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
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
||Every 2016 blocks
||Every 2016 blocks
|Block Reward Halved
||Every 210,000 blocks
||Every 840,000 blocks
- 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.
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.
A well presented infographic showing the breakdown of LTC pools… Litecoin mining pools: who’s who? [infographic] | BitCoin Examiner.
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.
A great site showing The History of Bitcoin.
In a previous post we discussed how to secure your wallet by taking it offline (cold storage & paper wallet), but how do we send / spend our Litecoins without compromising our wallet.dat file? This tutorial will show you the steps…
Step 1. Download the Litecoin-Qt (wallet) for Linux
Continue reading How To Use Your Wallet & Send / Spend Litecoins Securely
Follow this guide to run a Linux Live operating system on your computer. For this guide we will using Ubuntu.
Step 1. Download the Ubuntu iso file
- Download Ubuntu onto your computer.
Continue reading Run Linux Live – Ubuntu
**UPDATE Jul 2017 – NOTE: BTC-e is no longer trading, it was shut down in July 2017.**
There are numerous cryptocurrency exchanges where you can purchase Litecoins, but this guide will focus on the BTC-e exchange, as at the time of writing it has the best LTC/USD currency pair rate and the highest LTC/USD trading volume.
Note: BTC-e are currently not accepting international money wire transfers from US bank accounts or US citizens, you can however use other payment methods, such as OKPay.
Step 1. Open a BTC-e account
- Go to btc-e.com and click Sign Up.
- You’ll need to supply your email, a username and a password (choose a password you don’t use anywhere else).
Step 2. Secure your account with two-factor authentication
- Install and open the Google Authenticator application on your mobile device (phone, tablet).
- Go to Finances > Security in BTC-e.
- Click the ‘Create a Key‘ button.
- Take a screenshot and/or print the QR code, Private key and Base32 Private key (this will ensure you can use them again, should you need to install the Authenticator on a different device).
- Using the Google Authenticator go to Add Entry > Scan Barcode and scan the QR code. When successful, you will see a number that changes every 30 seconds – this is your one-time password.
- Enter the one-time password into BTC-e.
- Tick all 3 boxes to apply the two-factor authentication to Login, Withdrawal and Security settings and save the settings.
- Important, save the screenshot file offline (USB stick) and delete it from your computer.
Step 3. Send funds to your exchange account
- From the Finances section, go to USD, Deposit.
- Choose a payment method and follow the instructions carefully.
- If you’re going to send cash via ‘International Wire Transfer, ensure your bank does not truncate any of the information. The ‘Details of Payment’ is your unique reference and must be sent complete.
Step 4. Trade (buy some Litecoins)
Once your funds are showing in your account (can take up to 10 days depending on the deposit method), you can place a buy order…
Step 5. Remove the money hold (optional)
To prevent fraud, BTC-e will normally place a withdraw hold on your account (prevents you from making a withdrawal within a certain time frame after the deposit). The amount of time the money hold is in place depends on the deposit method used. Follow the guide below to remove the money hold.
- Complete the form and attach the following:
- Photo ID; and
- Utility bill
Note, they only accept scans, not photos. Make sure the name on the documents matches the bank account holder name.