To store fiat currencies, we usually use practical wallets or bank cards. But how to store Litecoin (what is litecoin)? Similarly, you can store LTC in litecoin wallet. Generally, Litecoin wallet is where you can keep your litecoin, do LTC transactions, manage account balance, etc. Let's see how it works.
What is A Litecoin Wallet?
Litecoin wallet is actually a digital wallet, which allows you to execute transactions. There are several kinds of litecoin wallets, including desktop wallet, mobile wallet, web wallet and hardware wallet (cold wallet).
No matter which type the litecoin wallet is, there are two common things that a litecoin wallet has: public key and private key. As we know that litecoin blockchain is also a peer-to-peer global payment network similar to Bitcoin, anonymous is one of the main features of it. Similar to but different from bank account, public key is the a random string consisting of numbers and letters, representing the wallet address, but who is the owner of this wallet is unknown. Private key, also known as secret key, is also a string used as password to encrypt the wallet.
What Types of Litecoin Wallets to Choose?
Many investors, especially the beginners, choose to store their LTC on an exchange, because it's the easiest and quite convenient way. Most of them offer multi-signatured encrypted wallet. However, storing LTC in some cryptocurrency exchanges that do not provide highly secure encryption technology, where do not offer the private keys, then, you might lose your LTC if there is a hack. We believe that it will be much more securer to store in Litecoin wallet.
1) Desktop wallet including the full nodes and the light wallets. Full node wallets require you to download the entire Litecoin blockchain on your computer, which will take up large amount of storage of your computer and often takes long to sync with other nodes. While light wallets enables you to sync with the blockchain very fast for they are connected to the Internet, but your private key may have risks of being leaked on the internet.
Examples: Litecoin Core (Full Node), Electrum LTC, Exodus, etc.
2) Mobile wallet. Namely, it's a piece of wallet app that download and install on your Android or iOS phones. You can do LTC transfer on the go, but there are some potential security vulnerabilities. For example, if your phone is broken and stolen there some risk of your LTC being stolen or lost.
Examples: LoafWallet, Jaxx, etc.
3) Web wallet allows you to directly store the Litecoin on the website/online server. If the website or server goes down or being hacked, you have little chance to get back your LTC.
4) Hardware wallet. Hard wallet is a small piece of hardware that connects to your computer via a USB portal, which is usually a flash disk or USB thumb driver. It allows you to send and receive Litecoin with complete security as all of the transactions are done offline on the hardware device. Hardware wallet is the most recommended but they also come at a price, and if it's broken or damaged, there will be no way for you to access to your LTC stored in it.
Examples: Trezor, Ledger Nano S, etc.
Read up here, you may have a decision on the Litecoin wallet. No matter which kind of Litecoin wallet you choose, you should keep your private key securely.