If Bitcoin had a younger brother, it’d be a lot like Litecoin (LTC). However, considering Litecoin was developed to address some of Bitcoin’s shortcomings, in many ways the younger sibling is better than the older brother. For one, it is well within the reach of ordinary investors, and two, it is four times as abundant as Bitcoin. This year, Litecoin has appreciated by 5,000% and investors are keen to know more, typing the likes of “what is an LTC wallet?,” “how to store Litecoin,” and “the best Litecoin wallets” into their search engine of choice. That’s why we’ve created this pseudo-Litecoin wiki, with a special focus on Litecoin wallets.
What is a Litecoin Wallet?
A Litecoin wallet is one of the many cryptocurrency wallets that uses a software program to store private and public keys.
When person X sends Litecoins to person Y, it means X is signing off ownership of the coins to Y’s wallet’s address. To be able to unlock the funds, the public address the currency is assigned to must match the private key stored in Y’s wallet. Only if the keys match will the transfer be complete and X’s wallet will reflect a debit, while the balance in Y’s digital wallet will increase.
Unlike traditional “pocket” wallets that actually hold currency, these digital wallets hold records of transactions.
Litecoin wallets can be broken down into software wallets, hardware wallets, and paper wallets.
Software wallets are desktop, online, and mobile wallets.
Desktop wallets can be downloaded and installed on your computer. “Litecoin Core” is the official desktop wallet for Litecoin. It supports “Mac,” “Windows,” and “Linux.” “Jaxx” is another desktop wallet that is available on “iOS” mobile/tablet, “Chrome” and “Firefox” extensions and Mac/Linux desktop versions.
Online wallets run via the cloud and are accessible from any computing device in any location. Two of the popular online wallets for Litecoin are “LiteVault” and “Coinsbank.”
Mobile wallets are similar to desktop wallets, but are much smaller and simpler than desktop wallets because of the limited space available. Jaxx supports mobile use as well.
Hardware Wallets store a user’s private keys on a hardware device like a USB. Though these wallets make transactions online, the data is stored, and therefore offers increased security. Reliable hardware wallets for storing Litecoin are “Ledger Nano S” and “Trezor.”
Paper wallets are wallets that are easy to use and provide a very high level of security. Paper wallets are a physical copy or printout of your public and private keys. Using a paper wallet is relatively straightforward. To store currency, transfer funds from your software wallet to the public address shown on your paper wallet. And if you want to withdraw or spend currency, all you need to do is transfer funds from your paper wallet to your software wallet.
The following list of factors to select the best Litecoin wallets will show you how to choose the best Litecoin wallet to suit your needs.
How to Select the Best Wallet for Litecoin
Choosing a Litecoin wallet all depends on what you want to do with it. Here are some of the factors to select best LTC wallets:
- Do you need a wallet to make everyday purchases, or do you need one for just buying and holding digital currency as an investment?
- Will you be using the wallet to hold just one single currency, or do you plan to use several currencies?
- Will you be accessing your digital wallet just from home, or will you need to access it on the go?
- How careful are you about not misplacing small things like USB sticks?
- Are there any transaction fees for using certain online wallets?
Based on the above criteria, the wallet most people select invariably features in this list of best Litecoin wallets.
The 5 Best Litecoin Wallets with Reviews to Store LTC
Given below are the top 5 Litecoin wallets, but if you’d like to quick overview, scroll to the best Litecoin wallets chart at the bottom of this section.
1) Ledger Nano S
This is the most popular hardware wallet available, and it supports Litecoin. It looks like a fancy USB key and comes with a backup seed key, an inbuilt OLED screen, and a pin code feature. These features allow you to track your funds and restore them in case something goes wrong with the device. If you are going to be storing multiple cryptocurrencies, this is a great option. It’s also good for those planning to store a lot of Litecoins as, being offline, it is the most secure of all the different category of wallets.
