How to Buy Litecoin - Beginner’s Guide 2021
How to Buy Litecoin (LTC): A Step-by-Step Guide
Litecoin was founded in 2011 by computer scientist Charlie Lee and is still one of the most popular digital currencies to buy.
Fancy buying Litecoin online in just a few clicks? Great - but there are a few things you need to consider first.
In this How to Buy Litecoin Beginner’s Guide 2021, we are going to journey through the practices and techniques used by investors that buy this cryptocurrency.
We cover everything from fees you might expect to pay when you buy Litecoin online, how to create an investment plan, and key metrics to finding a good online broker.
Buy Litecoin in 5 Steps
To buy Litecoin LTC, the first step is to Open an accout with a regulated exchange, depost funds, select LTC from the trading platform list, and lastly check & confirm Litecoin LTC coins have added to your Wallet.
We have put together a simple 5-step walkthrough of how to buy Litecoin below:
Step 1: Sign up with a regulated crypto broker
Step 2: Fund your account
Step 3: Select Litcoin (LTC) from the list of cryptocurrencies
Step 4: Decide how much Litecoin you want to purchase
Step 5: Confirm your order - Your LTC coins will be added to your wallet instantly!
Step 1: Choose an Online Litecoin Broker or Exchange
As you can see from our above walkthrough, before you can begin to buy digital currencies, you need to sign up with a broker.
If you decide to sign up with the aforementioned crypto platform eToro, you are able to buy Litecoin directly through the platform. Furthermore, the broker is regulated by multiple regulatory bodies
Whilst this might sound appealing, we should mention that these crypto exchanges are often unregulated - therefore you are heightening your risks.
Not only is eToro regulated by the FCA, ASIC, and Cysec, but is also registered FINRA in the US. This means that you can buy Litecoin conveniently and safely, instead of worrying about the legitimacy of a potentially shady exchange.
Everything considered, it’s a much smoother and safer experience to buy Litecoin via a licensed brokerage. This is especially the case for beginners.
This brings us smoothly onto important metrics to consider when looking for a suitable crypto broker to buy Litecoin.
Regulation is up there when it comes to choosing a broker to buy Litecoin, as we’ve touched on. Put simply, regulatory bodies enforce strict rules on crypto platforms. This provides you with a safeguard against financial sharks in the space.
Granted, some unregulated brokers and third-party exchanges will offer you leverage when you buy Litecoin. However, we would recommend avoiding this at all costs.
Moreover, if you decide to sign up with an exchange - you always face the risk of the platform being hacked. This has happened to countless exchanges that operate without a license. Or, you might decide to withdraw the Litecoin to a private wallet. But, if you forget your personal password or your wallet is hacked - there’s not much you can do.
As we mentioned earlier, eToro is fully regulated, so you should have no concern with safety here.
Moving onto payment methods, these days there is a wide range of accepted options at most modern online brokers.
In the early days, wire transfer via an unregulated third-party crypto exchange was often the only option to buy Litecoin. This process sometimes took weeks to go through.
As we said though, you shouldn’t struggle to find your preferred payment method nowadays. Crypto platform eToro is compatible with credit and debit cards, as well as PayPal, Skrill, and Neteller. All of the aforementioned payment types are secure, convenient, and instantly processed.
Fees and Commissions
As is the case with any financial service, the company in question needs to turn a profit. This profit is gained by charging clients with commissions and fees. Thus, enabling the platform to offer you access to buy Litecoin.
Commissions and fees can and will vary by a country mile. In any case, we find that the lion’s share of cryptocurrency brokers charge a variable commission fee. This variable fee is charged against the value of your LTC position.
Cryptocurrency platform Coinbase charges a fee of 1.49% on every trade you make. For instance, if you enter your Litecoin position at $200, you will pay $2.98 ($200 x 1.49%). If that was $2,000 you would have paid $29.80 - and so forth.
Let’s have a look at a straightforward example of how this commission fee would affect your potential profits when you buy Litecoin online:
- You place a $1,000 buy order on Litecoin
- Coinbase charges commission of $14.90 ($1,000 x 1.49%)
- At the time of selling your LTC coins, they are worth $2,000
- Again you pay 1.49%, which is $29.80
- Altogether, you paid a total of $44.70 in commission fees
1.49% doesn’t seem like much, but these fees can soon start eating away at your profits. If you had opted to buy Litecoin via eToro, you would have saved yourself $44.70 - as the crypto broker is commission-free.
