It is demonstrated that holograms can be recorded by a two-step process in congruent reduced LiTaO3:Fe by using a continuous wave (cw) laser light intensities. Erasure effects during readout of the hologram with red light are almost five orders of magnitude smaller than erasure effects with the gating light. The dynamic range can be increased by use of a larger writing intensity, and the sensitivity can be optimized in a wide range of the gating intensity.