How to safely move Litecoin between SegWit P2SH (3) addresses and legacy (L) addresses - #CryptoTrading


Some exchanges don't support LTC withdrawals to P2SH wallets and other don't support legacy addresses. Here's how to convert between them.
P2SH address compatibility     · [technical]  · Author: KarlVonBahnhof

Back in 2017, some time before Bitcoin, Litecoin also upgraded their network to get SegWit support. Segwit, or segregated witness, makes transactions more efficient and cheaper, and also enabled atomic swaps between LTC and BTC.

This newer format is called P2SH (pay-to-script-hash).

Difference between P2SH and Legacy LTC address

  • Nested Segwit LTC address (P2SH): starts with M or more rarely3
  • Legacy LTC address: starts with L

The two Segwit formats (M and 3) are equivalent. Originally, the 3-addresses were implemented for Litecoin’s nested Segwit. This caused issues because Bitcoin also uses an address format that starts with 3. For that reason, with the next network upgrade, the Litecoin P2SH addresses were changed into a format that starts with M.

Hardware wallets and OG wallet apps got upgraded soon after the network upgrade. As a result, you will now often get Segwit-compatible addresses for LTC as the default.

However, for crypto exchanges the situation is different.

  • Some exchanges haven’t upgraded and only allow LTC withdrawals to legacy addresses.
  • Some exchanges (mostly DEX and dApp platforms) on the other hand only allow withdrawal to P2SH addresses because, that’s the only way a contract-based dApp can reach the LTC blockchain.

If you want to learn more about SegWit, head over to the ATNET Glossary.

Here’s just the practical info on how to move litecoins around without losing them.

How to withdraw Litecoin from Exchange to P2SH Address (Hardware wallets)

You will need a P2SH Litecoin address to withdraw LTC from non-custodial exchanges like LocalCryptos.

If you are using a hardware wallet like Ledger or Trezor, your default LTC addresses will be almost definitely P2SH, and they will start with the letter M.

If your exchange gives you an error that says an address starting with M is not a valid LTC address, you will still be able to withdraw into the P2SH address that starts with 3.

Litecoin addresses that start with 3 are equivalent to that starting with M, so the coin will show up in the same wallet, in the same address. Using the 3-address is just like using an alias.

  1. Copy your M-address where you want to receive the LTC
  2. Go to https://litecoin-project.github.io/p2sh-convert/ which is a public converter script recommended by Trezor to use for this purpose.
  3. Send a small amount of LTC to your 3-address and check that the transaction arrived well. There were reports of Uphold.com messing this up and sending bitcoins instead.
  4. If the test transaction went well, withdraw the rest.

How to withdraw Litecoin to a legacy address (Wallet Apps)

In Trezor and Ledger wallets, you can still generate a new legacy account and get an L-address.

Alternatively, you can use the Exodus.io wallet app - Exodus only supports L-addresses for Litecoin.

Once your LTC is transferred and confirmed, hardware wallets will send the LTC from the legacy account into the P2SH account. (This is not automatic, you have to do it manually.)

Wallet apps like Jaxx and Exodus won’t send LTC to a P2SH address, you will need to get an L-address too if you are moving Litecoin from there.



Posted in Technical
Tagged as   

 

Last added to Crypto Airdrops, Bounties & Opportunities
Airdropped Token or Opportunity Airdrop Date About the airdrop Link
Huobi Token campaigns 4 weeks, 1st run started 12 Jan Huobi Token (HT) is a DeFi asset on the Huobi Ecological Chain (HECO). You can get a wallet address to receive the tokens in Huobi exchange. Huobi is giving out rewards for Twitter activity, blogging, YouTube content creation and Telegram activity. Rules on bitcointalk. rules
Bitfresh bounty program Started 10 Jan Bitfresh is giving out token for Twitter follow and retweets. The more followers you have, the more tokens you get. Full rules on bitcointalk. rules
Earn YoBit's YoDefi tokens Live YoBit set up their own defi project for liquidity on the exchange. The exchange pays out 777 YoDefi Tokens proportionally for all users every 10 mins. sign up
QUAI DAO Accelerator Bounty 4 Jan 2021 - 18 Feb 2021 The tokenized DEFI accelerator Quai Dao is running social media bounty. Tokens are distributed via Telegram bot for social media follows. sign up
Psyche.Cash Bounty Campaign Continues Ongoing The DEFI project Psyche.Cash runs a set of social media bounties. You get tokens for follow, comments, content creation or bitcointalk signatures. Sign up via bitcointalk. sign up
CUDOS Ranger Bounty - Callout for participants Dec 2020 The platform cudos.org is looking for ambassadors with social media presence for their new program. Chosen ambassadors will get to create educational content about crypto (defi, trading, mining, dev) and earn between $200-$1000 worth of tokens a month. link to google form
XRP Holders: get Flare airdrop on Bitfinex 12 Dec 2020 Bitfinex will support the distribution of Flare Networks’ upcoming airdrop of Spark (FLR) tokens for XRP holders. sign up
Staking without KYC on WhiteBit New! WhiteBit opened 17 different staking plans with 9 different currencies to choose from. 40% APR, available to the users without KYC. (Be mindful of risks) sign up
Opportunity: DeFi Tokens on reputable exchange with lower fees 14 days after listing The Aussie exchange Independent reserve is listing new DeFi tokens these days. For each of the new markets has the fee reduced to 0.1% for the first 2 weeks. Currently those markets are yearn.finance, Aave and Kyber Network Crystal. sign up
LATOKEN Earn Nov 2020 10+ new Telegram airdrops available on LATOKEN exchange under "Earn" in the top navigation bar. (SAND, UNO, BXT, PZS, L2L, BIOG, DGB, OAP...) If you sign up with the link here you get 50 USD fee credit. sign up
Opportunity: Trade DeFi Tokens with NO FEES 14 days after signup The token exchange WhiteBit gives you 14 days of zero-fee trading if you sign up with a shill link. No KYC until 2 BTC/day withdrawal limit, lots of new DeFi projects get listed there. sign up