Your Litecoin wallet will be perhaps the most important tool you have for securing and protecting your Litecoins and other digital currencies, so make sure you take some time to familiarize yourself with them!
What are Litecoin Wallets
Like Bitcoins, Litecoins can be stored in a digital wallet. This wallet will track the total value of your Litecoins and allow you to conduct various transactions. It might be easier to think of your ewallet as a sort of email system, except instead of sending and receiving messages, you can send and receive Litecoins and money. You can also track your history of exchanges and monitor your financial transactions.
Web wallets – You store your Litecoins on someone else’s sever.
Desktop / mobile wallets – You store your Litecoins on your device (e.g. your laptop).
Each type of wallet has it’s pros and cons. Web wallets are risker since someone can hack the companies servers and still your coins, but on the other hand you can use them from anywhere in the world. Offline wallets are considered safer since someone will need physical access to your computer to steal them, but you will also be able to send Litecoins only from that specific device.
Some wallets are completely free, while other wallets charge fees for various transactions. Make sure you read any fine print when choosing a wallet and pay close attention to any fees, as they can add up very quickly. There are several Litecoin wallets currently available, so we will go over some of the most popular options. Unlike Bitcoin there aren’t many options for Litecoin wallets, so I tried choosing the top 3 for you to cosider.
Hardware wallets – These wallets are a small piece of hardware that connects to your computer via a USB portal. They allow you to send and receive Bitcoins with complete security as all of the “important stuff” is done offline on the hardware device. These types of wallets are the most recommended but they also come at a price.
If you want a deeper understanding of how wallets work please watch this video about Bitcoin wallets. Even though the topic is Bitcoin wallets, the same principles apply for all cryptocurrency wallets:
Top 5 Litecoin wallets available
TREZOR – TREZOR is a hardware wallet that can hold Litecoin as well as Bitcoin, Dash and other cryptocurrencies. It costs around $99 but is well worth the extra security you get by using such a wallet. Also, since it’s a multi currency wallet you can use one TREZOR wallet for many different coins.
Ledger Nano S – The Nano S is probably one of the best wallets around. It’s a hardware wallet that can store Litecoin, Dogecoin, Bitcoin, Dash and even Ethereum. It costs around $59 and has similar features to the TREZOR.
Litecoin-QT – This is a desktop wallet for Litecoin which I personally use. Very convenient but you need to remember that once you use this wallet it means that your computer now stores all of your Litecoins. Litecoin-QT is 100% free to use.
Liteaddress.org is a simple service that will generate a Litecoin key and address for you. You can then print the key and address and safely store Litecoins offline. Due all of the thefts that have occurred with Bitcoins and online wallets, many people now prefer to store coins offline. This service is definitely worth a look if you are looking for a way to easily store Bitcoins offline. Read this post to understand how to create a 99.9% safe paper wallet.
Before selecting your Litecoin wallet
When selecting a wallet for any of your digital currencies, you need to make sure that you are very careful and go with a trusted and transparent company. There have been numerous Bitcoin scams that have resulted in people losing thousands, and even millions of dollars worth of Bitcoins. Occasionally, people try to save small amounts of money by selecting less transparent wallets with cheaper fees. Unfortunately, attempts to save pennies sometimes result in people losing huge sums of money.
Companies that are backed by Silicon Valley ventures, or are officially incorporated in the United States and other developed countries, for example, are probably more trust worthy than companies that don’t disclose their location, or are located in areas with poor enforcement measures.