You can buy LTC with several different fiat currencies on a number of different crypto exchanges. This guide will introduce a few exchanges where you can exchange U.S. dollars for LTC. You can buy Litecoin directly through other payment apps such as Venmo and PayPal or Litecoin-specific wallets, such as Litewallet, a mobile app available through Google Play.
Want more than just to buy LTC? Access dozens of different cryptocurrencies buying guides 2022 here.
What is Litecoin (LTC)?
Litecoin (LTC) is an altcoin founded in 2011 by former Google engineer Charlie Lee. It aimed to be the lite version of Bitcoin that enables nearly instant and low-cost payments. Litecoin adopted the code and certain features of Bitcoin in its blockchain, but it prioritizes transaction confirmation speed to facilitate a higher transaction per second (TPS) and a shorter block generation time.
Due to its similarity with Bitcoin, the Litecoin blockchain has been used as a testing ground for developers to experiment with technologies they want to implement on Bitcoin. For example, Segregated Witness (SegWit) and Lightning Network were run on the Litecoin blockchain before Bitcoin.
Litecoin has a total supply of 84 million. Similar to Bitcoin, it is deflationary in nature and halves every 840,000 blocks (approximately every 4 years). The next halving is expected to happen in August 2023. Litecoin can be purchased on various cryptocurrency exchanges, including Binance.
Read More:
How Does Litecoin (LTC) Work?
Litecoin uses an updated version of the Bitcoin code, so the two blockchains work similarly. In other words, Litecoin employs cryptography to enable the exchange and ownership of the eponymous cryptocurrency. All transactions carried out by Litecoin users are stored chronologically in a distributed ledger– Litecoin’s blockchain.
The blocks containing transaction data are created, validated, and added by miners, who are then incentivized for their efforts. Currently, the reward per validated block is 12.5 LTC. This amount is halved in half every three years. The last so-called halving event occurred in August 2019, when the Litecoin reward per block was slashed from 25 LTC. As in the case of Bitcoin, the compensation is reducing gradually to maintain the high scarcity of the cryptocurrency in the long-run, which will positively impact its valuation.
The maximum supply of Litecoin is capped at 84 million coins, while over 66 million LTC are circulating right now, which is about 79%.
Litecoin’s PoW was designed to allow everyone with computing hardware to become a miner. The hashing algorithm initially made it less practical to use specialized mining equipment like ASICs. However, as time passed, the approach proved unsuccessful, and today the market is dominated by large miners.
The modified mining algorithm also allows Litecoin to carry out faster transactions when compared to Bitcoin. On the blockchain, the new blocks are added every 2.5 minutes instead of 10 minutes on Bitcoin.
Read More:
How to Make Money with Litecoin (LTC)?
How to Earn Free Litecoin (LTC)?
Why Buy Litecoin (LTC)?
Litecoin’s platform boasts transaction times that are four times faster than Bitcoin’s. They’re also much cheaper — 2.6 cents vs. about $4.38 for Bitcoin, according to InvestorPlace.
Moreover, in 2017 litecoin was the first cryptocurrency to complete a Lightning Network transaction. The test transaction took less than a second to complete.
As cryptocurrency continues to grow in popularity and use, more upstarts are appearing on the market. There are more than 19,000 cryptocurrencies available today. Although competition has reduced litecoin’s market share from among the top 10 to number 18, litecoin has longevity some of the hotter coins don’t have.
How to Buy Litecoin (LTC) in 4 Simple Steps
- Step 1: Decide where to buy Litecoin (LTC).
- Step 2: Think about how to store your Litecoin (LTC).
- Step 3: Make your purchase.
- Step 4: Manage your investment.
How to Buy Litecoin (LTC) on a Crypto Exchange
If you’re all-digital at heart and want to use Litecoin for payments, you can likely get by with a payment app or a Litecoin-specific app that lets you buy and sell Litecoin.
If you plan on using Litecoin as an investment, you’ll probably do better by opening an account at a crypto exchange.
You’ll also want to ensure that the crypto exchange you choose offers Litecoin, which won’t be too difficult since it’s a popular digital currency. Beyond availability, you’ll want to compare the best cryptocurrency exchanges for qualities such as fees, security and simplicity.
1. Coinbase
- Step 1. Create a Coinbase account
Download the Coinbase app and start the sign up process. You will need a valid ID and may be asked for proof of address in order to transact, so be sure to have those ready. Verifying your ID may take longer than a few minutes, depending on where you live.
- Step 2. Add a payment method
Tap on the payment method box and connect a payment method. You can use a bank account, debit card or initiate a wire.
- Step 3. Start a trade
Press button then select “Buy” from the list of options.
- Step 4. Select Litecoin (LTC) from the list of assets
Search for Litecoin (LTC) by typing “Litecoin (LTC)” into the search bar. When you see Litecoin (LTC) show up in the results, tap it to open up the purchase screen.
