This article seeks to answer all these questions and tell you everything else you need to know about investing in Litecoin today. We will break down the Litecoin investment process and introduce you to the quickest way of how to buy Litecoin (LTC) globally, tell you what you need before you can start buying Litecoins, tell you of the best 6 places to buy Litecoin (LTC), and provide you with a step by step guide on how to buy Litecoin (LTC) in these exchanges and broker ages.
Litecoin is described as the second most popular pure cryptocurrency after Bitcoin. It has been around for close to a decade and was – at one time – one of Bitcoin’s fiercest competitors. Today, it still is a hot topic within the cryptocurrency circles and it has a trending overall return on investment (ROI), plus its volatile daily price movements, make it a good investment for both short and long-term crypto investors/traders.
But how do you buy Litecoin (LTC) in 2021? What are the best places to buy Litecoin today and the different ways you can pay for your LTC purchase?
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Opening an account with an exchange is the first step to buying Litecoin. Search for a reputable crypto exchange that offers Litecoin and create a trader account with them. Do not forget to vet them to ensure that you only work with a safe and reliable platform.
You need to have funds in your account to start buying Litecoin. Your prospective broker or exchange is likely to offer you many options for funding your account. Most common payment methods include debit cards, credit cards, wire transfers, e-wallets, and cryptocurrencies. Not to mention, you have to complete the KYC process to verify your identity before you could add funds to your account.
Once you are done with account verification and have deposited some funds into your account, you can start buying Litecoin immediately. Depending on your selected platform and country of residence, you can either buy Litecoin (LTC) or trade Litecoin CFDs. Some brokerage firms offer you both types of investments, such as eToro.
When you buy actual coins, you buy them without leverage. But when you buy Litecoin (LTC) CFDs, you get to trade with leveraged (borrowed) funds.
#Litecoin (LTC) is an open-source payment network created in 2011 by Charles Lee – a computer scientist and former director of engineering at Coinbase. It is a peer-to-peer digital currency that enables people to send and receive funds without needing third-party intervention. Litecoin employs cryptographic protocol for the creation and transference of digital assets. And like other cryptocurrencies, all transactions on the Litecoin network are recorded on a public blockchain.
Like Bitcoin, Litecoin uses the proof-of-work mechanism to validate crypto transactions on the network. However while Bitcoin uses the SHA-256 hashing algorithm, Litecoin uses the Scrypt hashing algorithm
Litecoin is one of Bitcoin’s oldest and most successful forks. Like all other cryptocurrencies, it too was designed to solve the scalability problem facing the Bitcoin blockchain. Like Bitcoin, Litecoin seeks to serve as a store of value and a medium of exchange. But the two also have several fundamental differences. Here are the four most critical.
The Litecoin blockchain is able to process and verify transactions four times faster than Bitcoin technology. Today, it takes roughly 2.5 minutes to generate a new block on the Litecoin blockchain while Bitcoin produces one block every 10 minutes.
While both Litecoin and Bitcoin have predefined maximum coin supply caps, Litecoin’s coin supply is four times larger than Bitcoins. This implies that while only 21 million Bitcoins will ever exist, there will only ever be around 84 Million Litecoins.
Both Litecoin and Bitcoin can be mined and both undergo halving – where the reward for mining a block is a cut by half. But while Bitcoin halving takes place every time 210,000 blocks have been mined. Litecoin halving takes place after every 840,000 blocks. Currently, the reward for mining a Bitcoin block is 6.25 BTC while that of mining a Litecoin block is 12.5 LTC.
Both Litecoin and Bitcoin have different mining algorithms. Litecoin uses Scrypt as a proof-of-work algorithm. On the other hand, Bitcoin mining incorporates the SHA-256 proof-of-work algorithm. Since miners need to solve the hash functions for adding new cryptocurrency blocks to the blockchain, Scrypt capable ASIC miners can generate more hashes per second than CPU or GPU-based miners due to having advanced computational powers.
Like other cryptocurrencies, LTC also has experienced a lot of back and forth price movements throughout the years. The Bitcoin fork, nevertheless, touched the all-time high in December 2017 when it traded for $358 – according to coinmarketcap.com. This all-time high would, however, start a descent and reach $31.13 on December 25, 2018.
