Litecoin, since its birth in 2011 has become one of the leading cryptocurrencies in the world. The digital coin uses a blockchain technology to transfer funds without the need for a processing service or a bank.
Back in 2015, you could buy Litecoin for $1.50, but as of now, the price has gone up to $176. These returns can leave you wondering how to buy Litecoin.
Here’s a comprehensive guide on where to buy and how you can buy this altcoin.
What is Litecoin?
Litecoin is Bitcoin’s counterpart, and it’s the silver version while Bitcoin is the gold version of cryptocurrency. The peer-to-peer digital currency allows you to make any transactions with nearly zero payments around the world.
Being completely decentralized and acting as an open source global payment means that you can control your finances in a secure network. Litecoin has a large trade volume, industry support, and liquidity, something that promotes high transaction volume.
Litecoin looks like a must-have investment as some countries have begun using it to reduce money laundering scams.
Is Litecoin a Good Investment?
Litecoin is an excellent investment if you’re looking for an alternative digital currency. Some of the reasons on why you should opt for this crypto include:
Low Transaction Fees and High Transaction Speeds
Litecoin transactions start at $0.23, making it one of the Crypto’s with low transaction fees. Bitcoin transactions cost $2.83. Also, Bitcoin transactions take ten minutes to get a confirmation, while Litecoin has an average speed of two and a half minutes.
Reduced Spam Threats
Bitcoin in 2015 experienced a flood attack where thousands of spam transactions went through the network; this caused the server to break. Litecoin’s focus was to solve Bitcoin’s scalability issues. Charlie Lee, the founder of Litecoin, allowed more transaction to occur at one time without any problems.
High Trading Volume
Litecoin is a favorite choice with most investors because of its top trading volume. What this means you can find buyers to sell to when the need arises.
How to Buy Litecoin
The decision to buy Litecoin depends on certain factors like:
Here’s how these factors determine your purchase.
Buying Litecoin comes with different fees. The miner fee is one of the costs you’ll have to incur even with other altcoins. Also, you’ll need to part with the exchange fee, which is part of the payment required to trade on the exchange’s platform.
Country of Origin
Specific platforms have territorial and regional locks as the payment method depends on country to country partnerships. Developed countries have a comfortable partnership. For example, countries like Canada, Australia, UK, US, EU, and Singapore can easily access Coinbase.
It’s the reason why you’d provide different information if you’re in Germany as opposed to if you were in the US.
You can pay for the Litecoin using credit or debit card, bank transfer platforms, cash, or via PayPal.
Coinbase enables you to buy Litecoin using a credit card. Also, BitPanda and CoinMama accept credit card as a payment method.
You can buy Litecoin through bank transfer when using Coinbase and BitPanda. Transfers on Coinbase take up to three days in the EU and up to seven working days in the United States. However, BitPanda only allows EU bank transfers.
Another convenient way to buy Litecoin is through a multi-crypto ATM system which allows for Litecoin cash purchases. CoinFlip provides cash out function for LTC, and this enables you to sell your Litecoin for cash. However, this option is only available in the US.
Crptex24 is another platform that accepts PayPal exchanges. Pick the currency and enter the amount need for the transfer. Click exchange now to transfer the money. You’ll have the Litecoin within three hours after the transaction’s approval.
What’s more, you can buy Litecoin with crypto. For example, if you have Bitcoin in your wallet, you can exchange it with Litecoin or any other digital coin like Ethereum. Binance is a favorite trading exchange due to its low fees.
Step by Step Guide on How to Buy Litecoin
Here’s a detailed guide on how to buy Litecoin.
Choose and Open a Wallet
You need to have a wallet where you’ll store the Litecoins. A few big wallets include LiteVault, Jaxx, Trezor, and Ledger nano S.
A Ledger Nano S wallet is a hardware wallet that acts like a flash drive with a screen. It has a key ring, keychain, a micro-USB cable, and a recovery sheet all meant to make it a safe cryptocurrency wallet.
