How To Buy Litecoin | Top LTC Exchanges & Brokers

Litecoin (LTC) is one of the oldest cryptocurrencies in the market as it was launched back in 2011. Given its long history, it has a huge community of supporters spread across the globe.

In this guide, we cover how to buy, sell and trade LTC along with some other important considerations such as how to store the assets and secure your accounts. Read on to find out more.

Best Platforms to Buy Litecoin in 2022

There are many different ways to buy Litecoin online and finding the right platform can be time-consuming.  We’ve made this process easy for you by listing the top providers below to get you started right away:

Key Takeaways

• Best platform: eToro
• Top payment method: credit/debit card, bank transfer
• Security measures: activate 2-factor authentication, never reuse passwords and store coins in a private wallet
• Do not invest money you cannot afford to lose

What Is the Difference Between Owning Litecoin VS a Derivative Product?

There are differences between owning a digital asset and trading it using a derivative product and these will be outlined below:

Owning: When you buy Litecoin on a cryptocurrency exchange through spot markets, you own the LTC tokens outright. This means that you can withdraw them into a private wallet and do with them as you wish, including spending them where they are accepted.

Derivative products: Derivative products can be found on both exchanges and brokerages and they allow users to speculate on price without owning the underlying asset. For some people, this is a preferred method as it means they do not have to deal with the technicalities associated with cryptocurrency storage and security.

Different Ways To Buy Litecoin

• Cryptocurrency brokerages – eToro
• Cryptocurrency exchanges – Binance or Coinbase
• Peer-to-peer (P2P) marketplaces – Paxful

How To Buy Litecoin Online?

Buying cryptocurrencies such as Litecoin is easier than ever before nowadays. The steps required are similar for most platforms. Here’s how it’s done on eToro for example:

1. Go to the official eToro website and create an account
2. Verify your details by providing ID and filling out any KYC/AML requirements
3. Add your preferred payment method such as credit/debit card or bank transfer and deposit some money into your account
4. Locate the Litecoin markets using the search bar at the top of the page
5. Enter the number of coins you would like to purchase and confirm the transaction
6. The assets should appear in your account balance shortly after

How To Trade Litecoin?

Trading can be done on both exchange and brokerage platforms. For newcomers, brokerages are perhaps easier ―because you don’t have to set up wallets or keep private keys safe. Follow the steps below to get started:

1. Go to a brokerage website (such as eToro.com) and sign up for an account.
2. Verify your identity by providing ID along with any KYC requirements.
3. Add your preferred payment method, popular ones include credit/debit card or bank transfer.
4. Locate the Litecoin market using the search bar, e.g. ‘Litecoin’ or ‘LTC’
5. Click trade and enter the number of coins you would like to purchase and confirm the transaction.
6. When the price reaches a point you are happy with, return to the same page and close out your position. 
7. Your fiat currency funds such as USD or GBP will appear in your account balance shortly after along with any profits you may have made.

Crypto Investment Strategy

There are typically two different types of investment strategies; long or short holds. 

• Short-term strategies involve buying a coin and selling it for quick profits as soon as the price goes up. 

• Long-term investment strategies or “HODLing” (Holding on for Dear Life) means deciding to invest in a coin and holding regardless of short term price fluctuations. History has shown this to be perhaps the most profitable strategy since crypto markets have grown consistently over the years. Point to note that past performance is no guaranteed indicator of future performance.  

How To Store Litecoin?

You can store Litecoin in a cryptocurrency wallet which comes in two forms; hot and cold. 

• Hot wallet: these are free applications that you can download on your PC or phone and they allow users to store and manage their digital assets all in one place. Popular wallets include: Trust Wallet and Coinbase Wallet.

• Cold wallet: Cold wallets are considered to be even safer than hot wallets due to the fact that they are not connected to the internet. For example, a cold wallet could be a piece of paper that contains the private keys to your wallet. Alternatively, it can be a small flash-drive shaped device that requires users to physically approve transactions by pressing buttons on the device. This is safer than hot wallets as those are controlled through software― where if someone gains access to your PC/phone then you may lose your funds. Popular hardware wallets include: Ledger and Trezor.

If you have an amount of money that is substantial to you, then it is definitely worth investing in a hardware wallet.

Note: only buy wallets from an official vendor as they could otherwise be compromised.

