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How to buy Litecoin (LTC) in 4 steps
Learn how to buy Litecoin (LTC) easily by following a step-by-step guide and compare 10+ crypto exchanges. Get started today.
Litecoin (LTC) is a digital token launched in 2011. The token was designed to be more efficient and offer speedier transaction times and lower costs than major competitors. These developments also make it less vulnerable to hacking attempts.
Interested in purchasing Litecoin? Although the notion may be daunting, you can use our uncomplicated guide to buy Litecoin and begin trading cryptocurrencies.
Step 1. Create an account on a cryptocurrency exchange that allows you to trade Litecoin
One of the simplest ways to acquire Litecoin is to use a cryptocurrency exchange. These exchanges are comparable to digital stock trading platforms. You can buy, sell and trade digital currencies in a secure, online environment. These blockchain networks are the go-to approach for those wanting to invest in the cryptocurrency market.
Once you have selected an exchange from the table below, you can sign up for an account by clicking the "Go to site" button. You'll be redirected to the exchange's website where you'll need to enter personal details, such as your name and email address. Next, you'll be asked to verify your identity and address. This Know Your Customer (KYC) process is a legal requirement for every user of US cryptocurrency exchanges.
Have a valid photo ID and a copy of a recent bank statement or utility bill handy. Verification is usually instantaneous but can sometimes take a few days to be approved. Once authorized, you can select a payment method to deposit funds into your account which will allow you to make exchange-based cryptocurrency purchases.
As is common with most digital currencies, there's no obligation to buy an entire coin. You can purchase a fraction of one Litecoin, the same way you can procure divisions of Bitcoin, Ethereum, Cardano or Dogecoin.
To help you decide on the exchange that's right for you, consider the following:
- Coins. You're currently in the market for Litecoin, but have you considered buying other cryptocurrencies? When signing up for an exchange, check to see if they trade a range of digital currencies to make investing more seamless.
- Location. Cryptocurrency exchanges based in the US must comply with local laws and regulations, and some exchanges are unavailable in certain states.
- Fees. There are often costs associated with each individual transaction. These fees can accumulate over time. Paying by credit card tends to be the most expensive option, while bank or wire transfers are generally cheaper.
Step 2. Deposit funds into your accountAdding funds: The simplest way to buy Litecoin is to deposit money from your bank to the exchange account of your choice and make your purchase. Depending on the financial institution, it may take a few days for funds to transfer and clear. Depositing money this way offers you the most options and incurs the lowest fees.
These transactions aren't irreversible. You can always transfer your fiat currency back to your bank account if you decide to sell your cryptocurrency.Linking a card: Linking a card to your account can be a convenient method, but there are some pitfalls. For example, funds are only transferred upon purchase and the fees can be more costly than a regular bank transfer. Credit or debit cards are typically used for instant purchases and cannot be used on the spot market. Some exchanges prohibit the use of credit cards entirely. It's advisable to avoid using a credit card, as you may pay interest charges on top of standard exchange fees.
Step 3. Buy Litecoin
Sign into your exchange account and navigate to the cryptocurrency markets. Search for Litecoin and find the button or link which will allow you to purchase LTC. This is known as a buy order. This informs the broker (in this instance, the exchange) of the amount of Litecoin you'd like and when to execute the transaction. There are 2 common buying methods on US exchanges: instant buy and spot market purchases.Instant buy: Many exchanges will let you buy Litecoin instantly. The exchange acts as a broker, selling you digital currency directly at a fixed price. Buying coins in this fashion can be expensive, as the exchange often charges fees on top of the market price. Spot market: This is the most common method people use to buy and sell cryptocurrencies. Similar to a stock exchange, you can seek out the lowest listed price or make an offer at a further reduced amount in the hopes that it is accepted. This approach allows for the most competitive prices and trading options.
Carefully review all transaction details, including the amount of LTC you're buying and the total cost of the purchase before completing any transaction. Remember, you don't have to buy an entire coin – they're divisible. Most exchanges will require a minimum purchase amount in fiat, ranging anywhere between US$2 and US$100.
Step 4. Withdraw to a digital wallet
You have the option of storing your newly purchased cryptocurrency in your exchange account, however, this is not recommended. Exchanges are frequently targeted by hackers and don't necessarily have the same insurance policies that established financial institutions offer. A smart practice is to move your tokens to a digital wallet that only you can access through the use of unique private keys. These wallets are software that allow you to store, send and receive digital currencies. When searching for a digital wallet to hold LTC, some options to consider include:
- Hardware wallets like the Ledger Nano X and Sugi Wallet
- Mobile wallets like MetaMask and LoafWallet
- Desktop wallets like Atomic Wallet
- Web browser wallets like LiteVault Wallet
Key things to consider when investing in Litecoin
You wouldn't invest in shares without conducting research, so ensure that you're aware of the common pitfalls associated with buying and selling any cryptocurrency:
- Price volatility: Litecoin's price is largely based on speculation, which means it can rise or fall over a short period. It is not uncommon for digital currencies to lose significant proportions of value in a single day. Sound advice would be to only invest as much as you can afford to lose.
- Security: It's important to understand the risk of leaving your coins on an exchange versus a digital wallet. If you want to use a wallet, you'll need to learn how public and private keys work.
- Transactions cannot be reversed: Once you've submitted a transaction to the Litecoin network, it can't be canceled or reversed. Double-check the receiving address and confirm amounts before purchasing. No refunds.
- Litecoin is not anonymous: There's a widespread misconception that all cryptocurrency transactions are anonymous. This isn't the case, as the details of your transactions are visible to everyone on a digital ledger. If anonymous transactions are an important feature for you, it may be worth researching privacy-focused coins, such as Dash and Monero.
- You must pay tax: If you hold Litecoin as an investment, you'll be taxed on any capital gains you make when you sell it for USD or another cryptocurrency. Tax obligations also apply to Litecoin mining, professional traders and in a range of other scenarios. Make sure you're fully aware of what to report to the IRS. You can browse our cryptocurrency tax guide to discover relevant information.
- The law: Global regulators and financial bodies are constantly changing the way they view and govern cryptocurrencies, whether that's in regards to purchasing, taxing and even banning trading activities.
Where to buy Litecoin in country name error
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