There’s a reason why one Litecoin is worth roughly $215. When Litecoin was first introduced it was the main competitor to the popular Bitcoin. These days, Litecoin isn’t as popular as it once was a decade ago.
However, it’s still a great option if you’re looking to invest in a diverse range of cryptocurrencies. But, exactly how do you go about buying them? If you want to learn everything you need to know regarding how to buy Litecoins, then you’re in the right place.
In this article, we’ll teach you everything that you need to know about purchasing this type of cryptocurrency. Let’s get started!
What is Litecoin?
Before we learn how to buy Litecoin, it’s important to be familiar with what it is. Litecoin was developed in 2011 by a former Google employee. This is two years after Bitcoin came out and its influence on Litecoin can be felt.
As its name suggests Litecoin can be viewed as a “lite” version of Bitcoin. This is because it was made using the original open-source blockchain code that was used on Bitcoin.
In this way, Litecoin was one of the first alt-coins found on the market. Litecoin has a lot of the same features as Bitcoin. However, the development team made some changes too.
For one thing, Litecoin uses a different type of cryptographic algorithm. This means that you get much faster transaction speeds with this type of cryptocurrency.
1. Select an Exchange and Storing Option
The most common way to buy Litecoin is to use an online exchange. However, you should make sure that you can trust the exchange before you proceed. First, look at the security methods that the exchange implements.
Be careful around exchanges that have had past security incidents. Exchanges make money through processing fees on the transactions that occur on-site. As such, you should make sure that you’re getting the best fee rates compared to other top competitors.
Finally, make sure that it’s easy to use. Buying Litecoin doesn’t need to be complicated. As such, the exchange should make it as straightforward as possible. You will also need an option to store it.
Most people opt for an offline, cryptocurrency wallet. In the past, it was never recommended that you store your coins in exchange. A crypto wallet was a much more secure option.
However, this isn’t true anymore. These days there are a lot of apps that allow you to both purchase and store currency securely. One example is the Crypterium App. It’s one of the most simple ways to buy Litecoin and store it at the same time.
2. Set Up Your Account
Once you pick an exchange to use, then it’s time to set up an account. This is a fairly straightforward process. Typically, there should be a clear ‘get started’ or ‘register’ button. Once you do this, then you will be asked to provide some sign-in information.
This usually includes things like your full name, phone number, and email address. While this information will get you signed in, it’s not enough to buy cryptocurrency. To do this, you will need to provide the exchange with some ‘Know Your Customer’ (or, KYC) information.
This usually includes things like the date you were born, your address, your social security number, and a scan containing a valid form of identification (like a driver’s license or passport).
Some exchanges allow you to purchase crypto without your KYC information. However, it’s usually a limited amount.
3. Choose An Amount That You Want to Buy
Now, it’s time to purchase some Litecoin. To do this, you will need to input the amount of money you want. How much should it be if it’s your first time? We recommend starting small.
You should never invest any money into cryptocurrency that you’re not fully prepared to lose. We suggest periodic investments over one large purchase.
That means that you set aside an amount, say $250, that you use to purchase Litecoin every two weeks or month. That way you can adjust your strategy as the price begins to drop. This isn’t possible with a large purchase of Litecoin.
4. Confirm Your Purchase
Now it’s time to confirm your purchase. To do this you will need to decide on a payment method. There are multiple ways that you can purchase Litecoin. One way is to use a credit card or debit card.
Just keep in mind that this method will usually result in additional fees. Most exchanges don’t prefer the potential problems that can come with purchasing Litecoin on credit. If you want to avoid these fees, then try a bank transfer.
This method typically does not result in any fees. However, it does have a major drawback: speed. Your bank will need to confirm the transfer which usually takes a few days. Some exchanges also allow you to purchase Litecoin using another cryptocurrency, like Bitcoin.
With this option, you’re essentially just converting your Litecoin from one currency into another. You can also purchase Litecoin with cash. However, this is impossible to do over an exchange.
Instead, you will need to meet a private seller in person, which can sometimes be dangerous. Once you decide on a payment method, simply input the amount that you want and click ‘buy’.
Enjoy Learning How to Buy Litecoins? Keep Reading
We hope this article helped you learn how to buy Litecoins. As you can see, purchasing this type of cryptocurrency is relatively straightforward. The most important part of the process is choosing an exchange and wallet that you know you can trust.
Once you do that, then you should be in the clear. Did you enjoy this article? If the answer is yes, then you’re in the right place. Keep exploring to find more topics that you’re sure to love.