Moreover, Coinbase clients are liable to 3.99% on all debit card transactions. So, if you were to buy Litecoin at a stake of $500, you would need to pay $19.95 to the platform.
In striking contrast, newbie favourite eToro charges nothing for deposits in US dollars. If you are paying in another currency, you simply pay a 0.5% currency conversion fee.
Other Important Factors
We’ve talked about the importance of regulation, payment methods, and fees - in terms of how to buy Litecoin.
There are, however, a few other factors to be mindful of when selecting an online crypto broker.
- User-friendliness: Ease of use at your online broker should be up there with regulation. It’s crucial that you find creating orders and buying Litecoin a smooth end-to-end process.
- Minimum Investment: Before you go through the sign-up procedure at a crypto platform, we recommend checking what the minimum investment is. If you are a newbie in the crypto buying space, we think it is more sensible to start with small orders. Some brokers require as much as hundreds, whereas eToro enables you to buy Litecoin for $25 upwards!
- Storage: Storage is another factor worth thinking about before signing up to a cryptocurrency provider. For instance, if you sign up with an unregulated exchange - you will likely have to take responsibility for storing Litecoin yourself. This is considered to be the most complex option for beginners. eToro on the other hand will store Litecoin safely for you, at no extra cost.
Step 2: Come up With an Investment Plan
When considering how to buy Litecoin, the safest way to move forward is to come up with an investment plan.
This makes sense given that the cryptocurrency markets go hand in hand with such a potentially volatile environment. The same applies to both experienced crypto investors and beginners alike.
With that in mind, find below some inspiration to use when creating your own investment plan to buy Litecoin.
Long-Term or Short-Term
It’s good to consider whether you fancy yourself as a long-term or a short-term Litecoin investor.
Short-term crypto investors aim to make a regular profit by benefitting from the ever-changing price spikes of Litecoin. This is achieved by electing to buy the digital coins, and cash out within minutes, days, or weeks - timing the market perfectly.
Most digital currencies have shifted in price by double digits at some time or another in one single day. This illustrates just how volatile the market can be.
In truth, most people have an interest in cryptocurrencies for that very reason. After all, the biggest profits tend to come from the gravest risks.
When it comes to a long-term strategy, this is commonly referred to as ‘buy and hold’. As the name suggests - the goal is to buy Litecoin and hold onto it for months or even years at a time. This cuts out the concern for short-term shifts in price.
Target Litecoin Price
Many people opt to include a target Litecoin price in their strategy.
To give an example, if you wanted to triple your original investment in Litecoin, and you bought the digital-asset at $200 - the price of Litecoin would have to increase to $600.
Litecoin was at its all-time lowest price of $1.11 USD in 2015. Just two years later the popular cryptocurrency had reached an all-time high of $375.29 USD, which was topped in May 2021 at $412.96. As you can see, this is a pretty rapid climb. Those who speculated the market correctly back in 2015 would have no doubt made a tidy profit!
Consider Regular Investments
We’ve illustrated the price fluctuations you can expect when you buy Litecoin. With this in mind, we recommend considering the slow and steady approach - investing a small amount, on a regular basis.
It’s not easy to make a profit when trading any asset, especially in such a volatile market. After all, to be successful you need to make good decisions, whilst simultaneously keeping your budget in check.
Purchasing Litecoin little, but often, perhaps on a monthly basis - is a tried and tested strategy used by all skill levels. This enables you to add to your portfolio gradually and stick to your financial plan. As we touched on, at eToro you can buy Litecoin for as little as $25- which is highly conducive for this strategy!
Would you consider investing in Litecoin?
Step 3: Open a Litecoin Broker Account
When you have found an online broker you like the idea of - you need to head to the respective website and sign up. The process at this stage is much the same as buying any other asset - be it ETFs, stocks, or silver.
In other words, before you can buy Litecoin, you are going to need to complete the signup form. This will invariably include your full name, address, email address, and telephone number.
If you are using a regulated crypto broker (as we recommend you do), you will be asked for a photo ID such as your passport or driving license. This is a legal requirement as per KYC (Know Your Customer) rules.
You may also need to provide documentation proving your address. This is usually in the form of a utility bill or bank account statement from within the last 3 months.
We have heard of online brokers taking as long as a week to get a client’s account up and running.
