What is the Best Wallet for Litecoin (LTC)
If you are relatively new to Litecoin wallets and cryptocurrencies, and you just bought your first Litecoin, you could store your digital currency on a cryptocurrency exchange site like Coinbase, Kraken or even Binance. While this solution is suitable for small amounts of money, ideally you should have your own dedicated Litecoin wallet.
Well, a cryptocurrency wallet means that only YOU have access to your private keys and digital currency, which helps keep them safe. When you store your cryptocurrency on a third-party site, it is vulnerable to hackers and security leaks.
Understanding how Wallets work Litecoin
Because the Litecoin runs on a secure digital ledger called the blockchain, using a Litecoin wallet is not as simple as opening a leather flap. That's why it can be helpful to think of a Litecoin wallet as an email.
To send an email, you must use your password to log into your account, enter the recipient's address, and then click send. To send Litecoin, you likewise need your encrypted key, essentially your password, to access your cryptocurrency. You then need your recipient's Litecoin wallet address, similar to an email address, to send them the cryptocurrency.
On the Litecoin network, the public address is an identifier that points to a particular ledger entry (i.e., a balance of Litecoin) on the blockchain, and the private key is what allows its holder to make changes to the associated ledger entry (i.e., to transfer the Litecoin to a different address).
It is important that you keep track of your wallet key Litecoin. If someone else has it, they can hack your wallet and send it to their own wallet. And if you lose your key, you may not have access to your cryptocurrency anymore.
Which wallet to use for the Litecoin token? (LTC)?
Online wallet (Binance)
Binance is a 100% free digital wallet for storing cryptocurrencies, and therefore your Litecoin (LTC), available for both iOS and Android devices, and on the internet.
Online wallets (like Binance) store your private keys on a server, which is constantly online and controlled by a third party. Different services offer different features, some of which can be linked to mobile and desktop wallets and replicate your addresses on all the devices you own.
Like mobile wallets, e-wallets (Binance) allow their users to access their Litecoin balances, and the rest of their funds on the go from any device connected to the internet.
With respect to sending and receiving cryptocurrencies, Binance does its job very well; it has an elegant user interface, and the ability to send and receive cryptocurrencies with a simple username makes the process very streamlined.
Hardware wallet (Ledger Nano)
Launched in 2014, Ledger is a global company specializing in secure blockchain applications and devices. The company boasts of having sold 1.5 million wallets in 165 countries to date.
Ledger has demonstrated a high degree of commitment to the community at large by providing abundant support and addressing specific issues and risks.
Among the three major hardware wallet companies (Trezor, Ledger, and Keepkey), Ledger offers the most popular and cheapest hardware wallet on the market, at less than 60 Euros (€).
This price also includes free shipping to most countries.
It supports over 1'100 cryptocurrencies and features a clean design and simple user interface. For most people, especially those with a small portfolio of crypto assets, the Nano S is a reliable workhorse and the wallet you'll need.
Differences between a Cold Wallet and a Hot Wallet
Hot wallets are wallets that are connected to the Internet in some way. This could be your smartphone, desktop computer, or other means of accessing the Internet.
These Internet-connected wallets are popular because of their convenience, but they are not super secure. Anything connected to the internet is vulnerable to malware and cyberattacks from hackers.
The Cold Wallets
Cold wallets or “cold storage wallets” are devices that are in no way connected to the Internet. They are small devices that look like USB sticks.
Because these wallets are offline, they are not vulnerable to cyberattacks: the device must be present in-person to steal the Litecoin. Even then, PINs and backups keep the data secure.
Is it mandatory to use a wallet for its LTC?
You don't need a cryptocurrency wallet, as many exchanges like Binance have built-in wallets. However, these hot software wallets are vulnerable to hacks and attacks, so it is best to consider a private offline wallet.
If you're dealing with large sums of money, we suggest you consider offline storage (hardware or cold wallets).