Before the coin’s halving in 2019, Litecoin had a price equivalent to $140 almost 60% lower than its all-time high. But, it was still significantly higher than the lows recorded in 2018. Up till March 14, 2020, Litecoin was being traded for around $34.4. However, it underwent a bullish momentum and started climbing new heights, and hit an all-time high of $386.4 on May 09, 2021, setting an all-time high record.
Unfortunately, it then observed a major pullback and dropped to $134.4 on June 24, 2021. As of this writing, Litecoin (LTC) strengthens around $140.8. Economists anticipate that soon it will start rising again.
There are multiple factors contributing to the volatile price action of the different cryptocurrencies and the entire crypto market. Litecoin is not immune to these volatilities and here are a few of the factors that have been affecting and are expected to continue affecting its volatility.
Cryptocurrencies are not regulated. However, different regulatory authorities and governments, especially the U.S, are said to be working on regulations that seek to control the digital assets industry. Should such a move come to fruition, it could have a significant impact on the value of Litecoins.
Like all other investment products, Litecoin prices are greatly affected by the forces of demand and supply. When demand rises, especially during crypto market rallies the price goes up and when it falls, like in the case of the current crypto market dip, LTC prices fall.
Litecoin news – whether positive or negative – will also have a great impact on the price of the altcoin. Typically, positive news, such as announcements about strategic partnerships will push LTC prices up, and vice versa.
Ever since technology giants such as Microsoft, Apple, Samsung, etc., started accepting cryptocurrencies as a supported payment method, digital assets witnessed an increased adoption rate. Even though thousands of merchants accept Litecoin worldwide, crypto experts believe Litecoin adoption would increase even further in the coming years.
You can invest in Litecoin (LTC) in different ways. Given below are some most common options to consider.
Buying and holding an asset anticipating an increase in its price is one of the easiest methods to make profits. You can safely store your cryptos in your wallet for as long as you want. However, it is best to hold them offline.
You can also consider trading your Litecoin as CFDs. While you don’t get to own the actual Litecoins, the capital needed to open a CFD contract is minimal because you can buy Litecoin CFDs with leverage (borrowed funds). Note, however, that while high leverage increases your profitability, it also exposes you to high risks.
Lastly, day trading can be a worthwhile option for investing in Litecoins. It involves making multiple Litecoin trades throughout the day and can, therefore, help you make high returns relatively fast. However, day trading is usually considered a bit complex and not suitable for newbies. It requires profound market knowledge and extensive trading exposure. Therefore, it is better to open a demo account first. You can use a demo account to practice as many strategies as you like without compromising your actual funds.
You now understand what Litecoin is and the different ways in which you can invest in Litecoin. But do you know how to make your first LTC purchase? How do you pay for it? We look at the different ways of buying Litecoins below.
Almost every crypto exchange accepts payments through debit and credit cards. It is one of the fastest payment methods to buy Litecoin because transaction processing is almost instantaneous. You can, for instance, buy Litecoin with credit/debit cards on eToro eToro. Here, the minimum trade amount is $25 but the minimum initial deposit is $200. There are no charges on credit/debit card deposits and withdrawals.
You can also buy Litecoin with PayPal directly on your PayPal account and on several cryptocurrency-trading platforms across the world. Note, however, that only US residents can buy Litecoins directly on PayPal at the moment. Further, your ability to buy Litecoin with PayPal on an exchange will largely depend on your choice of exchange and country of residence.
eToro is one of the few crypto brokerages that let you buy Litecoins with PayPal. The minimum you can deposit into eToro using PayPal is $200 and the maximum is capped at $10,000. PayPal deposits into eToro are free and instantaneous. The minimum you can withdraw from eToro via PayPal, on the other hand, is $30 and each withdrawal carries a $5 transaction processing fee.
Multiple crypto trading platforms, including eToro, will also let you buy Litecoin with eWallets (Skrill, Neteller). And most crypto traders prefer depositing into these exchanges using eWallets because they are relatively fast in transaction processing and carry minimal transaction fees. If you are looking to buy Litecoin with eWallets (Skrill, Neteller) on eToro, the minimum trade amount set by the brokerage is $25 through the minimum initial deposit is $200. The maximum you can deposit is $10,000 and eToro does not charge deposit fees.