What Are the Different Ways To Pay For Litecoin?

There are many ways to pay for cryptocurrencies including Litecoin. The most popular ones have been outlined below:

• Credit / Debit card
• Bank transfer
• PayPal

Credit / Debit Cards

Pros

• Easy to set up
• Widely accepted

Cons

• You need to share your card details online
• Some platforms will charge you fees for deposits and withdrawals

Bank Transfer

Pros

• Quick processing time
• Once set up, subsequent deposits and withdrawals are fast
• Widely accepted

Cons

• You need to share your card details online

PayPal

Pros

• Easy to set up if you have an existing account
• Fast deposits and withdrawals

Cons

• Not as widely accepted as other payment methods
• Some platforms may charge extra fees for this option

What To Consider When Buying Litecoin?

When buying Litecoin, there are several factors to keep in mind. These have been outlined for you below:

Volatility: Cryptocurrencies are volatile assets and Litecoin is no different. When buying and trading, remember that the price of LTC can fluctuate significantly in a short period of time.

Fees: Different platforms will charge different fees for their services. It’s worth doing your research to ensure you get the best rates. Fees can include transfer, withdrawal and even deposit fees among others.

Regulations and Taxes: The regulations of your country will affect how accessible crypto assets are to you, how these platforms are regulated and the level of protection you have as a trader. Always stick to regulated platforms where possible. Proceeds from cryptocurrencies are often taxed and in some countries, these can be unfavorable. 

Availability: Before registering with a crypto platform, it’s important to check whether the coin you want is supported. Since Litecoin is a well-known crypto asset, this shouldn’t be an issue.

Long vs Short Term holding: Before investing any money, you should have an investment strategy in mind. This can help you to take timely profits and be better prepared in case the market goes against you.

Is It Safe To Buy Litecoin Online?

One of the best ways to protect your funds is by sticking to regulated platforms such as eToro. 

To further secure your account, we highly recommend activating 2-factor authentication which adds an extra layer of protection. Once this is turned on, you will need to enter a code along with your password when signing in. This code is either sent to you via text, or it appears in an authenticator app that you can download for free on your phone. This means that even if an online attacker was to gain access to your password, they would still be unable to log in since they do not have access to the other code.

It is perhaps also a good idea to not reuse the same passwords from other accounts and consider purchasing a hardware wallet as outlined in a previous section.

How To Sell Litecoin?

Selling your Litecoin is perhaps just as easy as buying the assets in the first place. In most cases, selling your coins on the same platform you bought them from will be the most convenient option. Here’s how it’s done on eToro:

1. Go to the eToro homepage and log in.
2. Click on ‘Portfolio’ 
3. Here, you will see your open positions including the one for Litecoin
4. On the far right, you should see a small red cross, click that and press ‘close trade’
5. Your fiat currency funds should appear back in your account balance shortly after

Is It Worth Buying Litecoin Right Now?

Litecoin has a huge community behind it and has managed to remain relevant for many years now. However, in 2021, it seems to have underperformed a lot of other coins, causing it to drop in market capitalization,

Other projects offer faster and cheaper transactions and much more functionality.

If Litecoin is unable to keep up with this innovation in the crypto space, then it is likely to continue to underperform against other projects.

Remember that the cryptocurrency markets are highly volatile and investing in any crypto, including Litecoin, carries risk. 

Final Thoughts

The best way to invest in Litecoin as a newcomer is using a brokerage platform such as eToro. Here, you have access to a number of different tools that can help you make more informed decisions and you do not have to worry about dealing with the technical side of cryptos such as setting up wallets and keeping private keys safe.

You can pay for your coins using a credit, debit card or a bank transfer― whichever is easiest for you.

Once your account is set up, we highly recommend activating 2-factor authentication and not reusing the same passwords.
Remember: The number one rule is to only invest with money you can afford to lose.

FAQs

Can I buy Litecoin in the US?

This depends on the platform you choose. Ensure that you stick with regulated exchanges that are legal in your jurisdiction.

Is there a limit to how much Litecoin I can buy?

Different platforms will have different buying limits. It is worth checking the terms and conditions before signing up.

Can I buy Litecoin without an ID?

No, your ID is required during the registration process on most regulated platforms.

Can I buy Litecoin instantly?

Once your payment details have been added, you can make quick and easy deposits and withdrawals.

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