All You Need to Know About Litecoin Wallets
We might all be familiar with the hierarchy of precious metals; gold is the most superior, followed by silver, then bronze. More and more people are embracing cryptocurrencies by looking for investment opportunities in different types of cryptocurrencies; right from the superior ones to the fair ones, as well as the inferior ones.
If Bitcoin is regarded as gold in the world of cryptocurrencies, then Litecoin can be likened to silver. Since its inception in 2011 by Charlie Lee (an ex-Google Employee), the Litecoin has tremendously grown in adoption.
The peer-to-peer cryptocurrency was created to be the silver of Bitcoin. Litecoin is based on the same parameters as Bitcoin. The fast speed at which the Litecoin (2.5 Minutes) is processed per transaction is what sets it apart from Bitcoins (10 Minutes).
Litecoin is stored in digital wallets. Just like we use different types of wallets to store our notes and coins in real life; there are different kinds of wallets used to store Litecoin.
What is a Litecoin Wallet?
I want you to think of your Litecoin Wallet as your PayPal or Payoneer Account. With your PayPal or Payoneer Account, you can store, send or receive money to and from different people you transact business with respectively.
If a wallet is where you store and manage your cash, then your Litecoin Wallet is basically where you store and manage your Litecoins, which is a peer-to-peer (where no middleman is involved in a transaction) cryptocurrency.
Types of Litecoin Wallets
There are several types of Litecoin Wallets which include; Desktop Litecoin Wallets, Website Litecoin Wallets, Hardware Litecoin Wallets, Paper Litecoin Wallets, and Exchange Litecoin Wallets.
Desktop Litecoin Wallets
These Wallets are installed on desktop computers. They are available in two types which are Full Node Desktop Wallets and Light Desktop Wallets.
- A full node desktop wallet requires that you download the entire blockchain (Litecoin network) on your computer.
The advantage of this is that you can be part of the crew that validates transactions carried out in the blockchain.
Nevertheless, full node wallets require lots of storage space and therefore can consume a large portion of your storage. Litecoin Core is an example of a full node desktop wallet.
- Light desktop wallets use blockchains that are stored online and therefore easy download since they take significantly small storage spaces.
Their disadvantage is that they are prone to hacking since they keep the private keys in the wallet while connected to the internet.
Examples of light desktop wallets include Electrum LTC and Loafwallet.
Website Litecoin Wallets
- Website Litecoin Wallets involve using a third party wallet to store your coins in the cloud.
You must have internet connection for you to access your web-based wallet for Litecoins.
- Some of the security features detailed in the web-based wallet is a multisig protocol which requires multiple Litecoin users to validate a given transaction.
Jaxx, Coinpayments, and Litevaults are examples of web-based Litecoin wallets.
- Website wallets come with the advantage of an easy to set up the process since they do not take any space on your computer.
- Their key disadvantage is that if the website is compromised and hacked, you will have no access to your coins.
Hardware Litecoin Wallets
Despite there being many virtual wallets, you can also ‘hold your Litecoins physically’ in a hardware wallet. The wallet is a USB-like-device that stores, send, and receive transactions online. Examples of hardware lite coin wallets are Trezor and Ledger.
- To use the hardware wallet, you can either plug it into your computer through a USB port or connect it with the software on your computer through wireless means such as Near Field Communication (NFC).
- Hardware wallets are currently regarded as the safest for storing Litecoins.
This is because they keep the private keys that validate a transaction separate from software installed on your computer.
This renders your Litecoins inaccessible by hackers since they can never validate any transactions without the private keys, which are rendered inaccessible to them when stored on hardware wallets.
- Additionally, hardware wallets are portable hence can be carried around.
- Disadvantages of hardware wallets are that they cost money to acquire and render your coins inaccessible in case of loss.
Nevertheless, there are procedures to recovering your Litecoins in case you lose your hardware wallet.
Paper Litecoin Wallets
Paper Litecoin Wallets are an inferior version of the Hardware Litecoin Wallets. They involve generating Litecoin private keys and printing them down on paper. After generating the private keys, you can provide a security measure through encryption that locks the generator up. Liteaddress is a good example of a paper wallet.
- Paper Litecoin Wallets are a safe means of securing your coins since they do not have any connection to the internet.
- The danger that comes with using paper wallets is that if you lose them, you automatically lose your coins. They provide no recovery process.
Exchange Litecoin Wallets
As the name suggests, Litecoin Wallets majorly serve the business of exchanging various currencies into Litecoins. They are mostly used for trading Litecoins rather than spending them.
- Exchange wallets do not require any software to be installed hence can be accessed on any computer.
- They allow you to exchange Litecoins into other currencies such as Dollars and Euros.
- They provide a higher level of privacy since your transactions can barely be traced on the internet (They offer end-to-end encryption of transactions).
