Storing cryptocurrencies can be a challenge. What wallet should I use? Where should I store my Litecoins? You have many different options.
- Desktop wallets
- Mobile wallets
- Cold wallets
- Paper wallets
- Online wallets
I will go through every wallet type. I will give you some examples. Also, I tell you when and how you should use a certain wallet type to store your Litecoins. Before we start, you need to know what multi wallets and light wallets are.
What is a Litecoin multi-wallet?
A multi-wallet comes in handy if you want to store many cryptocurrencies on one wallet. It also makes the backup process easier because you only have to make one backup. You make on backup instead of many backups for multiple cryptocurrencies. Read my guide (Do you need a different wallet for each cryptocurrency?) to learn everything you need to know about multi wallets. It learns you everything you need to know before you start using multi-wallets.
What is a Litecoin light wallet?
With a Litecoin light wallet, you don’t have to download the whole blockchain. So, it allows you to interact with a crypto network without the need of storing the blockchain. You control your private key or secret phrase and interact through a node. The node is usually controlled by the light wallet provider. This makes the process more secure. Multi-wallets and mobile wallets are all light wallets because of resource limitations.
Different wallet and what operating systems they support
On the table below, you can see what wallets support what operating systems.
|Litecoin core wallet||Yes||Yes||Yes||No||No||No|
Recommendations and guidelines
Recommmendations are based on my own experience, tutorials, guide, articles, and many hours of research. You can use the numbers or ignore them completely, it’s up to you. If you don’t feel comfortable using my numbers, then don’t use them.
#1 Desktop wallets
There are two common Desktop wallet types for Litecoin.
- Litecoin single wallets
- Litecoin multi wallets
There is a major difference between these two wallets. On a Litecoin single wallet, you can only store Litecoins. On a multi-wallet, you can store many other cryptocurrencies too. Also, multi wallets usually have only basic functionalities like sending and receiving coins.
How much should I store on a desktop wallet?
You should never store more than $1.000 worth of Litecoin on a desktop wallet. The reason for this is because PCs are even less secure than mobile phones. Every program has access to all your files if you give it the privileges. That’s not good. Store as many coins on a cold device (cold wallet), if you can and have one.
Litecoin single wallet for desktops
List of Litecoin single wallets for desktops:
Official Litecoin core wallet
With the official Litecoin wallet, you get to be a node in the network. You need to download the whole blockchain from other nodes in the Litecoin network. Most people don’t want to do that. If you want to interact through the securest way possible with the network, you need to become a node. You need the blockchain synced up before you can start using the wallet.
The wallet also allows you to use all functionalities from the Litecoin project. The Litecoin blockchain is currently ~28GB big and growing. So, you need some space to store the blockchain. Also, you need time to download it from the Litecoin network if want to use the wallet.
Tip: If you use the wallet, bootstrap it. Bootstrapping makes the synchronization process of your Litecoin wallet way faster. You download the blockchain up to a specific block count from a web server. Later you sync the rest with the Litecoin nodes. Use this guide to bootstrap your wallet.
The major benefit of the Electrum wallet is that you don’t have to download the blockchain. The electrum wallet is a light wallet. You can use the wallet to receive and send LTC. You don’t have to wait until the synchronization process is completed.
This wallet works through a remote server that has the blockchain downloaded. You interact through it. Keep in mind that you control the secret phrase of the wallet.
Litecoin multi wallets for desktops
List of Litecoin multi-wallets for desktops:
Both wallets offer many cryptocurrencies and tokens to store. You can store the biggest cryptocurrencies like Bitcoin, Ethereum, or Litecoin on them. Every multi-wallet supports these projects.
It becomes tricky when you want to invest in many little projects. Also called small-cap coins or projects. Then, you have to research what coins and tokens the different multi-wallets support. There is also a common problem with newer projects. Multi-wallet providers have to upgrade their wallets, so they can accept the new coin or token.
Keep in mind that these wallets are also light wallets. The providers can have their nodes in the background that handle the interaction with the blockchains. You are still in control over your secret phrase or private key.
#2 Mobile wallets
Mobile wallets are usually more secure compared with desktop wallets. The reason for this is because the operating systems are built differently. Apps have only access to their files. You have to give them access to every other app if they want to interact with them. For instance, your photo app. Every Litecoin mobile wallet is a light wallet. Usually, phones don’t even have enough storage to store an entire blockchain on it.
How much should I store on a Litecoin mobile wallet?
Again, like desktop wallets, don’t store more than $1k worth of LTC on a mobile wallet. Store as many coins on cold storage, because it can be held offline and counts as more secure. If you are experimenting with new wallets, start with sending a small number of coins and test if everything works.
Litecoin single wallet for mobile
List of Litecoin single wallets for mobile:
The Electrum wallet that is easy to use on many platforms like iOS, Android, Windows, or Linux.
Litecoin multi-wallets for mobile
List of Litecoin multi wallets for mobile:
You usually have your phone everywhere you go and your desktop not. That’s why a multi-wallet on the phone could be practical, especially if you are a trader. Trading from everywhere at any time is useful for some people and it might be for you.
#3 Cold wallet/storage
Now, let’s talk about the cold wallet or cold storage for your LTC. It’s currently the securest wallet type in the crypto space. A cold wallet is a wallet that you can keep offline. It is more secure because it is not affected when your laptop or mobile phone gets hacked, you lose it, or it breaks. A cold wallet should be used if you want to store more than $1k worth of LTC.
