Litecoin is an open source peer-to-peer cryptocurrency platform. Although it is quite similar to Bitcoin in terms of functionality, it is also different in some other ways. Litecoin incorporates advanced technologies such as segregated witness, lightning network etc. Which are absent in Bitcoin or in any other cryptocurrencies.
That is why transactions in Litecoin are faster, four times faster than Bitcoin to be exact. Litecoin also uses a different hashing algorithm than Bitcoin’s SHA-256, called Scrypt. At first, creating ASIC rigs for Litecoin was tough as Scrypt is more memory intensive. But right now you can find a few ASIC rigs for Litecoin too.
Litecoin (LTC) also has zero payment cost which is a huge factor. The underlying framework of LTC allows it to process transactions with low overheads which reduces bottlenecks drastically.
Currently, Litecoin is one of the best cryptocurrencies to invest, judging by its popularity and steady growth. At this moment Litecoin has reached more than $11 billion market cap. And this has placed Litecoin at number six according to the market cap.
This article is more focused towards the new players in the cryptocurrency market. So in this article, you will learn about both acquiring Litecoins and storing Litecoins. Without further ado, let’s hop into it.
- 1 How To Buy Or Exchange To Litecoin In 2018
- 2 Best Litecoin Wallets
- 3 Conclusion
How To Buy Or Exchange To Litecoin In 2018
Just like any other cryptocurrencies, one can buy Litecoins from a lot of online exchanges. The official website of Litecoin particularly favors GDAX, Kraken, Bitfinex etc. All of these exchanges are great and go to great lengths to provide top-notch service to their users.
Read – How To Buy LTC in India?
Exchanging To Litecoins
If you happen to have invested in other cryptocurrencies, you can exchange them to Litecoin. Thanks to exchanging services like Changelly and Shapeshift; the exchanging process has become hassle-free. You can easily change your Bitcoin, Ethereum or any other cryptocurrencies to Litecoin within a matter of seconds without losing any sweat.
A lot of people use these two so it is quite hard to choose just one. So your best bet is to navigate to both the websites and feel for yourself. Whichever one you like the most, go ahead and start using it.
You can also use another popular exchange called Binance to convert your BTC or ETH to LTC. Binance charges only 0.1% fee on every order. And you can easily reduce this fee to only 0.05% too!
Okay! I hope by now you have a clear idea on how to get Litecoin. Now I am going to talk about various Litecoin wallets and help you choose yours.
Best Litecoin Wallets
Just like banks for traditional currencies, cryptocurrency wallets come in a lot of shapes and sizes. Some are based on hardware, some are software based, some are heavily secured and some are downright unsecured. So I will advise you to make an educated choice when it comes to wallets.
Litecoin Hardware Wallets
Hardware wallets, by far, are the most secured ones. They are physical devices completely made for storing your cryptocurrencies securely. While software-based wallets have the risk of getting hijacked by hackers, they cannot hack hardware-based wallets.
The wallet is generated using state-of-the-art random number generator and also randomness generated by your computer.
Hardware wallets usually protect your data by employing a 12,18 or 24-word passphrase. Some wallets also have the added feature of security pin, without which the device cannot be used. Whenever you want to do a transaction you have to connect the hardware wallet to your system and confirm the transaction.
With this method, your private key does not leave the device. Instead, the device sends some kind of acknowledgment to your computer that the transaction has taken place.
If you lose the device or somehow it is stolen, you can use the passphrase to recover your wallet data. I have shortlisted three of the best hardware wallet for Litecoin in this list.
Just like Trezor, it has a 24-word passphrase and security pin system. It supports all of the cryptocurrencies Trezor does and XRP too. Ripple was one of the latest additions to Ledger Nano S. It has a tiny display compared to Trezor and has two rocker buttons.
Trezor is a multicurrency wallet which can hold Bitcoin, Litecoin, Ethereum etc. It has one of the biggest displays in the market which prompts you whenever you want to make a transaction.
It has two buttons, one for confirming and another for canceling. It has a price tag of around $99 and in my opinion, it is well worth it. But if you are looking for smaller devices than Trezor then keep reading.
To learn more about this hardware wallet and set it up please read my article on Trezor hardware wallet.
The KeepKey hardware wallet is slightly bigger than the Ledger Nano S but certainly smaller than the Trezor. The only drawback with KeepKey is that the passphrase is 12 words while both the Trezor and Ledger Nano S support 24 words.
Litecoin Software Wallets
There are a handful Litecoin software wallets but I have only compiled the very best on this list.
Coinpayments is a multicurrency web-based wallet. This wallet supports a staggering number of 75 cryptocurrencies!
Just like Exodus, it has a built-in auto conversion tool. CoinPayments employs Bitgo’s multisig technology to create a secured wallet for you.
The wallet has an added feature called vault, which allows you to lock in your balance for a set amount of time. CoinPayments is not only a Litecoin wallet but it is also a cryptocurrency payment gateway. It is currently supported by well over 422000 vendors in 182 countries.
Liteaddress.org allows you to create a Litecoin wallet in a matter of seconds. The site creates your wallet using randomness generated by your mouse cursor or by characters entered by you. Upon creation, the wallet can be used offline as a Litecoin paper wallet.
Users usually consider paper wallets more secure than desktop based or web-based wallets as they are cold wallets. But they have their own loopholes too! Liteaddress also provides vanity wallets, brain wallets and split wallets.
If you need a paper wallet that is aesthetically more pleasing than Liteaddress’ one then visit this site. The process of generating the wallet is fairly similar to Liteaddress’ but the end result is just magnificent!
The core Litecoin team maintains this piece of software. This wallet is desktop based and you can install it on Windows, MacOS, and Linux. This wallet also uses the passphrase technique to secure your wallet. There is no option for automatic backups, so you will have to do it manually.
This wallet actually acts like a full node as it connects to the Litecoin network and relays transaction information. Some users find this feature a bit worrisome.
If you don’t mind a wallet that will overwhelm you with information then please go with Exodus. Exodus wallet is a desktop based client and it supports a variety of cryptocurrencies. Exodus wallet has colorful live charts to keep track of the market.
One of the unique features of Exodus is the built-in exchange tool. This is the only available desktop wallet that has an exchange tool built-in to trade cryptocurrencies. The tool uses Shapeshift to convert cryptocurrencies. So if you are looking for some serious trade actions Exodus might be the one to go for.
LiteVault is an in-browser web-based Litecoin wallet. As the encrypted wallet is stored in their server you can access it from any device having an internet connection.
But with a web-based client comes the great risk of getting hacked or phished. So be extremely careful if you plan to use LiteVault or any other online wallets. You should also manually back up your wallet and store your private key in somewhere safe. Preferably, print the private key and store it away.
Bitcoin is undoubtedly the king of cryptocurrencies. But as its price is soaring high new investors can do nothing but avoiding it. If you are new to the cryptocurrency market then Litecoin is a great entry level altcoin to invest in.
It has all the features Bitcoin has plus some more and it has a great future ahead.