Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our content.
How to buy Litecoin (LTC) in 4 steps in Canada
Learn how to buy Litecoin (LTC) easily by following a step-by-step guide and compare 10+ crypto exchanges. Get started today.
How to buy Litecoin
Buying Litecoin (LTC) is a relatively simple process to follow. You just need some photo ID to create an account on a platform that sells it, then link a payment method to buy it with, like a bank account or debit card. Credit cards are another common way to buy LTC, and Finder has created a separate guide for buying LTC with a credit card.
Cryptocurrency exchanges are the main way people buy Litecoin and other cryptocurrencies. While blockchain, the technology behind Litecoin, is complex, Finder has all the information you need to buy LTC. The process is the same for buying other cryptocurrencies, so it will be easy to buy crypto assets and tokens and have a diverse portfolio. You are not locked in to buying a lot or a little of Litecoin, the amount you spend is your choice.
Step 1: Choose where to buy
A cryptocurrency exchange is a platform that lets you buy and sell cryptocurrency coins and tokens. They operate like stock exchanges. Cryptocurrency exchanges differ in terms of fees, security, payment methods and features, so use Finder's table to help determine which is right for you. If you're a beginner, you won't need a ton of features, and you can always sign up to other exchanges later.
Some of the most popular exchanges that accept CAD are Netcoins Trading Platform, Kraken Cryptocurrency Exchange and Crypto.com App. All of these exchanges are considered relatively beginner friendly and offer deposit methods in a variety of methods.
To help you pick an exchange for buying Litecoin, consider the following:
- Fees. Fees are charged on each purchase and can add up over time. Paying with a credit card tends to be the most expensive option, so keep an eye out for exchanges with free payment methods like a bank transfer.
- Coins. Obviously, you want some Litecoin, but have you thought about what other cryptocurrencies you might like to purchase later on? If you plan to expand your portfolio at some point, consider picking an exchange with other coins of interest.
- Location. Cryptocurrency exchanges based in Canada must comply with local laws and regulations, and you will find some exchanges are unavailable in certain states. Be wary of exchanges located in foreign tax-havens with weak consumer laws.
Step 2: Create an account
Once you have selected an exchange to purchase Litecoin from the table above, you will need to register.
- You can sign up for an account by selecting the "Go to site" button
- This will take you to the account creation page, where you can fill in your details, starting with your name and email address.
- You will then need to verify your identity and address, which is part of a process called know your customer (KYC), which is a legal requirement by exchanges in Canada.
- To do this, you will need a photo ID and a copy of a recent bank statement or utility bill that has your address on it.
- KYC is typically approved instantly, although in some cases, you may have to wait a few days before your account is verified.
- Once your account is approved, you will need to choose a payment method to deposit funds into your account before you can make any purchases.
|Exchange||Bank deposit||Card deposit||Crypto deposit||Buy Litecoin|
|Netcoins Trading Platform||Go to site|
|Kraken Cryptocurrency Exchange||Go to site|
|Crypto.com App||Go to site|
Step 3: Fund your account
To buy Litecoin, you will first need to deposit funds into your exchange account or link a credit or debit card. Some exchanges allow registration without KYC, but they will require it when users go to fund their account with fiat or buy Litecoin with a card.
There are various ways to deposit money into an exchange account to buy Litecoin, each of which will have a different wait time before funds are deposited.
- Wait times can range from nearly instant to a few business days.
- Each exchange will accept different forms of payment for deposits, and there are often region-specific methods. Some funding methods include:
- Bank transfer
- Debit card
- Wire transfer
- Credit card
Step 4: Buy Litecoin
Navigate to the markets section on your chosen exchange to find your desired Litecoin pairing. Look for the section on buying LTC, and type in the amount of the paired cryptocurrency you want to spend or the amount of LTC you want to buy.
- Note: Carefully review your transaction details, including the amount of Litecoin you're buying and the total cost of the purchase, before completing the transaction.