List of paper wallet tools:
Paper wallets are an old way to store your crypto offline. There are more modern tools (Ledger or Trezor) you could use to store your Litecoins. A paper wallet costs nothing, expect paper and pen, while you have to buy a Ledger or Trezor for around $50-$150. Ledger and Trezor are USB sticks that can be plugged into your computer as soon as you want to make a transaction.
Also, Ledger and Trezor can store many cryptocurrencies. So, they are multi-wallets and you can upgrade them with addons from developers. They have standards everybody can use.
Using a paper wallet is simple. You go to the website, generate a private key, and write it down on paper. You can share the Litecoin address wherever you want. If you want to spend your coins, you can insert the private key to other wallets. For instance, the Litecoin core wallet, to spend your funds.
If you are not comfortable enough to generate a Litecoin wallet online, download the zip file. Afterward, you have the program on your local PC and could generate a private key, even if you are offline. So, you are in control. To use the tool, unzip it and open the index.html file in your favorite browser.
Ledger is a company that is competing against Trezor. It provides cold storage in form of a USB stick to users. It’s a famous crypto company. Ledger and Trezor provide currently the most secure and popular cold wallets.
List of Ledger products:
Ledger Nano S vs. Ledger Nano X
Both versions have the highest security standards through a certified security chip. On the Ledger Nano S, you could store between 3-20 apps depending on the size (coins, tokens, etc.). On the Ledger Nano X, you can store up to 100 coins. The Ledger Nano X has also a Bluetooth connection, so you can manage your crypto on-the-go.
If you want to store only a small amount of projects on a cold wallet, buy a Ledger Nano S. The Ledger Nano S costs ~$50. The Ledger Nano X costs ~$120.
Keep in mind that you should also think about the future. Do you want to store more projects on the cold storage in the future? It would not be beneficial if you buy cold storage and realize you don’t have enough space.
Ledger also has packages where you can buy multiple cold storage devices. It is recommended starting with one and buy more as a backup if want to expand your portfolio.
List of Trezor products:
Trezor T vs. Trezor One
The Trezor One currently costs ~$60 and the Trezor T costs ~$160. Both wallets are designed by SatoshiLabs. Both wallets have no limit of different coins you can store on it. They mention that you can store over 100 cryptocurrencies on a Trezor wallet.
#4 Online wallets
Litecoin online wallets are the most insecure versions of wallets. One that is the most common online wallet is the exchange wallet. Every wallet of exchanges is online all the time. Also, hackers have a big incentive to hack exchanges. If they hack an exchange, they can get the funds of the exchange and the customers.
If you are a beginner or lazy, you don’t mind until it’s too late. If the exchange gets hacked, your coins are lost too, not only the ones from the exchange. If you are lucky, the exchange has enough backup funds to buy coins from the market and give them to the users. If not, you are in bad luck.
For beginners that want to invest in crypto, start by storing your crypto on an exchange. It’s easy and fast. If you learned how to use a wallet, withdraw all your funds to your wallet as soon as possible.
You can always send the coins back if you want to trade on the exchange. Always remember the famous quote of the crypto community: “Not your keys, not your coins”.
If you store your coins on an exchange, the exchange controls your funds. He has the private keys for the wallet. You have to trust the exchange the system works fine all the time.
Using wallets, especially if you are a beginner, can be difficult. Start with small volume transactions to experiment. Get the confidence that everything works.
Other online wallets
Most other online wallets besides exchange wallets are scams. You always have to ask yourself what the other party gets. If you use an exchange, you know he makes money through trading fees.
Always research online wallets. Usually, you are not the first one who used a specific wallet and you can look for reviews on the internet. You usually realize quickly if the wallet is legit or not. Also, don’t trust a wallet that has no reviews.
#6 Browser extension wallets
There are also Litecoin wallets for your browser. Browser wallets make things easier if you use an exchange or other online service through a website.
List of browser wallets:
Jaxx is the most popular multi-wallet for your browser to store your Litecoins. You can also use it to store many other cryptocurrencies. I should mention that browser wallets have another risk profile. They are an add-on for your browser. This means that their security is dependent on the browser itself.
Again, if you can, diversify your coins. If you have cold storage, store the majority of coins on it because it is more secure.
Advanced tips when you use crypto (Litecoin) wallets
#1 Mack a backup as soon as possible
If you can, make a backup even before you send some coins to the wallet. Some wallets, for instance, Exodus, don’t allow you to make a backup before you made at least one transaction.
#2 Never store your backup file on a cloud
If you store a backup of your Litecoin wallet on a cloud, there are many risks. First, if you have weak account credentials, you risk losing all your coins. Second, major companies like Google, Microsoft, Amazon, etc. are in control of your files.
#3 Make many backups
By making more than one backup, you diversify the risk of losing all your coins. Let me give you an example. Let’s say you deposit some funds to your cold wallet. If you didn’t back up the secret phrase, you risk losing all your coins, if the device breaks.
#4 If you can, encrypt the wallet with a passphrase
You can encrypt the backup file of your Litecoin core wallet with a passphrase. By doing that, attackers don’t have access to your Litecoins even if they manage to get your backup file. They need both components: The backup file and the passphrase. It makes your wallet more secure.
Never share your backup file with anybody, even if they offer help. The crypto space is known for some tricky scams. Users who want to help don’t ask for your private key, secret phrase, or passphrase.