How To Buy Litecoin (Using The Best Cryptocurrency Exchanges)
Did you know that there are quite literally hundreds of different cryptocurrencies in circulation at the moment?
With more and more appearing each day, the marketplace is becoming increasingly competitive.
Investors want to get rich as quick as possible and following the phenomenal success of Bitcoin, they are keeping their eyes peeled for the next big thing.
Litecoin is a name that has been shouted from many a rooftop, and while it hasn’t yet reached the dizzying heights of Bitcoin, it is one of the most well-known cryptocurrencies out there, and it is also the third largest coin after BTC regarding market capitalisation.
It works in pretty much the same way as Bitcoin, and units of Litecoin can be transferred across an online network to make payment in return for services, other currencies, or something else entirely.
Like every other cryptocurrency out there, Litecoin is not issued or controlled by a government, and it is decentralised.
All Litecoin transactions are processed every 2.5 minutes, the network creates a block (a ledger entry of every recent Litecoin transaction in the world), and when this block is mined, the miner receives the coin into their cryptocurrency wallet.
Litecoin is limited to a maximum of 84 million coins in circulation ever, and once they have all been mined, there is no way to create any more.
As its popularity and value soar, investing in Litecoin is a possibility that lots of avid crypto-enthusiasts are starting to explore.
If you are one of these people, then you are probably wondering how to buy Litecoin, so read on to find out more!
History of Litecoin
Litecoin was released on an open source client on GitHub on October 7th, 2011.
Created by Charlie Lee, a former employee of Google, the network then went live a few days later on October 13th.
It was designed as a fork of the Bitcoin Core, but it was considered an improvement as its block generation time was considerably less at 2.5 minutes, compared to Bitcoins 10.
By November 2013, the value of Litecoin experienced a massive surge of around 100% in just 24 hours, and in the same month, it reached the $1 billion market capitalisation mark.
Towards the end of the month it had quadrupled, and by December it had reached $20 billion, and each coin was worth $371.
In May 2017 it had secured its place as one of the top-5 currencies by market cap, and in May of the same year, it participated in the first lightning network transaction where a fraction of a coin was transferred between Zurich and San Francisco in under a second.
Today it is one of the top cryptocurrencies in the world and offers a more accessible investment opportunity when compared to its bigger brother, Bitcoin.
Why Use Litecoin?
There are several reasons why you should consider investing in Litecoin.
Firstly, it is not as expensive or valuable as Bitcoin yet – meaning it is easier for you to purchase more coins for less money.
It is far more accessible for amateur traders and investors. What’s more – as its value is on an upward trajectory, it means it is a much more sound and reliable investment that is likely to offer you a big return.
Some say that Bitcoin is a bubble that will burst as its value is unsustainable, and for this reason, using Litecoin is a great alternative.
The other bonus of using Litecoin is the fact that its transaction times are significantly less than Bitcoin.
You can affect a transaction with Litecoin in just 2.5 minutes, whereas with Bitcoin the wait is ten minutes (up to a few hours).
In short, the Litecoin ledger is significantly more efficient and user-friendly.
Where Can You Buy Litecoin?
You have two options when it comes to procuring Litecoin. You can invest significant time, effort and money into mining your own.
This requires expensive, dedicated computers and a lot of electricity to facilitate, and if you are mining small time, the costs can often outweigh the rewards you are reaping.
The second option is to purchase Litecoin. This can be done with fiat money or another cryptocurrency, but you need to utilise a specialist platform to do this.
There are many platforms on the market that facilitate the buying, selling, trading and exchanging of cryptocurrencies and fiat currencies.
However, knowing which one to go for will depend on the way you want to pay (with fiat currency, or cryptocurrency), how much you want to buy, and of course, what you want to do with it.
Here we have brought together a few examples of the different types of exchange where you can purchase Litecoin, so you can do your research and decide for yourself, which is the best option for you.
Buy Litecoin With a Credit Card
Most people, particularly beginners and those just finding their feet in the crypto-crowd, often prefer to pay with a credit card.
This is by far the most simple and straightforward way, particularly if you do not hold any existing cryptocurrency coins.
The following are platforms where you can purchase Litecoin by using your credit or debit card:
If you want to buy Litecoin with a credit or debit card, then shopping with Coinbase is the best option for you.
It is by far, the easiest way to purchase Litecoins with a credit card and it is available to clients in the US, Canada, Europe, the UK, Singapore, and Australia.
Fees are around the 3.99% mark when buying with a credit card.
Located in San Francisco, Coinbase predominantly broker exchanges between Bitcoin, Bitcoin Cash Ethereum, Litecoin and fiat currencies.
It was founded in 2011 by Brian Armstrong and Fred Ersham and by 2014 they had reached over 1 million users.
By January 2017 they were given a BitLicense from the New York State DFS meaning they are one of the few exchanges allowed to operate in the city.
A few months later, they were also given the ok to offer trading in Ethereum and Litecoin.
