In many circles, Bitcoin is increasingly being nicknamed and considered as the ‘digital gold', and indeed its unique properties have made Bitcoin incredibly valuable, just like physical gold bullions. But for every gold medal, there needs to be silver one, and this is where Litecoin comes in. If cryptocurrency's gold is a bit out of your reach, then you might want to read our how to buy Litecoin guide to know more.
Bitcoin, for all its immense greatness, has its own painful flaws. For one thing, as valuable as it may be as an investment, Bitcoin isn't the best form of day-to-day currency out there. At least, not when tokens like Litecoin are out and about in the wild. With Litecoin, the future of a secure, private, decentralized currency is a lot closer than it seems, combined with speedy transactions and low fees for both individuals and businesses alike.
Litecoin, then, is an incredibly powerful currency, even if it doesn't have Bitcoin's shine. As our world becomes more accepting of decentralized forms of currencies to create a new economy, Litecoin shows great promise as being a core tenet to this new world. Moreover, its usability makes Litecoin highly versatile, too! So, read our how to buy Litecoin guide to know more.
Where to Buy Litecoin – Top 5 Exchanges
At the time of writing this how to buy Litecoin guide, its native LTC token is currently the 8th-largest cryptocurrency by market capitalization. This is compounded by its easy usability as a common form of currency relative to other cryptocurrencies across different platforms, services, and payment vendors.
Owing also to its age, Litecoin is among the most popular cryptocurrencies on the market, with strong exposure to the market. Consequently, it's fairly easy to get a hold of Litecoin's LTC tokens. Most of the major marketplaces and exchanges support the buying, selling, and trading of LTC. It isn't easy to pick just five exchanges – but to help you with our how to buy Litecoin guide, we've listed some of the top marketplaces to buy LTC.
A Step-By-Step Guide on How to Buy Litecoin
There are many different ways how you can buy Litecoin. These methods and their steps depend entirely on which exchange you're using and your payment or deposit methods. For this how-to buy Litecoin guide, however, we'll be using the popular Binance exchange as a demonstration.
This is due to Binance's popularity and the market liquidity for LTC tokens. Hopefully, our example here with Binance will help to give you a better idea of how to buy Litecoin, regardless of whichever exchange you're using.
Step 1: Create an Account on Binance
Of course, this will be the first step into buying any cryptocurrency, on Binance or elsewhere. It begins quite simply by setting up an account over on the Binance exchange. Make sure you are logged onto the correct URL for Binance, as there are many malicious platforms that try to emulate legitimate sites.
For example, if the URL has a spelling error, such as “binnance.com,” then you know that this site is not real. You can easily use the links we've provided above. Click on the yellow ‘Register' button along the top-right, and then follow the on-screen instructions using your email or mobile number. It's fairly easy, and be sure to use a strong password.
You can register and open up an account on Binance on either their website or using their mobile application available for iOS or Android. Unlike setting up a bank account that requires you to deposit a small sum of money first, Binance or any other cryptocurrency exchanges are free to set up an account.
Step 2: Complete Account Setup on Binance
In order to ensure maximal security, Binance will require you to verify your identity simply by sending over an authentication link to your email address – this should complete the main setup for your account. We also recommend you go to your account settings and have 2-factor authentication turned on, and have that setup.
You can use mobile apps such as Google's Authenticator service to easily set up 2-factor authentication (2FA). Although an optional step, this is essential in protecting your account and locking it down to ensure that it is more difficult for malicious actors to break in and steal your funds. You'll be required to use 2FA for actions such as logging into your Binance account, buying, selling, or withdrawing funds.
This makes sure that only you can approve these actions to take place. Optionally, you can also get your account verified by sending over personal details, such as your personal ID or driver's license, over to Binance. This is an optional step and is only required if you're planning to gain more access to other services within the Binance exchange or if you're planning to trade more volumes beyond its default limit.
Step 3: Deposit Funds into Your Binance Account
This is just as easy as trying to deposit money into your ordinary bank account. Binance offers a wide variety of deposit options, from bank transfers, using your credit or debit card, PayPal, Western Union, or deposit other cryptocurrencies. We'll be taking a look at some examples below.