With that said, eToro doesn’t check ID manually, so the process is much faster. In fact, as the broker uses automated tech to check your documents, you should be up and running in just a few minutes!
Step 4: Deposit Some Funds
Assuming that the platform accepts your chosen payment method, you can go ahead and deposit some funds to buy Litecoin.
Undoubtedly, the fastest and most convenient way of funding your account is with a credit/debit card or an e-wallet. The slowest route to buy Litecoin is via wire transfer, usually taking days at a time.
All-round crowd-pleaser eToro is compatible with multiple speedy payment methods that allow you to buy Litecoin instantly. This includes Mastercard, Visa, and Maestro from the credit/debit card family. In terms of e-wallets, you can choose from PayPal, Skrill, and Neteller.
Some brokers stipulate a minimum deposit. We find this to be anywhere from nothing - to $1,000 and over. For this reason, it’s wise to check that the minimum deposit is within your budget. At eToro, the minimum is $200.
Step 5: Set up a Trading Order
As soon as you have deposited funds into your account, you can start to buy Litecoin. Well, first you need to place an order so that your broker knows where you stand.
If you have traded before, you will know this process already. For those who are new to the scene, below you will find a list of useful orders to consider when you buy Litecoin.
You will use buy orders a lot when purchasing Litecoin, as it’s crucial in entering the relevant market.
Put simply, if you think Litecoin is going to rise in price - create a buy order at your LTC provider.
With that said, if your chosen broker also supports short-selling and you think Litecoin will drop in value, create a sell order.
Limit or Market Order
We have mentioned a few times now that the price of Litecoin shifts almost constantly, second by second. This is an important thing to be mindful of, especially if your goal is to make gains from these short-term price shifts.
Now onto another useful order - the ‘market order’. This tells your online broker that you want to enter the Litecoin market at the current, or nearest price. The crypto platform will action this order immediately.
Don’t forget to make allowances for the aforementioned shifts in value, as this is unpreventable. To give you a better idea - Litecoin might be $80.42 when you hit confirm on your market order. The price you actually get could be $80.49.
In terms of the ‘limit order’ - you are able to specify your own Litecoin entry price.
Let’s shed some more light on the subject with a quick example of how this works:
- Litecoin is currently $80.42 - but, you want to enter at $85.00
- You create a limit order at $85.00
- If LTC reaches $85.00 - the crypto broker executes your limit order
- Your order will remain pending until Litecoin hits your target price - or you cancel it yourself
Market orders are more simple, as there is no ‘timing the market’ to be concerned with. In other words, it’s an instant transaction. However, as you can see from above, limit orders are a great way to enter the market on your own terms so to speak.
As we said, before you can buy Litecoin, you need to place the appropriate order. In addition to this, you are going to need to think about how much you are willing to stake on your prediction.
We suggested earlier that if you are a beginner, you may be better taking it steady with your stakes to start with. You can buy as much Litecoin as you like in reality, but you will likely find your feet at a more comfortable pace by investing small amounts.
To reiterate, you can buy Litecoin for a minimum investment of a mere $25 at eToro. This is a good way to regularly add digital currencies to your portfolio, without risking much capital.
When you have set up your new account, completed all of the information required - buy/sell, market/limit orders, and stake, you can confirm the information you’ve entered is correct and proceed.
You will now see that the Litecoin you have purchased is in your eToro crypto wallet!
Step 6: Storing Your Litecoin
Unlike the traditional fiat money we all pay our bills with, Litecoin and other cryptocurrencies are kept on a decentralized ledger.
If not purchasing via an online broker, then you will buy Litecoin and store it in your personal crypto-wallet. This crypto-wallet will be downloaded to your home computer and/or mobile phone.
As we noted earlier, when you store your own crypto-coins you are fully responsible for your private key and thus, more vulnerable to wallet hackers. If you forget your private key or find your crypto-wallet security compromised - there is really not a lot you can do about it.
eToro stores your cryptocurrencies under strict regulation, so you can buy Litecoin knowing you are protected by the FCA, ASIC, and such. As a result, you no longer need to worry about making multiple transfers, remembering your private key, or being the victim of a scam.
Step 7: Selling Your Litecoin
As you know by now, you buy Litecoin with the anticipation of timing the market. Then, later on, selling your crypto-asset for more than you bought it for - thus making gains.
