Litecoin (LTC) is sometimes referred to as “Silver for Bitcoins Gold” and is an open-source peer-to-peer cryptocurrency that was one of the earlier developed altcoins. The cryptocurrency was originally introduced to make money transfer faster. Litecoin network is based on the technology behind Bitcoin, with some important improvements.
For example, Litecoin’s more efficient network means lower transaction costs and faster transfer speeds compared to Bitcoin. Its faster network also makes the cryptocurrency less vulnerable to hacking attempts, which usually happen when a user transfers coins from wallet to wallet.
If you want to learn more about Litecoin and the cryptocurrency market as a whole, you’re in luck – it’s never been easier to invest in crypto than it is right now. In our guide, you’ll learn how to buy Litecoin, decide when to sell your coins, and some of our favorite platforms that currently support Litecoin trading.
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The first step is to build an online account.
The easiest way to buy Litecoin (and most cryptocurrencies) is to open an account with a cryptocurrency broker that supports direct Litecoin buying and selling. A cryptocurrency broker is very similar to a stock broker – you open your account, place buy orders, and the broker buys the cryptocurrencies you requested according to your specifications. After your order is closed, you will see your Litecoin in your brokerage account.
Like opening a bank account or a stock brokerage account, you will need to provide your broker with some personal information before you can access trading features. Some of the information you may need to provide includes:
- Your full legal name and address
- Your email address and phone number
- Some information about your income and experience in trading cryptocurrencies
- Bank account information or data for another payment method (such as PayPal and credit card information)
- A copy of your driver’s license, passport, or other form of photo ID
Not all cryptocurrency exchanges have links to the same coins. Consider some of our favorite brokers that currently fund Litecoin trading if you’re not sure where to begin your quest.
If you are fresh in the cryptocurrency market, you may want to start your investment career with Gemini. Gemini is a straightforward broker that focuses on providing investors with a simple trading platform that allows them to buy and sell some of the most popular digital currencies with just a few clicks. The Gemini platform gives you 24/7 access to your coins, and you can track how your investment is changing over time at a glance. In addition to its desktop platform, Gemini also offers comprehensive mobile trading and advanced tools for users who prefer access to expert-level charting and analysis tools.
Another popular cryptocurrency broker for beginners, eToro offers both desktop and mobile Litecoin investing. Of eToro’s most unique features is its, CopyTrader functionality, which allows you to start trading cryptocurrencies by “copying” the trades of professional crypto investors. Simply select a user you want to copy, activate CopyTrading and eToro will match your moves to the experts.
Want to test your crypto trading skills? Consider getting started with eToro’s practice account functionality, which offers you $100,000 worth of fake virtual currency to hone your trading skills. With a clean interface and a number of unique tools, eToro can be an ideal option for advanced investors and experts.
Step 2: Buy a wallet.
After opening a broker platform, you should choose a private wallet to store your coins in. Hot wallets and cold wallets are the two key forms of cryptocurrency wallets. Hot wallets are secure, but they need internet access to access your coins. Cold wallets are physical devices that allow you to store your coins offline. Although they hold fewer currencies than hot wallets, cold storage devices provide you with the highest level of security.
We recommend that you store your wallet in a cold storage bag. Browse some of our favorite options below.
Best for Coin Choice: HaloCam SafePal
One of the biggest complaints that cold storage wallet users have about cold wallets is that they tend to support fewer cryptos than hot wallets. This can mean buying several different wallets to store all of your tokens, which increases the likelihood that you will misplace a device.
The HaloCam SafePal is among the most comprehensive cryptocurrency wallets we’ve seen, with support for over 10,000 coins and tokens spread across 19 blockchain projects. If you’re looking for a 1-stop-shop solution to store multiple cryptocurrencies offline, SafePal gives you a single solution for all your investments.
Best for Affordability: KeepKey Hardware Wallet.
Many cold storage wallets cost around $100, so if you’re a new investor, you may not be able to spend that much on a wallet – especially if you only need to store a small amount of Litecoin.
The KeepKey Bank-Grade Security Hardware Wallet is a simple and affordable solution for those looking for a beginner-friendly way to store their coins offline. The KeepKey Wallet is compatible with Windows, Mac and Linux operating systems and offers high-level security solutions comparable to more expensive models. Priced at less than $30 via Amazon, the KeepKey Wallet can be a great solution for new investors.
Step 3: Make your purchase.
After you’ve opened your brokerage account, funded the account, and decided where you want to store your coins, it’s finally time to place your order. You place an order to buy Litecoin through your broker’s trading platform by entering a buy order. Your buy order tells your broker how much Litecoin you want to buy and when to execute the order. There are several types of buy orders – let’s look at some of the most common order types you might encounter.
• Market order: Simply, this is a buy order that tells your broker that you want to buy a set amount of Litecoin at the current market rate. Market orders are filled immediately as long as someone is selling their products when you place the order. Market orders are filled much sooner than other order types, but have less control over the price you pay per coin.
• Limit Order: Described as a buy order that tells your broker to buy a certain amount of Litecoin, but only at a set price. When you enter a Limit Order, you choose both the number of coins you want to buy and the maximum price you want to pay per coin. Suppose you set an order to buy 5 Litecoin at a limit price of $80 per coin, your broker will execute the order only if you can buy each coin at $80 or less. Limit orders give you added control over the price you pay per coin.
After you place your order, you can finally relax. This is because, your broker will do the rest of the work for you and you will see your coins in your account when the order is completed.
Trade or sell your cryptocurrency
Once your broker is able to complete your order, you will see your coins in your brokerage platform account. From here, you need to decide whether you want to profit from short-term price movements or be a long-term investor. If you think that the price of Litecoin will increase in the long term, we recommend moving your coins to your hardware wallet. These wallets contain a set of private keys that significantly reduce the possibility of you losing your coins if a hack occurs.
If you want to take advantage of short-term price movements, it is usually cheaper to keep your coins in your brokerage account. Convert Litecoin to an intermediate currency (like USD coin or Tether) when you think the price is high, and then convert it back to Litecoin when you think the price is low. This way, you can accumulate more Litecoin that you can cash out when you decide to make profits.
If you plan to become a cryptocurrency day trader, it is important that you open an account only with trusted, reliable brokers. Discover below some of our favorite cryptocurrency brokers that offer access to Litecoin trading if you’re not sure where to start.