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How to Buy Litecoin (LTC)

If you want to buy Litecoin but don't know how to start, you've come to the right place. In this guide we list the best platforms to buy LTC, how to make your purchase step-by-step and how to trade it.

Litecoin has often been referred to as Bitcoin’s younger brother, the silver to Bitcoin’s gold, and rightfully so. If you are looking for an alternative asset to Bitcoin, chances are you might want to buy Litecoin.

There are many platforms where you can buy Litecoin. This guide explores some of the best brokers that allow you to buy the asset.

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    Best Places to Buy Litecoin in October 2021

    Here’s a quick summary of the best platforms to buy Litecoin this year. We recommend the following brokers:

    These platforms have been carefully selected and reviewed as the best brokers to buy Litecoin. They were selected based on several factors. These factors include a healthy mix of fees, user-friendliness, payment methods, and others. Our list of the best platforms to buy Litecoin also offers traders cutting-edge trading tools and a wide selection of tokens.

    Compare the best Litecoin exchanges and brokers here:

    Rating
    5.0
    4.9
    4.8
    4.7
    4.6
    4.4
    Mobile App Rating
    10/10
    9/10
    8/10
    9/10
    8/10
    9/10
    Mobile App
    Wallet
    Number of Coins
    313147541014
    Trading Fees
    Spreads0.075%0.50%SpreadsSpreadsSpreads
    Deposit Fees
    N/AN/AN/AN/AN/AN/A
    Withdrawal Fees
    $5N/AN/AN/AN/AN/A
    Regulated
    ASIC, CySEC, FCAFCAFCAFCAASIC, CySEC, FCACBI, MiFID
    Min. Deposit
    $50$10$2$100$20$100
    Leveraged Trading
    1 - 30x1 - 100xN/A1 - 30x1 - 30x1 - 30x
    Bitcoin
    $62010.98$62137.49$62029.51$62073.08$62066.79$62221.80
    Ethereum
    $3820.57$3757.53$3747.43$3750.00$3753.08$3762.46
    XRP
    $1.11$1.09$0.30$1.08$1.08$1.10
    Tether
    $1.00N/A$1.00$1.00N/AN/A
    Litecoin
    $189.16$185.99$185.64$185.37N/A$186.74
    Bitcoin Cash
    $622.74$612.54$611.23$609.34N/A$618.77
    Chainlink
    $25.71$25.76$25.71$25.61N/A$26.10
    Cardano
    $2.19$2.14$2.13$2.13$2.13N/A
    IOTA
    $1.20$1.91$1.91$1.36N/A$1.17
    Binance Coin
    $497.54$485.65N/AN/A$572.33N/A
    Stellar
    $0.39$0.38$0.38$0.38$0.38$0.39
    Bitcoin SV
    N/AN/AN/A$167.23N/AN/A
    USD Coin
    N/AN/AN/A$1.00N/AN/A
    EOS
    $4.55$4.42$4.42$4.42N/A$4.49
    Monero
    N/AN/AN/A$124.02N/AN/A
    Credit Card
    Giropay
    Neteller
    Paypal
    Sepa Transfer
    Skrill
    Sofort

    How to Buy Litecoin – Quick Guide to the Best Brokers for Buying Litecoin in October 2021

    If you want to buy Litecoin right now, then this quickfire guide should come in handy. Follow these quick steps to invest in Litecoin.

    1. Open an account: You’ll first need to open an account with a trusted cryptocurrency broker. We recommend eToro, as the platform is heavily regulated, supports multiple deposit options with super-low fees.
    2. Upload ID: As a regulated brokerage site, eToro will ask you to upload a copy of your government-issued ID.
    3. Deposit: You can now deposit funds with a debit/credit card, Paypal, Neteller, Skrill, or a bank wire.
    4. Buy Litecoin: Search for ‘LTC’ and click on the ‘Trade’ button. Enter the amount of Litecoin you wish to buy ($50 minimum) and confirm the order.

    How to Buy Litecoin – eToro Tutorial

    If you are searching for a more comprehensive process of how to buy Litecoin online? This section would break down the steps it takes to invest in Litecoin safely and cost-effectively.

    Step 1: Open an Account

    Opening an account on eToro could be completed in only a few minutes. This is because the platform uses automated technology to verify your personal details.

    eToro sign up

    67% of retail investor accounts lose money. Invest responsibly.

    The first step is to visit the eToro website and click on the ‘Join Now’ icon. You’ll be asked to fill in your personal details, including name, phone, username, address, and others.

    Step 2: Upload ID

    eToro will need you to have your identity verified. Although you can complete this step, later on, it would have to be done before you can deposit more than $2,250 or make a withdrawal.

    This requires a copy of your:

    • Passport, driver’s license, or national ID card
    • Utility bill or bank account statement issued within the last 3 months

    Step 3: Make a Deposit

    eToro doesn’t offer direct Litecoin purchases. This means that you will first need to deposit some funds. There are numerous deposit methods to choose from, including the following:

    • Debit/credit card (Visa, MasterCard, Maestro)
    • Paypal
    • Skrill
    • Neteller
    • Local bank transfer (country-specific)
    • International bank wire

    In terms of fees, eToro charges just 0.5% on deposits – irrespective of the payment method.

    Step 4: Search for Litecoin

    At this stage of our step-by-step guide, you should now have an eToro account that is funded. Now it’s time to buy Litecoin. The easiest way of doing this is to enter LTC into the search box at the top of the page.

    67% of retail investor accounts lose money. Invest responsibly.

    Then, you’ll need to click on the ‘Trade’ button to open up an order box.

    Step 5: Buy Litecoin

    67% of retail investor accounts lose money. Invest responsibly.

    You can now buy Litecoin by entering the size of your stake into the ‘Amount’ box ($25 minimum). Finally, click on the ‘Open Trade’ button to complete your investment.

