Sometimes referred to as the “silver to Bitcoin’s gold,” Litecoin (LTC) is an open-source, peer-to-peer cryptocurrency that was one of the earlier developed altcoins. The cryptocurrency was originally introduced to make transferring money faster. Litecoin’s network is based on the technology behind Bitcoin with a few major improvements.
For example, Litecoin’s more efficient network means lower transaction costs and faster transfer speeds when compared to Bitcoin. Its faster network also makes the cryptocurrency less susceptible to hacking attempts, which typically take place when a user transfers coins from wallet to wallet.
It’s never been easier to invest in crypto than it is right now. Our guide will teach you how to buy Litecoin, how to decide when to sell your coins and a few of our favorite platforms that currently support Litecoin trading.
Step 1: Open an online account.
The easiest way to purchase Litecoin (and most cryptocurrencies) is to open an account with a cryptocurrency broker that supports the direct purchase and sale of Litecoin. A cryptocurrency broker is very similar to a stockbroker — you’ll open your account, place buy orders and the broker will purchase the cryptocurrencies you request according to your specifications. After your order closes, you’ll see your Litecoin in your brokerage account.
Like opening a bank account or a stock brokerage account, you’ll need to supply a bit of personal information to your broker before you can access trading capabilities. Some of the information you might need to provide may include:
- Your full legal name and address
- Your email address and phone number
- Some information on your income and experience trading cryptocurrencies
- Bank account information or data for another payment method (like PayPal and credit card info)
- A copy of your driver’s license, passport or another form of photo ID
Not every crypto broker offers access to the same coins. If you aren’t sure where to start your search, consider a few of our favorite brokers currently supporting Litecoin trading below.
If you’re new to the cryptocurrency market, you might want to start your investing career with Gemini. Gemini is a straightforward broker that focuses on providing investors with a simple trading platform they can use to buy and sell some of the most popular digital currencies in just a few clicks. Gemini’s platform gives you 24/7 access to your coins, and you can track how your investment is changing over time with a glance. In addition to its desktop platform, Gemini also offers comprehensive mobile trading and more advanced tools for users who prefer to have access to expert-level charting and analysis tools.
Another popular cryptocurrency broker for beginners, eToro offers both desktop and mobile Litecoin investing. One of eToro’s most unique features is its CopyTrader functionality, which allows you to start trading cryptocurrencies by “copying” the trades made by professional crypto investors. Simply choose a user who you want to copy, enable CopyTrading and eToro will match your moves to the experts.
Interested in testing out your crypto trading skills? Consider starting with eToro’s practice account functionality, which provides you with $100,000 worth of fake virtual currency to hone your trading skills. With a clean interface and a number of unique tools, eToro can be an ideal option for intermediate investors and experts alike.
iTrustCapital, a digital asset IRA trading platform, allows you to directly buy and trade cryptocurrencies and physical gold in real-time through retirement accounts. iTrustCapital’s eliminates costly inefficiencies and outdated processes of previous IRA models. In short, you can move money from your retirement accounts into the cryptocurrency and the physical gold markets at costs up to 90% lower than other IRA companies. You can transfer an existing IRA, rollover an employer plan or contribute new funds.
Get started and learn more about iTrustCapital.
Step 2: Buy a wallet.
After you open a broker platform, you should choose a private wallet to hold your coins. There are 2 major types of cryptocurrency wallets: hot wallets and cold wallets. Hot wallets are free but must be connected to the internet in order to access your coins. Cold wallets are physical devices that you can use to store your coins offline. Though they hold fewer currencies than hot wallets, cold storage devices provide you with the highest possible level of security.
We recommend that you store your Litecoin in a cold storage wallet. Browse a few of our favorite options below.
Best for Coin Choice: HaloCam SafePal
One of the biggest complaints that cold storage wallet users have about cold wallets is that they tend to support fewer cryptos than hot wallets. This can mean purchasing multiple different wallets to store all of your tokens, which increases the chance that you’ll misplace a device.
