Litecoin is one of many popular cryptocurrencies available, though not as widely publicized as Ethereum and Bitcoin. However, it is still widely sought after by traders and investors. This article will look at the different ways you can buy Litecoin and the factors involved in the buying process. We’ll also show the top ways to store and sell your Litecoin. In addition, we’ll discuss if now is the right time to invest in Litecoin, especially if you are just starting out.
What Is the Difference Between Buying and Trading Litecoin?
There are a couple of differences between buying and trading Litecoin. These include:
- When you buy Litecoin, you will own the coins themselves. You can either keep these coins in your exchange wallet or move them into your personal wallet if you intend to hold them for a while.
- In addition, when you own Litecoin, you can go out and spend it wherever cryptocurrencies are accepted as money. Also, you can exchange your Litecoin for other types of cryptocurrencies like Ethereum or Bitcoin or convert it to fiat currency.
- However, when you trade Litecoin, you do not own the coins themselves. Instead, you buy a contract pertaining to their value. When trading crypto, you are betting on the rise and fall of their price in an effort to profit from market fluctuations in the future.
- Because you do not own your Litecoin funds when you trade, you do not have to worry about keeping them secure in a personal wallet.
How To Buy Litecoin Online?
If you are interested in buying Litecoin online, follow these general steps:
Find an Exchange
There are plenty of exchanges online where you can buy Litecoin and other forms of crypto. However, each of these services comes with its own benefits and drawbacks. Therefore, we recommend comparing these platforms until you find one that feels right for you. For example, many beginners choose Coinbase because it is very easy to use, despite having higher fees than many other exchanges. Alternatively, services like Kraken and eToro are favored for relatively low fees and additional tools for more experienced traders and investors.
Register Your Account and Deposit Funds
Once you have found an exchange or broker that suits you, it is time to create an account. While the exact steps will change depending on your specific platform, you usually need to provide a photo ID, an email, proof of address, and phone number to prove your identity. Once you have signed up for this service, you can deposit funds into your account. Most exchanges will accept various payment methods, the most common of which will be debit cards and bank transfers. However, some services only accept crypto-to-crypto purchases— this is useful if you are looking to buy Litecoin with something like Bitcoin or Ethereum.
Once you have added funds into your exchange account, look for Litecoin on the currencies list. Next, select the relevant trading pair depending on what you’ll be using to buy the cryptocurrency (LTC/AUD, LTC/BTC, etc.), then complete your purchase.
Get a Secure Wallet
Most exchanges and other platforms will have an account wallet where you can hold your Litecoin funds. However, you may want to consider getting your own wallet, especially if you want to hold these funds for a while. While exchange wallets are good if you are going to sell your Litecoin in the near future, they are not as secure as personal wallets. Therefore, we recommend a hardware wallet as it can be kept offline for additional security.
How To Trade Litecoin?
If you are thinking about trading Litecoin rather than buying the coins themselves, you’ll have to do the following:
Find a Broker
Before you can begin trading Litecoin, it’s a good idea to compare the top brokers and choose one that’ll benefit you the most. The best brokers will usually let you trade quickly, offer numerous payment options, let you trade the assets you are interested in, and also have a user-friendly interface.
You’ll then have to deposit funds into your broker account to make trades. Most brokers will only take fiat currency (AUD, USD, GBP, etc.), and you should also consider any deposit fees you may have to pay. You can check these fees before you sign up, and they should inform your decision regarding which broker you choose. Ideally, your broker will offer competitive fees that help you save money.
Decide How You’d Like To Trade
When it comes to trading, you have two options: spread betting and CFD trading. Both methods involve trading your cryptocurrency based on market value and speculating whether it will rise or fall. Many guides will walk you through the advantages and disadvantages of both trading types.
If this is your first time trading Litecoin, we suggest using your broker’s demo feature before you trade with any real funds. This is a good way to try out various trading techniques and develop your own system for trading Litecoin. You can also use the demo to try out leveraged trading, although we do not recommend trading with leverage unless you are an experienced trader.
What Are the Different Ways To Pay for Litecoin?
There are numerous ways to pay for Litecoin:
- PayPal: If your broker or exchange allows it, you can deposit and withdraw funds from your account via PayPal. In recent times, PayPal has expanded its platform to let you buy, sell, and store different cryptocurrencies, including Litecoin.
