May 29, 2023
4 min read
The most important thing if you keep crypto – to choose the right way to store and manage it. In this guide we will show you different types of wallet and make a comparison among them.
You need to use a program to manage your Litecoins, it will keep your private keys and provide additional functions such as sending, receiving, exchanging, and more. With these programs, you’re able to manage and control your funds.
There are many types of cryptocurrency wallets to manage LTC: desktop, mobile, web wallets, hot wallets, cold wallets and hardware wallets.
Hot Wallets, the most popular for users. These wallets work as interfaces providing you with a service for management, exchange, buy crypto and cryptocurrency trading.
Examples: Coinbase, Bittrex, Binance, BitPay and others…
Cold Wallets, work as a software application that enables you to sign transactions and store funds offline with low risks of hacking.
Examples: Paper Wallets, Bitcoin Core, etc.
Hardware Wallets, represent a special USB device that stores your LTC offline on it and can sign transactions to send them to other addresses. They usually have an additional software application allowing you to manage your cryptos and sign transactions. Basically, it’s the same thing as regular cold wallets, except for that your private keys are encrypted in a hardware wallet.
Examples: Trezor, Ledger.
Light Wallets, are desktop / mobile or web applications that require stable internet connection and provide many options to manage different cryptocurrencies. They can also support different services (exchange options, buy crypto, trading desks and more). In general, light wallets are non-custodial and keep your private keys on your device. This allows to use light wallets as a cold storage.
Examples: Atomic Wallet, Exodus, JAXX, Electroneum.
1. Security. Wallet security means the way your Litecoins and other cryptos are protected from frauds and hacking, how you manage private keys and what security technologies a particular wallet supports.
2. Accessibility. This feature implies simplicity in use and the ability to withdraw your funds from the wallet. A friendly user interface is a vital point for new users. When choosing a litecoin wallet, pay attention to its interface and the amounts you are able to operate with.
3. Functionality. If you want to choose a good LTC wallet, check it for additional services support, such as an ability to exchange cryptocurrency or buy crypto with a bank-card/paypal, etc.) In some wallets, like Atomic or Exodus, it’s possible to exchange Litecoin right in the application without visiting third party websites. Cryptocurrency will be transferred directly on your address after the exchange.
4. Customer Support. This is a vitally important to receive a fast reply on users concerns and help with troubleshooting. Good customer care is a sign of a good product. How fast will the support team help you, if you have any troubles? Crypto market is too volatile to wait days/weeks till someone will the issue. It is a good practice to reply within 24 hours.
Rule #1: Always check who are behind the project. Do they have previous experience in managing projects? Try to link in what projects they have already participated.
Rule #2: Ask about the wallet on Quora, Reddit or at any social media. Try to find what users experienced while using it.
Rule #3: Contact team if their website do not provide the necessary information for you. If they are welcome to chat, then they are take care of the project reputation and trust.
Rule #4: Always try with the small deposits and with different crypto.
Rule #5: Never store your seed phrase online (on the google drive, email, on the .txt file, etc.) Use a keystore, or a piece of paper.
Rule #6: Make sure you will be able to withdraw at any time. Crypto prices are too volatile to wait.
Rule #7: Never trust, verify!
Manage your Litecoin wisely!
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