Where Can You Store Your Litecoin (LTC)?

If you are looking to invest in Litecoin (LTC) – the digital currency that operates on a peer-to-peer basis and makes possible lightning-fast currency exchanges and payments all over the world – you need to make some considerations about the storage.

Unless you want to invest in the cryptocurrency via a CFD ( contract for difference)​, you must carefully consider the place where you’ll store the asset. This is vital, as the cryptocurrency segment is filled with numerous stories of hacks.

Trading Litecoin​ via CFD

CFDs are a popular means that allow users to speculate on an asset’s price without having to own it. They are incredibly common in other markets, including gold, stocks, options, futures, and oil.

Here are some aspects of CFDs:

  • CFDs make it extremely easy to speculate on the price of Litecoin
  • CFD brokers are greatly regulated, so you’ll benefit from multiple investor safeguards
  • Some CFD brokers offer 0 percent commission and fee-free trading on Litecoin investments
  • Sell your Litecoin to fiat currency with a simple click – no need to transfer the asset from an external wallet

Unlike a traditional bank account, nobody can help you in case your Litecoin is stolen, so choosing the right wallet for your needs is crucial. As such, we’re discussing the four main types of wallets below, each of which comes with its advantages and disadvantages.

Web Wallet

When you first purchase Litecoin​ from a third-party cryptocurrency exchange, your asset will be deposited into the platform’s web wallet. This means you can access your coins by logging into your account through a regular web browser. As handy as this might sound, web wallets are extremely vulnerable to attacks.

Especially if the exchange gets hacked – which is a more common issue than you think – the hacker might be able to get all your Litecoin​. If they do, and the exchange doesn’t have the resources to cover the theft, you will lose all your funds.

Mobile Wallet

In comparison to web wallets, mobile wallets provide users with much more in the security division. After you download and install the wallet to your phone, you will need to withdraw your coins from the exchange and store it in the mobile wallet. This will allow you to transfer assets at the click of a button.​

A mobile wallet will also enable you to use the QR code function, making it easier for you as you won’t need to enter wallet addresses by hand when transferring funds. When it comes to security, you will have the phone’s screen lock PIN and the password you create on the mobile wallet itself.

Desktop Wallet

As the name implies, a desktop wallet enables users to store their Litecoin​ on a desktop or laptop device. Desktop wallets are a bit more secure than mobile wallets, as they offer a range of additional security safeguards. This includes the possibility of using a 2FA, which means you’ll need to confirm a code that is sent to your smartphone before you can access the wallet.

You can also set up the desktop wallet to block withdrawals without first passing the 2FA process – this means that unless the hacker has access to both your PC device and phone, your funds are safe.

Hardware Wallet

While desktop and mobile wallets offer multiple security features to keep your coins safe, nothing compares to a hardware wallet. The hardware wallet is never linked to any servers, which makes a remote hack impossible. Moreover, to transfer funds out of the wallet, you will be asked to enter your secret PIN.

Therefore, even if the device gets lost or stolen, your funds would still be safe, as you can access it remotely with your secret PIN. Even though such hardware is around $100, it is well worth the investment.

The Bottom Line

Before you even buy Litecoin​, you should consider where you should store it. The options we discussed should help you understand how this works and choose the best storage method for you.

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