Litecoin was created by Charlie Lee (a Google employee) in 2011. A peer-to-peer (P2P) cryptocurrency works similarly to bitcoin’s source code. If you are looking to buy Litecoin, you should read this complete guide on how to buy Litecoin in 2022.
Litecoin is a virtual currency used to send money securely between people or businesses due to its blockchain technology. It is based on an open-source blockchain that is not managed by a government authority, similar to Bitcoin. There are a few fundamental distinctions between Litecoin and Bitcoin. The purpose of Litecoin was to make daily transactions more affordable and efficient. On the other side, Bitcoin was mainly utilized as a long-term investment.
Litecoin provides faster and less expensive transactions. In addition, the supply is more extensive. However, the transactions are typically smaller. To make mining reasonable for everyone, it uses a unique hashing algorithm. These variations have helped Litecoin flourish and stay one of the top cryptocurrencies throughout time.
Buying Litecoin vs. Trading Litecoin
Buying Litecoin can be simple – depending on wallets and exchanges – but it’s not the same as purchasing foreign cash when traveling abroad. It does not, however, need much expertise. You will be required to select an appropriate wallet and the exchange and payment of crypto coins.
On the other hand, Litecoin trading is a more short-term process; Getting into the market, remaining in it for a few months, then exiting when the price reaches its peak. As a result, Litecoin traders have a reputation for being price sensitive and fleeing the market when it becomes unprofitable.
How To Buy Litecoin Online?
You need a crypto exchange account to buy Litecoin, which is easier than you ever think. Here are the 5 easy steps you’ll need to follow to buy Litecoin quickly and easily.
- Choose which exchange or brokerage you want to use to buy Litecoin.
- Create a user account.
- Carry out the required KYC checks.
- Deposit into your account.
- Purchase Litecoin and keep it in a wallet.
How To Trade Litecoin?
To invest in Litecoin, you do not need to buy it. You can exchange Litecoin instead if you prefer. Trading Litecoin is slightly different from buying it; follow the following procedures below.
- Search a broker.
- Create a user account.
- Carry out the necessary KYC checks.
- Decide on a strategy.
- Once you find out how you want to trade Litecoin, buy Litecoin coins using your account. You can use leverage to maximize your winnings but keep in mind that it also increases your risk of losses.
Different Ways To Buy Litecoin
How To Buy Litecoin Through Crypto Exchanges
Cryptocurrency exchanges are the best option to buy any cryptocurrency. Litecoin can be purchased with just a few clicks in exchange for local fiat currency (conventional money like the dollar, euro, or pound) or any other cryptocurrency, depending on the platform and services available in your country. If you are new to this, you should go for cryptocurrency exchanges when buying Litecoin.
Built-in wallets on cryptocurrency exchanges can support a variety of tokens, each with its address. Crypto exchanges offer many options for depositing fiat currency, which it will utilize to buy/trade cryptocurrencies on the platform, depending on the business area. Many regions have rules prohibiting residents from making deposits on cryptocurrency exchanges using debit or credit cards. However, they allow consumers to use third-party payment platforms like Cash App to make deposits.
How To Buy Litecoin With A Debit Card
To buy Litecoin with a debit card, you have to enter the card details, and you’re ready to go. Remember that you must have funds in your bank account before purchasing Litecoin with a debit card.
How To Buy Litecoin With A Credit Card
If you are looking to buy Litecoin with your credit card then it is the same as buying with a debit card which we explained above. This process is the same way as any other online transaction.
Just enter your credit card info and make the transaction on any crypto exchange.
On the other hand, buying Litecoin with a credit card is generally not a great idea because you must pay the processing fees. It is costly and involves the chance of fraud. Not every trading platform will allow you to buy Litecoin with a credit card.
How To Buy Litecoin Through Bank Transfer
You can buy Litecoin by sending money from your account to those who provide you with these coins. Go to the Binance website and use the stablecoins to buy Litecoin.
How To Buy Litecoin With Paypal
Buying Litecoin with PayPal is the most convenient way. There is an app called eToro that helps to buy Litecoin with PayPal. The eToro wallet is a contract for differences (CFD) trading platform that allows you to buy, hold, and send cryptocurrencies.
Things To Consider Before Buying Litecoin
The deposit fees you pay will vary depending on the cryptocurrency exchange or brokerage. Although cryptocurrency transactions are usually cheaper, credit card and debit card fees are the most expensive. You’ll have to pay these fees every time you deposit or withdraw money from a cryptocurrency exchange.
