Litecoin, often called “digital silver” (with Bitcoin as “digital gold”), is one of the most popular cryptocurrencies for both new and seasoned investors. If you’re considering adding it to your portfolio, you’ll want to know which exchange offers the best experience. This guide walks you through everything you need to know about how and where to buy Litecoin (LTC) securely.
KEY TAKEAWAYS
➤ Litecoin was created in 2011 by Charlie Lee as a faster, more efficient alternative to Bitcoin.
➤ To buy Litecoin, sign up, verify identity, deposit funds, and place an order on a crypto exchange.
➤ eToro, Coinbase, and Binance are some of the most popular platforms for purchasing Litecoin.
➤ For optimal security, transfer Litecoin to a non-custodial wallet after purchasing it from an exchange.
How to buy Litecoin
Before we go into the detailed step-by-step procedure, let’s first quickly walk you through the general process:
- Create an account on a crypto exchange.
- Complete KYC (Know Your Customer) verification, as and when required.
- Deposit funds using a bank transfer, debit/credit card, or other supported methods.
- Find Litecoin in the exchange’s assets section.
- Buy LTC at the current price or set a specific price by creating an order.
Now, let’s discuss the detailed steps using eToro as an example platform. Keep in mind, when buying on most centralized exchanges, you don’t hold the private keys to your cryptocurrency.
If controlling your private keys is important to you, you’ll need to transfer your Litecoin to a non-custodial wallet after purchase. eToro also offers a solution for this with its eToro Money app.
Here are the steps you need to follow:
1. Create your eToro account
Begin by signing up for an account on eToro. This requires providing some personal information and verifying your identity, which is standard for most regulated cryptocurrency platforms. Once your account is set up, you can fund it and buy Litecoin.
2. Fund your eToro account
Log into your eToro account and head to the page where you can deposit funds. You’ll be asked to provide your credit or debit card details to make a deposit. For users under the FCA regulation, credit cards and PayPal may not be available for deposits.
After submitting your details, click the “deposit” button. A confirmation message will appear if the deposit is successful.
3. Search for Litecoin
To buy Litecoin, simply type “Litecoin” or “LTC” into the search bar at the top of the page. Alternatively, you can navigate to the “Discover” section, where eToro lists a wide range of assets, including cryptocurrencies, stocks, commodities, indices, forex, ETFs, and NFTs.
If you’re interested in exploring more digital assets, click on the “Crypto” tab to view all available cryptocurrencies. You can also explore the popular crypto traders section at the bottom of the page.
When you’re ready to buy Litecoin, click on the “Invest” button next to the asset. eToro also provides charts, statistics, news, and analysis for each asset, so be sure to review these resources before making your purchase.
4. Create an order or buy LTC at current price
Once you’ve clicked “Invest,” a trading window will appear showing Litecoin’s current price. You can either buy Litecoin at the current price or place an order to buy it when the price reaches a certain level.
If you choose the “Trade” option, you can buy Litecoin instantly by entering the amount you wish to purchase. If you prefer to set a specific price, use the “Order” menu to enter the rate you are willing to pay.
Once you’ve entered the amount and reviewed the trade details, click “Open Trade” to finalize your purchase. Remember, eToro charges a spread of 1% on all crypto assets, which is applied when you open a position.
Litecoin, like other cryptocurrencies, can be purchased in fractional amounts, so you don’t need to buy a full unit.
Under the units box, you will also see the exact figures for your Litecoin trade:
- The value of the LTC investment (units/USD)
- Equity or how much of your eToro portfolio does this LTC investment represent
- Your exposure to LTC
Please review all these details before you purchase LTC. When you are ready, click on “open trade” to finalize the Litecoin trade.
You can now share this trade on your eToro profile, should you choose.
5. See your open positions
Remember that there is a difference between “trade” and “order.” If you decide to purchase Litecoin using the “trade” option, your purchase will be instant. And you will see your Litecoin in your portfolio. However, orders may take some time to complete, and it all depends on your rate.
To see all your assets, click on “portfolio.” Here you can also check your crypto’s current fiat value. Check out the “P/L” columns to quickly analyze your profit and loss (P&L).
