Learn Where & How to Buy/Trade Litecoin (LTC) - A Beginner's Guide
Litecoin is considered to be a ‘lighter’ version of Bitcoin, hence, it was named as such. The native currency of the network is known as LTC. When you are looking to invest in Litecoin or LTC tokens, you need to have a robust holding strategy so your funds remain secure. One of the most effective methods to secure your LTC coins is to get a dedicated wallet that comes in both software and hardware variants.
This guideline will take you through the complete journey of investing in LTC tokens, from why to buy Litecoin, and what strategy to choose and when. If you want to learn how to invest in Litecoin or any other cryptocurrency, read on.
3 Things to Consider Before Buying Litecoin
Litecoin was invented by Charlie Lee. He is a former Google employee. The currency has been in existence since 2011 and although it relies on the Bitcoin protocol, it is different from the BTC network in major aspects including having a hard cap and hashing algorithm. As a 'light' version of Bitcoin, Litecoin has seen consistent growth over the years and it is more accessible for miners as well.
One of the leading characteristics of Litecoin network mining is that in the earlier days, it used to reward 50 LTC to the miners. However, the block reward was reduced to 50% in 2015 and it will continue to be halved by the Litecoin community until the network achieves the 84 million hard cap limit. This means that in the coming days, the supply of LTC will continue to decline which we know means an increase in price according to basic economics.
Loyal & Dedicated Community
Being one of the first cryptocurrencies along with Bitcoin, LTC accompanies a profoundly steadfast and committed network of programming engineers, designers, allies and financial specialists who solidly trust in the token and its prosperity. This implies that Litecoin will continue to have both strategic and financial support in the near future which makes it an incredible investment prospect for both advanced and amateur traders.
Where to Buy/Trade Litecoin in 2021?
With regards to digital currencies, for example, Litecoin, you have to comprehend that there is a multitude of ways to invest in cryptocurrencies. The first kind of traders or investors is the individuals who have faith in the undertaking and want to keep their tokens for quite a while until they can reap high rewards. The second type of traders or investors is everyday speculators who use the instability of the crypto market to make quick financial benefits on a daily basis.
When you are interested in long term investment in LTC coins, you have to remember that you should select a dependable and controlled cryptocurrency exchange and should have a devoted crypto wallet for secure holding of LTC tokens. You will also require a trained investment methodology to ensure you don’t lose money.
However, if you are looing to trade Litecoin for quick profits, you should select a dependable and managed crypto broker and investigate and get your work done related to LTC or any other cryptocurrency you are interested in. You should control your feelings so you can deal with your risk.
Our Tutorial to Buy/Trade Litecoin in 5 Steps
The accompanying headings reveal to you how you can begin purchasing Litecoin, both with crypto brokerage websites and cryptocurrency exchanges.
Step 1: Find an Appropriate Platform to Purchase/Trade Litecoin
When you are a long-term investor, you will need to directly purchase the token for which you should pick a well-reputed and regulated crypto exchange. The exchange will sell you Litecoin which you can hold, own, and sell whenever you think you can make a huge financial gain. If you are a day trader hoping to procure a second income, you can rely on a broker. Instead of directly buying Litecoin tokens and owning them, you will invest in financial instruments such as Futures, Options and CFDs (Contracts for Difference).
eToro and Plus500 are two of the most renowned crypto brokers while Coinbase and Poloniex are well-known exchanges in the industry. You should find out about customer service quality, administrative consistency, expense structure and reputation before you select your crypto platform for investing in LTC.
Step 2: Registration/Create a New Account
Once you have finalised a crypto platform, you should join it using your name, password and other requirements. In the event that it is a regulated exchange or broker, they will request that you prove your identity through documentation, for example, an ID card or driver's license.
Remember that there are digital currency platforms that don't need as much documentation yet they can be quite risky as they don't conform to regulations and guidelines.
Step 3: Deposit Funds
Subsequent to enrolling your account with your favoured crypto merchant, you have to deposit money to begin LTC investing. Remember that all the crypto platforms offer a wide range of payment techniques including bank cards, wire transfer and online payment modes. You need to analyse the cost, usability and speed of each payment method before you decide to use a platform.
You should also know about the way that distinctive crypto brokers and exchanges set a minimum deposit limit. For instance, Skilling has a base deposit of $100 while Pepperstone doesn't request any whatsoever.
Step 4: Start Trading or Buying Litecoin
Once you have deposited funds successfully, the time has come to purchase your LTC coins. If you are going for a short term investment, your brokerage website will offer you an assortment of financial instruments, for example, CFDs of Litecoin. But, if you have gone with the long term investing plan, you can purchase and own LTC tokens from your favoured exchange.
It is intriguing to take note that a few platforms, for example, eToro have set up themselves as both – a broker and an exchange. It implies that whether you have a short or long term plan, you can do so through a single platform. Simply ensure that you are not using advanced investment features like leveraged trading that permits you to risk more cash than you have in the account.