Virtually all crypto trading platforms, including eToro, let you buy Litecoins with bank wire. It is one of the most accessible and most reputable payment methods. But it isn’t as convenient as buying Litecoin with credit/debit cards or eWallet. While deposits and withdrawals processing with the other payments is near-instant, bank deposits and withdrawals typically take between 3 and 8 business days to be processed. Crypto brokerages will also demand higher deposit minimums when you want to make bank wire. On eToro, for instance, the minimum deposit for bank transfers is $500.
A few crypto trading platforms will let you buy Litecoin anonymously (without ID verification). eToro, for instance, lets you deposit and buy Litecoin anonymously – but the maximum you can deposit before verifying your identity is $2250.
The process of buying Litecoin is rather straightforward. Here are the three things you need to start buying Litecoin or its derivatives today.
You will need to register a cryptocurrency trading account with an exchange or brokerage that lists Litecoins. Find a legitimate crypto exchange that offers Litecoin and signup with it. But also consider such factors as trading cost, deposit and withdrawal charges, liquidity, and available leverage when choosing a brokerage.
Deposit funds into the verified crypto trading account. The minimum deposit amount will in this case be determined by your preferred brokerage and payment method. On eToro, the minimum deposit is $200, but $50 for US residents and $500 if you are making a bank wire.
After buying Litecoin from your favorite exchange, you would want to store them safely. Usually, your preferred crypto exchange will present you with an in-exchange wallet to store your cryptos. However, holding your digital currencies on the crypto exchange is not recommended. For maximum safety, we advise that you consider investing in a hardware wallet – especially if you are making a huge investment or are a HODLer.
There is no hard limit to how much you can invest in Litecoin. In most cases, the Litecoin investment will be determined by your preferred broker’s minimum and maximum trading limit. On eToro, for instance, the minimum you can invest in Litecoin is $25.
But, when buying Litecoin’s you also have to consider such other factors as your investment goals, your disposable income, Litecoin trading/investing experience, and your risk tolerance. We advise newbies to consider engaging a professional crypto trader and everyone to only invest what they can afford to lose.
Litecoin (LTC) is a popular cryptocurrency that is offered at almost all major crypto exchanges and brokerages. However, depending upon your investment type, you might need to filter out some of the best options available. For example, if you wish to buy actual coins, eToro is the best platform. For trading CFDs, you might want to open an account with Capital.com. Similarly, novice traders might prefer to sign up with Coinbase due to its user-friendly trading interface.
Like Bitcoin, you can also buy Litecoin (LTC) on supported ATMs. Given below is a quick guide on how to buy Litecoin (LTC) at an ATM.
Litecoin supported wallets are essential to buy Litecoins at ATMs. You have to take your wallet or the printed QR code with you to the ATM.
You can find a designated ATM nearest to your residence. At the ATM you need your wallet address, QR code, and cash.
Tap on the ATM screen and read the instructions carefully.
The screen will ask you to select your desired cryptocurrency i.e. Litecoin.
Find your wallet address – the QR code in your wallet app.
Show your wallet QR code to the ATM camera to let it scan your wallet address.
Once the ATM has successfully scanned the QR code, insert the cash into the ATM deposit machine.
Confirm the amount and complete the transaction. You might need to pay a service fee as well.
Once the address is confirmed, your purchased Litecoins will be sent to your wallet instantly or within a few minutes depending on network congestion.
Today, cases of dubious crypto exchanges and crypto scams are on the rise. You, therefore, need to be extra cautious and vet supposed crypto trading platforms entrusting them with both your personal information and your crypto investment. Here are a few must-haves for any crypto exchange or brokerage.
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eToro is the world’s leading social trading platform that offers trading services across multiple financial instruments, including forex and CFDs. The company was founded in 2007 and is headquartered in Israel, though it maintains several satellite offices across the world. The brokerage firm holds multiple regulations worldwide. The platform is increasingly popular amongst traders for its seamless copy trading services.