     

    Where to Buy Litecoin

    To buy Litecoin, you’ll need a reliable cryptocurrency exchange. The right Litecoin exchange is not only trustworthy, but they’re also easy to use in terms of onboarding, payment, and trading. In this section, we would be examining the best platforms to buy Litecoin.

    1. eToro – Overall Best Place to Buy Litecoin

    eToro is undoubtedly our overall favorite cryptocurrency exchange for buying popular tokens like Bitcoin, Ethereum, and the rest. etoro logo

    This broker offers a variety of assets apart from cryptocurrencies. For many reasons, eToro is also a favorite among investors. The platform has grown its client base tremendously to over 20 million investors.

    buy bitcoin

    Firstly, eToro offers super low commissions, so you can buy Litecoin without being charged hefty fees. The broker provides withdrawal and deposit options for several top channels – including PayPal, Neteller, debit, and credit cards.

    Secondly, the platform is beginner-friendly and really easy to use. eToro has first-time buyers of Litecoin covered. It’s also user-friendly and offers comprehensive technical charts with dozens of technical indicators and drawing tools. eToro has a CopyTrader feature which allows new traders to copy the trades of other professional traders on the platform automatically, with no hidden fees.

    Additionally, eToro is heavily regulated by the UK Financial Conduct Authority (FCA), the Australian Securities and Investment Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC). It is also registered with the U.S Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC).

    Pros

    • Buy Litecoin with zero commission
    • Minimum deposit of just $50
    • Over 15 cryptos and 800+ stocks listed
    • Ability to copy other traders
    • Easy to use platform
    • FCA and FSCS protections

    Cons

    • Withdrawal fee of $5
    • Not suitable for advanced traders

    67% of retail investor accounts lose money. Invest responsibly.

    2. Capital.com – Trade Litecoin CFDs Commission-Free

    Capital.com is another credible platform where you can buy Litecoin. The broker offers several assets ranging from cryptocurrencies to currency pairs, stock indices, and ETFs. Capital.com Logo

    Capital.com offers a zero commission structure as well. This means that you do not have to pay any additional fees when placing a trade.

    capital.com Bitcoin CFDs

    The broker offers mainly CFD trading options that allow you to speculate on the price of an asset without having to own it. This could be beneficial because you don’t need to worry about storage, wallets, or private keys. When trading stock CFDs, Capital.com offers leverage of up to 1:20. However, it is important to trade carefully as even though leverage can significantly increase your potential profits, it can also increase potential losses.

    This broker is also heavily regulated by the UK Financial Conduct Authority (FCA) and the Cyprus Securities and Exchange Commission (CySEC), ensuring users trade safely and securely.

    Capital.com also ensures they cater to beginner traders by offering a wide array of educational materials on their website. They also provide articles, glossaries, and various courses which help get you up to speed in the markets. They also offer a demo account you can use before trading for real, which provides a risk-free way of gaining exposure to the trading platform.

    Pros

    • Commission-free trading
    • Superb charting and analysis interface
    • Tight spreads
    • Regulated by the FCA and CySEC
    • Access to the best charting and analysis tools

    Cons

    • Can’t build custom investment strategies

    71.2% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider.

     

    3. Binance – Top-Rated Crypto Exchange to Buy Litecoin

    Binance is the world’s largest crypto exchange by daily trading volume. It is a top-tier platform that offers trading on more than 500 digital currencies. Binance Logo

    Binance provides access to several cryptocurrencies. It also gives users multiple ways to trade the assets. You can buy or sell digital currency instantly by paying using a debit card, credit card, or bank account transfer. The exchange also offers leveraged trading and access to crypto futures, thereby allowing traders to buy cryptos bigger than their wallet balances.

    BUY-LITECOIN-BINANCE-768x382

    Additionally, Binance has a highly detailed web and mobile trading platform where you can analyze price movements and changes in momentum. In terms of commissions, Binance charges start from 0.1% per transaction, and this is among the lowest fees in the industry.

    Pros

    • Largest cryptocurrency exchange in the world
    • Low trading fees
    • Supports debit/credit cards and bank transfers
    • Low deposit fees for UK traders
    • Ideal for advanced traders that seek sophisticated tools and features

    Cons

    • Not great for newbie investors

    Your Capital is at risk.

    4. Coinbase – Largest Crypto Exchange in the United States

    Coinbase is one of the leading mainstream cryptocurrency exchanges in the world. The exchange has a solid number of cryptocurrencies for users to invest and trade-in. It was launched in San Francisco in 2012.

    Coinbase has a unique interface that is geared towards beginners or newbies. Therefore, making trading on the exchange very easy. Experienced traders can also make use of Coinbase’s professional platform called Coinbase Pro.

    coinbase website

    Coinbase Pro has advanced charting functions and allows users to make crypto-to-crypto transactions, as well as place market, limit, and stop orders.

    Pros

    • Simple interface accommodates newbies and expert traders
    • Coinbase is one of the most liquid exchanges, so your transactions move quickly
    • Coinbase offers a lot of altcoin choices
    • Low minimum balance

    Cons

    • Complex fee structure
    • Trading is more expensive than on other platforms

    Your Capital is at risk.

    5. Libertex – Industry-Leader Broker for Stocks and CFDs

    Libertex is the trading subsidiary of Libertex Group. The platform’s uniqueness comes from its zero spreads price structure. Libertex logo

    Libertex charges commissions on trades and not spreads. The broker offers two web trading platforms for traders. This includes the MT4 and the Libertex Web Trader.

    Libertex is a fully regulated online broker with over 20 years in the industry. It covers about 213 markets and gives users access to stocks, ETFs, forex, and cryptocurrencies, among others. On Libertex, traders have access to over 50 cryptocurrencies. It also offers traders access to margin trading with leverage as high as 1:30 for retailers and up to 1:600 for professional clients.