To reiterate, selling your Litecoin via a crypto exchange, or even an unregulated broker is the least safe and convenient way. This is because third-party exchanges often require you to transfer your LTC coins from your wallet to that of the exchange.
Then you would be required to swap your Litecoin to fiat money like the US dollar or Euro for example. This will almost always come with an exchange fee attached.
Cashing out your Litecoin at eToro is a completely different experience than the aforementioned crypto exchanges. Sign in to your account and once in your personal portfolio screen, click ‘Sell’ by Litecoin.
Due to KYC rules, your funds will be added to the payment method used to buy the digital currency in the first place.
Ready to invest in Litecoin?
Other Ways to Buy Litecoin in 2021
Now that we’ve covered the basic framework of how to buy Litecoin - it’s time to look at some other options.
Buy Litecoin Debit Card
Debit card transactions are a fast and easy way to pay online. On the subject of how to buy Litecoin, the same applies.
To buy Litecoin with a debit card all you have to do is enter your details as normal, stating how much you want to buy. When you want to cash out your digital coins, the platform will send the funds to the same card.
It’s always worth checking the minimum Litecoin investment stipulated, as all brokers will differ. eToro enables clients to purchase this speculative asset for as little as $25 via debit card.
Buy Litecoin Credit Card
If you prefer the idea of buying Litecoin using a credit card, eToro accepts this payment method as well.
In the case of credit cards, there might be extra fees to be mindful of, like the commonly charged ‘cash advance fee’. This is much the same as when you make a gambling transaction or an ATM withdrawal.
Our How to Buy Litecoin Guide found that the average fee charged is around 3% of your transaction amount. However, it’s worth checking with your credit card provider.
Buy Litecoin Paypal
PayPal is known the world over for being a safe and speedy way to shop online. The good news is that these days you can buy Litecoin using PayPal too.
Not all crypto providers will offer this payment type, though. However, we can confirm that eToro is fully compatible with PayPal - as well as Skrill and Neteller.
Whilst many people aren’t aware of Litecoin ATMs, there are over 7,000 in various locations around the world. Although, they are quite distant from the traditional ATMs used by many.
Instead of withdrawing fiat money, you insert it into the ATM. The machine will display how many LTC coins you will get for your money. When confirmed, you will receive a printed receipt containing the details of your transaction. You then need to claim the Litecoin via a private wallet transfer.
Litecoin ATMs can be found in shops, airports, and streets just like traditional ATMs. However, you should note that the fees charged can be hefty - as much as 20% of your transaction in some cases.
Ergo, it is considerably cheaper and more convenient to buy Litecoin via a regulated broker such as eToro.
How to Buy Litecoin 2021 - The Verdict
In this guide, we have talked about a wide variety of factors to be mindful of when electing to buy Litecoin online. Hopefully, you feel ready to join the droves of investors buying cryptocurrencies every day.
Before you can get started, you need to sign up with a trusted and well-respected broker. For this, we strongly recommend the beginner-friendly platform eToro. Here you have the safety net of several regulatory bodies keeping the space safe.
Furthermore, you can buy Litecoin on a commission-free basis, in less than 10 minutes. You don’t need to look after your own crypto-wallet - and cashing out is as easy as signing in and creating a ‘sell’ order!
eToro – Best Broker to Buy LTC
eToro have proven themselves trustworthy within the crypto industry over many years – we recommend you try them out.
Virtual currencies are highly volatile. Your capital is at risk.
How easy is it to buy Litecoin?
Buying Litecoin has never been easier for your average Joe Public. Simply sign up to a regulated online broker offering Litecoin - create an order, and specify your stake value.
What is the safest way to buy Litecoin?
When thinking about how to buy Litecoin safely - without a doubt the best way is to do so via a licensed broker such as eToro. The broker provider is registered with FINRA (US) and is regulated by the FCA (UK), CySEC (Cyprus), and ASIC (Australia).
Can I buy $100 of Litecoin?
Yes, you can buy $100 of Litecoin. If you are a beginner we strongly recommend investing bite-sized amounts in digital currencies. At eToro, you can buy Litecoin from $25 and up.
Can you lose money on Litecoin?
Yes. There is no such thing as risk-free trading, no matter what the financial asset. If you time the market and predict the rise or fall of Litecoin correctly, you will make gains. If you predict incorrectly, you make a loss. That’s the nature of the game.
What is the most Litecoin has been worth?
The most Litecoin has been worth is $412.96 - which it hit in May 2021.