How to Buy Litecoin: Get your First Digital Silver
Litecoin is easily available for cash and can serve as an exchange mechanism for other coins and tokens. Follow the steps to achieve a hassle-free experience of moving between cash and cryptocurrency, and safely storing the coins in a wallet.
Buying Litecoin does not need to be complicated- with a bit of planning, getting on board with this popular cryptocoin will be a smooth experience. . Litecoin is a widely available cryptocoin with a robust trading volume and allows easy access for new cryptocurrency investors. High liquidity and many payment methods make this cryptocoin a go-to choice, along with the relatively low price even after the spikes.
Recently, Litecoin gained in popularity, and in September spiked to a peak of $86, a significant achievement given the $2 price in 2016. As of October 2017, the coin hovers above $50, with spikes above $60 on some days. But the price of Litecoin is generally stable, compared to other cryptocurrencies, and gains and losses usually fluctuate around 20%, rather tame by industry standards. This makes Litecoin an attractive purchase.
Litecoin has been available for cash in the past few months, and several exchanges added this coin in the past year.
The process of buying a coin has several steps:
- Finding an exchange that accepts fiat and completing the required registration and verification.
- Providing funds that match the required amount of coins. The funds may be in fiat currency, other cryptocoins or in intermediary centralized virtual currencies. Different exchanges offer various payment methods, but the fastest are credit card or 3D protected debit card.
- Sending the newly acquired amount of Litecoin to the user's address, or wallet. Make sure your wallet has been tested with a small transaction before sending the funds. Litecoin has relatively low fees for sending, but expect the fees to be a bit higher for a faster transaction.
Before committing to a purchase of Litecoin, set up a wallet. The Litecoin Core wallet from Litecoin.org is the example for this guide, but there are alternatives offering faster exchange capabilities. The new empty wallet may take a while to synchronize with the whole network. The backlog of transactions may take a few hours while to download.
It is a good idea to encrypt the wallet and then make backups. Otherwise, the backups may become unusable. For more information, read the section on wallets
Litecoin Exchange- Where to Buy Litecoin
Litecoin is available through most online exchanges. Depending on the country of residence, exchanges may have varying degrees of difficulty in acquiring Litecoin for cash. While Litecoin is fully decentralized and global, using credit cards or bank transfers requires some more work. The alternatives for easy purchase of Litecoin are:
BitPanda- targeted to European buyers.
Coinbase - claiming to be the world's most popular exchange for Bitcoin, Litecoin and Ethereum.
Litecoin exchanges are not all created equal. Local dealers usually offer limited amounts of coins. There are international exchanges with high trading volumes allowing easy credit card access. There are also networks of persons offering their own rates and limited amounts.
BitPanda, a highly active and well-respected network, allows for many modes of purchase, but mostly targeted to EU buyers. The exchange gives a limited-time offer with a countdown to make a purchase:
But an even more important step is the verification process. Litecoin itself is anonymous, but buying usually requires a credit card or an identity. BitPanda has an involved three-step verification process ending up in a live video interview to avoid fraud. Other exchanges may use technology to verify a driver's license or other picture ID.
Buy Litecoin at Coinbase
Coinbase is convenient for US-based buyers, and allows for credit card purchase. Limitations may apply to deposit and withdrawal levels. Recently, the exchange removed the waiting period for sending coins and now users acquire the coins immediately, with a limit of $25,000 per purchase.
This would avoid the price fluctuation, as the period between making an order and delivery can see the price of Litecoin change and lead to losses.
Other Ways to Buy Litecoin
We already mentioned an alternative to global exchanges. Big traders are better for beginner buyers, as they have tools to screen fraud.
But the Litecoin community offers direct buying and payments through informal channels on social networks. Direct buying is a buyer-beware market that has very little protection and is not the best options for beginners. In case of personal purchases, it is best to stay protected by using escrow services that guarantee payment. This is a part of the protection at Litecoinlocal.
The prices offered by local personal sellers may diverge quite a bit from those of official exchanges, and some vendors may sell at inflated prices.
How to Buy Litecoin with Fiat
Payment methods for Litecoin include:
- Visa Verified or Master Card 3D security direct purchase by debit card.
- International wire transfer, subject to fees.
- Anonymous payment by Skrill. Subject to fees and credit/debit card verification.
- SEPA payments- in the European Union, subject to fees.
- Link a bank account and transfer funds- depends on availability and country of residence.
Buy Litecoin with PayPal
Due to its money-back policy, PayPal has stayed away from the world of cryptocurrencies. Some exchanges allow the user to buy Second Life Linden Dolars (SLL) through PayPal. SLL is an intermediary and is a centralized digital currency. Then, the SLL can be exchanged for Litecoin. VirVox offers this service.