Step 4: Depositing Fiat Currency into Binance
At the time of writing this guide, Binance does not directly support buying Litecoin (LTC) cryptocurrency tokens using fiat currencies. So, what this means is that you'll have to first buy another cryptocurrency using the available fiat-compatible options. Then, you can trade or exchange those newly-bought cryptocurrencies into LTC.
First, once you've already logged into your Binance account, hover your cursor over the ‘Buy Crypto' tab on the top left. Under the option that says, ‘Pay with,' you can cycle between the various fiat currencies that are supported for use on Binance. This is important, as the type of currency you choose will then determine what options are available to deposit it. You can also do this from your ‘Wallet' page on Binance.
For instance, if you choose to deposit US Dollars (USD), then you'll be given options such as a bank transfer using SWIFT. Or, you could use your VISA or Mastercard compatible credit or debit card. There are a myriad of other options. Binance also facilitates peer-to-peer cryptocurrency trading – this means that you will be trading directly with other persons on the Binance network.
Those options stated above will allow you to use fiat currencies to directly buy a select number of cryptocurrency tokens. This includes well-known tokens such as Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB), or stablecoins like Tether. If your intentions are to immediately exchange all those tokens for LTC, then it's safer to use a non-volatile stablecoin such as Tether (USDT).
Step 5: Depositing Cryptocurrencies into Binance
Instead of using fiat currencies, maybe you'd instead like to buy Litecoin tokens using other cryptocurrencies instead. Since Binance doesn't allow for direct purchasing of LTC with fiat, this is a less complex solution. Once you've logged into your Binance account, scroll over to the ‘Wallet' tab on the top right, and click ‘Overview.' This will show you the overall look at your wallet.
At the top, you might notice a yellow tab that says, ‘Deposit'. Click that, and it will ask you to choose which cryptocurrency you might want to deposit into your wallet. You can also deposit through fiat-compatible options here as well. There are a few things to take note of here while depositing; the type of cryptocurrency, the address, and additional tags. Let's say we take Bitcoin as an example.
If you'd like to deposit Bitcoin into your Binance wallet, you'll be required to select ‘Bitcoin' under the options of currencies. Please double-check this. To receive a Bitcoin deposit into your Binance account, you will have to withdraw Bitcoin from another wallet elsewhere. If, for example, you withdraw Ethereum and deposit it into a Bitcoin address, that Ethereum might be lost and cannot be retrieved.
Next, you'll need to get the address right. You can easily copy and paste the deposit address on Binance to your withdrawal process elsewhere. Cryptocurrency addresses are always long and comprise of a mix of letters, numbers, and symbols. Double-check once you've copied the address over, as a single missing character could risk you losing your transfer.
To save on time, you could say, opt to check just the first and last five characters. Or, to make things easier, you can use the QR code. For instance, if you are trying to deposit Bitcoin using a mobile wallet app on your phone, choose to withdraw using a QR code, and scan the one you see on Binance. You could also choose which network you might want to transfer to happen, and it will vary in terms of how much fees you have to pay depending on congestion on those networks.
There is some other information that you need to get right, too. Depending on the cryptocurrency token, you might need additional tags, such as a ‘MEMO' or Payment ID. Whenever you're trying to withdraw said cryptocurrency from another wallet, it will prompt you – just as well as Binance – through its depositing process. The same applies; copy over the corresponding information and double-check. Now, wait until the transaction has been confirmed.
Step 6: Buying Litecoin Using Cryptocurrencies
Right, so now you've already had some cryptocurrencies on your Binance account and are planning to buy some LTC. The process here is simple enough, and there are multiple options for you to do it. Go back to the Binance homepage once you've logged in, and hover over the ‘Trade' tab on the upper left-middle. You can see five distinct options; Convert, Classic, Advanced, Margin, and P2P.