Some cryptocurrency exchanges only offer one way to purchase cryptocurrency while others give you a few options. The most popular methods of purchasing Litecoin are instant buy and the spot market.Instant buy/market order
Most exchanges offer the ability to buy high volume cryptocurrencies like Litecoin instantly, and this is one of the fastest ways to purchase LTC. Simply enter the amount you would like to purchase in CAD and the exchange will calculate the equivalent amount of LTC, according to the market rate.
Buying LTC via the instant buy method is generally more expensive than on the spot market as there is usually an extra exchange fee added on top of the market price. This is a simple way to purchase cryptocurrency for beginners but it's important to be aware of the extra costs involved, especially if using this method with a linked credit card due to fees.Spot market
The spot market is offered on the majority of exchanges and is the most common way to buy and sell LTC or other assets and tokens. There are a few different ways to buy LTC on a spot market, but market buys and limit orders are the most common.
A market buy is like an instant buy, but without the added fees charged by the exchange for brokering the deal. There is still the trading fee, but the fee is less than instant buy.
A limit order means placing an order for Litecoin at a set price and amount of LTC. The order is filled as other traders sell their assets through a selling limit order or market sale at the price set. Trading fees for a limit order are less than for a market buy and much less than for instant buy.
The risks of buying Litecoin
Cryptocurrencies are complicated and volatile assets, and buying any digital asset or token comes with a high level of risk attached. Before buying, make sure you do plenty of research and that you recognise the factors that could potentially drive the price of Litecoin either up or down. Here are a few risks of buying LTC:
- Competition. There are new projects coming to market that create competition and can dilute market values of the other assets in the sector, or overtake them.
- Regulatory changes. Government regulation could affect cryptocurrency prices negatively such as the banning of cryptocurrency in a country.
- Exchange or account hacks. While uncommon, there is the risk of an exchange or your account being hacked, and funds being stolen.
Keeping Litecoin safe in a wallet
While some people choose to store their Litecoin in their exchange account, this is not recommended. Exchanges are regular targets for hackers and thieves. It's a much safer option to move Litecoin or other assets into a wallet which allows you to retain full control of your private keys. There are hardware and software wallets for desktop and web browser available to store cryptocurrencies. Keep Litecoin safe with any of Finder's recommended wallets.
Why is Litecoin so cheap?
Litecoin's price may be cheap for a variety of reasons. See Finder's expert analysis here.
What is the easiest way to buy Litecoin?
The easiest way to buy Litecoin is through a cryptocurrency exchange.
Is buying Litecoin a good investment?
Buying Litecoin may be a good investment. See what Finder's experts think of Litecoin's price here.
More guides on Finder
Crypto FAQ: Answers to 5 commonly asked crypto-related questions
SPONSORED: These 5 crypto FAQs from Wealthsimple will help you understand cryptocurrencies and their place in your portfolio.
CoinField cryptocurrency exchange review
Find out if CoinField is the right exchange for your needs.
Bitvo is a premium cryptocurrency exchange in Canada with zero-fee trading and superior customer service. Finder’s Bitvo review covers fees, assets and more.
Netcoins is the first publicly traded cryptocurrency exchange. It offers easy onboarding and added security as a result of being publicly listed.
Newton crypto review
Newton is a Canadian cryptocurrency exchange that offers a wide range of coins with low-cost fees.
How to donate crypto to Ukraine
If you’d like to donate crypto to aid Ukraine, here’s a vetted list of organizations accepting Bitcoin, Ethereum and more.
Read our review of VirgoCX, a Canadian cryptocurrency exchange that’s appealing to new users and experienced traders alike.
How to help the people of Ukraine today
If you’d like to help, here’s a verified list of organizations accepting donations and other ways you can provide support.
SALT Lending crypto loans review
Alternative financing that lets you tap into the value of your crypto without having to sell it.
WazirX review 2022
Finder’s WazirX review covers all the information you will need about the exchange. Learn about the cryptocurrencies WazirX offers as well as its fees and incentives.