is a multi-chain asset, most commonly supported through Ethereum’s ERC-20 version. Holders of Luna are able to stake their tokens either through a staking node or a validator, helping to support the basket of stablecoins on the Terra network. 

In exchange for staking, users are rewarded staking rewards in the form of Luna tokens. If you are looking to start earning Luna rewards, you need to do more than just purchase Luna through an exchange –– you must purchase the token through your own cryptocurrency wallet or send Luna to your wallet from an exchange. This page will go over a few of the best options when you’re looking for a crypto wallet that will help you manage LUNA.

Disclosure: ²Sum of median estimated savings and rewards earned, per user in 2021 across multiple Coinbase programs (excluding sweepstakes). This amount includes fee waivers from Coinbase One (excluding the subscription cost), rewards from Coinbase Card, and staking rewards. ³Crypto rewards is an optional Coinbase offer. Upon purchase of USDC, you will be automatically opted in to rewards. If you’d like to opt out or learn more about rewards, you can click here. The rewards rate is subject to change and can vary by region. Customers will be able to see the latest applicable rates directly within their accounts

Best Cryptocurrency Wallets for Luna

When choosing a cryptocurrency wallet, users should look for ease of use and safety. Some great crypto wallets can simply be added as a chrome extension and give users immediate access to Luna trading and staking, as well access to the stablecoins that the Terra network supports. 

Security is important in looking for crypto wallets, so if you are looking to use a large sum of money in your wallet, an investment in a hardware wallet is a worthwhile investment. While software wallets are connected to the internet, hardware wallets are never connected, which helps prevent phishing scams. 

Best Software Wallets for Luna

One of the best and most commonly used software wallets for Luna is MetaMask, an easy-to-use wallet with a simple user interface. Choosing these software wallets will change from one person to another because your style and investment strategy is different from everyone else’s.

MetaMask Wallet

MetaMask can be added as a browser extension and used to seamlessly connect your laptop to Web3. Installation of MetaMask can give users access to SushiSwap, a decentralized exchange (DEX), where tokens can be swapped. MetaMask is also great for engaging in DAOs, DeFi,  DApps and NFTs.

Coinbase Wallet

The Coinbase wallet is another extremely popular option for crypto users. The wallet is interoperable with the Coinbase Global Inc. (NASDAQ: COIN) exchange, making it easy for users to swap tokens. The connection between the world's largest exchange and the wallet brings extra protection to Coinbase wallet users but doesn’t remove all the risk.

ZenGo

ZenGo is another great crypto wallet to try. The wallet supports Luna and holds a number of features for the token including buying, selling and earning interest. ZenGo is also a useful resource to learn more about the history and purpose of Luna and the Terra protocol.

Best Hardware Wallet for Luna: Ledger Nano S

Owning a hardware wallet to safely store Luna is important. Hardware wallets provide an extra layer of security and prevent scams because having a set of keys unexposed to the internet is a sound practice. Ledger Nano S is a hardware wallet that has provided many in the crypto space an extra sense of security that software wallets do not. With its user-friendly interface and top-tier security, it may be the right time to grab a Ledger.

Do You Need to Use a Crypto Wallet?

It is not required to use a crypto wallet to buy Luna. You can open an account on an exchange such as Coinbase or Gemini and purchase the token there. However, by using exchanges, your keys are ultimately in the hands of that exchange, which goes against the crypto purist’s view of decentralization. 

The Luna token has less utility if it is purchased on an exchange than if it were to actually be owned and controlled by you in your own wallet. Without a crypto wallet, the many features DApps and DeFi can provide are unavailable.

Where to Earn Interest on Luna

If you are looking to put your Luna to work, one way to do so is through staking for interest. A great resource for this is Crypto.com. APRs on staking change frequently, but Crypto.com consistently offers competitive pricing. Staking Luna will also help stabilize its stablecoin, UST. This is one of the best ways to utilize the tokens you have chosen, and it could be an easier way to make money on these coins, especially if you’re new to this type of investment.

Cryptocurrency Wallet Best Practices

You’ll want to employ safety precautions when using your personal crypto wallet. Don’t share your seed phrase. This basic rule is important as it is the only thing protecting your crypto assets from anybody who wants to take them. A seed phrase is the end-all, be-all of passwords. If you lose or forget your seed phrase, you cannot retrieve or access your crypto, and it is gone forever. Store your seed phrase in a safe location off the internet.

Another important practice is to read contracts before signing them. Hackers have users sign unfinished contracts and then complete them after a user signs, often using this technique to steal the user’s crypto assets. Hackers in the OpenSea phishing scam, where millions of dollars of NFTs were lost, used this method.

Remember, the wallet you choose is specific to your needs, and because they are all different, you have the right to use a wallet that makes sense to you. One person’s perfect wallet is another person’s most confusing and complicated wallet.

Are Cryptocurrency Wallets Worth it?

If you are looking to explore the many possibilities of DeFi, smart contracts, DApps and DAOs, then a cryptocurrency wallet is worth it. Cryptocurrency wallets connect users to the features of Web3 that most casual investors are completely oblivious to. Interacting with these features is a way to learn more about this developing ecosystem and get a better idea of the actual networks that these tokens represent. While you face some risk in holding your own keys, by safely storing your seed phrase and being aware of phishing scams, you can safely enjoy the wonders of Web3.

Frequently Asked Questions

Q

Are cryptocurrency wallets necessary?

A

Yes, crypto wallets are necessary, but many companies use a proprietary wallet to store your purchases. If you want full control of the wallet, you need a third-party crypto wallet.

Q

Should you spend money on a crypto wallet?

A

If you need special settings and options, you can spend money every month on a crypto wallet that does what you want it to do.

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