How to Sell Litecoin (LTC)?

Whenever you want to sell Litecoin, you can consider doing it through a cryptocurrency exchange. Typically, any regular BTC exchange that has to do with individual investors, will also provide multiple options for dealing with other alternative crypto coins and tokens. The more options you’re facing — the cooler is the exchange!

Want more than just to sell LTC? Access dozens of different cryptocurrencies selling guides 2022 here.

Table of Contents

What is Litecoin (LTC)?

This cryptocurrency has a limit of 84 million coins available. Its consensus mechanism is based on proof of work (PoW) and the hash function it uses is Scrypt. This algorithm is considerably lighter than SHA-256 but without neglecting security. Being open source development for the whole community.

Litecoin is a cryptocurrency whose generation of blocks takes two and a half minutes, therefore the Litecoin network is four times faster than Bitcoin. In addition, the average weight of the blocks is 65KB, therefore its blockchain it is very light. Like Bitcoin, Litecoin uses the halving to control their emission and the block reward for miners. Unlike in Bitcoin, in LTC halving happens every 840.000 blocks (in Bitcoin every 210.000). The last halving in Litecoin happened on August 5, 2019. The event brought the block rewards from 25 LTC to 12,5 and the next halving will be on August 6, 2023. You can check more information about this event in this website.

Just like all the cryptocurrencies, Currently, Litecoin suffers in terms of transaction validation, a challenge it must face in order to compete at a high level. Bitcoin allows to verify 7 transactions per second, Ethereum allows validating 15 transactions per second, VISA allows validating 56.000 transactions per second, while Litecoin only supports validating 56 transactions per second.

Certainly followed y Lightning Network They help improve these performance numbers, and both options are available from Litecoin.

Read More: What is Litecoin (LTC)?

How Does Litecoin (LTC) Work?

Litecoin shares several similarities with Bitcoin. Both are open-source projects that use proof of work to verify transactions.

But Litecoin has some notable differences from Bitcoin, too. Besides processing speed, there’s the issue of supply. While Bitcoin is capped at a maximum supply of 21 million coins, Litecoin is capped at 84 million coins.

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Why Sell Litecoin (LTC)?

The good news is that if you’ve decided to sell your LTC, the Litecoin markets are some of the most liquid among available cryptocurrencies. This means that, depending on when you sell your LTC, you’re likely to find an available buyer on any exchange.

An exchange with a real-time order book will give you real-time updates on what buyers and sellers believe to be a fair price for LTC.

Before you begin, however, make sure you understand the implications of selling your LTC. Depending on when you bought, you may be selling it at a profit (or loss), which could have implications for your next tax filing.

Where to Sell Litecoin (LTC)?

Option 1: Cryptocurrency Exchanges

Cryptocurrency Exchanges often support a wide range of fiat currencies. A crypto exchange can act as an intermediary between sellers and buyers of cryptocurrency. To sell Litecoin (LTC) for cash, you will first need to set up an exchange account and deposit your Litecoin (LTC) in the hot Litecoin (LTC) wallet that is provided by the exchange.

Note that most reputable Litecoin (LTC) exchanges require their users to provide personal information before they can sell cryptocurrency, in order to comply with KYC and AML rules.

The key advantage of using a cryptocurrency exchange to sell Litecoin (LTC) for cash is that well-known exchanges have deep liquidity and provide quick access to a large pool of potential buyers.

They are also relatively easy to use: you will need to place a sell offer, defining how much cryptocurrency you wish to sell and set your asking price per unit. The exchange then automatically processes the transaction once your offer is matched.

Option 2: Direct Trades (Person-to-Person)

Online P2P Selling
Face-to-face Transactions

Rather than doing the work for you, a peer-to-peer (P2P) exchange lets you choose your price, and the platform helps find a buyer willing to pay it. The two parties then decide between them how to pay. You can sometimes do this on the site — often called direct trades — but normally, you would use a separate bank transfer.

