Litecoin Wallet: The Complete Guide

Looking for a litecoin wallet? You’ve entered the leagues of cryptocurrency ownership by purchasing litecoin (LTC). Or maybe, you’re on the cusp of adding LTC to your growing cryptocurrency portfolio.

Now, it’s time to work out how you’re going to store your precious litecoin.

Table of Contents

  1. Best Litecoin Wallet
  2. Litecoin Wallet: Cold Storage
  3. Litecoin Wallet: Hardware
  4. Paper & Steel Wallets
  5. Litecoin Wallet Online

Best Litecoin Wallet

An image of the Best Litecoin Wallet

At CoolBitX, we believe the best litecoin wallet is:

  1. safe from hacks – this means storing your litecoin offline
  2. convenient – this means being able to be mobile with your litecoin

To be blunt, it’s quite reckless to leave such a valuable investment on a cryptocurrency exchange gave that they aren’t designed to store investors’ cryptocurrencies long-term.

Just look to the countless cases of traders’ accounts being hacked and you’ll see that it usually ends the same way: the cryptocurrency exchanges where the hacks took place to absolve their responsibility, and hacked investors are left empty-handed.

Bithumb, the world largest crypto exchange, was recently hacked for $30 million US Dollars. After the event, Bithumb tweeted that they would be moving their customer’s currency to cold storage:

Bithumb's Twitter response to June 2018 hack
As a rule of thumb, we recommend following the “one month rule.” That is if you have more than one month’s salary stored on a cryptocurrency exchange, move it to cold storage.

Remember, only you can be ultimately responsible for the safekeeping of your litecoin, so choosing the right litecoin wallet is one of the most important decisions you can make as a cryptocurrency investor.

So by now, you’re probably wondering, “What is the best way to store my litecoin?” To help you make a more informed choice, we’ve put together the following handy guide of different litecoin storage options.

Litecoin Wallet: Cold Storage

Cold storage is a term used to describe a cryptocurrency storage solution that stores your reserve of cryptocurrencies in an offline environment. The cryptocurrency wallets that fall under the cold storage umbrella are called “cold wallets.” Below are some key examples of cold LTC wallets:

Litecoin Wallet: Hardware

Hardware wallets work by storing your private keys in a physical hardware device.

Advantages

They are generally regarded to be the safest way to store cryptocurrency holdings like litecoin.  A systematic remote hack against hardware wallets is considered quite rare.

The easiest way to think about a hardware wallet is to consider it to be like personal storage vault that is small enough to carry around. A hardware wallet takes care of the highly technical mechanisms needed to protect your litecoin.

Hardware wallets, due to their unique offering of allowing users to “be their own bank,” allow users to distribute the point of failure. This means that if an attack was launched against an individual hardware wallet, the other hardware wallets would not be vulnerable since they are not linked to each other.

Online wallets, on the other hand, are more centralized. A successful attack on an online wallet could potentially threaten every single user of that wallet – which could be millions of investors.

Disadvantages

The downside to any hardware wallet, however, is that they are not free. Consequently, some cryptocurrency holders believe that hardware wallets are not worth the extra money.

But when you put it into perspective, an investment of a couple of hundred dollars is a relatively small price to pay to possess a device that will provide a far greater level of security than other wallet options to your cryptocurrency portfolio – one which could potentially grow to be worth tens to hundreds of thousands of dollars.

This leads to an important question: what is your litecoin investment worth to you? Considering the very real threats hacking threats, many investors use numerous hardware wallets.  These investors understand that one morning they could wake up with everything gone.

Some would consider a hardware wallet an investment itself.

Another disadvantage is their usability. Due to the fact that many hardware wallets are using USB thumb drives (but not all — see below section), using a hardware wallet has proven too inconvenient to use on a daily, monthly, or even yearly basis.

If you tend to carry your phone everywhere with you and check your litecoin balance, then a USB hardware wallet may not be a good choice for your lifestyle.

You’ll need a more a hardware wallet that you can take anywhere.

Recommended Hardware Wallet

CoolWallet S

CoolWallet S is the Best Litecoin WalletAs you may have already discovered, there are many hardware wallets available which support Litecoin storage. In our humble opinion, none boast the dual advantages of mobility and security that the CoolWallet S does.

With its aim to establish a “bridge between blockchain and everyday life,” the CoolWallet S embodies a top-of-the-line cold storage solution that is the size and weight of a credit card.

