If you’re looking to trade some Litecoins without any hassle, the first thing you need is a Litecoin wallet. This is mainly because Litecoins are stored in a wallet. It is from here, that you are able to send and receive your coins. Creating a Litecoin wallet is simple and does not cost you any additional money. In this article, we will look into the Litecoin wallet, how to create your Litecoin wallet, and also how to send and receive tokens through this wallet.
What’s so special about the Litecoin?
Litecoin is a cryptocurrency that was derived from the Bitcoin blockchain in 2011. It was first introduced with the aim of providing decentralization in mining so that large-scale miners wouldn’t have absolute control over the mining process. The features of Litecoin are quite similar to that of BTC but the algorithms employed by the coins are completely different.
The current aim of Litecoin is to become a key player in the day-to-day transaction. The coin is currently ranked $4 based on its overall market capitalization, which stands at 9.83 billion. Litecoin uses a script hashing algorithm, which uses a mathematical function that converts data into a fixed-length hash value. Also, the LTC chain has the capability to verify and check over 50 transactions per second.
How to know which wallet to choose?
Choosing a wallet to store your coin is one of the most crucial steps. If you want to purchase LTC and hold it for the long haul, then a hardware wallet is one of the most convenient and suitable options. But when the situation arises where you have to check up your wallet on a daily basis, then having a hardware wallet can be a nuisance.
However, if you’re someone who frequently forgets or misplaces your things, then the hardware wallet is not for you. In such cases, it would be better if you make use of a software wallet or other web wallet like a mobile wallet or desktop wallet.
How to set up your Litecoin wallet?
If you’re wondering how to set up your Litecoin wallet, we got you covered. Here’s a step-by-step guide on how to create and set up your wallet for storing Litecoins.
- Step 1: Choose a wallet based on your needs. You can either choose one of the following: Mobile wallet, software wallet, or hardware wallet. Before choosing, you should carefully go through the above section.
- Step 2: Download or purchase the wallet you chose. If it is a software wallet, you can simply download it from its official website or other credible sites. However, if the wallet you choose is a hardware one, you can purchase it from an official retailer.
- Step 3: After downloading, launch the application and set up your account. For the software wallet, this mostly includes providing an email address and an associated password. As for the hardware wallet, you will need to create a PIN code during its setup.
- Step 4: The next step is to secure your wallet by adding 2-factor authentication or by creating a strong unique password. You will also need to store the seed phrase you received during the setup in case of any recovery procedure.
- Step 5: Now for the final phase, locate your Litecoin wallet address, which is typically found in the “Recieve” section. This is very similar to your bank account number. And to add LTC to this wallet, you can simply purchase it from an exchange or through P2P trading.
Now, the Litecoin wallet is successfully set and you’re all ready to send and receive your token.
How to send & receive Litecoins?
When buying and receiving LTC, you use the receiving address, which is the address of your wallet. When using this, ensure that you provide the correct address because if by any chance you provide the wrong address, the coins will be transferred to a different wallet. During a Litecoin transaction, make sure that the receiving address starts with an L or M, as they are always the starting letter of a Litecoin receiving address.
To receive Litecoin, copy your wallet address and paste it on a sell order form. If you’re planning on sending your coins, that too is very easy. You just need to click on the send button, enter the recipient’s wallet address, specify how many coins you want to send, and then confirm the order.