The two physical buttons help to verify a payment, which reduces any chances of hacking. LiteVault comes with in-browser cryptography that works like blockchain. You can access this wallet via mobile, tablet, and PC devices.
Trezor has quality security features and simple to navigate the screen. The company has also include Segwit on Litecoin. You can connect this device to a PC through a USB cable.
Jaxx is a multi-coin wallet which features embedded shapeshift, multi-coin functionality, and cross-platform pairing. The wallet stores private keys on the device to secure your funds. Nonetheless, some users find it slow and buggy.
Find a Litecoin Exchange
You need to find an exchange for you to buy Litecoin. Some exchanges allow you to buy Bitcoin and trade them with other cryptocurrencies.
Binance is one of the new exchanges famous for its low trading fees and fantastic coin offerings. The company charges a $0.1% rate on each trade for a service that doesn’t use a fee schedule. Also, if you decide to use BNB as a payment, you get a 50% discount on the trading fee.
You can find both basic and advanced trading options with Binance, with the advanced allowing you to conduct a detailed technical analysis. The only downside is the complex trading options which are not ideal for beginners.
BitPanda has over four years in the market. The platform enables you to buy cryptocurrencies through SEPA transfer, Skrill account, credit card, or SOFORT. Another win for this exchange is the easy to follow user interface suitable for both amateurs and pro traders.
OKEX is a Chinese-based exchange platform with over five years in the market. You can access spot trading of digital and flat currencies anywhere in the world. The platform has a responsive interface for instant trades. Moreover, you can access the site through mobile devices and your PC.
Deposits and digital currency withdrawals do not incur any fee. Nevertheless, each transaction requires a $0.2% fee for the makers and takers.
CoinMama supports Western Union, MoneyGram, and credit/debit cards. This makes the platform accessible to more people around the world.
Nonetheless, CoinMama doesn’t allow you to buy Litecoin. You’ll have to purchase another crypto and transfer it to a trading exchange for you to buy Litecoin.
The process of buying Litecoin starts after getting an exchange. For this example, we’ll use Coinbase as it’s user-friendly.
Start by creating a Coinbase account by downloading the app or by signing up on your PC. Connect the credit card or bank account to the Coinbase account. Verify the cards or bank accounts by following the directions. The next step is to buy Litecoin.
When using the Coinbase app, you’ll have to scroll down to get to the homepage. Click on the graph where you’ll see two blue buttons. Tap on the click to buy button. Add a payment format and the amount you’d like to spend. You can now buy Litecoin.
If you decide to buy Litecoin with Bitcoin, you require a Coinbase account with Bitcoins. However, you’ll have to create a Binance account. Binance uses the two-factor authentication which means extra security.
After creating an account and logging in, scroll to the fund’s buttons at the top of the page and click on deposit withdrawals from the drop-down menu. Go to Bitcoin and select deposit to reveal the Binance wallet address.
Copy this address. Go back and log into your Coinbase account, go to BTC wallet and click send. Here you’ll find a recipient box, where you’ll paste the Binance wallet address. Indicate how much bitcoin you wish to transfer and send.
On Binance, ensure that the Bitcoin has been transferred. Navigate through the exchange section and click basic for simplicity. Search for Litecoin and state that you’ll pay with Bitcoins. Denote the amount of BTC you want to transfer into Litecoin. Confirm the information and click on transfer.
Transfer Litecoin to Your Wallet
After settling on an exchange that meets your needs. It’s time to open an account and buy the Litecoins. The next step is to withdraw the digital coins from the exchange to the wallet.
Litecoin continues to reach new highs since its inception in 2011. The cryptocurrency was to help address Bitcoin flaws, and its fast transactions and simpler algorithm make it easy to transact with when making digital purchases. Follow the above steps to learn how to buy Litecoin and easily transact online.