    Libertex has an easy-to-use mobile app and desktop trading interface that provides users with flexibility and a seamless trading experience.

    Several deposit channels are supported by Libertex, such as Skrill, Neteller, credit and debit cards, bank transfers, Multibanco, Sofort, Trustly, and others. Like many other brokers, Libertex also offers a demo account you can use before real trading. This provides a risk-free way of gaining exposure to the trading platform.

    Pros

    • Demo account available
    • Flexible payment and withdrawal methods
    • Easy technical analysis for research and testing

    Cons

    • Poor education segment
    • Charges for some of the withdrawal channels

    Your Capital is at risk.

    6. Plus500 – Regulated Platform Offering Different Asset Classes

    Plus500 is a CFD broker that offers over 2,000 financial instruments that include forex, commodity, cryptocurrency, and index trading. Plus500 logo

    The trading service was founded in 2008 in Israel and is under the Plus500UK Ltd brand. It is an easy and simple-to-use platform that offers a seamless trading experience.

    Plus500 interface is integrated with WebTrader 4, a user-friendly layout built especially for advanced traders. Plus500 is very secure; it offers a two-step log-in authentication for security purposes. The platform is based in London and regulated by several international financial authorities, including UK’s Financial Conduct Authority (FCA) and the Australian Securities and Investments Commission (ASIC).

    Pros

    • Simple trading interface
    • Competitive trading fees across all trading pairs
    • Access to different asset classes
    • Negative balance protection to mitigate losses

    Cons

    • Customer service is limited to chat and email alone
      Does not accept customers in the United States

    7. AvaTrade – Legacy Crypto Trading Platform for Investors

    AvaTrade is one of the oldest online brokerage platforms. It was founded in 2006 and it is part of the AVA Group of Companies. AvaTrade

    The online broker supports a wide array of currencies such as cryptocurrencies, indices, CFDs, options, bonds, and much more.

    One of the unique qualities of Ava Trade is the availability of different trading platforms. It offers MetaTrader 4 and 5 as well as the proprietary AvaTradeAct platform. With the MT4 or MT5 account on AvaTrade, you can buy and sell currency pairs without paying commission.

    AvaTrade-Home-scaled-1

    The broker will only charge you a variable spread instead. AvaTrade also offers users access to various forex trading tools such as advanced order types, technical indicators, and chart drawing tools. It also has a demo account option where no deposit is required to start trading. The broker supports both credit and debit cards.

    AvaTrade is regulated by the Financial Services Regulatory Authority Abu Dhabi.

    Pros

    • Social app for replicating other investors’ trades.
      Research and education tools available
      Customer support is available in different languages

    Cons

    • $100 minimum deposit appears expensive
    • Withdrawal requests take up to 5 days to process

    Your Capital is at risk.

    8. Revolut – Personal Finance Service With Crypto Support

    Revolut is a FinTech firm based in London that offers banking services to customers. The service provides a quick and easy interface for users to receive, send, and exchange currencies wherever they are.

    Although Revolut’s focus is on simple transactions, the platform also provides cryptocurrency services. Users can convert crypto to fiat currency in only a matter of seconds.

    Revolut website

    Revolut does not allow you to trade crypto directly on the platform; you can only buy, transfer or withdraw crypto here. There are other benefits of Revolut. The platform provides access to loans as well as both phone and travel insurance.

    Pros

    • Expansive support for crypto
    • Quick transactions and asset conversions
    • Additional features like loans, virtual cards, and insurance

    Cons

    • No trading available
    • Inadequate customer service

    Your Capital is at risk.

    9. CryptoRocket – Newbie Crypto Trading and Exchange Platform

    Launched in 2018, CryptoRocket is an online broker that offers trading services to various assets. This includes cryptocurrencies, indices, stocks, and so on. However, the broker is more focused on cryptocurrencies.

    CryptoRocket charges low deposits with a minimum deposit of only $10. However, deposit methods on CryptoRocket are limited, unlike other services. Here, you can only deposit with wire transfers, Bitcoin, and cards.

    CryptoRocket website

    One of the many features that make CryptoRocket unique is the same-day withdrawal service for credit card transactions. The broker enables traders to get access to advanced charting and analysis tools, and the latest news to help with their strategies and trades. For advanced traders, leverage of up to 1:500 is available.

    Pros

    • Same-day withdrawals for credit card transactions
    • Low minimum deposit threshold
    • Up to 1:500 leverage
    • No withdrawal or deposit fees

    Cons

    • Not registered by any financial authority
    • Limited deposit channels
    • Doesn’t accept U.S. clients

    Your Capital is at risk.

    10. Changelly – Nifty Exchange for Instant Litecoin Purchases

    Changelly is a cryptocurrency exchange that was established in 2016. It has a very fast and easy interface for buying and selling cryptocurrencies. It is different from other exchanges because of how it converts cryptos quickly to fiat currency.

    It is known for its privacy features. Changelly does not require your personal information or any form of proof of address before you can buy crypto on the platform.

    changelly website

    At Changelly, you get a flat rate for crypto-to-crypto trades on Changelly, which stands at 0.25 percent. There are no specific deposit fees on the platform, but you will need to factor in transaction fees when making an exchange. Changelly is a safe and legitimate service that you can use. It also provides trading through its Changelly Pro arm, where you can put your money to work for you. Changelly is registered in Hong Kong.

    Pros

    • Support for over 1500 cryptocurrencies.
    • Flat rate exchange fee means you know what you’re getting
    • 24/7 live customer support for all users

    Cons

    • High fees for crypto-to-fiat conversion
    • Exchange platforms can be slow

    Your Capital is at risk.

    What is Litecoin?

    If you are new to the crypto scene, you may be wondering what Litecoin is and what it aims to achieve. This section will give you a full breakdown of the crypto asset and its role in the blockchain.