- The key challenge that exchange wallets are exposed to is that you lose your Litecoins if the whole platform is hacked.
Additionally, you lose anonymity from the wallet providers since they can view all your transaction.
Below are the best wallets that support Litecoin:
Electrum LTC wallet is a software wallet that works with Windows, Linux, and OS X. This Litecoin wallet gives its users a 12-word seed (passphrase), which company does not recommend to record on a personal computer in order to avoid hacks and thefts.
- Very simple to use.
- The Litecoins can be recovered in case of software failures through the 12-word seed.
- Enables its users to store the LTC in a cold storage (the safest storage for cryptocurrencies) that works offline is the safest version among various LTC wallets.
- If you decide to use the cold storage features you have to pay for it.
- Without the cold storage, it may be vulnerable to hacks and theft.
- Not very easy to use for beginners.
Loafwallet is a software Litecoin wallet designed for Android and iOS devices. The app is available both in App Store (Apple) and Play Store.
- Very easy to use.
- Constantly accessible.
- Very handy for constant transactions.
- As a software wallet, it is not very safe.
- If something happens to your device your Litecoins will be at risk.
- Not recommended for keeping large amounts of Litecoins.
Trezor is another popular LTC wallet. These Litecoin wallets are cold storage, hardware wallets, which as mentioned above are among the safest when it comes to storing cryptocurrencies.
- Small in size and convenient to carry around.
- Easy to use.
- Very safe.
- The device has a screen.
- Relatively expensive.
- The transactions may be limited.
- Complex passwords.
Ledger Nano S
Ledger Nano S is one of the most well-known Litecoin hardware wallets. This LTC wallet is designed like a USB flash drive.
- One of the safest option today.
- Convenient to carry around.
- Relatively cheap.
- New company.
- The device is small in size and can be easily lost.
You can get a Litecoin paper wallet on liteaddress within a couple of minutes. Liteaddress is an open source platform designed for people to generate Litecoin Wallets.
- Very easy to generate wallet.
- Cold storage wallet.
- Does not work online, therefore, fewer risks of theft.
- The paper may be damaged or lost.
- The paper with the keywords may be stolen.
LiteWallet offers online wallets for Litecoin. This Litecoin wallet is based on in-browser cryptography. Blockchain.info (a well-known Bitcoin Wallet) uses the same system as LiteVault.
- The registration is very easy and quick.
- LiteVault never sees your private keys.
- As long as you have an Internet access you can use the wallet.
- In general, online wallets are not safe, as they can be hacked.
- Not recommended for storing large amounts of Litecoins.
Jaxx is a software wallet, which works with a number of cryptocurrencies, and Litecoin is one of them. The wallet works with Windows, Mac, iOS, Android, and many other platforms.
- The wallet can be backed up.
- Enables users to import Litecoins from a paper wallet.
- Jaxx is not open source.
- It is a hot wallet, therefore, not the safest.
Litecoin Core is a LTC wallet that works according to MIT license. It is an open source software wallet that accepts LTC. The Litecoin Cure wallet is often referred to as QT wallet as well.
- It values the users’ privacy very much.
- It is free.
- No need to encrypt the files yourself.
- Does not work very smoothly with Windows.
- As a software wallet may have some risks.
What is the Best Litecoin Wallet to Use?
There are various factors that determine a good Litecoin wallet. What might be good for me, might not be good for you depending on what we intend to do with our coins?
- When safety is a priority, especially if you are dealing with a large amount of Litecoins, hardware wallets are the best.
You can use them to store as many coins as possible that you do not intend to immediately spend or trade.
The safest Litecoins wallets are hardware wallets as they are barely vulnerable to hacking.
- On the other hand, the best Litecoin wallets for trading are the exchange wallets. Using them, you can buy or sell Litecoins as well as convert them to different currencies.
- In circumstances where accessibility matters most; Website or Exchange Litecoin Wallets can be a good option since they are accessible on any computer at any given location.
- In case you own a few Litecoins that do not require unnecessary investments in terms of fees, digital wallets such as website or exchange wallets are the best options to go by.
- Finally, full node desktop wallets are good for experienced Litecoin investors who would want to be part of the team involved in verifying various transactions within the blockchain.
They, however, require a huge investment in terms of storage space.
Let’s sum things up
Litecoins wallets are a must requirement for storing the cryptocurrency. Despite there being many types of Litecoin Wallets, the choice of the best wallet to use relies on a variety of factors including securing, amount of coins owned, the convenience of access, and the experience garnered in using the Litecoins.
Apart from the Litecoin wallets, there is so much to learn about the cryptocurrency. Thank you for reading through the paragraphs. To learn more about Litecoins and other cryptocurrencies, check out other interesting posts.