The CoolWallet S Offers

  1. Compatibility with iPhone and Android phones and devices: no need to sit in front of a PC, untangle a USB cord, plug it in, open a chrome extension or third-party app, and go through all sorts of steps just to access the blockchain with your assets. With the CoolWallet S, all you have is simply take out your phone and begin using the wallet.
  2. The wallet setup is easy and quick.
  3. Waterproof, impact-resistant, bendable, and tamper-proof.
The CoolWallet S is fortified by a common criteria EAL5+ certified secure element microchip – the top security component on the market today.

The Bluetooth signal is encrypted with multiple layers of one-way hash functions using the AES256 encryption standard. This encryption cannot be decrypted.

The CoolWallet S can only work with your unique phone and your unique fingerprint or Face ID. The CoolWallet S can be lost or stolen without exposing your assets.

The thinness of the wallet protects the wallet from being opened and reprogrammed; opening the card will irreversibly destroy the wallet.

 

An image that shows how the CoolWallet S pairs with the App

The CoolWallet S works with an app that makes it easy to receive, send, and exchange cryptocurrency. It thus offers cryptocurrency holders complete mobility, and thus greater functionality, of their cryptocurrency funds. That’s not to mention its other benefits of being able to trade more securely than ever before.

In terms of security, the safeguards the CoolWallet S places on your cryptocurrency holdings are hard to beat. Consider the fact that it combines the world’s largest verified address database of the MetaCertProtocol with its own patented hardware.

The CoolWallet S security system is designed so that no single component of the system is capable of controlling the other components. The implication of this is that in order for an attack of your CoolWallet S holdings to successfully take place, an attacker would be required to have control of the CoolWallet S app, your hardware wallet, and the original user (i.e. you).

To put it simply, storing your cryptocurrency on a CoolWallet S allows you to rest assured knowing that your cryptocurrency holdings are secured thoroughly by world-class security technology.

If you’re someone who is concerned with finding a storage option that is in line with the tenets of decentralization, you’ll be interested to learn that the CoolWallet S provides cryptocurrency holders with the opportunity to manage their own private key without interference from a centralized organization.

Paper & Steel Wallets

A paper wallet or a steel wallet are two other cold wallet solutions to store away your LTC holdings. In contrast to the high-tech storage solution hardware wallets offer, paper wallets represent a rather old-school approach of manually printing off your private key or QR code onto a piece of paper. Steel wallets are quite similar to paper wallets, except they use a manually operated metallic object to make a record of your private key.

Advantages

The advantage of both of paper and steel wallets is that they allow you to maintain your cryptocurrency holdings without the need for an intermediary service.

The cost of making a paper wallet, after all, is virtually free (save the price of paper and ink), while the cost of a steel wallet depends on whether you go the DIY route and craft one yourself out of a sheet of metal, or buy one from a steel wallet company for a hundred dollars or so.

Disadvantages

That being said, they both come with their own risks.

Paper wallets offer no level of private key management. Typically, wallets are able to encode a litecoin private key, making them invisible to prying eyes.

Paper wallets offer no such protection for your private keys. In fact, the instant they are exposed to a camera, QR scanner, or any other online environment, your private keys can be easily hacked.

Additionally, Paper wallets require a high-level of maintenance, as if the paper is ripped or soaked by water, you won’t have another means of retrieving your private key and therefore, your crypto funds.

If you do choose the paper or steel wallet storage route, it’s vital that you exercise due diligence when choosing the materials which will be charged with the all-important task of upholding both the readability and safekeeping of your private key. 

Litecoin Wallet Online

Hot storage is a term used to describe a cryptocurrency storage solution that stores your reserve of cryptocurrencies in an online environment. In other words, it is a cryptocurrency wallet that is connected to the internet. The cryptocurrency wallets that fall under the hot storage umbrella are called “hot wallets.” Below are some key examples of hot wallets:

Desktop Wallets

Litecoin Core

A Litecoin desktop wallet is a cryptocurrency wallet that stores the private key for your Litecoin on your computer hard drive. Litecoin offers an official desktop wallet called Litecoin Core. Created by its development team, Litecoin Core is available for free download on Windows, Mac OS X, and Linux. Litecoin Core is considered highly-secure, however, it is best suited for more advanced traders, as the setup and maintenance process is quite complex.

