How to choose the best Litecoin Wallet
If you have decided to finally take the plunge and invest in a cryptocurrency like Litecoin, your first step needs to be selecting your crypto wallet. If you’re not sure what a crypto wallet is and why you need one, then this article is definitely for you. We’re going to explore the concept of the crypto wallet, the different types and the best one if you’re storing Litecoin. So, let’s get started.
What is Crypto Wallet?
With a crypto wallet, you will be using a device or application to store a secret code. This code is known as a key, and it’s crucial that you keep it safe. It allows you to access your Litecoin funds or any other type of crypto that you might have chosen to invest in. This key can be stored anywhere, including on a hard drive or in a web application. The device or option you choose is known as a crypto wallet. If you select the right wallet for your Litecoin, then you’ll have a great time with crypto. You’ll be able to keep it secure and avoid the risk of losing your funds. Alternatively, if you fail to do this, then the investment can become a nightmare. So, what is the best crypto wallet on the market today for Litecoin?
Different Types Of Wallets
First of all, it’s important to note that there are different types of crypto wallets available. For instance, you can opt for a web wallet. While they aren’t completely secure, they do provide an option for moving your crypto around. An example of this would be Coincheck. Unfortunately, Coincheck has recently been hacked, highlighting the issue with these wallets.
Paper wallets are exactly as they sound. Here the code is kept on paper, and this is a great, long-term option for storing your Litecoin. Be aware though that you will need to make sure that you keep these in a safe and dry place. Particularly, if you are storing Litecoin worth millions. If you lose your paper wallet, you will no longer be able to access your account.
You can opt for: web, paper, software and hardware wallet
As the name suggests, software wallets are software applications that are usually downloaded onto a computer. Be aware that these can be accessed remotely. One of the most popular options right now is Electrum. This ensures that you can get the solution you need regardless of the operating system you have elected to use. Be aware this one’s a tad technical, so it might not be best suited for Litecoin beginners.
In contrast, hardware wallets are seen as one of the safest ways to store crypto such as Litecoin. With a hardware wallet, what you essentially get is an offline storage system. This isn’t a hot storage system and as such is safe from hacks. It does provide built-in security systems and requires a password. The only issue is that these hardware devices can fail and they might even be misplaced.
What Do You Need
To select the right Litecoin wallet for you, you need to think about what you need and what’s important to you. Ideally, you need to make sure that your wallet is both private and secure. If that’s your greatest concern, then a hardware wallet could be the best option. This is simply due to the fact that it does operate offline, freeing you from the potential danger of hacks.
Basically, when selecting a wallet, you will need to weigh the pros and cons of each option to best suit your needs. You might also need to think about ease of access as an important factor for your wallet selection. If you want to make sure that accessing and transferring your funds is as easy as possible, you may need to prioritise this factor. In this case, you could opt for a software option like Exodus. The Exodus wallet is ideal for Litecoin but does provide multi-coin exchanges as well if you are transferring. The Exodus wallet is also completely customisable.
Private Keys, An Important Reminder
A private key grants complete access to all cryptocurrency funds in a particular wallet. There are a few key points to make when discussing private keys, all of which should be taken with high regard.
First, a private key is the ultimate key to unlocking a digital asset from its wallet. It is a string of alphanumeric characters which are technologically programmed to open a particular digital asset’s wallet.
Second, if you do not have ownership of your private key—arguably you do not own your cryptocurrency. While this can be an exaggeration, it is a good rule to live by to help keep your cryptocurrency secure. Basically, this means if an exchange or another 3rd-party holds private keys for you and many other wallets, they can be a prime target for thieves to steal. If an exchange is hacked and you do not hold the private keys, you cannot get your funds.
Access funds with private key or secret phrase
Finally, it is important to remember that a private key offers a long alphanumeric code which cannot be easily remembered. When you set up your cryptocurrency wallet, write down your private wallet keys in an extremely secure location in case you need to access the funds at a later point. To access funds, you only need your private key or your seed, which we will discuss next.
When creating a wallet, you will also create or be provided with a wallet seed or secret phrase. A wallet seed is a long string of random words that can be used to help access a cryptocurrency wallet. This string of characters should be kept with high regard for security as it can lead to complete access to your wallet.
Many Litecoin wallets will provide options for fees. Naturally, you will need to pay transaction fees to transact across the Litecoin network, but some wallets also will charge fees on top of this. Many wallets such as Electrum allow you to adjust your fees depending upon your needs. This can be particularly useful if you are sending a transaction and do not need the funds to be transferred in a timely manner, usually meaning you will be saving money on the fees for the slower transaction time. This also allows users to send funds faster and pay more in transaction fees to make the transactions a priority.
Open Source And Private Wallets
While many believe that all crypto wallets should be open source, this may not be ideal due to security problems. At face value, the idea of a decentralised wallet for a decentralised currency makes sense. However, the practicalities of this simply are not there. When you create public software, you make it more capable of being exploited or hacked. With a private sourced wallet, the code of the software cannot as easily be explored—and therefore exploited—by the public. As such, cryptocurrency users are still largely reliant on a centralised third party to keep their wallets safe and secure.
Best Litecoin Wallet Recommendations
This option is the most secure and most expensive on the list. It will provide you with secondary protection through the use of a piece of hardware, similar in size to a USB drive
- Ledger Nano S and Ledger Nano X
- Trezor One and Trezor Model T
- KeepKey Wallet
A web wallet may be the least secure option but offers extreme convenience if you are in need of a cash-like fund to use your cryptocurrency with. We compare the wallet to cash because it is easier to use but also easier to be stolen.
- Jaxx Liberty wallet
- LiveVault Wallet
Another highly secure option comes from Desktop wallets. These wallets often will even provide users with their own private key so that there is no centralised copy available to steal. Just remember not to lose it yourself!
- Litecoin Core Walle
- Electrum Wallet
- Atomic Wallet
Finally, mobile wallets offer another cash-like alternative for cryptocurrency storage. These wallets can provide a private key for users, but they will often still be highly susceptible to attacks compared to a desktop or hardware wallet.
- Litecoin Core for Android
- Coinomi (both Android and iOS)