If you have multiple open positions and want to see more options for the Litecoin trade, click on the asset’s name. You will now see the trade window for that specific asset.
Once you are on that asset’s specific page, you may choose to close your trade (click “close”) or create a new trade/order.
Where to buy Litecoin?
If you have decided to add LTC to your portfolio, you’ll find many exchanges to help you in this quest. Here are our top three crypto platforms and exchanges to purchase LTC.
1. eToro
Disclaimer: This ad promotes virtual cryptocurrency investing within the EU (by eToro Europe Ltd. and eToro UK Ltd.) & USA (by eToro USA LLC); which is highly volatile, unregulated in most EU countries, no EU protections & not supervised by the EU regulatory framework. Investments are subject to market risk, including the loss of principal
eToro is a widely recognized platform for social trading and investing. It’s popular among retail investors because it offers a wide range of investment options, from stocks and ETFs to cryptocurrencies.
The platform provides an overall smooth buying experience by allowing you to purchase Litecoin with a debit or credit card. While eToro doesn’t charge traditional trading fees, it does include a 1% spread on crypto assets.
eToro is also known for its social trading feature, which allows users to copy the trades of professional investors. This can be particularly helpful for those who are new to trading or want to learn from the strategies of experienced traders.
eToro is regulated by FINRA/SIPC in the United States and the FCA in the UK, which further adds to its trust factor.
2. Coinbase
The Coinbase exchange offers over 100 tradable cryptocurrencies, including the most popular, such as Bitcoin, Ethereum, and Dogecoin.
Coinbase offers an intuitive and user-friendly interface on the web or as a mobile app, as well as an advanced trade interface. Suppose you want to buy and hold Litecoin long-term. In this case, Coinbase will allow you to withdraw your crypto to a non-custodial Litecoin wallet by inputting your crypto wallet address.
Coinbase’s fees may depend on your trade size, varying from $1 to $3. However, trades of $200 or more are subject to a percentage-based fee rather than a flat fee. Coinbase transactions are also subject to a spread-based fee of 0.5%.
When purchasing Litecoin on Coinbase using your debit or credit card, the platform will charge a 4% fee. To avoid deposit fees on Coinbase, you should use ACH transfers (however, these are not instant).
3. Binance
Binance is a popular exchange, especially for those looking to trade altcoins. Launched in 2017, the platform offers one of the largest selections of cryptocurrencies and is known for its extensive features beyond just buying and selling.
It supports staking, savings, and a Visa debit card that lets users spend their crypto assets in real life.
One of Binance’s unique features is Binance Earn, which allows users to earn interest on their crypto holdings. You can stake stablecoins or other digital assets and earn interest over different periods.
Binance offers high security through its multi-tiered architecture and processes millions of transactions per second.
What is Litecoin?
Litecoin was created in October 2011 by Charlie Lee, a former Google employee, as a “spin-off” of Bitcoin. The goal was to address some of Bitcoin’s limitations, offering a faster and more lightweight alternative.
One of the main differences between Litecoin and Bitcoin is the mining algorithm used. Litecoin’s algorithm, known as Scrypt, was designed to be more accessible for miners using regular hardware compared to Bitcoin’s SHA256 algorithm.
Another significant difference is the total supply. Litecoin has a total supply of 84 million coins, while Bitcoin is capped at 21 million. This larger supply makes Litecoin more abundant, although its individual coin value tends to be lower than Bitcoin’s.
Litecoin also introduced a privacy feature called Mimblewimble. This feature enhances transaction privacy by making the details invisible to anyone not directly involved in the exchange.
➤ Litecoin’s transactions are faster, cheaper, and more private than Bitcoin’s, making it a popular choice for those who prioritize efficiency and privacy in their crypto transactions.
What’s the best way to buy litecoin?
You can purchase Litecoin through any of the platforms mentioned above, and all of them support payments via debit or credit cards for ease of use. Note that while platforms like eToro and Binance offer robust security measures, it’s always a good idea to store your crypto in a non-custodial wallet to maintain full control over your assets. As the saying goes, not your keys, not your coins!
Frequently asked questions
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