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One of many cryptocurrencies born out of the original Bitcoin open code is Litecoin. It was one of the first coins to find its way into the attention of mainstream traders and has remained amongst the most popular on the exchange to date.
Buying Litecoin online is high on a lot of savvy investors’ lists, especially those who are looking to mix things up and diversify their crypto portfolio. Because of its liquidity and long-standing reputation, it is a common and intelligent choice.
Knowing how to invest in Litecoin, including where to buy it, what to buy it with, and how to keep it safe, is essential to getting the best start on your investment. Our guide talks you through the best ways to buy and store Litecoin and looks at the pros and cons of Bitcoin’s baby brother.
- 1 Options for Buying Litecoin Online
- 2 How to buy Litecoin on eToro
- 3 Benefits of Investing in Litecoin
- 4 Litecoin Limitations
Options for Buying Litecoin Online
There are three main questions to ask when considering your options for buying Litecoin online: where do I find it, how do I pay for it, and where do I keep it once I own it? Luckily, we have the answers to all three.
How to buy Litecoin on eToro
Buying and selling cryptocurrencies has become many people’s preferred investment option, and this is how trading began. Since there are so many cryptos to choose from, beginners might not know how to get started, especially if they don’t even have a platform that they can use to purchase the tokens.
Initially, Litecoin was not so relevant. Everyone was focused on other cryptocurrencies such as Bitcoin or Ethereum, and people did not have much faith in this one. However, with time, investors realized that it might be a convenient opportunity as well.
Although there are numerous platforms to choose from, only a handful of them might provide you with the features you need when you’re buying Litecoin, and not all these sites are legit. Nonetheless, eToro offers you characteristics that might be what you’re looking for, so this guide describes what you must know to use the site.
Step 1: Open an Account
Firstly, you have to open an account if you want to buy Litecoin using eToro. Even though it might take some time, it’s the only way for you to set up a profile and link a payment method.
It will require you to fill in only the basic information, which only takes a couple of minutes.
You should check out eToro’s terms, conditions, and policies before proceeding to the next step. Additionally, rereading your information to make sure it doesn’t have any errors is also a good idea.
Step 2: Upload ID
Since there are so many swindle platforms out there, you need to guarantee that the one you’re trusting is safe. Otherwise, there is no way to make sure that your assets are secure.
In this case, eToro wants to ensure the safety of the users’ cryptos and money. Therefore, everyone needs to go through a verification process, and if you don’t complete it, you’re not able to access the features that the platform offers.
Verifying your identity is not very challenging. You have to upload an ID picture and prove your residence by adding a photo of any utility bill that’s less than three months old.
Step 3: Make a Deposit
If you already verified your account, it’s fantastic! It means you’re ready to fund it and get started with examining all of its features.
To fund your account, just go to the ‘Deposit’ option and choose the specific features of how you want to invest your money, for example, the amount and payment method.
Step 4: Search for LTC
With an account that has some money, you’re able to go through eToro and examine all the options that it gives you. Search for Litecoin and explore everything that this platform offers you!
Step 5: Buy LTC
The last step is to buy Litecoin. If you’ve made it this far, congratulations! You can now use your eToro account to purchase this cryptocurrency and change your trading experience.
As one of the bigger cryptocurrencies, Litecoin is available on most major exchanges and trading platforms. Stick to the exchanges with the best reputations and the largest user bases since they tend to be the most reliable. These include, but are not limited to, Coinbase, Kraken, Binance, and CEX.io.
Ways to Pay
Credit or Debit Card
Anyone looking for a fast and easy way to buy Litecoin should consider buying with a credit or debit card. Like most online card transactions, payments and product acquirements are instantaneous. It is convenient not only because of the transaction speed but also because of how widely accepted it is as a payment method.
Almost all the mainstream exchanges that sell Litecoin accept card payments. That said, not all sites operate with similar policies. Before using a card to buy Litecoin, look into the transaction fees, minimum spends, maximum payment limits, and country of origin.
Why does all that matter? Because we want you to get the best deals! US-based exchanges usually have the best prices for buying with US cards but often have lower spending limits. Some of the most famous platforms have great exchange opportunities but high card transaction fees; Coinbase, for example. Coinmama has the highest limits, and Kraken has the lowest costs.
Do your research into card payments for Litecoin. It is by far the easiest method, but easy to lose out on money if you don’t shop around first.
If you are not in a rush and don’t mind waiting for your funds to arrive, you can cut down on fees by buying Litecoin through a bank transfer. US bank account holders can pay directly from their bank more than anyone else can, but fewer platforms are offering this service than cards.
