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Sell Litecoin in 4 steps
Learn how to sell Litecoin (LTC) by following our step-by-step guide. Compare cryptocurrency exchanges to find the best place to sell Litecoin.
Estimated reading time: 2 min
Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be high risk.
What are the key risks?
1. You could lose all the money you invest
- The performance of most cryptoassets can be highly volatile, with their value dropping as quickly as it can rise. You should be prepared to lose all the money you invest in cryptoassets.
- The cryptoasset market is largely unregulated. There is a risk of losing money or any cryptoassets you purchase due to risks such as cyber-attacks, financial crime and firm failure.
2. You should not expect to be protected if something goes wrong
- The Financial Services Compensation Scheme (FSCS) doesn't protect this type of investment because it's not a 'specified investment' under the UK regulatory regime – in other words, this type of investment isn't recognised as the sort of investment that the FSCS can protect. Learn more by using the FSCS investment protection checker.
- The Financial Ombudsman Service (FOS) will not be able to consider complaints related to this firm or Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance. If you have a complaint against an FCA regulated firm, FOS may be able to consider it. Learn more about FOS protection here.
3. You may not be able to sell your investment when you want to
- There is no guarantee that investments in cryptoassets can be easily sold at any given time. The ability to sell a cryptoasset depends on various factors, including the supply and demand in the market at that time.
- Operational failings such as technology outages, cyber-attacks and comingling of funds could cause unwanted delay and you may be unable to sell your cryptoassets at the time you want.
4. Cryptoasset investments can be complex
- Investments in cryptoassets can be complex, making it difficult to understand the risks associated with the investment.
- You should do your own research before investing. If something sounds too good to be true, it probably is.
5. Don't put all your eggs in one basket
- Putting all your money into a single type of investment is risky. Spreading your money across different investments makes you less dependent on any one to do well.
- A good rule of thumb is not to invest more than 10% of your money in high-risk investments.
If you are interested in learning more about how to protect yourself, visit the FCA's website here.
For further information about cryptoassets, visit the FCA's website here.
How to sell Litecoin
The best way to sell Litecoin is through a crypto exchange. If the LTC is already on the exchange, then skip to step 4. Otherwise, the Litecoin will need to be deposited on an exchange to be sold on the market.
There are a few factors to consider when selling LTC. Before registering on the exchange, check that the asset is listed on the platform and that the desired fiat currency is supported for withdrawing to a bank account. Compare crypto exchanges to find the lowest deposit fees, withdrawal fees and trading fees to maximise the fiat payout.
Step 1: Choose where to sell Litecoin
Choosing where to sell Litecoin depends on many factors. Cryptocurrency exchanges offer different fees for depositing crypto, but it should be free to deposit LTC apart from the network fee. Take into account trading fees for selling LTC when choosing where to sell as well. Reasonable trading fees should range from 0%-0.5% per trade. The last factor to consider when selling Litecoin is the withdrawal fee for cashing out to a bank account. Some exchanges charge a flat rate while others charge a percentage. Look for exchanges that have no withdrawal fees, charge a low flat rate or pay for a portion of the fees.
Step 2: Create an account
Once you've chosen a cryptocurrency exchange to sell your Litecoin, you will need to create an account. Find the sign-up or register button on the homepage then do the following:
- Enter an email address or phone number
- Create a password
- Verify the email or phone number provided by entering the verification code sent to it
- Agree to terms and conditions
- Click "sign up" or "register"
You'll have to go through the KYC process to verify your identity before selling LTC. Finder has outlined the basic steps, but click here for Finder's guide to KYC.
- Enter personal information
- This includes your name, country of residence and an ID. This step may require you to upload a scan of your chosen ID or simply enter your ID number.
- Upload documents
- A clear photo or scan of your ID with no glare or obstructed view is necessary. You will also need to upload a copy of a utility bill or bank statement that matches the address and name on the ID provided.
- Upload a selfie
- This involves taking a photo of yourself with a full view of your face. You must be holding a piece of paper that has your name written on it and the current date. Some sites will provide a unique code that you need to write on a piece of paper.
- Activate 2FA
- This is an optional step but it is recommended. Some exchanges require it regardless. Activating 2-factor authentication adds an extra layer of security to your account.
Step 3: Deposit Litecoin:
The next step is to deposit LTC on an exchange in order to sell it:
- Navigate to the wallets or balances page of the exchange
- Locate "Litecoin"
- Click "Deposit"
- Copy the address the exchange provides for your LTC deposit
- Paste the address into your external Litecoin wallet
- Double-check the address
- Depending on your comfort level, you can also send a small test amount first, but this will cost you an extra transaction fee
- Send the transaction
- You will have to choose the network fee (a higher fee results in faster processing)
- Once the transaction is broadcasted, you can exit your wallet
- Wait for the deposit to be confirmed by the exchange
- This can take a few minutes to an hour depending on the exchange and network congestion
- Once the deposit is confirmed, you can sell your LTC
Step 4: Sell Litecoin:
Now that your Litecoin is in your exchange wallet, you can sell it. There are a couple of different ways to sell LTC through an exchange: market order and limit order. It is important to remember that you can sell Litecoin for fiat or for other crypto assets and tokens.
