Are you thinking about investing in Litecoin? You probably think Litecoin has potential. But you need to make sure you keep your Litecoin safe.
This guide will help identify the best wallet for Litecoin investors. We will explore online Litecoin wallets, Litecoin paper wallet services along with hardware/software wallets.
By the end of this guide you’ll be able to pick the best Litecoin wallet for your own unique investment purposes. So, whether you’re going to be investing over a long term or over a short term, we will look at the different Litecoin wallets best suited for your needs.
This guide will explain what Litecoin is. It will also explain why security is so important. Then it will explain the different online Litecoin wallets – from web wallets (like Coinbase), software wallets (like Exodus), Mobile wallets (like Jaxx).
This will lead to an explanation of offline Litecoin wallets – from paper wallets and hardware wallets. This will lead to a conclusion which will help you understand which is the best Litecoin wallet for your own needs.
Let’s start by understanding more about Litecoin!
Table of Contents
- 1 What is Litecoin? (Brief)
- 2 Importance of Security
- 3 Best Litecoin Wallet: Online Wallets
- 4 Best Litecoin Wallet: Offline Wallets
- 5 Best Litecoin Wallet: Conclusion
What is Litecoin? (Brief)
A former Googler, Charlie Lee, created Litecoin in 2011. It was designed because Lee felt Bitcoin has ‘problems’. Lee developed Litecoin to sort out some of the biggest issues facing Bitcoin – mainly transaction times, fees and to tackle mining pool abuse (these are pools of computers mining coins).
Litecoin is a peer to peer digital currency, just like Bitcoin, and can be used to make purchases online and in some real-world stores! The advantages that it has over Bitcoin are that transaction times are faster and transaction costs are cheaper.
Another advantage is that Litecoin can be mined without the use of special computers. This makes it more accessible to miners and requires less electricity to verify a transaction.
Let us now look at why security is so important when considering investing in cryptocurrencies?
Importance of Security
A lot of technological developments have helped to make owning cryptocurrency a safe experience. The importance of security cannot be over-stated. It really is the most important consideration after which crypto you plan to invest in.
The decentralised and unregulated nature of cryptocurrency really means the responsibility of security is on you – the investor.
There is a false sense of security that comes with ‘owning’ cryptocurrency. The fact they’re decentralised can make them “feel” safe. However, that isn’t the case.
Therefore, you need this guide to help you find the best Litecoin wallet for your unique individual crypto needs.
Your funds could be hacked if you store them on an exchange without moving them to a personal wallet. Its happened many times before – Mt Gox and Coincheck are to major examples.
These major sites have been the victim of major cyber-attacks. The MT Gox hack resulted in the exchange going bankrupt and shutting down. Coincheck’s hack resulted in $530 million of cryptocurrency disappearing.
Using wallets can help protect your cryptocurrency by providing you with a ‘safe space’. To access the funds stored on a wallet, you need a key. There are public and private keys designed to help you control the entire process. This means that you have a greater sense of security when it comes to investing in Litecoin.
The next section will help identify the best and the worst Litecoin wallets along with where to store Litecoin, safely.
Best Litecoin Wallet: Online Wallets
Online wallets are wallets that are always online. They have advantages – they’re easy to access through the internet. But, that’s also a big disadvantage — because they can be hacked.
There are primarily three ‘types’ of online wallets. One of these is app-based mobile wallets for Android and Apple smartphones. There are also software wallets that you can download to your Windows, Mac or Linux computer. Finally, web wallet services, like Coinbase.
Let’s find out more about online Litecoin wallet services.
Best Litecoin Wallet: Web Wallets
Services like Coinbase and other web-based wallet services have advantages and disadvantages. A web wallet is really a type of cryptocurrency wallet that a person can access through a web browser. Sometimes, they are referred to as ‘hot wallets’, and are vulnerable to hacking because they work on a centralised system.
What this means is that Coinbase (for example) have full control of the keys to your wallet. So, if Coinbase was hacked, the hackers could steal your wallet keys from Coinbase. This takes the security out of your hands, which is never a good thing.
Let’s look at the advantages and disadvantages of these types of wallets:
- They are easy to use and beginner friendly
- You can purchase 4 of the top cryptocurrencies from them using fiat currency
- These types of web wallets can manage multiple cryptocurrencies transfers within a single account
- You can also sell your Litecoin back to them for fiat currency
- Can be accessed from anywhere with an internet connection
- You are vulnerable to on online scams, attacks and hacks
- You don’t actually ‘own’ the wallet. It is physically and digitally out of your hands and stored on a ‘third-party’ platform. You don’t own the crypto in many cases.
- Coinbase themselves don’t see their services as a “wallet”. In fact, the company itself is more of a broker exchange.
Best Litecoin Wallet: Software Wallets
Exodus and other software wallets have many advantages and disadvantages. This section will explore how software-based wallets work and their pros and cons. A software wallet is installed on your Windows, Mac or Linux PC.
Here are the advantages and disadvantages of software wallets, like Exodus.
- Easy to use interface with a beginner friendly system.
- Good level of security when compared to web wallets
- Unlike many wallets, Exodus is great wallet for many different cryptocurrencies – including Litecoin.
- Has recovery options so your wallet is safe even if your PC gets stolen or breaks.
- Gives you more control over the private and public key to your wallet.
- Exodus allows you to exchange cryptocurrencies with one another using Shapeshift.