    So what is Litecoin?

    • The simplest way of defining it is that Litecoin is a digital currency that enables you to transfer and receive value digitally.
    • As a digital currency, Litecoin is in a virtual form and cannot be physically held like fiat currency.
    • Like Bitcoin, Litecoin uses distributed ledger technology (DLT) or ‘blockchain’ that enables transactions to be carried out in a decentralized manner.
    • This makes it hard for a single authority to have a majority stake in the network.
    • Litecoin uses a more improved proof-of-work (PoW) algorithm called Scrypt that gives it higher block time finality than Bitcoin.

    When transactions occur on the Litecoin network, funds are transferred from one wallet to another. This takes about two and half minutes to validate the transaction – not minding where both transacting parties are.Litecoin’s history is closely tied to that of Bitcoin. When the premier digital asset was introduced in a whitepaper by the pseudonymous Satoshi Nakamoto, the idea of digital currencies was still a fantasy.

    However, when the Bitcoin network launched in 2009, it picked several cryptographic and blockchain experts’ interest who felt that the benchmark crypto-asset would rewrite the history of finance. Twelve years later, it has changed the way people spend and earn money.

    litecoin

    One of such blockchain enthusiasts was Google engineer Charlie Lee who felt that the underlying weaknesses of the first digital currency could be improved on. This led to the birth of Litecoin in 2011. Although based on a similar PoW consensus mechanism, Litecoin uses a more novel and lighter algorithm named Scrypt.

    Charlie Lee Had Thoughts That Litecoin Was Going To Reach $1,000

    Lee said that the idea behind the project is that Litecoin is the “silver” to Bitcoin’s “gold.” Meaning Litecoin is a lighter version of the Bitcoin network. This new algorithm enables the Litecoin network to process transactions faster. Bitcoin has a block finality countdown of 10 minutes. Litecoin can validate and add users’ transactions to the blockchain in 2.5 minutes, shaving off more than ¾ of the time it takes Bitcoin to confirm one transaction on its network.

    Another uniqueness of Litecoin is its hard-cap limit. The Bitcoin network will only ever mine 21 million coins, and this event is expected to occur in 2140. Litecoin, on the other hand, has four times that figure, and only 84 million LTCs will ever be mined. This has seen Litecoin enthusiasts point to the network’s perceived advantage over the more established digital currency brand.

    Litecoin is also more retail-driven in its mining approach. Digital currencies are created by users who allocate a particular amount of their computing resources to solve complex mathematical puzzles to be the first to validate these transactions. Miners (as they are called) are given block rewards in the network’s currency for validating transactions. So a Litecoin miner gets LTC as block rewards.

    Bitcoin has seen large mining corporations seize the mining business from individuals. This has been due to the use of sophistical mining hardware called Application-Specific Integrated Circuits (ASICs). Miners use these sophisticated mining rigs due to the Bitcoin difficulty level, which is updated often.

    Litecoin, on the other hand, is more individualistic as miners can still utilize their system’s CPU or GPU to validate transactions on the network. Not barring this, some miners also use special mining rigs to increase efficiency.

    Litecoin is not as big of a brand as Bitcoin, but the silver digital currency is one of the top twenty most valuable cryptocurrencies with a market cap of over $11 billion. And like Bitcoin, Litecoin is highly liquid, and you can trade against major pairs like the US dollars and stablecoins like USDT on various crypto exchanges globally.

    Why Buy Litecoin? Litecoin Analysis

    People buy Litecoin for various reasons. Some are for speculation on the open market, and others are more attracted to its faster validation process. If you are still in doubt about whether to buy Litecoin or not, we list a few reasons why we think you should buy Litecoin today.

    Litecoin’s Solid Economics

    Borrowing from Bitcoin’s hard-cap limit of 21 million coins supply, Litecoin also has a hard-cap limit in place. The development team behind the project says that only 84 million LTCs will ever be mined, and so far, 79% are in circulation. This makes it a scarce commodity, like Bitcoin. Digital assets with a hard-capped limit are known to retain their value over time. Before the advent of Bitcoin and digital currencies, investors bought gold bars, stocks, and exchange-traded funds (ETFs) to preserve their wealth and hedge against inflation.

    Fractional Investment

    Many investors are put off by the high value of Litecoin, believing they need to buy up to 1 LTC before they can trade the digital asset. However, this is not so. Litecoin can be broken down into smaller units, and you can buy any amount of Litecoin that you want.

    Meanwhile, you will need to invest through a cryptocurrency broker that supports fractional ownership of investments. This is the main reason why eToro is a clear favorite among its 20 million users. The social trading platform allows you to invest in Litecoin for as little as $25. You can choose to increase your position when you feel more convinced about the project with time.

    24/7 Marketplace

    Unlike the traditional stock market, which has closing and opening periods, the crypto market does not operate this way. This means you can trade Litecoin anytime you want due to the high liquidity the digital currency boasts of. At the moment, over $1.7 billion of Litecoin has been sold.
    This is great for traders who may want to liquidate their position when they make a profit. This means you can buy and sell Litecoin every day, always.

    Is it Worth Buying Litecoin in 2021?

    Litecoin started the year on a good note after seeing its value plummet from 2018 to 2020. It surged to $412.96 and has mainly traded above the $100 mark for most of this year. However, cryptocurrencies like Litecoin are called alternative currencies (or altcoins for short). This means that they are tied to the hip of Bitcoin price action.

     

    This year, this has shown itself when Bitcoin rose to an astronomical high of $65,000, and several cryptocurrencies also hit their various highs. Its subsequent decline saw major gains wiped off the market. This has been primarily due to the volatility issues that have plagued the major virtual currency and shows that the crypto market is still in its infantile stages.

