One of the most important powers of any cryptocurrency is the ability to let any individual manage a balance.
How is that done? Easy! It has a few names. If you hear the words seed, private key, mnemonic phrase. It is normally in the form of 12 words. (These are the 12 words shown when you see Create Wallet in Litewallet). It could also be in the form of a QR code.
So, the name wallet is probably not the best name. But, encrypted seed is confusing for non technical people.
Having this seed is the way you control your Litecoin. If you give this information to anyone else, assume they can take it from you.
Most, wallets do more than just encrypt the seed. And, so Litewallet looks like it holds Litecoin. But, it doesn't. It is more like a digital check register. It doesn't hold any Litecoin, but it does track your past transactions. This is a nice convenience. But if you lose you mobile phone with Litewallet, that doesn't mean you lost your Litecoin. The power is in the seed.
"Not your keys, not your crypto"
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