Buy Litecoin. Everything You Need to Know About Investment In Litecoin
Looking to buy Litecoin? You’re not alone. Cryptocurrencies continue to grow more and more popular among people who want to try a decentralized money system.
But before you invest in Litecoin, take a look at our complete guide below for all the essentials you need to know.
This cryptocurrency was created in 2011, by one Charlie Lee, and is extremely similar to the innovative Bitcoin. Litecoin is built on the same structure, utilizing a blockchain (a form of ledger) to record all users’ transactions.
However, despite the similarities between this and Bitcoin, Litecoin is considered to be a quicker system, with more transactions and virtually no payment fee to worry about. These are obvious advantages over Bitcoin, and help to make Litecoin a more tempting option for first-timers.
You can purchase Litecoin from marketplaces offering cryptocurrencies, but you’ll have to create an account beforehand. And a big part of this revolves around identity verification, a common security measure to prove you are who you claim to be. This is for your own good, though it can take more time than you expect.
Not all marketplaces provide a wallet for storing Litecoins online, and if this is the case, you’ll be responsible for setting your own wallet up instead.
Be prepared, though: creating your own account, verifying your identity, and processing transactions may not be quite as fast as it should be. It could be over in just several minutes or stretched across even a number of weeks. Do a little research before you choose, so you can avoid wasted time.
You have three types of marketplaces to choose form when looking to buy Litecoin. These are:
A broker offers you the chance to buy Litecoin from their personal stock — so, you’re not performing a transaction with a fellow user, but the actual broker themselves. As a result, brokers specializing in cryptocurrencies tend to ask for a larger fee than crypto exchanges do (see below).
Generally, though, Litecoin users find brokers a fast, simple way to source their favorite cryptocurrency.
A cryptocurrency exchange is similar to the stock-exchange operations we’ve all seen in movies like Wall Street. As individuals use them to trade Litecoin between themselves, exchanges have to take responsibility for determining a Litecoin cost and make sure there’s an effective balance of sellers and purchasers.
Cryptocurrency exchanges are usually focused on those who trade professionally, and incorporate some cutting-edge interfaces and features. This forward-thinking approach can make top exchanges intimidating and even hard to grasp for people just starting to experiment with Litecoin.
The final cryptocurrency marketplace we’ll cover is the P2P (peer-to-peer) directory. This is a platform designed to let two users trade their Litecoins directly, independent of any matchmaking system or third-parties.
Unfortunately, this makes choosing to buy Litecoin via a P2P system riskier. That’s worth considering before you make your decision.
So, now that you’ve developed a deeper insight into today’s cryptocurrency marketplaces, you might be wondering which is best for you. It’s a big step, after all.
That’s why we’ve put together a list of the key factors you need to consider before you settle on a marketplace for buying your own Litecoin.
As we mentioned earlier, you can either store Litecoins in a wallet that’s integrated into a marketplace or use your own. It’s best to sign up with a marketplace providing an in-built wallet rather than managing one yourself if you’re new to cryptocurrencies.
Keeping Litecoins in a self-managed wallet tends to offer stronger security, but there is a slight learning curve involved. Perhaps wait until you’re a little more experienced before setting up your own wallet.
The majority of marketplaces for cryptocurrencies stipulate that all users should verify their identity. This is usually performed by uploading one of your bills or a copy of your own passport, both of which must be up-to-date.
Depending on the marketplace, verifying your identification can take minutes or weeks.
You have to transfer money to your chosen marketplace before you can actually buy Litecoins. And to do this, you’ll need access to a payment method you’re comfortable using.
Cryptocurrency brokers typically accept transfers through gateways like Skrill or popular credit cards (fees are usually involved), while exchanges offer a small range of payment options.
Litecoin pricing fluctuates based on the number of users who are buying and selling it. Exchanges determine current prices on the market, and tend to have Litecoins on offer at a reduced rate, with smaller fees than you might find at a broker.
Fees could be involved when making withdrawals and deposits, too, so do a little research to be sure.
Effective security provides real peace of mind when you’re looking to buy Litecoin online for the first time. Look out for information on cryptocurrency marketplaces’ security credentials and measures (encryption, authentication, etc.) to avoid unnecessary risks.
Also, search for information on any cyberattacks marketplaces may have been affected by in the past. Unauthorized access could put your Litecoin and personal details at risk.
There are good and bad times to invest in Litecoin. Sadly, it can be difficult to know exactly when these are. And you want to get the best bang for your buck every single time.
This is why it’s so important to stay up to date with the latest cryptocurrency market changes, trends, and security issues. Keep your eye on Litecoin news, discuss options with other users, and empower yourself with all the information you need to purchase confidently.
Over time, you’ll come to recognize the best times to buy Litecoin, and know which marketplaces offer the most competitive rates. Take the time to do your research and don’t rush into buying Litecoin until you feel comfortable with the process.