- Credit/Debit Card: Debit and credit cards are widely accepted methods to purchase Litecoin, which are accepted by the majority of exchanges and brokers. You can link your card to your account to deposit funds or use your card to purchase funds directly.
- Bank Transfer: Bank transfers are an easy way to purchase Litecoin on an exchange. You can send funds via wire transfer to your Litecoin account, which will be processed in seconds, making this one of the most stress-free ways to purchase crypto.
- Crypto Coins: If your exchange allows, you’ll be able to use other cryptocurrencies like Bitcoin and Ethereum to purchase Litecoin.
- ATM: If there are any Litecoin ATMs in your area, you’ll be able to use cash or card to purchase Litecoin on them. You can also use these ATMs to sell Litecoin funds and convert them to fiat currency.
What To Consider When Buying Litecoin?
There are key considerations when buying cryptocurrencies like Litecoin:
- Deposit Fees: Every exchange and broker will have its own rules on deposits. Most will have some sort of fee. You can compare these fees to help find a platform that suits you. In addition, your payment method may come with its own fees as well, such as PayPal. Also, trading robots such as Bitcoin Prime, Bitcoin Code and Bitcoin Billionaire usually have a minimum deposit of $250 to start trading Litecoin.
- Trading Fees: Most cryptocurrency services will have service and trading fees. For example, exchanges usually have a markup on their set price to cover the cost of their services. Make sure you check these trading fees before signing up for an account.
- Volatility: As you may already know, the crypto market is highly volatile. As such, you can expect Litecoin’s value to rise and fall on a regular basis. You can use this to your advantage. For example, if you buy when the price dips, you may be able to save some money on Litecoin and sell it for a profit further down the line. However, you need to remember that you can easily lose money if you are not careful. Research buying and trading strategies before jumping into the Litecoin market.
- Regulations: We recommend checking that your exchange or broker is regulated by the local governing body before you create an account on their service. Regulated platforms have to follow protocols (such as checking and verifying your identity when you sign up) to ensure your safety and guarantee their service is fair and above-board.
- Long-term holding: You may be considering a long-term holding strategy where you keep your Litecoin funds for at least a year.
- Short-term holding: Conversely, short-holding is the practice of buying Litecoin and selling them soon after to take advantage of the market’s volatility and turn a profit.
Is It Safe To Buy Litecoin Online?
If you take some measures, purchasing Litecoin can be safe.
For example, you should only purchase Litecoin on regulated services as they are more likely to be above-board.
Secondly, you need to remember that crypto transactions are irreversible. If you make a mistake inputting your wallet address, you will lose your funds forever. As such, you should store your wallet details on a separate document and copy them over when performing transactions. In addition, you should double-check your information before finalizing the order.
We also recommend that you keep large amounts of Litecoin in your personal wallet. If the exchange is compromised or hacked, you can lose any funds in your exchange wallet and have no way of getting them back. A personal wallet keeps your money secure, especially if you intend to hold them for a long while.
How To Store Litecoin?
The safest way to store Litecoin is in a personal wallet. This can be an app, online service, or hardware wallet that can be unplugged and kept offline. However, if you want to buy Litecoin and sell it soon after, you can get away with keeping your funds in your exchange account.
How To Sell Litecoin?
If you want to sell your Litecoin funds, you can do so via the same service you purchased them. However, there are numerous selling methods available to you:
- P2P marketplaces
- Crypto ATMs
- Sell for cash
Is It Worth Buying Litecoin Right Now?
This depends on your reason for buying Litecoin in the first place. If you would like to spend Litecoin and use it like any other currency, you can buy it whenever you like. However, if you want to implement a short-term holding strategy to earn a profit, you should wait until the value drops. You may not want to buy at all if you are interested in day trading, as CFD trading will be a better course of action. You should keep an eye on the latest crypto news and research and decide for yourself when you want to purchase Litecoin.
There are lots of ways to buy Litecoin and plenty of things to keep in mind before you choose a platform. While exchanges are excellent ways to buy coins quickly, they can be difficult to understand if you are new to cryptocurrencies, so you may want to stick with a good beginner service like Coinbase until you are more confident and knowledgeable. In addition, we recommend researching buying and trading techniques to plan any Litecoin strategies ahead of time. This will help you get the most Litecoin for your money and help you earn a profit if you intend to sell again in the future.