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Software wallets are installed on your computer or mobile phone. They’re an easy way to store your Litecoin, but we recommend limiting the amount of Litecoin you store on Software Wallets. For more secure, offline solutions, please look at Hardware wallets, or learn more about “cold storage” solutions.
Hardware wallets are specialized devices designed to store cryptocurrency. These wallets are favored for storing larger amounts of Litecoin with optimal security, as they’re offline. Hardware wallets individually handle public addresses and keys. It looks like a USB with OLED screen and side buttons
Internet connectivity defines a wallet in terms of hot or cold. Hot wallets are connected to the Internet and thus are less secure and pose more risks but are user friendly.
Cold wallets, on the other hand, are stored offline and don’t require internet connectivity. Thus, improved security and less risk. Hot wallets are more likely to be used for daily transactions and cold wallets for more long-term holdings.