P2P trading allows you to sell cryptocurrency without the limits of an exchange. This means that you could do a wire transfer, send gift cards for popular online stores, trade cash in the real world or even send expensive art if that’s what you want; as long as both parties agree, and you’re in a P2P marketplace that doesn’t limit payment methods.

There are some problems around this, such as what happens if the buyer doesn’t pay up, and the peer-to-peer marketplaces will still have some information on who you are. However, this is still a good step if freedom of choice and minimal interference are your priorities while still having access to things like escrows to hold the Litecoin (LTC) for protection from fraud.

Option 3: Litecoin (LTC) ATMs

It may be hard to come to terms with since Litecoin (LTC) ATMs are directly connected to the internet, but BTMs are entirely secure. BTMs are equipped with technology that protects against software and hardware malfunctions. Malware technology is also not able to threaten Litecoin (LTC) ATMs. Your digital wallet is encrypted and protected. Without the correct passwords and security credentials, no one aside from you can access your wallet.

A number of Litecoin (LTC) ATM operators have come together to form the Cryptocurrency Compliance Cooperative to make the use of Litecoin (LTC) ATMs even safer for the consumer, furthering the legitimization of the cash-to-cryptocurrency industry.

How to Sell Litecoin (LTC)?

Cryptocurrency Exchanges

Step 1: Set up an exchange account

The first thing you need to do is decide which form of money you will accept for your Litecoin (LTC).

Now that you know which currency you want in exchange for your cryptocurrency, its time to make an account on a platform that lets you sell your Litecoin (LTC).

There are tons of platforms to sell Litecoin (LTC) on, and the easiest, by far, are exchanges and brokers like Coinbase or Coinmama.

Signing up on Coinbase is really simple – it’s like making an account on Amazon!

Step 2: Transfer your Litecoin (LTC) to your exchange wallet

Now that your account is created, you’ll need to deposit your crypto assets on the exchange.

Hit the “deposit” or “sell” button.

You’ll be presented with a wallet address and/or a QR code.

Scan that into your Litecoin (LTC) wallet and send the amount of coins you want to sell.

Step 3: Place a sell order

Now it’s time to make a sell offer on the platform you are selling on.

That means determining the price you are willing sell your Litecoin (LTC).

The process for doing this always looks a little different on every platform, but for the most part, it works the same way.

Look for the “sell” or “trade” tab, and either sell at the price offered by the broker or create a custom sell order on an exchange order book.

The only difference is, with a broker, you are selling at whatever the spot price is (minus some fees).

With an exchange, you can set whatever price you want. Just don’t expect for the sell to be accepted by any takers if your price is too high.

The nice thing about the crypto exchanges are that the fees tend to be lower than the brokerages.

Direct Trades (Person-to-Person Trading)

Step 1: Go to the P2P Trading Page

Select (1) “Buy Crypto” then click (2) “P2P Trading” on the top navigation.

Step 2: Choose to Sell and Set Your Currencies

Click (1) “Sell” and select the currency you want to buy (USDT is shown as an example). Filter the price and the (2) “Payment” in the drop-down, select an ad, then click (3) “Sell”.

Step 3: Find a Buyer

After the buyer makes payment, the transaction will now display “To be released”. Please make sure that you’ve actually received payment from the buyer, to the payment app/method you used. After you confirm the receipt of money from the buyer, tap “Confirm release” and “Confirm” to release the crypto to the buyer’s account. Again, If you have not received any money, please DO NOT release crypto to avoid any financial losses.

Step 4: Choose How Much You Want to Sell

Enter the amount (in your fiat currency) or quantity (in crypto) you want to buy and click (2) “Sell”. The transaction will now display “Payment to be made by buyer”.

Step 5: Send the Offer

You can use Chat on the right side to communicate with the buyer in the whole process.

If you have any issues in the transaction process, you can contact the buyer using the chat window on the top right of the page or you can click “Appeal” and our customer service team will assist you in processing the order.

