Step-By-Step Guide To Securing your Litecoin Wallet

Step 1. Ensure your computer is free from malware (viruses, bots, trojans etc.)

  • This step is critical – it helps prevent  someone from trying to steal your private keys and access your coins. Use a program such as Microsoft Security Essentials to scan your whole computer before proceeding.
  • You have to be certain that your computer hasn’t been comprised  before continuing.
  • If you have any doubts and you want a 100% secure environment then follow my Live Linux guide before going to step 2.

Continue reading Step-By-Step Guide To Securing your Litecoin Wallet

Linux Live with Blockchain on different USB, Hard Drive or Location

Many people ask me if they can open their wallet (Litecoin-Qt or Bitcoin-Qt client etc) within Linux Live Ubuntu without having to download the whole blockchain each time. So here is a how-to guide for setting up your wallet in a secure environment without having to wait for the blockchain to download.

First off, if you already have a copy of the blockchain, copy it to a folder called ‘litecoin‘ on a Hard Drive or USB stick. See my guide on how to copy the blockchain  which shows how to do this. Note, it does not have to be up-to-date. If you’re starting from scratch, then you can just create a folder called ‘litecoin‘ on a hard disk or USB storage device.

Continue reading Linux Live with Blockchain on different USB, Hard Drive or Location

What is Litecoin?

Litecoin is an alternative cryptocurrency to Bitcoin and the second largest (by market cap) of all the alt coins . If you’re completely new to the cryptocurrency world then please take a look What is Bitcoin? first.

Bitcoin is open source, which means it can be used and modified by anyone to create other cryptocurrencies. Many other cryptocurrencies have since been launched with Litecoin being one of them.

Litecoin was created by Charles Lee in 2011. Charles describes Litecoin as being “more abundant & lightweight and as the silver to Bitcoin’s gold”. Technically Litecoin is very similar to Bitcoin but has several key differences, see below.

Key Differences Between Litecoin & Bitcoin
Bitcoin Litecoin
Date Created 3-Jan-2009 7-Oct-2011
Created By Satoshi Nakamoto Charles Lee
Coin Cap 21 Million 84 Million
Algorithm SHA-256 Scrypt
Block Time 10 Mins 2.5 Mins
Difficulty Adjustment Every 2016 blocks Every 2016 blocks
Initial Reward 50 BTC 50 LTC
Current Reward 25 BTC 50 LTC
Block Reward Halved Every 210,000 blocks Every 840,000 blocks
Block Explorer blockchain.info block-explorer.com
Transaction Fee 0.0001 BTC 0.02 LTC

Advantages

  • Litecoin can confirm transactions faster than Bitcoin, this makes it attractive to merchants and recipients as there is less time to wait for payments.
  • Litecoin can handle a higher volume of transactions due to the faster block time.
  • Faster block times also reduces the risk of double-spending.
  • Mining is accessible to more people because Litecoin uses a different Proof Of Work hashing algorithm. Bitcoin uses SHA-256 whilst Litecoin uses Scrypt. SHA-256 favours raw processing power, whilst Scrypt favours memory – this basically means that custom made ASIC and FPGA hardware, which is now used for Bitcoin mining, has no advantage for Litecoin mining. This allows mining to be performed with powerful graphic cards rather than super expensive custom made hardware.

Litecoin Wallets

The most common wallet available for Litecoin is Litecoin-Qt. Built for Linux, Windows, and Mac OS X. It is based on Bitcoin’s Bitcoin-Qt wallet.

See my post on Securing your Litecoin wallet – for Litecoin-Qt.

Buying and Selling Litecoin

There are numerous cryptocurrency exchanges where you can purchase Litecoins. I have written a guide explaining how to go about buying Litecoin with one exchange – Please see my post on How to buy Litecoins for more info.

After purchasing Litecoins you can freely move them to your wallet and back and/or to other exchanges to trade them.

 

How Long Do I Have To Keep My Wallet Open After Sending Coins

After sending coins in your Litecoin-Qt client you should leave your client open until there is one confirmation.

When you send coins, your client will send an initial broadcast to peers. If the transaction does not receive a confirmation your client will send subsequent re-broadcasts. The subsequent re-broadcasts will happen within an hour of the initial broadcast and continue indefinitely until the transaction gets a confirmation. Without leaving your client open, these re-broadcasts will not occur.

If other nodes have just started up (e.g. no blockchain yet) or have flushed your transaction due to it not receiving a confirmation after an extended period of time, only the re-broadcast will get the transaction back into that node’s memory pool.

Once a transaction has at least one confirmation though, there is no further need to leave your client open. There are some corner cases where that’s not true (e.g. a block reorg occurs and that transaction confirmation no longer is valid, etc.) but in almost every instance once a transaction has a confirmation it then no longer needs to be re-broadcast.

How To Copy/Transfer The Litecoin Blockchain To Another Computer

You want to have the Litecoin-Qt client on another computer (maybe you’re helping someone out with a slow internet connection) and you don’t want to have to have to wait for the blockchain to download again – that’s OK, you can copy it from one computer to another…

This example is for Windows and assumes that Litecoin-Qt has already been installed.

Step 1. Locate the blockchain folders

  • Go to the following folder:
C:\Users\[YOUR USERNAME]\AppData\Roaming\Litecoin

Step 2. Copy the folders that contain the blockchain

  • Copy the ‘blocks’ and the ‘chainstate’ folders to a portable device (USB stick, DVD, Hard-drive).

blockchain location

Step 3. Update the other computer

  • Connect the portable device to the computer you want to copy the blockchain to.
  • Locate the same folder and copy & paste the the 2 folders in.

That’s it – you can now start Litecoin-Qt.

How To Import Your Private Keys Into Litecoin-Qt

If you don’t have a copy of your wallet.dat file, but you have the private keys, you can follow this guide to get your Litecoins out of your paper/offline wallet and into a new wallet in Litecoin-Qt.

Note: After you do this, your paper/offline wallet will be empty. Any Litecoins you want to keep in a paper/offline must be sent to a different paper/offline address.

Step 1. Sync Litecoin-Qt

  • Open Litecoin-Qt and wait for it to sync with the network (synchronize the blockchain on your computer with the current one on the network).

sync-wallet

Continue reading How To Import Your Private Keys Into Litecoin-Qt

Litecoin Guides