- Step 5. Enter the amount you want to buy
Use the number pad to input the amount you want to spend in your local currency. The app will automatically convert that into a Litecoin (LTC) amount.
- Step 6. Finalize your purchase
Tap “Preview buy” when ready. You’ll be shown the details of your purchase. Make sure everything looks good and then confirm your purchase. That’s it, you’ve bought Litecoin (LTC).
2. eToro
- Step 1: Find a crypto exchange or trading platform that offers Litecoin (LTC)
There are a number of exchanges that will let you trade your funds for Litecoin (LTC). One of them is the eToro trading platform.
- Step 2: Sign up
If you’d like to buy Litecoin (LTC) through eToro, all you need to do is sign up, verify your account and make a deposit. From there, you’ll be able to buy and sell Litecoin (LTC) easily.
- Step 3: Buy Litecoin (LTC)
Litecoin (LTC) can be purchased fractionally, so you don’t need to buy a full Litecoin (LTC) to own some. For example, if Litecoin (LTC)’s price is $10,000, you can purchase 0.1 Litecoin (LTC) for $1,000.
3. Bitfinex
- Step 1. Log in to your account or sign up to Bitfinex.
- Step 2. Go to Deposit, choose Payment Cards.
- Step 3. Select the payment processors.
- Step 4. Choose the crypto and enter the amount.
- Step 5. Select the destination wallet and proceed payment
4. Binance
- Step 1: Create your Binance Account
Sign up with your email address or mobile phone number, and choose a strong password. Or, download the Binance crypto trading app from the App Store or Google Play store and open an account there.
- Step 2: Start Buying Litecoin (LTC)
There are two main ways to buy Litecoin (LTC) on Binance using cash: you can link your debit/credit card or bank account, or buy crypto directly from other users on Binance P2P.
Linking your debit card, credit card, or bank account (available in many regions) is one of the easiest ways to buy Litecoin (LTC). Through this method, you can buy Litecoin (LTC) for a minimum. (This amount varies depending on the currency you use.)
Buy Litecoin (LTC) directly from other Binance users with your local fiat currency via Binance P2P. Browse a variety of Litecoin (LTC) listings to shop the best offers on Litecoin (LTC) from other users. With thousands of merchants and hundreds of payment methods available, Binance P2P caters to many regions in the world right now.
5. KuCoin
- Step 1. Sign Up for KuCoin Account
- Step 2. Secure Your KuCoin Account
- Step 3. Verify Your Identity
- Step 4. Connect Your Account to Funds Fund Your Account
- Step 5. Start Trading on KuCoin
How to Buy Litecoin (LTC) With PayPal
- Step 1. Login to Paypal and Select Cryptocurrency
In Paypal website, you should see the option for cryptocurrency in the top right of the dashboard, next to ‘Send’ and ‘Request’.
- Step 2. Select ‘Litecoin (LTC)’
Or choose any of the other coins listed.
- Step 3. Select ‘Buy’
- Step 4. Choose How Much You Want to Buy
Enter an amount of dollars you want to spend on Litecoin (LTC) or choose a pre-set amount below.
- Step 5. Select Payment Method
You likely already have you bank account linked to you Paypal account, but you can also hook up another method if you don’t want to use your bank account.
- Step 6. Hit the ‘Buy’ button
After finalizing your purchase, you will be taken to a confirmation screen and you should see your coins reflected in your Paypal account dashboard.
How to Buy Litecoin (LTC) With a Credit Card
Not all platforms will allow you to use a credit card to make your cryptocurrency purchases. If you do choose a platform allowing such transactions, keep in mind that there may be extra fees associated with the purchase. Many credit card companies process cryptocurrency purchases via credit card as cash advances, which can incur high interest rates, among other fees.
Some credit card companies allowing cardholders to make crypto purchases treat the purchases as a cash advance (cash advances usually involve a cardholder using a credit card to withdraw money from an ATM). This has several critical disadvantages.
- Cash Advance Fees: Some cards treat a cryptocurrency purchase as a cash advance. This means each crypto purchase is subject to a cash advance fee. A typical fee of either $10 or 5% (whichever is greater) would be charged. These fees are in addition to fees charged by the vendor or exchange.
- Cash Advance Interest Rates: Most cards have a higher Annual Percentage Rate (APR) for cash advances—often over 25%. This is a variable interest that changes with the market. Interest will start to accrue on the day the purchase is made and will continue to accrue until the credit is paid off. By comparison, cardholders have up to 25 days to pay off a regular credit card charge before accruing any interest.
- No Credit Toward Rewards orBonuses: Credit used to purchase crypto (and thus make a cash advance) typically doesn’t qualify for any purchase rewards nor toward spending that would normally apply to a welcome bonus.
- Lower Credit Limits: Cash advances often have a lower credit limit than the cardholder’s overall credit limit that applies to the card itself. Cardholders hoping to make big crypto buys may find themselves limited by the cash advance terms and limitations.
