Litecoin is doing well in 2017, coming up from as low as $4 to the current price of around $30. If you have thousands of Litecoin, this could mean profit in the thousands. Now, one of the best things about cyrptocurrencies like Litecoin is that they aren’t regulated, and they are decentralized.
Basically, no one controls it. However, this also has drawbacks in terms of security. Whereas if you had money in a Bank that could be recovered–or insured (technically), if your crypto gets stolen through malware, or a hacker attack, it can be very hard to get it back.
Think of Cryptocurrency more like “digital cash”. In addition, if you somehow “lost” your cash, you couldn’t get it back. If you happen to lose your seedword for your hardware or software wallet, it can also be very difficult to get your Litecoin back.
Sadly enough, I have a recent example from a user on Reddit:
“I made my wallet on liteaddress.org and then imported the keys to Electrum-LTC 220.127.116.11 portable …. The wallet had a password but 4 minutes after I transferred 900 ltc from btc-e into my address it all got transfered outside .. I feel terrible. Here is the address it got transfered to http://explorer.litecoin.net/address/LdUno9iCx1a4DkXFYDCzmshsH6DkbX2o6t
EDIT: the option “use change addresses” is ticked in the settings … but the address it got received is an imported wallet and it got sent to an address not in my wallet … I don’t understand
EDIT2: Confirmed they got stolen as they got washed right away. Sucks pretty bad …”
So you can imagine that if your cash got stolen, it would be hard to get back. This user is out of luck. In this article, I’m going to give you some great tips on how to protect your Litecoin.
How to Protect Litecoin from getting Stolen:
#1 Buy a Hardware Wallet
One of the best ways to protect your Litecoin is to buy a hardware wallet. Sure software wallets are encrypted from the outside out, but if someone gets access to your computer while you are sending cryptocurrency around you could be in trouble.Hardware wallets work by securing the codes to your cryptocurrency on a small isolated computer. The little device has no operating system so it can’t have virus or malware.
You generate a seed code, put it on a piece of paper (not your computer or phone) then you can access your funds everytime you use the device since it generates a way to create a unique password everytime that you use in a certain order (think of three layers of 1-2-3 that you must enter in the same pattern).
Now, not all hardware wallets support Litecoin, but my favorite hardware wallet, the KeepKey, is an excellent choice for Litecoin hardware storage. The reason I prefer it over something like the Ledger Nano S and Trezor is both because of the native Litecoin compatibility, but also because it simply has the best screen. The other devices either feel like toys or hard drives, whereas the KeepKey feels like something worth storing Litecoin on. Additionally, I found it much less buggy than Trezor, and the software to be easier to use.
Check out my KeepKey Review!
#2 Use a VPN
Another good way to secure your Cryptocurrency is to make sure you are encrypting your online data when browsing, torrenting, or just using the internet. This ensures that your online data will remain secure, and a hacker can’t identify your passwords, credit card numbers, or your Bitcoin information. However, keep in mind that if you do download something onto your computer, then your VPN won’t protect you.
#3 Use Windows Defender or/and Malwarebytes
When your VPN fails, you’ll need some good Antivirus and Malware protection. My go-to is Windows Defender since it’s free and works good with viruses, but Malwarebytes has always been my favorite malware blocker. Basically, if you visit a sketchy site, download something bad, or some form of malware attempts to work its way into your computer, it’ll block it and protect you.
#4 Treat your Currency like Cash
One of the best ways to protect your Litecoin or crypto is to use common sense. Think of Crypto like cash. Would you go around in public waving your cash around so people know how much you have? No? Well, don’t do the same thing online! Instead, you’d hide your cash in your wallet, or somewhere safe so it’s protected. Cryptocurrency isn’t any different in that respect.
Some other good tips here are to make sure that you are receiving and sending cryptocurrency by the addresses you actually want to. Sometimes Malwares can change the address in your software wallet to direct your currency from somewhere other than you directed. Hardware wallets are good at preventing this.