2018-12-01 06:44:54

Buy Litecoin | Best Places to Buy LTC Instantly

How to Buy Litecoin With a Broker?

If you choose to buy Litecoin with a broker, the first thing you need to do is select the right broker. This is probably the most important step, as it will allow you to avoid losing your money, either to scammers or to real brokers that charge too high fees or don’t offer a good deal.

It all comes down to researching the broker and being as thorough as possible. You should seek out user testimonials and comments on the company, as well as comb through the broker’s website and make sure that they are as transparent as possible. It is also important for the broker to be regulated, as that will guarantee that you are protected and that the platform won’t disappear if the authorities decide to shut it down.

After that, follow these steps, and you will be able to start buying or trading in no time.

1. Register With the broker

After finding the broker that you find acceptable, the logical first step is to register with them. Generally speaking, the registration process is rather easy and straightforward. Most of the time, you will only need to enter a few details, such as your username, email, and decide on a password. 

The requirements for a password on sites such as eToro are pretty standard, as well. You need to have a password that is 6-20 characters long, including lowercase and uppercase letters, as well as numbers of symbols to make it stronger. Other than that, there is not much more to it.

2. Verify Your Identity (KYC Process)

Next, you will have to go through a KYC procedure to verify your identity. These days, this is a common requirement that you will run across at any regulated broker. It serves to strengthen security, but also to prevent criminal behaviour.

That way, things like money laundering and terrorism financing become impossible, and as soon as someone attempts to use their funds in such a way, they will immediately be discovered and tracked down by the authorities. 

The data and documentation you will have to provide in order to verify your identity differs from platform to platform, so it will depend on which broker you choose.

3. Deposit Funds With Your Preferred Payment Method

If you have reached this stage, you are only a single step away from buying Litecoin. All you need to do now is deposit some money with your preferred payment method. However, there are things to consider here, as well. 

For example, you need to decide whether you want your funds to be deposited quickly, or cheaply. Using a debit card, for example, is faster than a bank transfer, but it will cost you more. PayPal may be the fastest method, but it is rarely an option, and it will likely come with high fees, even if some broker does support it. 

Once you decide that, you will also need to make sure that your broker supports the payment method of your choice. If it doesn’t, you might have to choose a different method, or a different broker entirely.

4. Open a Position to Long/Short Litecoin

At this point, you should be ready to open a position. Now, depending on what you expect from Litecoin in the future, you can go long or short on LTC.

Going long means that you expect that the LTC price is going to rise. Therefore, you are buying it now, at a lower price, or simply using CFDs or futures, betting that the price will go up.

Going short, on the other hand, means that you expect that the LTC price will drop. If this is the case, you would not buy LTC directly, but rather bet that its price will go down in the near future. CFDs are perfect for this, as you will earn a profit from the price difference if you end up being correct.

If you were to buy the coins expecting that their price would go down, then they would be worthless once the price changes than they were when you bought them. Obviously, this would cause losses, which is something that you should aim to avoid.

Sometimes, losses may come regardless, as the crypto market moves in highly unpredictable ways. To deal with this, you can use market or limit orders, introduce stop loss or take profit orders, trailing stop loss, and similar security measures.

5. Close Your Position

The last thing for you to learn about using brokers is that you can also close your position at any time. If you happen to use stop-loss, you will decide when the broker should close your position automatically. Let’s say that you expect that the price will go up. However, if it happens to go down, you will see losses. 

You can limit those losses by deciding on the price below that which the coin had once you entered position. If the price drops to the level you chose, the position will be closed automatically, causing you to only experience minimal losses, instead of allowing the coin to sink as much as it is going to while your position remains open.

Alternatively, you can close a position manually, if you are satisfied with the profits you have made and you don’t want to risk losing anything from that point, or if you expect that a soon drop is a certainty.

How to Buy Litecoin With an Exchange

As noted earlier, Litecoin users tend to turn to exchanges when they wish to invest for a longer amount of time. Let’s say that you wish to invest some money into LTC with plans of buying the coins, locking them up, and forgetting about them for years.

Of course, this is something that you should do only if you firmly believe that Litecoin’s price will skyrocket in the future and that it will be more valuable when you finally decide to sell it than it is right now.

If you do believe so, then all that remains is to get the coins and lock them up—like with choosing the broker, selecting the right exchange for the job is crucial. You need to ensure that it services your region, that you can use your preferred payment method, that it is safe, regulated, and reputable, that their fees are acceptable, and so on.

After you find a platform that fits the bill, here is what you need to do next.

1. Set up a Litecoin Wallet

The first thing you need to do is set up a Litecoin wallet in which you plan to deposit your coins after buying it. All centralised exchanges have their own wallets, but you should not keep your coins within them, apart from those that you wish to trade or sell in the near future.

It is much safer to be the holder of your private keys instead of leaving them in the exchange’s hands. That way, no one can freeze your account, steal your funds, or do anything else to endanger your money.