Buying Litecoin at eToro is super easy. Besides hassle-free signing up, traders have multiple funding options available at eToro, including Debit Cards, Credit Cards, Skrill, Neteller, PayPal, Wire transfers, and other local payment methods. The verification process is also quite convenient as clients can take up to two weeks to verify their accounts.
The best part is that clients can buy Litecoins and other digital assets for up to $2250 worth even before verifying their accounts. eToro offers both actual coins as well as CFD contracts for cryptocurrencies. However, CFD trading isn’t available for U.K. clients amid FCA restrictions on trading crypto CFDs.
Not to mention, the company offers competitive spreads with minimal trading restrictions. While the rich product portfolio enables clients to select a wide range of financial instruments, copy trading services help traders to start making money right away. eToro also offers a multi-crypto-supported custodian wallet to enable clients to store their digital assets safely.
Note: The purchased Litecoins will be deposited into the custodial in-exchange wallet provided by eToro. If you want to transfer them to another exchange or wallet, you will need to move them to the free eToro mobile wallet app.
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Capital.com is a derivative trading platform, which means that you can only buy Litecoin CFDs here. Some of the factors that help it stand out to include tight spreads and rather transparent trading fees. Its AI (artificial intelligence) technology and the one-click trading option also come highly recommended. Plus, the brokerage has also integrated multiple highly advanced trading and market research tools to help traders make profitable trading decisions. You also get to buy Litecoin with leverage here and enjoy such risk management tools as negative balance protection.
Capital.com’s registration process is quite fast and clients can deposit funds in their accounts using different payment methods, including card payments, bank transfers, etc. The minimum deposit into Capital.com is $20 and the broker doesn’t charge deposit or withdrawal fees. And you get to trade on Capital.com’s highly advanced web trader account or on the move via their mobile app.
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It stands out because of its instant buy and automated buy feature that crypto investors schedule their investments and buy Litecoin on a weekly or monthly basis automatically. The exchange offers a wide range of tradable coins, including Litecoin and other popular cryptocurrencies.
Buying Litecoin at Coinbase is instantaneous and to enhance security, the platform holds 98% of your digital assets offline. The remaining 2% is held in highly secure hot wallets to facilitate daily transactions on the exchange and is also insured.
The sign-up process takes a few minutes and the verification process is also relatively fast. Coinbase then supports multiple and highly convenient payment methods including debit/credit cards, PayPal, Bank wire, ACH transfers in the US, Rapid Transfer in the UK, SEPA in Europe, and different eWallets including Skrill and Neteller.
In addition to the insured client deposits, the exchange has implemented multiple safety and security features to guard your personal information. These include encrypted web protocols and the two-step authentication factor makes it nearly impossible for hackers to steal your financial information.
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The company allows clients to buy Litecoin using the web-based trading interface or through the mobile trading app. Getting started with the platform is super-fast since you only need to provide your basic details, and the account gets verified within 2 to 3 days.
Binance is primarily known for its low trading fees and it does not charge any fees on deposits or withdrawals. Here you can only buy Litecoins with a debit/credit card and bank wire or through the integrated third party fiat to crypto exchange service providers.
Binance also maintains a highly transparent trading fee structure with no commission or other hidden fees. It doesn’t maintain deposit or withdrawal processing fees and you only have to pay the maker-taker fee when you buy Litecoins on Binance. Further, the platform provides traders with deposits of up to 25% on fees when you pay for the transaction charge using BNB tokens.
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The process of signing up with the exchange is hassle-free. You can access your dashboard straight away after providing your basic details on the registration page. Since the company employs a 5% transactional fee on deposits via credit cards, it might not suit high-volume traders. However, there are no charges on payments through SEPA or Bank transfers.
The minimum initial deposit into Coinmama is $50. With the exchange’s tier-based verification system, it becomes easy to buy Litecoin by just submitting a copy of your ID Card. However, level 1 verifications come with lower buying limits as compared to level 4 verified accounts. At present, Coinmama supports 09 different payment methods, including Fedwire, SEPA Instant, SWIFT (Global), SWIFT Fast Payment (U.K.), Open Banking (U.K.), Bank cards, Apple Pay, Google Pay, etc.
