Litecoin Wallet: How To Create And Its Types
Since Litecoin is one of the oldest TOP altcoins, it is not surprising that there are so many wallets for storing it. The difference between wallets lies in the interaction with the user is implemented - through the website, app or physical device.
Furthermore, LTC wallets differ in the level of security and the intended purpose. Some are more used for regular small transactions (online and mobile), while others are used for secure long-term storage (hardware and some desktop).
Creating a wallet usually means generating an account in the Litecoin blockchain, as a result of which the user must get public and private keys. The latter is most often called a wallet or address. To create it, the user can use any type of wallet with Litecoin support.
How To Create a Litecoin Wallet
To create a Litecoin wallet, the user needs to follow these steps:
- Choose a tool to create a new wallet (website or application).
- Install the necessary software (for desktop and mobile wallets) or register in an online LTC wallet.
- Initiate the new LTC address.
- Record the seed phrase issued by the system or come up with your own.
- Export the keys to the new wallet (public and private) and save.
After that, its owner can use the created wallet to send and get LTC.
Types of Litecoin Wallets
All varieties of Litecoin wallets are conditionally divided into “hot” and “cold” ones. In the first case, we are talking about a network connection and therefore the level of protection against hacking is too small. In the second case - attackers cannot remotely access LTC since it is stored offline.
In addition to this classification, wallets for Litecoin are divided into several types according to how users interact with them.
Desktop Litecoin Wallets
This type of Litecoin wallet includes applications created for use on personal computers. They are conditionally divided into:
- Thick LTC wallet is fully functional only after full synchronization with the Litecoin network. It can be used for cold storage of coins and creating offline transactions. The only official wallet for this type of LTC is Litecoin Core.
- Lightweight LTC wallet is ready to work immediately after installation on a PC, synchronization is not required.
In the first case, transactions are sent directly to the network, and the keys are stored only on the user side. This option is considered the safest.
In the case of thin desktop wallets, developer servers are used to access the network. For this reason, even if private keys are stored locally on a PC, there is still a risk of interception and cracking of traffic. But if we are talking about regular small Litecoin transactions, using lightweight desktop wallets is quite acceptable, at least the most reliable of them. For example, multicurrency Exodus, Jaxx Liberty, Atomic Wallet, Coinomi.
Besides, there is a link to the Electrum-LTC wallet on the Litecoin.org website, which is a version of the application of the same name for Bitcoin.
Online Wallets for Litecoin
This type of LTC wallet is popular because of its ease of use. Its interface is available directly in a browser running on any device connected to the Internet.
Through online wallets, you can perform all the same actions as through desktop ones - create LTC addresses, export private keys, and conduct transactions.
But in terms of security, they are far from the most reliable. Therefore, it is recommended not to trust them with a large number of Litecoin coins and use all available protection methods (at least 2FA and complex passwords).
The most popular web-based wallets today are LiteVault, Freewallet, CoinPayments, Cryptopay, Coin Wallet.
Wallets on cryptocurrency exchanges, that is, LTC addresses that are generated for a user to deposit funds can also be included in this category.
You can store Litecoin on them, but in fact, the funds remain in the possession of the exchange. No one will give you private keys and the conclusion is also only with approval.
Therefore, it is recommended to keep on the crypto exchanges only those Litecoins that are needed for active trading.
Mobile Litecoin Wallets
Another way to conveniently access LTC is mobile applications. They are not recommended for large volumes due to the increased threat of hacking, but for small frequent transfers, they are very convenient.
Since the gadget with the installed mobile wallet can be physically lost, it is important to set access to it with a password or fingerprint, and also remember to make backup copies of private keys.
The most reliable mobile LTC wallet is considered to be Litewallet (formerly Loafwallet), supported by the Litecoin Foundation.
You can also use Edge, Trust Wallet, Coinbase Wallet, Coinomi, Jaxx Liberty and Exodus multicurrency mobile wallets.
Hardware wallets for Litecoin
This type of wallet is a portable device uses the cold storage option. The devices have a small screen and several control buttons.
To use hardware wallets, you need a PC or laptop with official software from the device manufacturer. The connection is made via cable or wirelessly (Wi-Fi or Bluetooth).
Due to its specifics (creating offline transactions and the lack of a direct connection to the Internet), hardware wallets are considered one of the most reliable tools for storing Litecoin. However, for the same reasons, they are poorly suited for frequent LTC transfers.
Another disadvantage is the high cost of these devices ($ 70-150), and TOP models are several times more expensive.
However, given the level of their security, the above amounts are a fair price for confidence in the safety of LTC coins.
Today, almost all Ledger, KeepKey, Trezor, and CoolWallet models are suitable for the safe storage of your Litecoin.
Paper Litecoin Wallets
This type of LTC wallet is nothing more than a private and public key, recorded or printed on a paper sheet.
There is simply no cheaper way to store LTC. Besides, paper wallets are among the most reliable ones - they cannot be hacked, at least until the recorded keys are used to transfer funds stored on the blockchain.
The easiest way to create a paper LTC wallet is to use the Liteaddress.org website, where you just need to randomly move the mouse cursor to generate a new address. The resulting key pair can only be printed, and LTC coins intended for “cold” storage can be transferred to the wallet itself.
The main disadvantages of paper Litecoin wallets are not suitable for private transactions (requires a third-party software interface), and can also easily be destroyed or physically lost.
How to choose a Litecoin wallet
It is impossible to say unequivocally that any of the listed wallets are the best option for storing Litecoin since each of them has its disadvantages and advantages. Therefore, to choose a Litecoin wallet, you need to determine what requirements it must meet.
For example, for someone, it is important that the application is easy to use and always at hand - in this case, mobile and online wallets, especially Litewallet and LiteVault, are suitable. But at the same time, it is worth remembering the increased risk of hacking and not to trust serious amounts to this type of wallet.
If you need a compromise between convenience, affordability, and reliability, you can take a look at the most reliable of desktop wallets - Exodus, Electrum-LTC, Jaxx. Well, when it comes to the most secure long-term storage of LTC, you should think about paper or hardware wallets, and, of course, the official Litecoin Core client.
In any case, it is worth remembering that one of the most important properties of a Litecoin wallet is access to private keys. If the application does not provide such an opportunity, it is not worth using it.