The easiest is to ‘Convert' from one cryptocurrency to the next through an over-the-counter (OTC) service. This is the simplest way to convert, or swap tokens on Binance, although it is only available to a select number of cryptocurrency pairs. Litecoin, thankfully, is supported. You don't have to worry about trading fees, or matching with the order books. However, you also do not have any control, as the whole process is done automatically.
Alternatively, ‘Classic' will take you to a more traditional marketplace, where you can see graphs, an active order book, and a list of options that you can choose and set. Although you can easily buy LTC using the Convert feature, the ‘Classic' trade is an option if you'd like more control, such as setting your preferred buying price relative to the market, then using the ‘Classic' trading marketplace is your best bet.
Best Wallets to Hold Litecoin
We hope that by the end of those six easy steps, you now know how to buy Litecoin. Once you have successfully purchased LTC, you're probably thinking of other ways to store them securely. History has taught us that holding your cryptocurrency tokens on the web, stored online in an exchange account isn't the safest way to lock down your assets.
In 2020 alone, we've seen that a total of around $3.8 billion worth of cryptocurrencies were stolen in over 122 different cybertheft attempts, it's best for us not to add to this statistic in the coming future. The best way for you to make sure that your Litecoin isn't stolen, is simply to have them locked in a dedicated wallet.
These wallets act like vaults that are built to be robust against hacking or stealing attempts. There are different forms of wallets; there are software-based ‘hot‘ wallets or hardware-based ‘cold‘ wallets. These two are among the most popular ones, alongside ‘warm' wallets, and they each have their own pros and cons. Here are some of the best wallets we've found to best secure your newly-bought Litecoin.
|Ledger Nano S||Rating: |
|Exodus Wallet||Rating: |
|Atomic Wallet||Rating: |
More Information on Litecoin
Litecoin was originally created using a modified version of the Bitcoin blockchain. As the name suggests, the end goal was to create a ‘lite' version of Bitcoin and thus make it more usable as a form of currency for day-to-day use. It included some key modifications, with a much lower processing requirement and faster block time compared to Bitcoin. It also shares some features with Bitcoin, such as the integration of SegWit, and the Lightning Network.
Moreover, Litecoin is able to conduct transactions with far lower fees by comparison. The end result is a cryptocurrency token that is very suitable for payments. Some examples of its usability are its ability to be easily integrated into merchants' point-of-sale systems or to facilitate the use of micro-transactions. As of January 2021, there are over 2,000 unique merchants and stores that have adopted Litecoin as an accepted means of payment worldwide.
Litecoin has seen a new surge of interest lately, owing to the limited scalability of primary blockchains and the growing adoption of blockchain in the mainstream. While chains such as Ethereum buckle under its high network congestion and sky-high gas fees, alternative chains such as Litecoin are seeing renewed growth. The migration is further helped with a continued commitment to network updates, such as the recent MimbleWimble privacy update.
At the time of writing this how to buy Litecoin guide, LTC tokens are trading at $161.84. Matched with its circulating supply of 66,442,354 LTC, this puts Litecoin's market capitalization value at $10,753,329,127. This makes Litecoin the 8th-largest cryptocurrency by market cap, although it has fallen behind since it used to be the 2nd-largest token, just behind Bitcoin. Litecoin has a total token supply of 84,000,000 LTC, 4-times more than Bitcoin.
As we begin to end our how to buy Litecoin buyers' guide, we hope that you've learned a thing or two about how to buy Litecoin and have learned a bit more about the Litecoin blockchain. Over the years, Litecoin has slipped far below its former silver status, a position now belonging to Ethereum. This is expected, after all, as Ethereum's blockchain has shown itself to be incredibly powerful and versatile, in a way that could challenge Bitcoin itself.
However, while Ethereum continues to dominate the No.2 spot behind the legendary BTC, it doesn't mean that the world has forgotten or has no use for Litecoin. They've suddenly come under a strong resurgence in price, as users are now seeing more value in its tokens. Litecoin's low fees, with easy integration and usability have made it an incredibly powerful token to have. In that case, Litecoin is certainly less silvery now and more US dollary in its promise.