This is the initial guidance on how to buy litecoin addressed to those who are just beginning to use this cryptocurrency for investment purposes or transfers. If you have ever asked yourself where can I buy litecoin, this guide will certainly be helpful for you.
What Is Litecoin
First of all, let’s clear up what litecoin is. In a few words: litecoin is cryptocurrency based on the peer-to-peer technology. It uses an open source cryptographic protocol which means it doesn’t depend on any company or an organization and does not submit to any centralized management. The litecoin network is self-protected by the designed-in mathematical algorithm that is proved to be robust for fair, so the individuals using it can be unworried about their financial safety. Technically, not going into details, litecoin is pretty much the same as bitcoin, but litecoin transactions are about four times faster. Another thing that marks litecoin out of other cryptos is the transaction fee rate which is extremely low or even near-zero you may say. This makes litecoin a perfect instrument for rapid and almost free of charge payments to any person all over the world. The agreed international notation for litecoin is LTC.
Litecoin As An Investment Tool
Another reason why a person may be willing to buy litecoin is to use it as an instrument of investment. In this case, there are two usual scenarios of using this instrument.
Since litecoin got on the board, its price continuously grew up reaching extremely high values. At the end of 2017, the price went down, but litecoin still costs much more than it did at the beginning of growth, and the forecasts of some analysts are pretty optimistic. That’s why a person who has spare money and wants to save it can think of buying litecoin. The bank deposits give 2-3% of year accretion, while some forecasts promise the price for litecoin will double till the beginning of 2022, which means 12.5% of year accretion. Sounds nice, doesn’t it?
But in real life, things are often not so good. As any of other cryptocurrencies, litecoin is liable to the great volatility. This opens the second way of using litecoin as an investment tool. This way is beloved by the illicit dealers. As the prices go up and down, they just buy litecoin when the price is low and sell it when the price goes to its peak. They can do it several times a day. Well, those dealers are supposed to know what they do, and we won’t go in there.
How To Buy Litecoin
So, how to buy litecoin? It’s quite simple indeed. After this cryptocurrency gained popularity among users, buying Litecoin for dollars or other fiat money is no longer a problem. All well-known large exchanges work with LTC, and even Forex brokers now acquire litecoin. Which option to choose depends on your experience with cryptocurrencies and the speed which you need to buy coins with. It is considered that the best place to buy litecoin is one of the well-known exchanges or marketplaces. In this case, the process looks like described below.
Acquire a Litecoin wallet
In order to buy litecoin, you will need a wallet for storing virtual money. There are two types of wallets: hardware and software wallets. The hardware wallets are known to be the best and safest way to keep cryptocurrencies. The disadvantage of hardware wallets is that they are not free of charge. Quite the contrary, the software wallets are free and easy to install, but they are not absolutely secure because they can be hacked in theory (and sometimes in practice, too). Which one to choose is up to you. Once the choice is made, you are ready to buy litecoin. Now it is time to find the place where to buy litecoin.
The most popular method of purchasing litecoin is through specialized cryptocurrency exchanges – platforms for trading virtual currencies. Litecointalk.io, the official forum about litecoin recommends referring to coinmarketcap.com, where you can find about 400 exchanges and marketplaces to buy litecoin. Also, they name coinbase and bittrex as the most reliable places for dealing with litecoin. Let’s list and shortly describe these two and some other exchanges.
Coinbase is a cryptocurrency wallet service and the largest US cryptocurrency exchange with headquarters in San Francisco, California. Here you can buy litecoin with a credit card or via the bank transfer. Its advantage is that it usually offers the best prices for Litecoin. The drawback is that it is not available in some countries (33 countries are supported currently). Besides, they say that the support service of this exchange works awfully. To say the truth, experiencing the problems with the service is quite seldom.
Bittrex is one of the most popular cryptocurrency exchanges as well the previous one. The order book is really easy to use. Obviously, a person familiar with trading had a hand in its development. In general, Bittrex is one of the most convenient marketplaces, but there’s one great disadvantage. It is that the company does not accept deposits in fiat money (usual currencies like USD, EUR, etc.). You must already have bitcoin or another cryptocurrency to buy litecoin on Bittrex, which may be a limitation for inexperienced users.
The exchange supports some languages (including Russian, Chinese and Turkish) and has a fairly simple interface. Other benefits are moderate fees and no minimum deposit defined.
This site also has a really easy-to-use interface and relatively small fees and accepts USD.
The site’s interface is pretty much similar to coinbase. A large number of supported languages makes working with the exchange even more convenient.
Also, there is litecoin.com which allows buying litecoin for USD, EUR, and GBP. The domain name looks responsible, but we didn’t actually check it.
Withdraw the purchased litecoins to your wallet
That’s a matter of safety. If you leave the litecoins you bought on the exchange, their further destiny will depend on the exchange. If it crashes (being hacked or somehow else) or loses its data, you will get your coins lost. You are to remember: the best place to hold your coins is your own personal wallet.
Other Ways To Buy Litecoin
Buy litecoin with paypal
Well, if you are searching for a method how to buy litecoin with paypal, you must be disappointed: there is no direct way to do it. Therefore, a by-pass route still can be found. You are able to buy bitcoins with Paypal (using Virfox, for instance) and then convert bitcoins to litecoins via regular service like Bittrex which was described in the previous chapter. You should consider that VirWox delays the transactions of new users for up to 48 hours, so it may take you up to two days to exchange. This is faster than a bank transfer, but keep in mind that it will not work instantly (although sometimes it is pretty fast). But the fact is that it will work, sooner or later.
Buy litecoin with cash
If you are lucky to have a friend who is ready to sell his litecoins, the direct transfer will be a really good idea. No commissions, no verifications, no time spent – this is really the best way to buy litecoin. It is implied that you must trust your friend, of course.