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LitecoinVault – Online Litecoin Wallet – Review

LitecoinVault – Online Litecoin Wallet – Review

LitecoinVault is an online Litecoin wallet. We usually suggest avoiding online wallets all together for any large storage of funds, but for small daily change they don’t hurt. First off this site works similar to blockchain.info, generating the wallet on your machine and sending an encrypted copy to their server, encrypted/decrypted client side with your passphrase and it can use 2FA.

As an online wallet it is simple to use and does not require storage of the Litecoin Blockchain.

As private keys are used by your system a compromised system could easily result in theft from this wallet as the wallet allows exporting private keys as an unencrypted JSON file and allows you to view private keys. If your password is weak this is another vector.

The wallet allows 2FA to be used and it should ALWAYS be used without question, but keep multiple copies of your authentication key incase you loose access to your phone, or have an email address registered as they can recover your 2FA that way. Be warned though if your forget your passphrase your wallet is gone as are the coins in it.

However, with the way this works the provider cannot run off with your funds as the private keys are not sent to their server unencrypted (although in practice any provider could change the code to make it act differently if you were not looking for it).

If used on a secure system that is not compromised, for daily change this wallet is an easy to use wallet. It also allows you to sign a message from your addresses, something not all online wallets do.

The interface is relatively simple to use, and it is as secure as most non-multisig desktop wallets although if they go bust and you do not have a backup of your private keys, the wallet is lost. As the private key backup option does not allow the option to download an encrypted copy, if your machine is not secure or you are on a public machine this could be a risk.

As we often say, hardware wallets are recommended for storage of large amounts of funds, or Multisig wallets used correctly. This is safer than most online wallets of it’s kind however so if you really must use online wallets use this one.

All in all, it is as good as blockchain.info for wallet services, as we always say though do not use an online wallet for more than daily change.