Now, when it comes to crypto wallets, there are several different kinds, including:

Online wallets: These are the most convenient wallets that often come in the form of a website or even a browser extension. This means that you can transfer funds immediately at any time, but it also makes them vulnerable to attacks.

Cold wallets: These are the polar opposite of online, or hot wallets, as they do not have access to the internet at all. This makes them the safest, as they cannot be hacked. The only time when they are vulnerable is when you plug them into your computer to transfer your coins. However, this need also makes them the least convenient.

Desktop wallets: As the name suggests, these come as apps that you can keep on your desktop, and store your coins within them. They are somewhere in between hot and cold wallets, as they are instantly available as long as your PC is connected to the web. However, as soon as you disconnect it, they are unreachable and very safe, so they work well as a middle solution.

There are also paper wallets, which are just that. A piece of paper with information printed on it, which is easy to make and carry around, but it can be easily lost, stolen or damaged. Alternatively, you also have mobile wallets that are similar to desktop wallets in terms of safety and usability.

2. Choose and Join an Exchange That Sells Litecoin

When it comes to selecting an exchange to use, there are plenty that represents excellent choices. These are all leading exchanges that can be trusted, and that have displayed top security features. Many of them, such as Binance, Coinmama, Poloniex, and more, offer Litecoin for sale, although they have their own differences.

Things like withdrawal limits, fees, listed coins that you might use for trade, and other factors all differ from one platform to another. With that in mind, it is up to you to research them all and find the one that fits your needs the best.

3. Choose Your Payment Methods to Buy Litecoin

Of course, you will also choose an exchange depending on the payment method you prefer. Most exchanges support credit cards, debit cards, or bank transfers. You need to choose a payment method depending on whether you value speed or lower transaction costs.

Bank transfers, for example, come with cheaper fees, but they will last longer. Credit and debit cards are more expensive, but your funds will arrive quicker, which is something to consider.

4. Place an Order to Buy LTC

Once you find an exchange and select a payment method, all that remains is to buy coins. Depending on the platform, you will likely see a big button or a dropdown menu that will offer the option to purchase cryptocurrency. 

Once you select it, you will be transferred to the buy screen, where you can select the specific coin, enter the amount, and choose a payment method. After filling in these details, simply click the Buy button, and the coins will be yours.

5. Safely Storing Your Litecoin in a Wallet

Let’s suppose that you don’t want to quickly trade away your LTC and that you wish to store them in a safe place and wait for its price to rise significantly. You will need to store them in your personal wallet that you presumably prepared in the first step.

Go to your wallet, and find an address that you can use for depositing coins. Copy it, and return to the exchange. Once there, find a Withdraw function, and click on it. You will likely once again be transferred to a different screen, where you can select the coin, enter an amount you wish to withdraw, and there, you will also see a field in which you need to paste your wallet address.

Hit the Withdraw button, and that’s it. Note that you don’t HAVE to do it, but it is a safer way to keep your coins for a long period of time than to simply leave them in your exchange account.

Should You Buy or Trade Litecoin?

Of course, buying and trading LTC are not the same things. Both can be done with exchanges or with brokers, depending on different factors, such as whether or not you wish to actually own the coins, or simply earn by using their volatile prices.

Different users will find that some platforms suit them better than others, depending on their strategy.

What’s the Difference Between a Litecoin Exchange and a Broker?

We already mentioned the differences briefly before, but let’s get it all out in the open right now. Exchanges are where most people would go if they wish to buy the actual coins and keep them, or trade them directly for another.

If you choose this route, you will want to find an exchange with the best exchange rate and get the most out of the trade.

Brokerages are meant for those who don’t want to hold actual coins, but rather bet on their prices and make a quick profit off of the changes. This is what CFDs and futures contracts are meant for, as you never actually own the coins, so you don’t have to store them, maintain them, and worry about their security.

Long vs Short Term Investment

When it comes to long vs short term investing in LTC, it depends on what are you after. As mentioned, long-term investments are what you should do if you think that LTC price will skyrocket in a few years. If its price is low now, you can buy as many as you want, wait for their price to surge, and then sell them to get more money than what you invested.

If you wish to make money quickly, you can do it by choosing short-term investments, and simply follow the market trend to figure out when to sell and when to buy.

The LTC price constantly shifts, going up and down from one minute to another, and sometimes, you won’t own the coins for longer than a few hours before you sell them again to make a profit.