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Kraken’s rich product portfolio gives it an edge over its competitors. On the other hand, its low minimum and trading limits help it appeal to low volume and beginner traders. You, for instance, only need $1 to start buying Litecoins on Kraken. Moreover, the process of buying Litecoin at Kraken is quick and straightforward.
Kraken supports a wide range of deposit and withdrawal options and has multiple base currencies – including USD, CAD, AUD, EUR, GBP, CHF, and JPY. Typically, the payment method available to you will depend on your preferred account base currency and country of residence. The said payment options include bank wire, Swift transfers, and SEPA transfers. Unfortunately, you can’t pay for your cryptos with your debit or credit cards. Plus, the exchange does not accept e-wallet payments such as PayPal or Neteller.
In addition to buying Litecoin on the different crypt trading platforms, we will detail three other ways that you could use to acquire Litecoins today.
Since Litecoin can be a valuable gift to anyone, it can be the best thing you could get from your friends and family. You can also create a Tip Jar to receive Litecoin as a tip for your services, especially for online creatives.
Faucets are websites that reward contributors with Litecoins. In most cases, you will be required to complete different micro-tasks to get this reward. These tasks range from referring others to the website, playing video games online, participating in marketing surveys or watching marketing videos.
Another popular way to get Litecoin is through mining. Since LTC takes less time to create a new block than bitcoins and other mineable assets, it could be worthwhile to start mining Litecoins.
Litecoin seems to be the favorite digital asset of the Quora community. While searching for information concerning whether Litecoin is worth buying in 2021? We came across multiple posts. Surprisingly, people hold different perceptions about the prospect of the crypto coin in the coming years. However, all of them seem convinced that Litecoin has a great potential to observe a surge in its price over the years.
While some crypto enthusiasts anticipate Litecoin to become one of the leading digital assets in the crypto regime, other investors categorize it to be silver to gold. People also appraise Litecoin’s technological advancement concerning the inception of SegWit and Lightning protocols. According to a Quora member, Litecoin mimics Bitcoin every time there is an increase in the prices of Bitcoin. Overall, the Quora community fully supports investment in Litecoin no matter what the future holds for it.
The Reddit community holds a mix of views hen it comes to Litecoin and its future. Most people believe that Litecoin is still undervalued and that buying it around current levels can set them up for massive gains in the future when the crypto rebounds and starts rallying. However, some people also argue that based on the volatile nature of Litecoin prices, there is no telling whether it will ever recover or will continue sinking deep into the lower price region.
A section of Redditors is also concerned about Charles Lee’s occasional statements with respect to the future of Litecoin. A Reddit member wrote that he feels Lee – the founder of Litecoin himself seems to be appraising Bitcoin more instead of pushing people to stake their interest in Litecoin.
Litecoin is one of the earliest and most successful Bitcoin forks. It is an open-source global payment network with no central authority. It differs from Bitcoin in many aspects like faster block generation rate and Scrypt proof of work algorithms. Over the years, the Litecoin network has been subjected to multiple technological upgrades, including the Segwit protocol that enhances its scalability and the most recent “MimbleWimble” privacy protocol that makes transaction processing on the network more secure. Experts believe that Litecoin can become a potential challenge for many cryptocurrencies, including Bitcoin in the coming years.
Yes, Litecoin is certainly worth your investment. Crypto analysts are confident that Litecoin prices will rebound and continue rising in the foreseeable future, which makes it a good long term investment.
When Litecoin launched, virtually anyone could mine Litecoin using a standard computer’s CPU. However, technological advancement and increased altcoin popularity have made it quite difficult to mine LTC with low-budget equipment. You could use your computer, but consider using a Litecoin mining pool.
Litecoin is still a hugely popular cryptocurrency and analysis shows that it has the potential of posting massive gains over the coming years. Analysts, however, expect it to dip further fast before rising and reclaiming its all-time high. According to https://coinpedia.org/, the price of Litecoin can rise as high as $424.39 per LTC in 2025.
No, Litecoin is not a dead crypto project. While it may have lost a significant portion of its market share, its development team is constantly trying to bring innovations to the network. Future analysis of the coin shows that it still has the potential of rising again and reclaiming its place in the crypto industry.