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Alluded to as the younger brother of Bitcoin, Litecoin is a P2P cryptocurrency that has augmented its followers in the world of digital currency since its birth in 2011. This type of digital money uses a blockchain to directly transfer funds without requiring a middleman such as a bank or any processing service.
How to Buy Litecoin?
It has been reported in the past that after reaching an all-time high of $38 in December 2013, the exchange rate dropped and pegged a rate of around $3 for the last three and a half years. Subsequently, a recovery was made possible when the currency adopted the Segwit soft pork implementations.
In this guide, we will be tackling how you can buy the Litecoin cryptocurrency. There are actually 3 stages on how to buy LTC, and each one will be explained as the paragraphs unfold.
Stage 1 (Choosing and opening a Litecoin wallet)
Before you can acquire Litecoins, you should first choose and open a wallet where you could store them. Some of the popular ones are Ledger nano S, Trezor, Jaxx, and Litevault.
If you are wondering “How to buy Litecoin?”, first of all, you need to get a secure and a Litecoin compatible wallet. You can get a Ledger Nano S wallet before you buy Litecoin as it is one of the safest cryptocurrency wallets available on the market. It is a hardware wallet that is designed like a flash drive with a small screen. It comes with a micro-USB cable, keychain, key ring, and a recovery sheet. In addition, it also has two physical buttons which makes transactions even more secured. In order to verify a payment, the user must press the buttons at the same time, sealing all the holes for hacking.
Before you buy Litecoin you can also get a Litevault wallet. This one is an online wallet that implements an in-browser cryptography. The wallet has been built in Node JS. The wallet can be accessed from not only computers but also from tablet and mobile devices. The wallet does not require to download blockchain and the signup process takes no more than 10 seconds. This online wallet works similar to blockchain.info. You can manage the wallet on your device by sending an encrypted copy to their server, encrypted or decrypted at user’s end with a passphrase and it can utilize 2FA. It has a relatively simple interface, but one can find a more secure wallet other than this.
A good alternative wallet that you can get before you buy LTC is Trezor. It is another leading cryptocurrency hardware wallet that provides a top-notch security and a protection against thefts. The wallet has a good design and a screen which makes the device even more convenient to use. About a year ago the company behind this wallet has announced that it has updated and has started to support Segregated Witness aka SegWit on Litecoin.
Trezor is a small device to be connected to a computer via USB cable. Like the Ledger Nano S, it can be used safely even if the computer is infected with malware. It first made its appearance in 2014, making it the first ever hardware wallet.
Jaxx is a multi-platform and a multi-coin wallet. The wallet is developed by Decentral and caters several cryptocurrencies. It also has strong three features, namely:
- Cross-platform pairing
- Multi-coin functionality
- Embedded ShapeShift
The user interface is very simple and easy to use. However, a fraction of users has been complaining about how buggy and slowed the system is. Nonetheless, it is a secured wallet. Jaxx stores private keys on the device. It means that no third party has control over your funds.
Stage 2 (Choosing a Litecoin exchange)- Where to Buy Litecoin?
Founded in 2014, Bitpanda is one of the most popular places to purchase Litecoins. It allows one to buy via Credit Card, Skrill account, SEPA transfer or SOFORT, and depending on which method you are using, a fee is stipulated. For instance, via CC/SOFORT transfer, a fee of 2% is imposed which is relatively low as compared to other payment methods. On the other hand, Skrill requires a fee of 3.77%. Vouchers and Giropay are the cheapest methods out of all.
The user interface of the site is very simple and easy to follow. Even a novice can navigate through the site without difficulty. Furthermore, customer service is available to answer all concerns from the users. Lastly, when it comes to its reputation, the company won a startup award in 2016, so that should spell how credible the company is.
After its inception in 2017, the company is continuously making waves in the world of cryptocurrency. Binance is being patronized by many because of its impressive coin offerings, as well as the low trading fees. Despite it being new, a fraction of people considers it a good alternative to the popular ones that have been established a couple of years back. Concerning the trading fees, the company currently charges a flat 0.1% on each trade. For a service that doesn’t utilize a fee schedule, this is definitely one of the lowest fees. Moreover, if you opt for their own token (BNB) as a payment, a 50% discount on the trading fee will be awarded making it 0.05%. With the discount, Binance gets the throne of the cheapest fees in the industry.
There are two trading options in Binance (Basic and Advanced). There are no significant differences between the two, but, the latter allows you to do more detailed technical analysis as compared to the other one. As for the interface, both trading options are fairly complex and are not advisable for those who are just starting to invest. Several charts and graphs will welcome you as you go to the main dashboard, which screams complexity, especially for beginners.
OKEx is an exchange based in China. It was founded in 2013 and now considered as one of the most dominant players in the world of cryptocurrency. This digital platform provides spot trading of both fiat and digital currencies all over the world. There is no doubt that it is a giant in the trading scene because they came up with a smooth, simple, and responsive interface which processes trades almost instantly. The site can be accessed through your web-browser and mobile devices. The quality of OKEx is completely supplemented by one of the most highly developed interfaces on the market which explains all the aforementioned positive qualities of this exchange.
As for the fees, OKEx is quite competitive. Every transaction demands a fee of 0.2% both for takers and makers. They are not charging for USD deposits. However, a fee of 0.1% is required for withdrawals. For digital currency withdrawals and deposits, fees are waived.
Like any other exchanges, the company had dealt with a fair share of negative comments, but they managed to surpass all the issues by aiming to provide their customers with a top-notch experience. In addition, a responsive help and support are made available to address whatever issue a customer might be having.
Stage 3 (Transferring Litecoin to your wallet)
Once fully decided on which exchange you want to utilize, open an account then purchase your Litecoins. Ensure to withdraw the Litecoins from the exchange to the wallet you created as tackled in stage 1.
To Sum Up
Buying Litecoin, a cryptocurrency that has always been viewed as a brother to Bitcoin is no different from purchasing Bitcoins. There are variously available exchanges where one can easily acquire the cryptocurrency by following the various set parameters outlined above.
For more interesting articles about Litecoin and other crypto-related topics, you are welcomed to check on our site frequently. Thank you for making your crypto-knowledge our duty to build.