However, in order to use Litecoin Core, you will be required to download the entire Litecoin blockchain. Consequently, this can make accessing Litecoin Core quite slow at times compared to other LTC storage options.

Another vital consideration to make is that in order to properly set up Litecoin Core, you will need to possess a certain level of technological knowledge. That’s not to mention the significant amount of computer space that is required to keep it up and running.

What’s in it for you, then? Running a full node offers advantages such as providing you with better access to the Litecoin network and an additional layer of security and privacy to your transactions, to name a few.

Electrum-LTC

An easier alternative to Litecoin Core is Electrum-LTC, which is a version of the Electrum Bitcoin wallet. As a lightweight wallet, Electrum-LTC does not require you to install the whole Litecoin blockchain, thus making it significantly faster and less labor-intensive to download and set up than Litecoin Core.

In fact, it works instantly after installation and is considered very fast. In terms of accessing your LTC on your Electrum-LTC, you will need to use your one-of-a-kind secret phrase – or “seed” – which will also provide you the means to recover and restore your wallet.

So that begs the question: is it safe to store large amounts of litecoin on Electrum-LTC?

Well, consider that just in January 2018, a vulnerability was identified which allowed for malicious websites to execute wallet commands, modify user settings, and even obtain private data.

CoolWallet Tip: If you’d like to use Electrum-LTC, it’s best practice to only keep smaller amounts of LTC on it, and to move the majority of your LTC onto cold storage.

Software Wallets

Exodus

One of the most popular software wallets for storing LTC is Exodus, a free to download software which is available on Windows, Mac, and Linux.

Exodus is particularly targeted at those who are new to the crypto game, as they have set out to make a desktop wallet experience that “just works for normal people,” and “remove[s] the geek requirement to use cryptocurrency.” The result is a design-oriented interface that focuses on providing novice traders the information they need – and none of the overly-complex features they don’t.

The tradeoff for the level of convenience software wallets like Exodus offer is that your crypto assets may be vulnerable to hacking attempts. As is the case when you are using any software program, if your computer is compromised by a virus or malware, ipso facto the software has a higher likelihood of being compromised.

Beyond this, Exodus has had a number of reported incidents of hacking, namely involving hackers resetting users’ 2FA. There have also been reports that the Exodus wallet can be hacked simply by running a programming script.

For this reason, we recommend that if you’d like to err on the side of caution while using software wallets like Exodus, it will be wise to keep the bulk of your cryptocurrency holdings in cold storage. That way, if the worst case scenario happens and there is a hack, the majority of your holdings will remain uncompromised.

Mobile Wallets

Loafwallet

A mobile Litecoin wallet is a software wallet that is downloaded onto a mobile device either as an Android or IOS app. There are many mobile wallets for storing your LTC on the market, but perhaps the most well-regarded is Loafwallet.

Charlie Lee, the creator of Litecoin himself, was the original developer for the Loafwallet release on iOS. It was only later on that it was offered to Android users as well by the Litecoin Foundation, the non-profit organization of Litecoin advocates who amongst a number of roles, are in charge of maintaining Loafwallet.

Loafwallet is a free mobile wallet for LTC that aims to “focus on accessibility, security, and simplicity.” It achieves this by simplifying the process of sending and receiving litecoin – all that is needed for a transaction to be completed is one touch of a button.

Loafwallet allows you to generate a ‘recovery phrase’ so that you can backup and recover your wallet on any device. That being said, there have been a number of user complaints about bugs on Loafwallet, which have in turn impacted its level of usability and security for users (at least in the past). For example, a commonly reported complaint from users has been that the app crashes continuously when they try to open it.

Overall, Loafwallet is a convenient storage option for those who want to make day-to-day litecoin transactions. But given the issues mentioned above, as well as the security vulnerabilities that would be presented in the case of a bug infecting the system, we advise LTC holders to use it in conjunction with another cryptocurrency storage solution.

CoolWallet Tip: If you’re considering downloading the app, it may be a good idea to first read the reviews on both Apple Store and Google Play Store, where at the time of writing, Loafwallet is rated 3.2 out of 5 and 3.7 out of 5 respectively.

Conclusion

As you’ve now learned, there are a number of different litecoin wallet options for storing your LTC securely. Each brings with it its own set of advantages and disadvantages. Clearly, some options offer greater levels of security and usability than others. Just remember that your LTC holdings are only as safe as the location you place them in.  If your litecoin wallet is secure, then your litecoin is secure.

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