Step 6: Confirm the Release

The transaction will now display “Pending Payment”. After the buyer makes payment, the transaction will now display “Confirm Receipt”. Please make sure that you’ve actually received payment from the buyer, to the payment app/method you used. After you confirm the receipt of money from the buyer, tap “Payment received” and “Confirm” to release the crypto to the buyer’s account. Again, If you have not received any money, please DO NOT release crypto to avoid any financial losses.

Litecoin (LTC) ATMs

Step 1: Choose withdraw cash
Step 2: Choose Litecoin (LTC) (these machines normally may support other cryptocurrencies)
Step 3: Choose amount to withdraw
Step 4: Send Litecoin (LTC)s to given address QR code
Step 5: Receive cash immediately as Litecoin (LTC)s transaction is propagated on the network

Read More: How to Buy Litecoin (LTC)?

Selling Litecoin (LTC) FAQs

Can I Sell Litecoin (LTC) for Cash?

Courtesy of a ruling in 2014, the Internal Revenue Service (IRS) in the United States has classified crypto as a property or an asset. In essence, cryptocurrencies are subject to taxing and every investor is expected to keep to that. Certainly, no one enjoys being at the wrong end of the law, the IRS isn’t joking about their measures to see that the law is kept.

Understanding how crypto taxing works is very crucial as a law-abiding citizen. Crypto taxing is in effect if you make income from it. The IRS requires a yes or no reply on questions about your use of cryptocurrencies. You might have to consult a tax planning professional to ascertain the best way to make your tax reports or make more findings on the IRS website. Fortunately, crypto taxes are measured in a fair equivalent to the USD. Therefore, if you make purchases in cryptocurrency, your tax would be equated with the dollar at the time of purchase. Taxable crypto events are classified into two categories – short-term capital gain tax and long-term capital gain tax. The difference between these two is that the former is in effect if you hold crypto less than a year, while the former applies when you hold cryptocurrencies for more than a year.

You are taxed when you mine crypto, gain airdrops, sell cryptocurrency for cash, pay for goods and services, or receive staking rewards. However, you are not taxed if you transfer crypto between wallets or when you donate them to tax-exempt charity organizations.

What Is The Best Way to Sell Litecoin (LTC)?

Litecoin is an extraordinarily volatile asset, just like every other cryptocurrency. Litecoin is divisible by up to eight decimal places, so smaller portions of Litecoin are possible to invest in and can be purchased in any increment. The more money you invest, the more potential return on investment. However, it’s important to remember that you should never invest more than you can comfortably lose.

As volatile as crypto markets tend to be, losses will be much more uncomfortable than you may be used to. Profits are also just as shocking, so it does end up being worth the risk in the long term for those who apply sound money management.

Is It Easy to Sell Litecoin (LTC)?

Litecoin is a cryptocurrency token trading under the ticker symbol LTC. It has been a top-performing altcoin since its inception in 2011, created by Charlie “Satoshi Lite” Lee. Charlie Lee was an engineer at both Google and Coinbase and had extensive experience in technology.

The Litecoin Foundation works with developing and adopting Litecoin, forming partnerships, funding opportunities, and the like. One example is in agreement with the Ultimate Fighting Championship to become the official cryptocurrency of the UFC.

Litecoin is often a leading indicator of the rest of the cryptocurrency world. As the community claims, “Litecoin lights the path that leads the way to alt season.” Traders will watch the price of LTC, even if they choose not to trade it. When Litecoin starts to take off, risk appetite spreads, and many smaller markets are about to have explosive gains.

The computer code behind Litecoin is almost identical to the code for Bitcoin. Litecoin has a fixed supply and a halving like Bitcoin does. This means that as time goes on, the reward for mining blocks will be smaller. Litecoin is proof of work, much like Bitcoin.

Litecoin has four times the supply of Bitcoin, with a cap of 84 million LTC. Litecoin also lowered the block generation time to just 2 ½ minutes versus 10 minutes on the Bitcoin network, making it a faster solution for sending and receiving. While crypto has struggled in 2022, the Litecoin market has shown that it can weather the storm multiple times, as crypto has seen a lot of volatility since its inception. Because of this, as soon as this low is put in, Litecoin is once again a good investment for those willing to take the plunge.