They have been a bit controversial in recent months, particularly in America as on November 29th, 2017, Coinbase was ordered by the IRS to report all users that have bought, sold, sent, or received any figure over $20,000 in a year, through their accounts.
While some people believed this went against the core principles of cryptocurrency, others praised their compliance with national regulations.
By the end of the year, the Coinbase app was the most downloaded app on the Apple Store.
For more details, read our Coinbase review.
This is an Austrian crypto-brokerage service which allows customers from most EU countries to purchase Litecoin with a credit or debit card, Skrill or SEPA transfers.
For any individuals who are resident in the EU, the fact that you can pay via SEPA transfer is a big plus.
The company is quite new in comparison to some of the other names on the list, and it was formed back in 2014, but it has since become one of the most trusted names in the market.
While its exchange rate is a little higher than some other alternatives, it’s not the most expensive you will find.
BitPanda is also quite stringent when it comes to verifying your identity.
If you are looking for an anonymous platform, then this is not the one for you as you need to submit an ID form and take part in a video chat verification to verify your account and secure a higher transaction limit.
Read more in our BitPanda review.
Buy Litecoin with Cryptocurrency
For those cryptocurrency fiends who already hold a portfolio of coins, there are several ways of purchasing your Litecoin by using your existing coins.
By taking fiat currency out of the equation, you can enjoy higher levels of anonymity, as well as the feeling of liberation from not using centralised and government-controlled fiat currencies.
Based in China, Binance broke into the top five best cryptocurrency exchanges after attracting 3 million customers in just five months.
With such a high surge in trading volumes over a short period, Binance is clearly trusted by professional traders and are expected to be a leader in the crypto community.
The company also has significant trade factors that make them an attractive proposition:
- quick transactions
- low-interest rates
- excellent user ratings
- token based model
- trader-friendly exchanges
- easy-to-use website
Contributing to their reliability is the company’s expertise. The Binance team includes former employees of Bloomberg, Morgan Stanley and Blockchain.info.
The company’s infrastructure comfortably handles 20 million logins simultaneously plus 1.4 million trades per second.
The only downside is that Binance is a crypto-only exchange and does not accept fiat currency deposits.
This digital exchange outfit is, therefore, no use to newcomers but arguably the best option once cryptocurrency is part of your investment portfolio.
Another plus with reviewers is the company’s competitive referral system and their excellent 24/7 customer support team which is available in multiple languages.
Read more in our Binance review.
This platform was founded back in 2013, and at its inception, it was the first cloud mining provider.
It has since evolved to become a multifunctional cryptocurrency exchange, and it has well more than half a million regular users.
The beauty of this site is that you can purchase your Litecoin, trade your Litecoin, and sell your Litecoin across multiple different platforms including the website, mobile app, and REST API.
As well as Litecoin, you can dabble in Bitcoin, Ether, Ripple, BTC, Dash, Zcash and Bitcoin Gold.
You can also choose to trade with USD, EUR, GBP and RUB so you have pretty much covered all buying options.
When it comes to security levels, CEX.IO is considered as one of the most secure around because they possess a PCI DSS certificate (Level 2).
This means that they satisfy some pretty stringent security criteria when it comes to storage, processing, and the transmission of sensitive data such as card details.
They also apply AML and KYC procedures and policies to their clients and offers two-factor authentication via Google Authentication, or via SMS/telephone call.
Changelly is one of the quickest ways in which you can buy Litecoin in exchange for Bitcoin.
All you need to do is input the amount of Litecoin that you will be given an LTC address. Then you will be advised how much BTC you are required to send to fulfil your order, and then you just need to do the transaction.
Once the BTC has been sent, you will find the LTC appear in your wallet in a matter of moments.
This platform offers a wide range of cryptocurrencies, but it doesn’t provide any conversion to, or from, fiat currencies.
Launched as a start-up in 2013, it has undergone several transformations over the years, finally being launched with a new look in April 2017.
Changelly also offers widgets for publishers that can be integrated into their websites, as well as providing API for merchants which allows them to exchange digital currencies directly, as well as providing crypto wallets and payment providers to their customers.
Why Should I Invest In Litecoin?
You should invest in Litecoin because many believe it is a more improved version of Bitcoin.
There are some that say the Bitcoin bubble is going to burst, and there is no doubt that due to the massive increase in its value, it has become very inaccessible or many.
There is an argument to be had that the fact it is worth so much, means that there is a chance it could be difficult to make any real, or substantial gains at this stage, therefore it might be best to look elsewhere.
When it comes to high processing times, and a winning concept, Litecoin has it covered.
The fact that it is much cheaper (for now) than Bitcoin, is just the cherry on the cake and I would advise everyone to include Litecoin in their portfolio because I firmly believe that the future holds great things for this unassuming, Bitcoin alternative.
Understanding how to buy Litecoin and how to start investing in the silver to Bitcoin gold is just the beginning.
The next step is getting yourself a reliable cryptocurrency wallet, such as Ledger Nano S, and taking care of the safety of your coins!