- The platform is always online and connected to the internet. This makes it easier for hackers to gain access to your funds when compared to offline storage options.
- You must be wary of viruses on your computer and make sure you have anti-virus software installed.
- You can’t set your transfer fee manually like other wallet platforms. This makes transaction fees more expensive.
- It is only easy to access if you are with the device the wallet is installed on.
Best Litecoin Wallet: Mobile Wallets
Mobile app-based wallets, like Jaxx, are online mobile apps that are designed for smartphones and tablets/iPads. There are lots to pick from if you want to store Bitcoin. However, there aren’t many Litecoin mobile wallets.
Jaxx is created by Canadian-based Decentral, an early creator of Bitcoin wallets and ATM systems. Let’s look at the advantages and disadvantages of mobile wallets, like Jaxx.
- The Jaxx mobile interface is one of the biggest advantages to Jaxx. It is designed for people with limited knowledge or understanding of crypto.
- Stores the personal keys on the users own handset. This makes it difficult for hackers to steal your money – but not impossible.
- It works across different operating systems — both iOS and Android.
- Easy to access.
- Slow platform – lots of people have complained about the fact app crashes a lot. This can be a problem during transfers.
- It is a ‘hot’ wallet. It stores your wallet keys on an ‘always-online’ smartphone.
- The Apple version of the app is behind the Android version’s features because of Apple’s strict app rules.
As you can see, the online wallets offer ease-of-use and simplicity, but this comes at the ultimate cost – security. Let us now explore offline wallets and how they work and what the advantages and disadvantages are to these types of wallets.
Best Litecoin Wallet: Offline Wallets
These types of wallets are physical wallets – they can be hardware-based or more traditionally paper-based. They are known as “cold-storage” wallets because they are not ‘always online’ like “hot storage” wallets.
These types of wallets offer the best security, but this increased security can come with a price tag. Not only that, but they make it difficult to gain quick access to your crypto, so if you want to day trade, they aren’t the best option. Let us look at some of the advantages and disadvantages of offline wallets.
Best Litecoin Wallet: Paper Wallets
Services like LiteAddress.org are open-source and trusted Litecoin paper wallet. It allows you to print your public and private keys on a piece of paper. Your paper wallet always remains offline. So, it is secure and not vulnerable to hackers.
It also prints off a QR code which you can scan to enter your wallet, making it easier for you.
This service is incredibly secure, but you have the ultimate responsibility regarding your investment security – if the document gets damaged, stolen or lost, you will lose access to your funds. Let’s look at the advantages and disadvantages of paper wallets.
- A very simple way of generating a Litecoin key and address. It is easy and can be set up within a minute.
- It is super secure – offline storage is hackproof. No one can hack your printed wallet keys.
- It uses open-source, trusted and community-managed software which is managed through GitHub to help maintain the community.
- Great for holding cryptocurrency over a long period of time.
- There is no way of getting your Litecoin back if your paper is lost. You need to store your offline paper wallet securely and safely.
- There have been some scams with redirected websites sending users to fake Liteaddress.org ‘themed’ websites. So, make sure you visit the right site — always look for the SSL certificate (green text and HTTPS on the left-hand side of the address bar)!
- It is a very awkward way of doing crypto trading if you buy and sell regularly. It isn’t really designed for a full-time trader.
Best Litecoin Wallet: Hardware Wallets
The hardware wallet has claimed to be the most secure way of storing your cryptocurrency for a long time. However, before we go making any decisions, let’s look at the advantages and disadvantages of hardware wallets. We’ll use one of the most popular editions (the Ledger Nano S) as our example.
- The perfect way to “cold” store your cryptocurrency. Offline/cold storage protected by pin password protection and encryption.
- Nano S also comes with recovery keys as a backup feature.
- Just plug it into your PC via USB to access it! It’s that simple!
- It is compatible with Mac, Windows and Linux and is also usable via OTG cables for Android smartphones.
- It costs $99 whereas most software and web-based wallets are free!
As you’ve read in this section of the guide, the offline wallets are safer but have some issues. Paper wallets are good for long-term crypto asset storage – so if you buy Litecoin to hold it, then paper works. But if you buy and sell crypto regularly, you need to invest in a hardware-based crypto wallet.
The next section will conclude this guide and recap on everything we’ve learned so far!
Best Litecoin Wallet: Conclusion
So, then, now you’ve read my guide, you should know where to store Litecoin. Every crypto investor is different, and everyone has different needs. I hope that you are now able to decide which is the best place to store Litecoin for your specific needs.
If you want quick access but with some built-in security, then Exodus is a great working example. However, if you trade in tiny amounts and want to do it from your smartphone, Jaxx provides some security with speedy trading.
However, if you want to put security before transaction speeds, then you must go offline. If you want to invest in the long-term, paper wallets can provide a good wallet-based approach to your cryptocurrency strategy. But you need to remember that paper isn’t the safest material available.
My conclusion is that hardware wallets are the best and most secure way of storing cryptocurrency. They are safer than paper wallets because the material they are made of is much more resistant to damage (as you could probably guess!).
So, you now know what the best Litecoin wallet is. Why not get out there and make your Litecoin cryptocurrency safer by using paper or hardware wallets? Protect your investments! You paid hard-earned cash for them, after all.
Note: Never spend/invest more than you can afford to lose. I recommend speaking to a financial advisor before making any investments.