The HaloCam SafePal is among the most comprehensive cryptocurrency wallets we’ve seen, with support for over 10,000 coins and tokens spread across 19 blockchain projects. If you’re searching for a 1-stop-shop solution to store multiple cryptocurrencies offline, the SafePal can provide you with a single solution for all of your investments.
Best for Affordability: KeepKey Hardware Wallet
Many cold storage wallets cost around $100. If you’re a new investor, you might not be able to spend this much on a wallet — especially if you only need to store a small amount of Litecoin.
The KeepKey bank-grade security hardware wallet is a simple and affordable solution for anyone looking for a beginner-friendly way to store their coins offline. The KeepKey wallet is compatible with Windows, Mac and Linux operating systems, and features high-level security solutions comparable to more expensive models. Priced at less than $30 through Amazon, the KeepKey wallet can be a great solution for new investors.
Step 3: Make Your Purchase.
After you’ve opened your brokerage account, funded the account and decided where you want to store your coins, it’s finally time to place your order. You’ll place an order to buy Litecoin using your brokerage’s trading platform by entering a buy order. Your buy order tells your broker how much Litecoin you’d like to purchase and when the order should be executed. There are multiple types of buy orders — let’s take a look at a few of the most common order types you might run into.
- Market order: A market order is a buy order that tells your broker that you want to purchase a set amount of Litecoin at the current market rate. Market orders are filled immediately as long as someone is selling their Litecoin when you place the order. Market orders are much more likely to be filled than other order types but give you less control over the price that you pay per coin.
- Limit order: A limit order is a buy order that tells your broker to buy a specific amount of Litecoin but only at a set price. When you enter a limit order, you’ll choose both the number of coins you want to buy and the maximum price you’re willing to pay per coin. Say you set an order to buy 5 Litecoin at a limit price of $80 per coin, your broker will only execute the order if able to buy each coin at $80 or less. Limit orders give you more control over the price you pay per coin.
After you place your buy order, you can finally relax. Your broker will do the rest of the work for you, and you’ll see your coins in your account when the order is complete.
Trade or Sell Your Cryptocurrency
Once your broker is able to complete your order, you’ll see your coins in your brokerage platform’s account. From here, you’ll need to decide if you want to capitalize on short-term price movements or if you want to be a long-term investor. If you think that the price of Litecoin will increase in the long term, we recommend moving your coins to your hardware wallet. These wallets include a set of private keys that greatly reduces the possibility that you’ll lose your coins if a hack occurs.
If you plan to take advantage of short-term price movements, it’s usually more affordable to leave your coins in your brokerage account. Convert Litecoin to an intermediary currency (like USD Coin or Tether) when you think the price is high, then convert back to Litecoin when you believe the price is low. This allows you to accumulate more Litecoin, which you can cash out when you decide to take profits.
If you plan to become a cryptocurrency day trader, it’s important that you open an account only with trusted, reliable brokers. Explore a few of our favorite cryptocurrency brokers offering access to Litecoin trading below if you aren’t sure where to begin.
Current Crypto Prices
Keeping track of how Litecoin prices are changing can help you determine the best time to buy. Browse some of today’s market changes below.
Adding Litecoin to Your Investment Portfolio
With unique technology and affordable transfers, Litecoin can make an excellent addition to any investor’s portfolio. It’s important to remember that the cryptocurrency market as a whole is still largely unregulated. If you do decide to invest in Litecoin, be sure that this asset makes up only a small percentage of your overall investment landscape.
Gemini builds crypto products to help you buy, sell, and store your bitcoin and cryptocurrency. You can buy bitcoin and crypto instantly and access all the tools you need to understand the crypto market and start investing, all through one clear, attractive interface. Gemini Crypto Platform offers excellent account management options. You can manage your account at a glance, view your account balance 24-hour changes and percent changes. Get started with Gemini now.