Pros and Cons of Buying Litecoin

Litecoin has several advantages over Bitcoin as well as other cryptocurrencies. However, it also has a modest share of drawbacks. We’ve outlined some here;

Pros

  • Established: Litecoin was the first true Bitcoin altcoin and has been around long enough to become dependable. The fact that it has survived this far makes it a low-risk investment when compared to upcoming coins.
  • High trade volume: Litecoin is among the oldest cryptocurrencies in the market and one of the top favourite among investors. As a result, it is easy to find someone who is either selling or buying LTC.
  • Listed on exchanges: It is impossible to find an exchange worth the name that does not have Litecoin as one of the main currencies. It is available on all the major exchanges, from Coinbase to Poloniex.
  • Purchase using fiat currency: Being able to buy an altcoin directly using fiat currency makes investment easy and cheap. You can do so when purchasing Litecoin on nearly all exchanges.
  • Dedicated leadership: Unlike Bitcoin and other coins, the team behind Litecoin are not only vocal but also committed to the improvement of the currency. Charlie Lee keeps an active social media account where he posts updates on the problems cryptocurrencies are facing and the solutions the team is working on.

Cons

  • Scalability: Even though Litecoin is eight times faster than Bitcoin, 56 transactions per second will not be sufficient when more people start using the platform.
  • Volatility: It is more of an industry limitation than Litecoin’s. Prices fluctuate fast and take deep dives or spikes, making short term investments in these coins a high-risk undertaking. However, this has not kept traders out, has it?

What Are the Fees Involved in Buying Litecoin?

The cryptocurrency exchange is a booming business, and for a good reason; there are so many people coming into the industry, and new coins appear every day. The platforms make money through the fees they charge, both hidden and apparent. Each exchange, trading platform, or broker provides a fee system. Unfortunately, most people do not check these terms and end up spending more than they should on a given transaction. Here is a quick highlight of the general costs you will likely face when buying Litecoin.

  • Transaction fees: It is the charges you pay for the transactions you conduct on the exchange. The usual cause of these fees is when you exchange, say Ethereum, for LTC. The more exchanges you have to go through to receive a coin, the more prices you pay. It is why being able to buy Litecoin directly is the coin’s primary advantage.
  • Deposit fees: Depending on the exchange or the payment method, you may have to pay some charges for depositing fiat or cryptocurrency to the exchange’s wallet. The amount varies from exchange to exchange with others charging a fixed price. Some change their fees based on market conditions. Some, such as Binance does not charge any deposit fees.
  • Withdrawal fees: Many exchanges and platforms charge a fee for withdrawing LTC from their wallet to yours. Like deposit fees, it varies from one exchange to another with some charging fixed rates while others vary it.

It is crucial to note that you should not judge an exchange based only on the fees it charges. Some exchange and broker platforms that charge low or almost zero transaction and deposit fees make up for the same in high withdrawal charges and vice versa. The important factors to consider are reliability and safety. You would rather pay more for a safe and reliable service than try to save a few cents only to end up losing all your money. 

3 Tips to Buy Litecoin

Nearing the end of this guide, we can share three more tips for you, if you wish to buy LTC, three things to look out for and keep in mind when trading this coin. 

Choose the Right Time and Do Your Own Research

Obviously, if you wish to make a profit, you will buy when the price is low, and sell when it is high, so keep an eye on the price-performance before buying the coin. The lower it gets, the more you can buy for a specific amount. Also, don’t buy it because someone said so. Buy it if you think that it is a good investment.

Comparing Costs to Buy Litecoin

We already mentioned that different exchanges and brokers offer different rates. With that in mind, don’t just find one platform and decide to use it. Check out the rest of them and see which one offers the best deal.

Safety and Security

You should always keep in mind that safety and security are the most important factors when choosing a platform, and should not be overlooked. Keep an eye on regulation, security protocols, and make sure to properly secure your wallet, as well. You need to secure your LTC just as you would fiat money, as it holds just as much value and much greater potential.

What Is the Best Payment Method to Buy Litecoin?

  • Buy Litecoin with Cash: With Litecoin’s reputation, do not be surprised if even your neighbour has a few coins to exchange for cash. The other way is to buy BTC in cash through a peer-to-peer exchange such as Paxful or LocalBitcoins and then exchange them for LTC on an exchange. 

  • Buy Litecoin with Credit Card: It is the most popular way of buying Litecoin. Nearly all exchanges that accept payment through credit cards sell LTC directly. Create an account in a credit card accepting exchange, deposit your EUR or USD from your credit card then purchase LTC. Make sure to double-check with your bank first. 

  • Buy Litecoin with Bank Transfer

  • Buy LTC with Bitcoin

  • Buy Litecoin with PayPal: Until 2019, you could buy LTC using your PayPal through Virtual World Exchange, Virwox. However, PayPal seems to have gotten wind that the platform uses it for crypto trading and terminated their contract. Buying Litecoin using PayPal will not be possible until PayPal changes its policies on cryptocurrency, which might take some time. 

Other Ways to Buy Litecoin

Apart from everything mentioned, you can also buy Litecoin in several other ways, including:

  • Decentralised exchanges

  • Mining

  • P2P trading platforms

  • Staking

  • Airdrops

  • Lending

  • ATMs

  • Running masternodes

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