    Despite its current value of $165.69, Litecoin is still expected to rally. The Bitcoin hard fork had previously surged to $317 in 2017 before a low of $24.86 in December 2018. This year’s record high confirms that Litecoin will likely return to winning ways once cryptocurrencies see more adoption in the world.

    Ways of Buying Litecoin

    If you want to add Litecoin to your investment portfolio, we can show you a couple of ways to do this. Some of the best payment methods available for you are:

    Buy Litecoin with PayPal

    PayPal’s global reach is a major plus for anyone who wants to buy Litecoin. At the moment, PayPal does not offer direct purchase of digital currencies through its platform, although you can make payments with your digital assets on PayPal. However, you can buy cryptocurrency with PayPal if you have funds in your account. Digital assets like Litecoin can easily be purchased on the eToro platform using PayPal as a payment method.

    Buy Litecoin with a Credit Card

    An alternative to PayPal is to use your credit card on eToro to purchase Litecoin. This is a huge advantage as not all crypto brokers support credit card payments. Also, some credit card issuers may classify Litecoin as a “cash advance,” which could require you to pay a cash advance fee before you complete the transaction. This fee could be as much as 3 to 5% of your total transaction. It is advisable to speak with your credit card issuer before trying out this option.

    Buy Litecoin with Debit Cards

    Another option is to use your debit card. Many traders prefer using their debit cards for trading, given the easy and fee-saving feature. If you want to buy Bitcoin with a debit card, you must consider a broker’s processing fee. Various crypto exchanges have different fee structures depending on the payment method they use. Some may require you to pay 4 to 5% on debit card transactions, while others may be substantially cheaper. eToro charges just 0.5% on debit transactions, and this gives you more purchasing power.

    What to Keep in Mind Before Buying Litecoin?

    Are you thinking of buying Litecoin? There are a few things you should keep in mind as you trade in the crypto market:

    Volatility

    You must have come across this statement before and think it may be a way to deter interests from the crypto space. However, this is not a smokescreen. Cryptocurrencies are volatile, and a vast majority of them are dependent on Bitcoin’s price movement. This sees them rise and fall with the benchmark cryptocurrency.

    The May crypto market crash was a case in point, which wiped off 50% of the crypto market valuation in one week. This was due to a regulatory clampdown by Chinese authorities on crypto mining in its Inner Mongolia regions. Bitcoin and Litecoin plummeted in value, with the latter slumping to $113.16 on July 19. Although Litecoin has recovered somewhat in the last few weeks, you need to keep its volatile nature in mind.

    Transparency

    All digital currencies use blockchain technology, and the underlying framework of this solution rides on transparency, meaning all transactions are open to public scrutiny. So your Litecoin transactions will be shared and traceable by everyone in the world. So if you are uncomfortable with this, you should reconsider buying Litecoin.

    Addresses are Semi-Anonymous

    Litecoin transactions are carried out on a wallet-to-wallet basis. These wallets combine several strings of numbers and letters, making it difficult to identify a user’s details. No one can gain access to your transaction history and wallet balance except you. However, new tools deployed by crypto forensic firms like Chainalysis now make it possible for law enforcement to uncover anonymity from the blockchain.

    Choosing the Right Litecoin Broker

    If you want to buy Litecoin online, you will need to look for the right broker that makes it easy to buy the asset in a safe and secure environment. To steer you in the right direction, we highlight some crucial details you should look out for when choosing a broker to buy Litecoin through:

    Fees

    The first thing you should look out for in a broker is the fee structure. You should check the deposit, withdrawal, hidden fees, and how much you have to pay to convert your LItecoin to other digital assets. Every detail here matters. A crypto broker with expensive fees would affect your profits. Make sure you work with a broker with reasonable fees.

    Safety

    Safety comes in next, and you should only buy Litecoin from an exchange with strong security protocols. A crypto exchange that does not take security seriously could lead to loss of funds and leak your details. This should be avoided at all costs. Also, you should move your funds from the platform to cold digital storage. This puts the safety of your funds solely in your care.

    Support

    If you hit a snag, you will need to reach out to the exchange to sort this out. This means you have to work with an exchange with a great customer support service.

    Payment Methods

    How do you make deposits and withdrawals? What payment methods does the platform support? Most platforms support bank transfers and credit/debit card payments. You can also check out exchanges that offer PayPal and other e-wallets for additional options.

    Volume and Liquidity

    The broker you decide to buy Litecoin through must have a high level of volume and liquidity of the said asset. This is important as it will let you access your funds anytime you want.

    Litecoin Price

    The price of Litecoin – like all financial instruments – will constantly be in an influx throughout a given day. This means it can start the day on a high and end on a negative note. Volatility is a major issue that has seen mainstream investors refuse to enter the crypto space as Litecoin can rise between 10 – 20% within a 24 hours window and then crashing. However, like several investment vehicles, Litecoin is driven by market forces of demand and supply.

    • In essence, if the market sentiment for Litecoin is strong and more people invest – there will be a price increase.
    • If the market sentiment for Litecoin is low and more people liquidate their positions, then the price may crash.
    • This is what led the price of LItecoin when it crashed to $23.67 in December 2020.

    Regarding supported fiat currencies, Litecoin is frequently traded against the US Dollars. This makes it easy for traders to analyze Litecoin’s price on a global scale. Meanwhile, you can still buy and track Litecoin prices against other top currencies, including the British Pounds, Euro, Korean Won, Brazilian Real, and the Russian Rubie.

    Litecoin Price Prediction

    You may have come across several opinions online on how much Litecoin will be valued in the future, and this is what is obtainable in the fast-paced crypto industry.

    Using Bitcoin as an instance, many have said that it would hit the $200K mark this year, while others have been bold enough to put their figure in the millions. So far, Bitcoin has seen much resistance, and with growing regulatory action, these figures may not be easily obtainable any time soon.

