Litecoin wallet starter guide
Cryptocurrencies Litecoin and Bitcoin only exist in the digital domain, and they can only be managed through a cryptocurrency wallet. Wallets give you complete control over your assets. No bank or other institution has the power to govern your Litecoin. This notion of independence is a crucial component of cryptocurrencies. It also informed our decision to found SATOS.
Always create your own Litecoin wallet
We firmly believe in the independence of third parties, which is also why we do not manage the assets of our clients ourselves. All cryptocurrencies bought at SATOS remain in the hands of our clients. At first, managing your crypto wallet may appear overwhelming, but once you get the hang of it, there is no going back! On this page, we will explain to you the basics of managing Litecoin with your wallet. It is much easier than you may think!
What is a Litecoin wallet?
Managing your crypto wallet is comparable to having full control over your own digital bank account. The main difference between a Litecoin wallet and a bank account is that you do your asset management; is not done by banks or other financial institutions. A Litecoin wallet enables you to be your own bank and control your own funds. It's also the safest way to buy Litecoin or sell Litecoin.
As Litecoin is a digital currency, you cannot deposit it in a bank account, or hide it in an old sock. Litecoins and other cryptocurrencies can only be managed with a matching cryptocurrency wallet. The coins stored in the wallet are saved on a digital domain. They can only be transferred by the person who has the encrypted key.
What is the best Litecoin wallet?
You will find many different types of Litecoin wallets online. Every wallet has its own properties and features, which all entail various advantages and disadvantages. Therefore, it is vital to first have a close look at the different types of wallets before you decide to download one. To help you pick the right wallet, we have listed a few of the different types. There are a couple of factors that determine whether a wallet is suited for your purposes. We will discuss this later in this article. Make sure that you choose the correct cryptocurrency for the wallet. There are different wallets for different cryptocurrency. For the specific wallets for cryptocurrencies see:
Do you always want to keep your Litecoin wallet with you? Then it is advisable to download a mobile wallet app on your phone. Mobile wallets are usually free of charge and offer sufficient protection for a starting cryptocurrency trader. Carrying your Litecoins with you may certainly come in handy. But it also entails risks. The fact that you are always carrying your cryptocurrencies with you makes you more vulnerable. Are you going to make significant investments? Then it might be advisable to buy a hardware wallet.
Don't like the idea of dragging your cryptocurrencies with you at all time? A software wallet may be more to your liking! It allows you to store your crypto assets on your computer and manage them from there. Software wallets are usually free of charge and safer than mobile wallets. This is in part because you do not carry your computer around, but it is also because it is easier to install a good virus scanner on your computer than on your phone. Are you planning to invest relatively sizeable amounts? Then a software wallet might be a good fit for you.
Do you want even more security? In this case, you could consider purchasing a hardware wallet. This is a physical device used for managing cryptocurrencies. These devices have been developed for the sole purpose of managing cryptocurrencies. They generally offer a sufficient level of protection. Hardware wallets are not free though. We advise you to purchase a hardware wallet if you are planning to make significant investments, or if you are already more experienced with crypto investments.
The last option we briefly look at is the web wallet. You can use it to manage your digital assets online. Although there are surely plenty of good web wallets, we do advise you to opt for one of the previous three options. Web wallets often feature security protocols that are controlled by third parties, which runs counter to the founding ideals of cryptocurrencies. Hence, we advise you to opt for the independent management of your assets and to choose a mobile, software, or hardware wallet.
How can I receive and send Litecoin?
Essentially, a cryptocurrency wallet is straightforward and exists of only two keys. The public key serves as the portal used for receiving Litecoin, and the private key is used to transfer Litecoin to others. Consider the public key as your email address, your recipient address. You provide this key to people when they send you Litecoin over. That’s also why it's called a public key. The private key is used instead to transfer Litecoin from your recipient address. It serves as the encrypted key that is necessary for you to manage your Litecoin. Its name already reveals the importance of keeping this encrypted key a secret, and to store it in a safe spot.
Sending and receiving Litecoin with a wallet app is a piece of cake. You only need to inform people of your Litecoin recipient address, the public key, to receive Litecoin. But what does a Litecoin recipient address look like? You can recognise a Litecoin address by the ‘L’ or ‘M’ that every Litecoin public key starts with. A full address looks like this: MTvnA4CN73ry7c65wEuTSaKzb2pNKHB4n1. And indeed, this is not a real address; it just serves as an example. Do you want to receive Litecoin? Then always copy the address from your wallet.
Sending Litecoin is just as simple. You copy the Litecoin address of the recipient of your Litecoin and paste it in the wallet application. You then select how much Litecoin you like to transfer and click on the ‘send’ button. That’s all! As you have found out by now, a wallet application provides you with the necessary tools to easily have complete control over your assets. How cool is that!
How can I securely store my Litecoin?
Never forget that owning cryptocurrency is not a game: it involves real money. Therefore, it is vital that you take proper security measures. Playing the role of your bank entails a lot of responsibility. To help you do this, we have listed a couple of security tips here.
- Always install a good virus scanner on the devices that you use to manage your crypto assets. You don't want malware to cause a security breach and to allow hackers to steal your crypto capital.
- Always store the physical backup of your wallet in a safe location. Are you planning to create a wallet with us? Then we will immediately arrange this for you. The backup allows you to restore your wallet whenever necessary. Always enable the 2FA (Two Factor Authentication) if the wallet-application you use offers this option. This extra security layer makes it much more difficult for malicious users to steal your crypto funds.
- Always ensure that someone you trust has access to your Litecoin-assets. Thinking about your inheritance is never a fun thing to do, but if you do not arrange this in advance, it will be impossible for your next of kin to gain access to your crypto assets.
- Always check whether the addresses provided are correct before you finalise a transaction. Do not type them over; copy them. This prevents you from making typo's and erroneously sending cryptocurrency to the wrong address. Indeed, trading in crypto can be an unrelenting exercise.