I am new to the world of cryptocurrency and have recently started exploring Litecoin. I have been doing my homework and have come across a lot of information on the importance of securing my digital assets, especially with the increasing number of cyber threats out there. Although; the more I read; the more questions I have, and I figured there would be no better place to seek advice than from experienced members of the Litecoin community.
What are the best practices for securing a Litecoin wallet? I have read about hardware wallets; software wallets; and paper wallets; but I am unsure which one offers the best balance of security and convenience. Are hardware wallets truly the safest option?
What are your recommendations for backing up wallet information? I have seen suggestions for creating multiple copies of seed phrases; but I am concerned about how to store these securely. Is a safety deposit box overkill; or is it worth the peace of mind?
Are there common mistakes or pitfalls that new Litecoin users often fall into? For example; I have heard about phishing attacks and fake wallet apps how can I best protect myself from these threats?
Finally; what are the best resources for staying updated on security practices and general news within the Litecoin community?
Thank you in advance for your help and assistance.
In my opinion there are three general tips which helped me above all.
Create a new email address for crypto and then use aliases (plenty of free websites for this). Never use an email address linked to your social media for crypto.
Always use an antivirus with realtime antispyware on a computer or phone with a crypto wallet.
Write down your seed phrase, but only write the first letter of two of the words - whichever words are easiest for you to remember.
As for a safety deposit box, if it gives you peace of mind, sure, but I think just hiding it in your own storage unit (you can hire tiny spaces) would be better. Make sure you have a backup plan in that case for access, i.e. make sure you are not the only one who can access it. You never know… your measly 3 litecoin might be worth $3,000,000 in twenty years!
Hardware Wallets don’t give you the perfect protection, because if their desktop software is compromised or if they themselves want, a new firmware update for a HW could seem like it’s sending coins to one address, when in reality it’s going somewhere else.
Though that being said, as long as you have trust in Ledger, Trezor, BiBox etc, it should be okay.
Although for better security, for example if you store tens of millions in Litecoin, you should have HW wallets from multiple different vendors, and set up a multisig wallet in Electrum-LTC, using each HW as a signer. This way, multiple HW vendors would have to collude or get hacked at the same time.