    Litecoin price prediction

    However, despite the hullabaloo that has permeated the crypto space, some market experts have based their forecasts on technical indicators. Here, the historical pricing data is examined to predict the future trend for a particular asset. As effective as this may seem, this is still a difficult approach to making forecasts, given that Litecoin is inherently speculative in nature.

    A better way of profiting while trading Litecoin is to monitor the market sentiment. For instance, if Litecoin’s price is in a bull run, investors will naturally want to buy for fear of missing out (FOMO). If you made an early entry and sell at the peak, you have a chance of generating returns on your investment in a short time.

    Investing in Litecoin vs Trading Litecoin

    One thing you may have noticed is the different strategies investors use in the crypto market. While some prefer to hold for the long term, others are much more comfortable trading LTC.

    Which strategy is better?

    We highlight the key differences between both.

    Buying Litecoin For The Long Term

    Investing in Litecoin may be the best strategy to adopt if you are just starting and have basic knowledge of how the financial markets work. This way, you buy Litecoin and wait for the price to rise. You can sell or liquidate your position when you feel like you have made enough return on investment (ROI).
    Long-term holding is highly profitable, and for several investors, this is the best strategy to adopt. For instance, if you bought $1,000 worth of Litecoin for 30 cents in 2011 and held it till May 2021, you would be smiling to the bank with more than a million dollars in your pocket.

    Trading Litecoin For Quick Gains

    Trading Litecoin may be of interest to you if you are an experienced investor and have a good understanding of how the financial market operates and how volatile the crypto market is. You can easily detect breakout movements beforehand and enter into positions to profit when the price moves.

    Litecoin trading with price indicators

    Trading Litecoin may be a good choice if you have the time to spare or are a full-time trader. This way, you can make early entry points and turn out a profit if your forecast is right. For instance, if you bought LTC at $100 and the price surges to $168, you would have made a $68 profit. You can also utilize leverage to increase your possible returns. A 5x leverage could more than double your expected gains.

    You can also sell or short your Litecoin position if you determine that the asset may drop in a few hours.
    As cool as this may sound, trading Litecoin requires you to have a good grasp of the market and conduct analysis on an asset’s price action. This will help you determine whether to buy (long) or sell (short) a particular asset in a given trading session.

    So, Which Should You Go For?

    This is solely dependent on you and what your aims are for buying Litecoin. However, we have highlighted a few factors for you to consider before choosing your investment strategy.

    Time

    Time is of the essence in the crypto market. You need to ask yourself how long you want to hold your Litecoin. If you are thinking of a few hours or days, you should choose the trading route to increase your potential returns. If you do not have the time and want to hold for the long term, investing holding is better.

    Mindset

    If you want to make a quick buck, then you should consider trading. Keep an eye out for low entry points and a possible bullish streak early on, and you may be able to fulfill your financial dreams if you’re lucky.

    Commitment

    Several hot coins or cryptos are shilled by social media influencers and public figures and dumped when the price reaches a peak. If you bought at the top, you would likely see the value of your assets erode in real-time.
    If you do not have the mental fortitude to bear such losses, ensure you do the needed research and get the right facts before investing.

    Buying Litecoin as a CFD Product

    A contract for difference (CFD) is a financial contract that pays the differences between the settlement price in the open and close of a trading session. CFDs are highly popular among FX investors and commodities traders, and it allows investors to trade the direction of an asset within a short trading window.

    CFDs have existed for a long time, and now this financial derivatives trading has recently found its way into the crypto market.
    You can trade Litecoin as a CFD product in several brokers who support digital assets. Buying Litecoin CFD will enable you to profit off the price movements of Litecoin without holding the underlying asset.

    Taxing Litecoin Earnings

    The crypto market saw phenomenal growth last year, and government agencies are already noticing the emerging industry. The US Securities and Exchange Commission (SEC) is currently working on a regulatory framework to guide investors interfacing with the volatile asset class.

    The Internal Revenue Service (IRS) is also keen on keeping tabs on the nascent industry and has sought to regulate the space, although the process is still ongoing. For now, cryptocurrencies are considered properties, and they are taxable under the capital gains law.
    Crypto trading can also fall under the income tax bracket in some instances.

    Below, we highlight taxable events for cryptocurrencies in the United States.

    Taxable events that fall under capital gains tax:

    • Exchanging crypto for fiat
    • Paying for goods and services with crypto
    • Exchange one digital asset for another on an exchange or peer-to-peer (P2P) platform

    Taxable income events are:

    • Receiving crypto airdrop
    • Earning interests from lending to decentralized finance (DeFi) platforms
    • Block rewards from validating transactions on the network
    • Receiving crypto for services
    • Crypto received from staking and providing liquidity

    However, you can use your losses to offset some of your tax obligations. At the moment, you can also save up to $3,000 of your income tax, depending on how long you have held your crypto assets.

    Estimating Your Capital Gains Tax

    In the United States, you can pay between 0 to 20% on capital gains tax. Your income bracket will also determine how much you must part with. This can range between 10% and 37% depending on your yearly returns. Knowing this will help you determine your:

    Short-term Capital Gains Tax

    If you only started trading cryptocurrencies less than a year ago, your capital gains tax will fall under your normal tax bracket. This means if you earn below $10,000, you will be taxed just 10% of your crypto gains.

    cryptocurrency taxes

    Remember that you can offset your taxable income up to $3,000 and even post-date your losses to the next year. We have curated a full list for your perusal.

    Long-term Capital Gains Tax

    If you bought crypto a year or two years ago, your gains or losses would be taxable up to 20% based on your income bracket.

    Need for Responsible Crypto Investing

    Despite the fairy tale gains of trading cryptocurrencies like Litecoin, major losses are incurred if you fail to protect your funds. This is why we have compiled a few tips to adhere to for responsible Litecoin trading.

