Thinking about adding Litecoin to your portfolio?
There is no doubt that Litecoin (LTC) is one of the most popular altcoins in the crypto market. The token has experienced a massive surge in recent times, which has attracted a lot of investors and traders alike.
Another reason for its popularity amongst traders is its lower transaction fees. If you’re looking to have a bite of the Litecoin cake, you will need to buy the token from an exchange.
That’s the surest and most efficient way to buy Litecoin in the UK.
What's in this Guide?
- QUICK GUIDE: HOW TO BUY LITECOIN IN THE UK
- A step-by-step guide to buying Litecoin in the UK
- How Litecoin works
- Which wallets can I use to hold Litecoin?
- Things To Consider When Buying Litecoin
QUICK GUIDE: HOW TO BUY LITECOIN IN THE UK
- Open an account with a cryptocurrency exchange like eToro.
- Verify your account.
- Go to the deposit section
- Go to the platform and select Litecoin.
- Enter how much you want to buy.
- Check the details and confirm your purchase.
These days, you can buy and sell Litecoin (LTC) on quite few crypto exchanges, so keep reading for step-by-step instructions on how to start trading this popular cryptocurrency.
There are 4 basic steps you need to follow when buying Litecoin.
A Step-by-step Guide to Buying Litecoin in the UK
Step-1: Open an Online Account
There are several cryptocurrency exchanges in the UK willing to help you make your first investments in Litecoin. The popularity of cryptocurrency has made it readily available across most exchange platforms, so you won’t have issues trading with the crypto asset when you want.
But exchanges have certain requirements any prospective use needs to meet before registering with them. For example, they have to submit certain personal documents before registration is complete.
After selecting your preferred exchange, find out what they require and get those details readily available.
Step 2. Deposit Funds into your Account
Most crypto exchanges that list Litecoin accept payments through debit cards, credit cards, or bank transfers. While some exchanges use a nominal eWallet and connect it to a dashboard, other exchanges can have their dedicated wallet built-in the exchange.
Your choice of exchange will depend on the fees you’re willing to pay, the level of security you expect, and the speed of transaction you prefer.
When choosing an exchange, go for one that provides high-quality customer service and instant liquidity. An exchange with instant liquidity will be able to fill a customer’s buy order quickly, allowing you to enter trades on time at the right market price.
Step 3: Buy Litecoin
After registering with the desired exchange, the next step is to buy Litecoin. The exchange should have a section where you can place your order. You can decide to use either the market order or the limit order option when buying Litecoin. The former offers you the chance to buy Litecoin at the present price.
However, you can do a little bit of speculation and use the limit order option. Here, you can set the order to execute only when the price of Litecoin reaches a certain threshold. This is especially useful when the token is gradually approaching the overbought position and may subsequently start moving in the opposite direction. Once you’re selected your option, you will be asked to review your selections before the order is executed or received in the case of limited order.
You can also sell Litecoin easily on the crypto exchange platform you bought the token. It’s pretty straightforward.
Step 4: Store your Litecoins
There are two types of crypto wallets you can get for your Litecoin token: hot wallet (online) or cold wallet (offline).
The first one is generally used when you intend to trade Litecoin consistently on the exchange. It is stored online and can be more vulnerable to hacks. On the other hand, cold storage will keep your Litecoins safe and away from cyberspace.
This is usually better when you want to hold your token for a very long time and anticipate a price increase over some time.
We mentioned earlier that your exchange can provide a wallet for your cryptocurrency, but it's still safer to get a cold wallet you can keep far away from the web.
How Litecoin Works
Litecoin started existing on October 13, 2011, as a fork of the Bitcoin network. The cryptocurrency network has similar features with Bitcoin’s network, except it is cheaper to transact and faster too.
The similar features the token shares with Bitcoin make investors and the crypto community call it a relative of Bitcoin. The price of Litecoin has always moved in the same direction as Bitcoin’s price. That means whenever Bitcoin is rising, Litecoin is also rising.
They also historically fall together. However, while Bitcoin uses the longstanding SHA-256 algorithm, Litecoin utilizes a more recent algorithm known as Scrypt.
LTC is the underlying coin of the Litecoin network and is traded across several exchanges in the UK.
Which Wallets Can I Use to Hold Litecoin?
As we mentioned earlier, you can use the offline wallet or online wallet to store your Litecoins. However, it’s always better to use a wallet the offers stronger security. In this case, the offline wallet, also called cold storage wallet, is the most secure option to hold Litecoin.
Things To Consider When Buying Litecoin
Before you choose to invest in Litecoin, it’s important to consider certain things, which will help you make the right investment decision.
Consider Litecoin’s volatility
Like every other crypto asset, Litecoins are subject to volatility. That means, they can be highly speculative and unpredictable in the market. Any trader or investor should have this in mind when investing or buying Litecoin in the UK.
Consider the future of the token
Several cryptocurrencies have sprung up and fallen into extinction over the past few years. However, Litecoin doesn’t have this issue because the developers behind the project have put solid projects that can make it stand the test of time.
But you still need to carry out your research and don’t believe only in what you hear or what you are told.
Don't Miss: Litecoin Price Predictions
Consider crypto tax laws in your trades
The UK crypto tax laws mandate traders to pay taxes from their trading revenues. You should look at the tax limits and understand how much you have to pay when you eventually start trading. These are some of the things you need to consider before buying Litecoin in the UK.
Litecoin has attracted so many traders and investors due to the token’s increased market value and growing popularity. The token is also available in major crypto exchanges, although each exchange has its own transaction fees. But the fee will be very low compared to Bitcoin fees.
If you’re looking to buy Litecoin in the UK, the above guide can help you a great deal.
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Virtual currencies are highly volatile. Your capital is at risk.