To access market and limit orders on a cryptocurrency exchange, you'll need to navigate to either "spot trading", "trade" or "markets". Though there are often more trading options than market and limit orders, they are the most common types. When selling Litecoin through spot trading, you can sell it for fiat-pegged stablecoins or other digital assets.Market orders
- Litecoin is sold immediately for market price. The fees are higher than using a limit order but they are lower than an instant sell. You should choose a market order if you want to sell LTC as fast as possible at the current market price.
- Litecoin is sold only if it reaches a price set by you. The fees are lower than a market order and they are much lower than an instant sale. You should choose a limit order if you want to sell Litecoin at a specific price.
- Maker fees are charged to those who add liquidity to the exchange (place an order not already on the books).
- Taker fees are charged to those that take liquidity off the exchange (place an order that already exists and is filled immediately).
- Taker fees are charged for market orders because the sale is immediate.
- Taker fees can be charged for a limit order if the price set is the same as the market price.
- If you place a limit order for a price that is not the current market price, then it is considered a maker order and has lower fees.
- Some exchanges charge the same for both maker and taker trades.
When using a market order, simply choose how much LTC to sell and then confirm the order. If using a limit order, choose how much LTC to sell and for what price. Then wait for the order to be filled. You can cancel your order at any time if it's unfilled.
Withdrawing local currency:
When trying to sell Litecoin through a platform that permits fiat currency withdrawals, check to see what withdrawal methods are supported. Options may include the following:
- Bank transfer
- Credit/debit card
When choosing an exchange and withdrawal method, make sure to consider the following:
- Fees. Many (but not all) platforms impose a withdrawal fee, and the fee charged usually varies depending on the withdrawal method selected.
- Some exchanges allow users to sell Litecoin directly for fiat at market price and deposit the funds directly into the account of choice.
- Limits. Are there any minimum or maximum limits on how much you can transfer? How do they differ between withdrawal methods? Can you increase these limits by providing additional verification or ID?
- Processing times. How long will it take for [fiat] to arrive in your wallet or bank account? For example, while cash withdrawals are instant, bank transfers can take several days to arrive.
- Any other restrictions. For example, some exchanges will require you to withdraw funds using the same payment method that you used to make your deposit.
Factors to consider when selling:
The best way to sell Litecoin varies based on an investor's circumstances. What works well for you might not be a good fit for others. Instead, it's about working out which option is the right choice for you. You can do this by asking yourself a few important questions:
- Do you want to sell Litecoin for fiat or another cryptocurrency?
- How quickly do you want to sell your Litecoin?
- Are you willing to accept a price well below the market rate, or do you want to negotiate the best price possible?
- If selling for fiat, how do you want to receive payment?
These questions should help you decide how you want to sell your Litecoin, and you can then figure out which platform has all the features you need. When comparing different cryptocurrency exchanges, make sure you consider the following:
- Price. How does the exchange rate compare to those offered by other platforms?
- Fees. Compare any trading fees that apply and whether there's a fee for withdrawing funds into your bank account or cryptocurrency wallet.
- Trading and withdrawal limits. Is there any limit on the amount of Litecoin you can sell or on how much fiat currency you can withdraw from your account?
- Security features. Are there any security measures in place to help protect your funds and your private data, for example, 2-factor authentication or a reputation system for buyers and sellers?
- Customer support. If something goes wrong with your transaction, how can you contact customer support? During what hours is support available?
- Reputation and reviews. Seek out online reviews and check crypto forum posts from other users to find out whether they recommend a particular exchange or trading platform.
There are several other important factors, such as where an exchange is regulated and the payment methods accepted by peer-to-peer trading sites. For a full breakdown of the features to look out for, check out Finder's cryptocurrency exchange guide and discover tips on how to choose the right platform.
Though not as common as Bitcoin ATMs, there are Litecoin ATMs out there for people to use. Many Litecoin ATMs are Bitcoin ATMs as well. LTC ATMs, much like BTC ATMs, are not a recommended way for buying or selling Litecoin. This is because the fees charged for using ATMs are extremely high, especially when compared to selling through the spot market on an exchange.
Frequently asked questions
Is now a good time to sell Litecoin?
See what Finder's experts think here.
Can I cash out Litecoin?
Yes, you can cash out Litecoin following the steps outlined here.
How do I sell Litecoin for pound?
You can sell Litecoin for pound or other fiat currencies using a crypto exchange. Here are Finder's recommended LTC exchanges.
Is it easy to sell Litecoin?
Yes, it is easy to sell Litecoin by following Finder's guide.
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