No matter what platform you choose to buy Litecoin, like maker-taker fees, trading fee is also charged on almost every platform. Most exchanges include a tiering model structure upon your monthly trading activity. As you trade more, your fee percentage drops.
Volatility is another thing to consider. It refers to the quick change in the price of cryptocurrency tokens. If you acquire Litecoin now at a specific price, it may be significantly higher or lower tomorrow.
There are many restrictions on buying Litecoin, depending on where you are and what type of crypto exchange you use. As a result, many crypto exchanges will request KYC and AML documentation from you.
Long-Term Holding (HODL)
A HODL investment lasts for at least six months. You’ll adopt this technique when predicting the price to rise over time.
Any investment you can hold for less than a year is considered short-term holding. The goal with Litecoin is to sell as soon as the value rises rather than wait.
Is it Safe To Buy Litecoin Online?
Buying Litecoin online is risk-free if you choose a crypto exchange with stringent security measures.
Before anything else, keep your coins separate from your exchange in a wallet. You can use two-factor authentication (2FA) to add an extra degree of security to your account.
We advise you that you should use a hardware wallet to store your money when it comes to wallets. You’ll be able to keep them off the internet— and away from prospective hackers — in this manner.
If you use a peer-to-peer P2P exchange, it’s also worth remembering that you should communicate with sellers before buying. Other measures you can take to safeguard yourself include:
- Not disclosing your account password to anyone.
- Only use authorized forums and websites to seek advice.
- Before selecting an exchange, read customer reviews.
- Not buying Litecoin on public internet connections.
How To Store Litecoin?
After buying Litecoin, you need to keep your Litecoin coins secure by storing the coins in a wallet. Although some portals will store your coins for you, a few individuals prefer keeping them on their own to reduce the risk of having to lose them in a cyberattack. And this is understandable, it’s also important to note that most of the exchanges ensure their customers’ investments and regularly store the majority of their funds anonymously to prevent major theft. Furthermore, hacked exchanges always have recovered from any losses in the past.
If you wish to keep your cryptocurrency private, you may transfer it to one of two third-party wallets:
A hot wallet is a wallet that is linked to the internet. It may be accessed from a PC or a mobile device. Because such wallets are beneficial, crypto trading platforms frequently offer them for free. If you want to avoid the exchange, you can use your way to store your coins. Since hot wallets are indeed connected to the network, they claim to be a little more hackable.
Cold wallets, on the other hand, are gadgets that are not linked to the internet. They range in price from $50 to $200 depending on the kind, with even more costly possible options. Because you must be connected to the internet every time you want to access your Litecoin, cold wallets are less flexible than hot wallets. These, on the other hand, are safe. When you wish to store a large number of coins or other cryptocurrencies, cold wallets make sense.
How To Sell Litecoin?
Selling Litecoin on a centralized crypto market operates the same way as buying it. To begin, select an exchange that offers Litecoin trading based in your jurisdiction and open an account with it. When opening an account you will be asked for your personal information which includes your DOB, home address, and a photo for verification.
After you’ve completed your setup, you’ll have to decide whether to sell your Litecoin for fiat currency (USD, EUR, JPY) or trade it for another cryptocurrency.
For your various crypto coins on the site, exchanges have dedicated wallets and addresses. Click on the sell or deposit button on the website.
If you’d rather sell your Litecoin directly to another person or entity, you can do it through a peer-to-peer (P2P) transaction, either in person or online through a platform. P2P platforms for cryptocurrencies are essentially online marketplaces where users may post and reply to offers. These platforms are used by sellers who offer different cryptocurrency coins along with data like the price of their own re and desired payment method.
Is It Worth Buying Litecoin Right Now?
Bitcoin and Ethereum are likely to remain primary assets for most cryptocurrency investors. But Litecoin offers a fascinating opportunity to crypto investors. On the other hand, adding currencies from other blockchains with proven and expanding value is always a good idea.
Walletinvestor predicts that Litecoin’s rate will be between $167 and $282 by the end of this year. Moreover, Cryptoground stated that Litecoin is expected to trade at $530 within 5 years.
Please keep in mind that these Litecoin price predictions are not reliable and prone to uncertainty. Your tolerance for risk and preference will determine whether Litecoin is a wise investment for you or not.
Cryptocurrency is considered a high-risk investment. Before investing in it, you should perform your research and analyze the degree of risk you are willing to accept, and check Litecoin price forecasts. You should avoid investing your money heavily into something you can’t afford to lose.