The big alternative to bitcoin is the Litecoin. Here’s your guide on how to buy litecoins
1 Introduction
In late 2017, Litecoin prices have fallen. A few months in, Litecoins have shown great potential as stores of value and is an attractive investment option as Litecoin value is expected to rise. You can choose to buy litecoins as an alternative investment option over other available cryptocurrencies.
Like the rest of the cryptocurrencies, there are different ways to get Litecoin – you can mine them for yourself, but for convenience, you can choose to buy Litecoins.This is your guide on the best methods on how to buy Litecoin so that you can enjoy the litecoin’s appreciation in the future.
2 Buy Litecoin through an exchange
If you are only just in the beginning of buying cryptocurrencies, the best way to buy Litecoin is to buy it from an exchange. You can also do this if you prefer buying litecoins in a fairly straightforward style. The exchange will do much of the legwork for you.
The exchange will give you a quick and easy access to a broad range of cryptocurrencies. Despite being far from perfect, you can buy Litecoin without having to be hands-on for the trade.
2.1 How to choose an exchange when buying Litecoins
Because there are so many exchanges that offer cryptocurrencies, choosing the right exchange when buying Litecoin can seem like a daunting task for many. But in this guide on how to buy Litecoin, you’ll see why this need not be the case.
It is important to choose the correct exchange that suits your needs. What you want to do when buying Litecoin is to assess whether the
exchange is an established trading platform and if their insurance has coverage for any risk of loss. Essentially, the exchange must support trading of Litecoins.
Established trading exchanges include Bitstamp,Coinbase, and Kraken. You can also sift through Bitcoin.com as they have a comprehensive list of all major exchanges where you can buy Litecoin.
2.2 Signup on the Exchange
Once you have chosen the right trading platform for yourself, the next step on how to buy Litecoin is to sign up on the exchange. A majority of exchanges run operations from a web address. On the other hand, some exchanges offer a platform that is compatible with your smartphone.
You may have to give identification details when signing up. Exchanges usually request this so as to ensure compliance to anti-money laundering
laws. You’ll then have to pair your debit card or bank account with the exchange.
There are a few exchanges available where you can transfer funds directly to your newly created account in the exchange platform. Upon
completion of this stage, you can then begin trading litecoins.
2.3 Buy litecoins through your exchange account
To buy Litecoin, the actual method is usually subject to the terms and conditions of the exchange platform that you have used. Most of the ways on how to buy Litecoin usually comes down to a few simple options.
You will be executing a “buy order” and once this is made, a specific amount of your fiat currency is transferred out of your account. Your exchange wallet then received the requisite amount of Litecoin. Basic buy orders, usually referred toas market orders, automatically executes the purchase for you at the best market rate.
If you decide to only buy litecoin at a set price, you may place a “limit” order, which lets you to set a specific value.
2.4 Secure your Litecoin
If you are intending to hold your Litecoin for a while, you are advised to take the Litecoin out of your exchange wallet and transfer it into a more secure storage. You can also do this if you have bought a substantially large amount of the cryptocurrency.
Even if a majority of the established exchanges offer good protection, issues may arise due to busy trading periods, DDOS attacks, and hacks. This can make access to your Litecoin difficult. Hence, it is always a good idea to ensure you have firm controlof it, either by using a software or a
digital wallet.
3 Buy Litecoin through direct trade
Another method of buying Litecoin is by trading directly with Litecoin owners. Buying the cryptocurrency this way is relatively more off-the-grid than when buying through exchanges. Ultimately, however, you will have a stronger understanding of the concept related to Litecoin pricing and its trading times.
Buying Litecoin through direct trade requires you to be present and actively trading with other owners. This means you will be sending the funds manually. Buying litecoin this way will let you maintain the various currencies that you hold and avoid having them on potentially inaccessible platforms.
3.1 Direct trading platforms
Trading directly with Litecoin may not be aslaidback as when trading with bitcoin due to the availability of platforms for Litecoin being limited. Luckily enough, you will find some platforms that accommodate peer-to-peer transactions for Litecoin.
For example,Cointalfacilitates direct trading of various types of cryptocurrency which includes bitcoin, Litecoin, and even Ripple. Cointal
also allows various payment methods such as Paypal, direct bank transfers, and gift cards, making it convenient for you to buy Litecoin.
3.2 How to buy Litecoin with Cointal
First, go to the site’s homepage and specify the Litecoin amount you’d like to buy. You can also input the USD amountthat you wish to spend.
Then, click on the button that says “find an offer” to see the list of offers available for you.
You can sort the list by buy, sell, or payment method. Additionally, you can preview the sellers in terms of their location, reputation, and feedbac. Once you have chosen a deal, click the “buy” button which is located on the right-hand side of the screen.
3.3 Confirm your transaction
The “buy” button takes you to the deal page where you can review the transaction details and confirm it accordingly. You can then click on the “Buy Now” button as a last step to the buying process. Otherwise, you will be led to the login page where you will be required to make an account prior to closing the deal.
The transaction details will vary based on your agreement with the seller. Generally, this involves sending your seller an upright payment through escrow in exchange for you receiving a Litecoin. Everyone is pleased, and you now have a Litecoin placed in your wallet.
4 Buy Litecoin with other cryptocurrencies
The only othermethod to acquire Litecoins is by trading it for other cryptocurrencies. You can use asset exchange websites if you have other tokens you wish to trade for Litecoin. Changelly andShapeShift provides you with an automated experience that facilitates this.
Paxful and Cointal also allows you to buy litecoins using other tokens like Bitcoin. If you’re interested in finding out how to trade bitcoin for other cryptocurrencies, you can click here.