- Great for multiple currencies
- Most secure
- Can restore fund in case device corrupts
- It can get lost/stolen
- Initial cost of $65.00
2) Litecoin Core
Though there are other popular desktop wallets like “Exodus,” when it comes to Litecoin in particular, Litecoin Core should be preferred as it is the official Litecoin wallet available on the Litecoin web site. It’s free to use, and once you start using it, your desktop will become your LTC wallet, and your private keys will be stored on the desktop itself. It is available for Windows, Mac, and Linux.
- Official Litecoin wallet
- Free to use
- Not for mobiles
- Not for people on the go
This is a very popular HD multi-currency blockchain interface wallet. It supports 13 cryptocurrencies, including Litecoin, and allows one to restore funds with a 12-word backup seed key feature. It has an easy to use interface; with Jaxx, you control your private keys and can export/import keys whenever required. It also has a built-in feature to enable users to exchange one cryptocurrency for another. The best thing about this wallet (as well as a desktop wallet) you can use it on the go via iOS mobile/tablet.
- Supports 13 cryptocurrencies
- Ability to restore funds
- Allows trading on the move
- Still very young (not even two years)
- Not safe to store a large amount of Litecoins
This is another of the mobile wallets. It is the first iOS-only mobile wallet for Litecoin. But recently they have started Beta testing for Android devices too. This wallet was developed by the very creator of Litecoin, Charlie Lee, and it is maintained by a passionate group of volunteers who are interested in promoting Litecoin. Like Jaxx, LoafWallet is an open-sourced HD wallet which allows you to restore your funds by using a 12-word backup seed key.
- The first iOS-only mobile wallet
- Developed by Litecoin maker
- Ability to restore funds
- Not fully confirmed for androids
- Not safe to store large amount of Litecoins
This is one of the better options for paper wallets. Go to liteaddress.org, create your pair of private/public keys, and keep them on paper in an offline environment. This is the cheapest and most secure alternative to hardware wallets. But if you don’t know how to handle a paper wallet properly, this can be tricky and a little risky too.
- Cannot be hacked
- Can be easily lost/misplaced
Litecoin Wallet Comparison Chart
|Ledger Nano||Hardware||Initial $65||High||High||High|
|Litecoin Core||Desktop||Free||Risk of Hacking||Low||High|
|JAXX||Mobile/Desktop-||High Fees||Risk of Hacking||Low||High|
|LoafWallet||Mobile||Low fees||Risk of Hacking||Low||High|
Given that the cons column in most of the examples cited above either list “not safe,” or “easy to be misplaced,” it brings us to the important question: are Litecoin wallets safe?
Are Litecoin Wallets Secure?
The security of wallets varies from wallet to wallet, depending upon the type of wallet, and also the service provider. Keeping your Litecoins in an online wallet is definitely not as safe as keeping them offline. That’s because offline wallets cannot be hacked and they do not rely on a third party for security.
Having said that, whether you are using online wallets or offline wallets, you need to implement and follow diligent security precautions. Because no matter which wallet you use, if you lose your private keys, you stand to lose your money. It’s also important to know whom you are trading with. If, for example, you send money to a scammer, there is no way to reclaim lost currency or reverse the transaction.
Analysts’ Take: Which is the Best Wallet for Investing or Transactions?
Given that there are so many options, it might seem difficult to choose the best wallet. But based on a lot of extensive research, reading user experience blogs, Litecoin wallet reviews and wallet reputation, my favorite wallet for all purposes is the Ledger Nano S.
It is offline, is not very expensive at $65.00, can store a lot of Litecoins, and can be used from anywhere as long as you have access to a computer, even one that is compromised with malware, with the knowledge that your transaction will still go through as intended. That’s the most that I can ask of any wallet. And as a bonus, it looks cool and has a metal casing that makes it sturdy and durable.
But as more wallets keep adding Litecoin to their portfolio, the top five listed here, as well as my favorite Litecoin wallet, could change. So please keep checking Profit Confidential a day or two before you choose a Litecoin wallet or the latest updates.