Did you know that the implementation of Segregated Witness (SegWit), a protocol upgrade that increases the capacity of blockchain and decreases transaction fees, was first adopted by Litecoin? Litecoin is gaining popularity month after month, and many experts find it interesting for long term investment.
If you’re interested in buying Litecoin, there are a few steps you can follow to make sure you do it safely and efficiently. Here is a detailed guide on how to buy Litecoin:
Step 1: Choose a Cryptocurrency Exchange
The first step in buying Litecoin is to choose a cryptocurrency exchange. 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. 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.
Here are some of the exchanges where you can buy Litecoin:
- Kraken
- Gemini
- Coinbase
Step 2: Create an Account
Once you’ve chosen a cryptocurrency exchange, you’ll need to create an account. This usually involves providing your name, email address, and a password. You may also be asked to provide additional information, such as your address and date of birth, to comply with know-your-customer (KYC) regulations.
Step 3: Verify Your Identity
To buy and sell cryptocurrencies on most exchanges, you’ll need to verify your identity. This is usually done by providing a government-issued ID, such as a passport or driver’s license, and a selfie.
Step 4: Add Funds to Your Account
Once your account is set up and your identity is verified, you’ll need to add funds to your account. This can usually be done by linking a bank account or debit card. Some exchanges may also accept credit cards or wire transfers.
Step 5: Buy Litecoin
Once you’ve added funds to your account, you’re ready to buy Litecoin. Depending on the exchange you’re using, the buy transaction could be as simple as a click, or you might have to enter the ticker (LTC) and indicate the amount you want to purchase.
When your purchase is complete, you might own full Litecoins or partial coins. For example, if Litecoin is trading at $100 and you want to invest $50, you’ll own 0.5 LTC. If you make a purchase for $100, you’d own 1 LTC.
Step 6: Store Your Litecoin
After you’ve purchased Litecoin, you’ll need to store it somewhere. There are several options for storing Litecoin, including:
- Hardware wallets: These are a common digital asset storage method, where hardware devices store the private keys to the owners’ assets and allow you to interact with the wallet without exposing your data. These devices can connect to your PC, phone, or tablet to transact with LTC. A few hardware wallets that support LTC include Leger, Trezor, and BitBox.
- Paper wallets: For paper wallets, you use a private key to send funds. For your paper wallet, simply print your private keys and recovery passphrases on a piece of paper and then store it for safekeeping. This is known as a “cold wallet.”
- Desktop/mobile wallets: Mobile and desktop wallets are typically considered “hot wallets” known for their ease of use. But hot wallets can be vulnerable to online attacks, so it’s important to research the reputation of the wallet where you plan to store your crypto. A few mobile wallets that allow you to store LTC include Edge, Mobi, and Exodus.
- Crypto exchanges: Many exchanges that trade LTC will let you store your crypto. A couple of crypto exchanges include Coinbase and Uphold.
It’s important to keep your Litecoin safe by using a reputable wallet or exchange and following
FAQs
Q: How does Litecoin differ from Bitcoin?
A: Litecoin stands out in several key ways. Firstly, its block generation time is faster – every 2.5 minutes as opposed to Bitcoin’s 10 minutes – and it uses a different mining algorithm called Scrypt which requires less memory and thus makes it less susceptible to ASIC mining. Furthermore, Litecoin has a larger maximum supply than Bitcoin with 84 million Litecoins that can be mined versus 21 million for Bitcoin.
Q: Where Can I Purchase Litecoin?
A: You can purchase Litecoin on various cryptocurrency exchanges such as Coinbase, Binance and Kraken. You may pay with fiat currency or other digital assets.
Q: How Do I Store My Litecoin?
A: You can store your Litecoin in a cryptocurrency wallet, such as Ledger or Trezor hardware wallets or software wallets like Exodus or Jaxx.
Q: What Can I Use Litecoin for?
A: You can utilize Litecoin for many different purposes, such as making purchases online, sending money to family and friends, or investing in the long run.
Q: Is Litecoin a wise investment?
A: As with any investment, there is always risk involved. But many believe that Litecoin has strong growth potential and could be an advantageous investment choice. To make an informed decision based on your individual financial situation, do your own research and consider all factors involved.
Q: Can Litecoin be mined?
A: Absolutely. Litecoin mining can be done using either a computer with graphics processing unit (GPU) or specialized mining hardware. Due to its memory-intensive algorithm, however, it is less susceptible to ASIC mining.
Q: Can Litecoin be used for anonymous transactions?
A: While not entirely anonymous, Litecoin offers some degree of privacy through features like confidential transactions and the use of pseudonyms instead of real names. Nevertheless, keep in mind that all transactions on the blockchain remain publicly visible.