Buying Litecoin (LTC) FAQs
What is a Litecoin (LTC) Wallet?
Which type of wallet suits you best depend on your needs. All wallets have their own features, there are different levels in ease of use and security. In the overview below you will find more information about the three different types there are: mobile wallets, software wallets and hardware wallets.
You can use the Coinomi mobile wallet to buy your crypto’s at BTC Direct, without ever having to switch between tabs and applications. And since you don’t have to copy and paste your receiving address anymore, it’s way more simple and safe as well!
Can You Sell Litecoin (LTC)?
The best way to sell Litecoin is through a crypto exchange. If the LTC is already on the exchange, then skip to step 4. Otherwise, the Litecoin will need to be deposited on an exchange to be sold on the market.
There are a few factors to consider when selling LTC. Before registering on the exchange, check that the asset is listed on the platform and that the desired fiat currency is supported for withdrawing to a bank account. Compare crypto exchanges to find the lowest deposit fees, withdrawal fees and trading fees to maximize the fiat payout.
- Step 1: Choose where to sell Litecoin
Choosing where to sell Litecoin depends on many factors. Cryptocurrency exchanges offer different fees for depositing crypto, but it should be free to deposit LTC apart from the network fee. Take into account trading fees for selling LTC when choosing where to sell as well. Reasonable trading fees should range from 0%-0.5% per trade. The last factor to consider when selling Litecoin is the withdrawal fee for cashing out to a bank account. Some exchanges charge a flat rate while others charge a percentage. Look for exchanges that have no withdrawal fees, charge a low flat rate or pay for a portion of the fees.
- Step 2: Create an account
Once you’ve chosen a cryptocurrency exchange to sell your Litecoin, you will need to create an account. Find the sign-up or register button on the homepage then do the following:
- Enter an email address or phone number
- Create a password
- Verify the email or phone number provided by entering the verification code sent to it
- Agree to terms and conditions
- Click “sign up” or “register”
- You’ll have to go through the KYC process to verify your identity before selling LTC. Finder has outlined the basic steps, but click here for Finder’s guide to KYC.
Enter personal information
This includes your name, country of residence and an ID. This step may require you to upload a scan of your chosen ID or simply enter your ID number.
Upload documents
A clear photo or scan of your ID with no glare or obstructed view is necessary. You will also need to upload a copy of a utility bill or bank statement that matches the address and name on the ID provided.
Upload a selfie
This involves taking a photo of yourself with a full view of your face. You must be holding a piece of paper that has your name written on it and the current date. Some sites will provide a unique code that you need to write on a piece of paper.
Activate 2FA
This is an optional step but it is recommended. Some exchanges require it regardless. Activating 2-factor authentication adds an extra layer of security to your account.
- Step 3: Deposit Litecoin:
The next step is to deposit LTC on an exchange in order to sell it:
- Navigate to the wallets or balances page of the exchange
- Locate “Litecoin”
- Click “Deposit”
- Copy the address the exchange provides for your LTC deposit
- Paste the address into your external Litecoin wallet
- Double-check the address
- Depending on your comfort level, you can also send a small test amount first, but this will cost you an extra transaction fee
- Send the transaction
- You will have to choose the network fee (a higher fee results in faster processing)
- Once the transaction is broadcasted, you can exit your wallet
- Wait for the deposit to be confirmed by the exchange
- This can take a few minutes to an hour depending on the exchange and network congestion
- Once the deposit is confirmed, you can sell your LTC
- Step 4: Sell Litecoin
Now that your Litecoin is in your exchange wallet, you can sell it. There are a couple of different ways to sell LTC through an exchange: market order and limit order. It is important to remember that you can sell Litecoin for fiat or for other crypto assets and tokens.
What is a Litecoin (LTC) Address?
A receiving address is similar to your bank account number: people can use it to send litecoin to your wallet.
Would you like to receive litecoin? Then you provide the sender with your receiving address. Would you like to send litecoin to another wallet? Then you need the receiving address of the recipient. A litecoin receiving address always starts with an L or an M. This is an example of a litecoin address: MGxNPPB7eBoWPUaprtX9v9CXJZoD2465zN. Please note: this is just an example address. Make sure to always copy the receiving address from your own wallet.
Whilst a bank account number stays the same, a litecoin receiving address can change once it’s been used for a transaction. This way, not all transactions are linked to a single receiving address and your privacy on the network is better protected. Even though receiving addresses can change, old addresses always remain valid. All generated addresses stay linked to your wallet, meaning that you can keep using them to receive litecoin.
How to Accept Litecoin (LTC) Payments?
- First, you need to sign up for a NOWPayments account. The process shouldn’t take more than a minute!
- Go to Store settings. Add your Litecoin wallet and create a new API key.
- Choose the tool to add to your checkout.
- The integration will be active on your website, and you’re ready to accept payments in Litecoin!