    1. Do-Your-Own-Research (DYOR)

    Research is key to responsible crypto investing. Don’t chase the next hot token. Streamline your research to a few key areas covering adoption and market sentiment. Subscribing to expert review websites like Inside Bitcoins will go a long way in bringing you up to speed on the best crypto assets with long-term growth potential.

    2. Protect Your Finance

    It’s best you limit your exposure when you buy digital currencies. Don’t invest more than you’re willing to lose per time. When trading, ensure you use a stop-loss metric to cut your losses so you don’t end up losing everything.

    Would You Try Litecoin Mining?

    Litecoin utilizes a proof-of-work (PoW) consensus mechanism – although a newer version – which means you can commit a certain amount of your computing resources to solve complex mathematical puzzles for block rewards.

    Litecoin-Mining

    However, unlike Bitcoin, mining Litecoin is far much easier. While the benchmark crypto asset has been taken over by large corporations using thousands of ASIC machines to validate transactions on the Bitcoin network, Litecoin can still be mined with your conventional CPU or GPU – if you have a dedicated graphics card. Also, you can use an ASIC machine to increase the efficiency of your block rewards.

    This individual miner approach has seen Litecoin grow its validator network in the last ten years. The Bitcoin fork presently has 1,285, and with more adoption, this is expected to grow.

    It’s best you calculate your expected returns against your electricity bill to determine if this approach is worthwhile. Suppose you live in an area where electricity costs; you may profit by mining Litecoin rather than buying or trading it.

    Keeping Crypto Risks To A Minimum

    All through this guide, we have stressed two important points:

    • Trading Litecoin is highly lucrative
    • Volatility makes it a risky investment

    If you buy Litecoin, you must take some measures to reduce the likelihood of losing your capital. For this reason, we highlight some tips to have in mind when entering the vast universe of cryptocurrencies:

    Work with Facts Only

    Cryptocurrencies have been called a bubble waiting to explode, and that has been for a good reason. The 2017 crypto market crash and the recent May downturn show that the space is still in its infantile stage. So, before putting your hard-earned cash into crypto, make sure you carry out thorough research on the assets.

    Make purchases based on facts and not on emotions or what your friends and coworkers say is the latest crypto in the block. Most are just hypes and will fade away. Turn your attention to dedicated crypto channels and expert review websites to understand the mission of a crypto project before even committing your funds to it.

    Be Wary of Fraudsters

    Crypto is the new Wild West of the crypto market, and you should have that at the back of your mind. Fraudsters are known to use public figures’ profiles and faces to swindle gullible investors into parting away with their digital assets. Tesla boss Elon Musk has been featured, without his consent, in several of these fraudulent schemes.

    Do not give out your private details to anyone, and make sure you only trade with regulated brokers. Brokers like eToro are known to uphold the highest security standards to protect users’ funds and details. We recommend using them.

    Keep Your Investments Minimal

    The big payouts are a draw for many people, and this causes them to invest large chunks of capital. We do not recommend taking this approach. Make sure you only put the money you can afford. Your mental health is as important as your financial wellbeing.
    Cryptocurrencies are risky, and we recommend starting with little capital and building from there. This helps you to familiarize yourself with the industry, especially if you are new.

    Track Your Progress

    You can use crypto wallets like eToro crypto wallet to keep track of your investment, especially if you are a trader. You also get full insight into the web platform, and you can enter or exit a position while on the move.
    Keep a close eye on the price movement of your asset and note what your returns are in a week, month, or year.

    Keep Emotions in Check

    You need to be level-headed if you want to make any profit in the crypto space. Do not blindly enter a position without doing the necessary research or join because of fear of missing out (FOMO). If you do this, you may enter at the peak and get stung.
    Keep your emotions in check and let the crypto wave ride over your calm mind. If you do not make this bull run, there is always another opportunity to make gains.

    Litecoin Robots

    Trading by yourself can be tasking and sometimes downward discouraging. This could be a combination of not knowing what to do and not having the time to learn what you need to do. This challenge has given rise to trading robots which can significantly reduce your risk exposure to trading crypto.
    They help set limit orders, take profits, and stop losses, barring emotions and human error.

    Litecoin robots for auto trading

    This can help you cut your losses automatically and on time and make major wins without leaving the market when it is just getting started.

    However, trading robots are still a fad and are largely unregulated. This gives room to a flurry of cheap solutions that have seen several users lose money to fake trading bots. To counter this, our team of experts has developed a vetting system to sieve through the millions of trading software and recommend the genuine ones. Some of the best in the market are:

    Best Litecoin Wallet

    Just like you need a place to store your crucial document and certifications, you need to find a secure place to store your Litecoin funds.
    Several crypto wallets support storing Litecoin, but we recommend using the eToro crypto wallet because a government agency in the UK regulates it.

    eToro Crypto Wallet

    Like several others in this niche, the eToro crypto wallet allows you to store your Litecoin assets. However, it comes with a few more perks – you get to keep 120 more digital assets aside from Litecoin. Added to this, you can also directly trade any digital asset from the convenience of your phone.

    etoro bitcoin wallet

    Available for Android and iOS devices, you can monitor your investments, and it is also secure and regulated by the Guernsey Financial Sector Commission (GFSA), meaning your funds and details are safe from bad actors. You also get to trade against 500 pairs, and you also benefit from a password recovery service if you misplace your private keys.

    Litecoin vs Other Cryptocurrencies

    Litecoin is one of the thousands of crypto assets available in the crypto market. Let’s see how it compares to others:

    Litecoin vs. Bitcoin

    Litecoin may be faster and less energy-intensive, but it is still an infant compared to Bitcoin. Bitcoin commands more than 50% of the $2 trillion crypto market. It’s the first digital asset and most recognized of the bunch. Also, Bitcoin’s much smaller hard-cap limit sees it gain more value with time than Litecoin.