Binance- arguably the largest crypto exchange in the world- is one of the best places to buy Litecoin via bank transfer with low fees, charging as low as $15 per US transfer regardless of the amount. Coinbase is another good choice for using this method, charging just $10 to transfer a deposit. It does, however, charge more to withdraw.
Time is the other factor to consider if transferring directly from a bank. Most transfers take between five and seven days, so it is not the best choice if you want to move quickly. It is, however, easier to send large sums of money this way than with any other payment method.
You can now buy Litecoin directly on PayPal! The platform grants easy access to exciting currency with all the user-friendly ease PayPal is famous for. However, you can’t do anything with it after you buy it.
PayPal only lets you buy and store your Litecoin in your account: you cannot withdraw it into a digital wallet or transfer it to a crypto trading app. You can’t even send it to another PayPal account! All you can do with Litecoin on PayPal (for now) is speculate on the price and sell it back to PayPal whenever you want to cash out.
E-Toro, another famous exchange, also has a PayPal function for buying Litecoin, but it is unfortunately not yet available in the US.
Last, but certainly not least, you can buy Litecoin with other cryptocurrencies. Litecoin is a very liquid cryptocurrency right now, which makes it appealing to many investors who are already in the market. Using other currencies to buy Litecoin is a very effective way for smart investors to keep things moving and diversify their interests.
Exchanging Bitcoin for Litecoin couldn’t be any easier, as long as you do it on a platform that supports both currencies. Changelly, Poloniex, and BitPanda are three examples of large-scale exchanges where almost any currency can be used to buy Litecoin. In most cases, all you need to do is say how much Litecoin you want and what cryptocurrency you want to use to buy it, then the platform gives you an amount to send.
Ways to Store
Ideally, you don’t want to keep any cryptocurrency stored on an exchange platform as it leaves it more open to risk. It is, however, possible. Most digital trading apps allow you to deposit funds and keep them stored directly in your account with them, making it quicker and easier to access when you want to make a trade.
Sure, this is convenient, but it is not a long-term storage solution. It is essentially the equivalent of withdrawing cash and leaving it in a store to pick up and use when you go in: not exactly the wisest or most secure practice.
You can deposit some of your Litecoin into your chosen exchange platform and keep it there for trading purposes, but it is left open to a lot more variables while it is there. If you plan to make a lot of trades over a short time, it is smart to transfer some funds from your wallet when the time comes.
Litecoin offers its own desktop app for buyers where they can keep their coins. It is connected to Litecoin technology and software and is a really easy way to keep your currency handy and available on your PC.
One of the best solutions for storing your Litecoin- or any other cryptocurrency for that matter- is in a verified digital wallet. Just like a bank account, a crypto wallet lets you hold your funds in one safe, secure place that only you have access to and control over.
Depending on what company you choose to set up your wallet with, you may be able to hold multiple currencies at once, which is highly beneficial for anyone looking to keep their eggs in multiple baskets. It is also much easier to exchange between Litecoin and other currencies, Bitcoin, for example, if both are compatible with your current digital wallet.
Every trading platform worth its salt lets you connect to at least one of the most popular online digital wallets (including Coinbase and Exodus), making it easy to withdraw funds almost instantaneously. These wallets are purely digital and held entirely in the cyber realm. Although they use strict security keys to gain entry, there is still an element of risk involved.
There is no method of Litecoin storage more secure than an offline digital wallet. It works the same way as an online wallet, except you can withdraw and download your funds onto a secure drive.
Offline wallet drives come in a few shapes and sizes, but they all do pretty much the same thing. They keep cryptocurrency- Litecoin, for example- stored in files on what looks basically like a USB stick with a twist. When plugged in, the currency uploads like any other file, providing instant access to whoever has the correct passcodes.
Some are more advanced than others, and the prices vary greatly. As long as the currency is secure and password protected and the drive itself is sturdy and reliable, you are onto a winner. Popular brands, including Ledger and TREZOR, offer various models in a few different price ranges, all of which are impressive options.
Benefits of Investing in Litecoin
- Ranked amongst the top 10 cryptocurrencies in the world.
- Comparatively low transaction fees to other currencies.
- Fast-moving transactions
- Lots of coins available
- Steady growth in value
- Often confused with or overshadowed by Bitcoin, despite many differences
- Known for being used on the dark web
- It is not yet accepted openly as a payment method
- A recent dip in social interest and popularity
What’s the future of Litecoin (LTC)? Read our article to find out:
WeInvests is a financial portal-based research agency. We do our utmost best to offer reliable and unbiased information about crypto, finance, trading and stocks. However, we do not offer financial advice and users should always carry out their own research.Read More