Step 5: Optional Steps
Since you have begun to put resources into Litecoin, you should know about the accessible alternatives:
- Move assets to a wallet:
For everyday brokers, it may not be fundamental yet long-haul investors might need to move their cryptocurrency assets to software or cold wallet for better security.
- Participate in mining:
If you have confidence in the Litecoin organisation and what the network has been doing, you can place your LTC tokens in specific wallets to support the Litecoin community.
- Sell high, rebuy low:
For making consistent profits as could reasonably be expected, you have to analyse and keep an eye on the LTC market and prices intently. Never purchase any digital currency including LTC coins when the market is bullish and let the market chill off. When the cost has hit the floor, it's a superior opportunity to put your money into Litecoin. At that point when the price goes up, you can sell off your coins to bring in cash. Proceed with this cycle with high precision for reliable gains in the long run.
Available Payment Methods for Buying Litecoin
There are numerous payment modes accessible to investors offered by a wide scope of digital currency merchants. Probably the most used payment modes to purchase Litecoin incorporate the ones mentioned below:
- Buy Litecoin with Cash
When you are looking to purchase Litecoin with cash, you have to discover the closest Litecoin ATM or teller. Use CoinATMRadar.com to find the closest ATM and purchase your tokens.
- Buy Litecoin with Credit/Debit Card
- Buy Litecoin with Bank Transfer
For purchasing Litecoin with a wire transfer, you should check whether the crypto platform you have selected offers the payment technique in your region or not. That being stated, Coinmama has the widest availability and supports practically all nations.
- Buy Litecoin with Cryptocurrency
When you have Bitcoin or different tokens, for example, Monero, Ethereum, Dash or Ripple, you can use them to purchase Litecoin tokens. Make sure you assess the expense and charges before you purchase.
- Buy Litecoin with PayPal
Although numerous investors couldn't imagine anything better than to pay with PayPal for purchasing LTC, sadly, it isn't accessible in many countries except the US because of regulatory issues. That being said, all cryptocurrency platforms alongside networks are attempting to bring PayPal on board.
What Are the Fees for Buying/Trading Litecoin?
It relies upon where you live and which crypto platform and payment technique you pick. Bank transfer is normally the most economical method yet it can be quite slow. You will be paying anywhere between 0.5% and 2% charges. When you need speedy deposits and the comfort of credit and debit cards, you can do so, however, it can be quite expensive with you paying up to 10% of the order value. Make sure that you have a keen eye on transactional charges and costs to maximise your profits and margins.
Expert Tip to Buy and Sell Litecoin“ Regardless of whether you are a novice investor or simply a beginner, when you need to turn into an expert in your field, you have to get your work done and avoid settling on intuitive decisions that are driven by feelings. If you botch a chance, don't be hard on yourself for it. The crypto market is profoundly unpredictable and more opportunities are bound to show up. Be patient with the price as opposed to becoming a victim of fear and attempt to sell as high as could be expected under the circumstances. Whatever you do, consistently oversee and limit your risk. ”
How to Find the Best Time to Buy Litecoin
There is no ideal opportunity to purchase Litecoin or some other crypto coin. You need to recognise your time by finding out about the digital currency you are keen on and watching price developments. After you have done your homework and research for some time, you can begin working on investing in LTC with modest quantities and you will end up improving and better at recognising patterns, understanding outlines and finding your moments.
What Drives the Coin's Cost?
Many factors drive the price of Litecoin, yet remember that there is no single administrative power that controls or impacts the price in any capacity. It is constantly directed by market influences including demand and supply and social and political factors, for example, market sentiment, rumours, political news and new social turns of events.
How to Sell Litecoin
When you believe the opportunity has arrived to sell your Litecoin to make a big profit, you can sell your LTC tokens in three unique manners:
Cryptocurrency Exchange - If you are holding LTC tokens, you can sell them on your favoured digital currency exchange for fiat cash or different digital tokens.
Trading/Broker Websites - If you have put resources into LTC options or CFDs, at that point you would be able to sell off the financial instruments on your favoured crypto broker website.
Peer-to-Peer Network - These are marketplaces which encourage purchasers and merchants of Litecoin and different digital assets to purchase and sell their LTC and other coins.
Frequently Asked Questions
No, it's a decentralised network that implies no single individual or focal authority has any impact over the coin's price.
It must be said that LTC isn't as famous as Bitcoin and Ethereum, however, there are a few sites that acknowledge the token as a legitimate payment mode. At this point, the currency is more of an asset.
Indeed. However, you should ensure you have found a way to amplify the security of your LTC coins such as a wallet for the long term storage of your tokens.
Litecoin is still in its early development phase.
Subject to the working capital you put in and your investment process, no one but you can estimate the profit you can acquire by trading or investing in LTC if you are limiting your risk.
You should check the tax laws of the nation you live in to discover the appropriate response. By and large, there are no tax guidelines identified with digital currency profits in many nations.
The price of any digital money is dictated by market influences, for example, demand and supply, opinion of the network influencers, and social and political turns of events.
Nobody can offer you a definite assurance with regards to crypto trading as the prices are volatile. However, LTC is supported by a large and dedicated community and has witnessed consistent growth.