    Litecoin vs Dogecoin

    Even though the meme token does not have a generic value proposition aside from being a joke cryptocurrency, Dogecoin is still one of the top ten most valuable crypto. The key difference between both has been the vibrant community that supports the parody coin. Besides that, Litecoin has a solid value proposition over Dogecoin.

    Litecoin vs Ethereum

    Ethereum builds an entirely different blockchain ecosystem and is the alpha blockchain network in the decentralized finance (DeFi) space. Given this, it occupies the second position on the crypto chart with an 18.5% share of the crypto market. Ethereum is still expected to grow larger as the years go by.

    Litecoin vs Cardano

    Cardano is also in the same fold as Ethereum and is set to change the entire DeFi and blockchain ecosystem. Despite being in development, Cardano currently occupies the third position on the crypto chart. This shows that several investors are keen to buy into the Cardano dream. Compared to Litecoin, the network is on the frontier of a new blockchain ecosystem and may likely continue its upward climb.

    Litecoin vs BNB

    Binance Coin is not a standalone crypto project like the others on this list, but the discount token has been a revelation these past months. Occupying the fourth position, BNB has seen phenomenal growth this year, only recently losing its third spot to Cardano. With the Binance ecosystem ever-expanding, BNB will continue to perform in the higher leagues of the crypto hierarchy.

    What Next For Litecoin?

    The crypto market is in a constant state of influx which means it could rise or fall. For now, the market is experiencing an uptrend, and Litecoin has leveraged this bullish movement to retest a few record highs.

    However, this could change in a matter of days, and you will need to consult your technical data to know where the next wave may take the silver coin to next. If it loses steam, Litecoin is still expected to perform, given its long-standing reputation in the crypto space.

    eToro – Best Place to Buy Litecoin

    Litecoin has been one of the quieter performing cryptocurrencies. However, the results speak for themselves. Coming into the year at $131, Litecoin has surged more than 500% year-to-date (YTD). This has seen many investors buy Litecoin and propel it up the crypto market ranks.

    If you are interested in adding Litecoin to your portfolio, we recommend setting up with our recommended broker, eToro. It only takes a few minutes to get started.

    However, it would help if you kept the following tips in your mind when you trade:

    • Investing in cryptocurrencies requires lots of research and work
    • Litecoin is risky, which means it will rise and fall intermittently
    • Always use a regulated broker or exchange
    • You can also check out expert review websites to know what they think about Litecoin.
    • Resist FOMO. Only deal with the facts.

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    FAQs

    How do you buy Litecoin?

    The best way to buy Litecoin is through a regulated broker. This keeps your personal details and funds secure from bad actors. One of the most popular brokers is the eToro platform which offers top-notch security and low fees when you buy Litecoin.

    Should I buy Litecoin?

    Litecoin's historical data predicts a futher growth in value. However, with every investment decision, make sure you only invest what you can afford to lose.

    What is the best way to buy Litecoin?

    The best way to buy Litecoin is to use a regulated broker like eToro. The social trading platform offers low fees, commission-free trades and is highly user-centric in design. With handy tools like CopyTrade and CopyPortfolio, you can easily make profits without having all the technical know-how of an asset.

    How does Litecoin work?

    Litecoin, like several other crypto protocols, is decentralized and built on blockchain technology. The asset permits the transfer of value digitally and is not controlled by any central authority. Given this, its price movement is largely dictated by market sentiment and not by any stock or government policy.

    Is it safe to buy Litecoin?

    All investments carry risk, but Litecoin is relatively safe. One thing you should know is that it is not one of the hundreds of shitcoins that now permeate the crypto market. Aside from general volatility, which threatens Futures traders, Litecoin is a safe investment for investors who want to buy and hold long term.

    How do I make money with Litecoin?

    The easiest way of making money with Litecoin is to buy low and sell high. You can also choose to mine it if you have the computing resources and electricity requirements.

    What are the benefits of buying Litecoin?

    Litecoin’s deflationary mechanism means it can be a good store of value for investors. It can be an alternative to protecting your wealth from inflation, much like Bitcoin does, given its silver narrative.

    What are the best payment methods to buy Litecoin with?

    We recommend using your debit card. However, some brokers offer support for e-wallet solutions like PayPal and Skrill. Those options are also suitable for buying Litecoin.

    What are the best Litecoin brokers?

    There are so many brokers that now offer Litecoin trades compared to a few years ago. However, we recommend eToro given their reputation in the burgeoning crypto space.

    How can I buy Litecoin instantly?

    To make an instant purchase, you will need to open an account with a regulated broker. Once you complete the registration process, you will buy Litecoin in seconds.

    How can I buy Litecoin with USD?

    The best means of buying Litecoin with US dollars is through an exchange or a broker.

    What are the taxes for trading Litecoin?

    There are several tax rates for trading Litecoin in different jurisdictions. The best way to know this is to confirm through a recognized government agency website.

    How much is Litecoin worth?

    Litecoin is highly volatile, which means its value can change in a few hours. At the moment of writing, Litecoin is trading at $180.73, up 8.05% in the last 24 hours.

    How do you mine Litecoin?

    You can mine Litecoin with your laptop, desktop's CPU or through a dedicated GPU unit. However, if you want to increase your efficiency, you should consider getting mining rigs like ASICs.

    Question & Answers (2)

    Have a question? Our panel of experts will answer your queries.Post my Question
    1. Question

      Litecoin is performing well should I buy it now or wait ?

      Gregor902
      Reply
    2. Question

      I know that the fees are high for Litecoin when it comes to withdrawal. But, how high are those fees really?

      Sarah
      Reply

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    eToro - Best Cryptocurrency Platform

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    eToro - Best Cryptocurrency Platform

    Trade Crypto

    CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider.

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    Trade Crypto

    CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider.

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