How To Buy Litecoin (LTC)?
A common question you often see on social media from crypto beginners is “Where can I buy Litecoin?” Well, you’ll be happy to hear it is actually quite a simple and straightforward process. Thanks to its massive popularity, you can now buy Litecoin on most cryptocurrency exchanges, including Coinbase and Binance in 3 simple steps.
Step 1: Create an account on an exchange that supports Litecoin (LTC)
First, you will need to open an account on a cryptocurrency exchange that supports Litecoin (LTC).
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In order to sign up, you will need to enter some basic information, such as your email address, password, full name and, in some cases, you might also be asked for a phone number or address.
Note: On specific exchanges, you might need to complete a Know Your Customer (KYC) procedure in order to be able to purchase cryptocurrency. This is most commonly the case with licensed and regulated exchanges.
Step 2: Deposit funds into your account
Many cryptocurrency exchanges will allow you to purchase Litecoin (LTC) with fiat currencies, such as EUR, USD, AUD and others. Furthermore, they will also provide you with multiple deposit methods through which you can fund your fiat account, such as credit and debit cards, ewallets or direct bank transfers.
Note: Some payment methods will have higher fees than others, such as credit card payments. Before funding your fiat account on your chosen exchange, make sure to do your due diligence to find out the fees involved with each payment method to avoid unnecessary costs.
Step 3: Buy Litecoin (LTC)
This process is similar across almost every cryptocurrency exchange. All you have to do is find a navigation bar or a search bar, and search for Litecoin (LTC) or Litecoin (LTC) trading pairs. Look for the section that will allow you to buy Litecoin (LTC), and enter the amount of the cryptocurrency that you want to spend for Litecoin (LTC) or the amount of fiat currency that you want to spend towards buying Litecoin (LTC). The exchange will then calculate the equivalent amount of Litecoin (LTC) based on the current market rate.
Note: Make sure to always double-check your transaction details, such as the amount of Litecoin (LTC) you will be buying as well as the total cost of the purchase before you end up confirming the transaction. Furthermore, many cryptocurrency exchanges will offer you their own proprietary software wallet where you will be storing your cryptocurrencies; however, you can create your own individual software wallet, or purchase a hardware wallet for the highest level of protection.
For more in-depth instructions, our ‘Absolute Beginner’s Guide To Cryptocurrency Investing‘ will take you through the process step-by step. In addition to providing instructions for sending and receiving your cryptocurrency.
And if you’re completely new to crypto our beginner, intermediate and advanced level articles will get you up to speed with everything you need to know about the cryptocurrency space starting out.
What Is Litecoin (LTC)?
Litecoin (LTC) is a cryptocurrency that was designed to provide fast, secure and low-cost payments by leveraging the unique properties of blockchain technology.
The cryptocurrency was created based on the Bitcoin (BTC) protocol, but it differs in terms of the hashing algorithm used, hard cap, block transaction times and a few other factors. Litecoin has a block time of just 2.5 minutes and extremely low transaction fees, making it suitable for micro-transactions and point-of-sale payments.
Litecoin was released via an open-source client on GitHub on Oct. 7, 2011, and the Litecoin Network went live five days later on Oct. 13, 2011. Since then, it has exploded in both usage and acceptance among merchants and has counted among the top ten cryptocurrencies by market capitalization for most of its existence.
Who created Litecoin?
Litecoin was created by Massachusetts Institute of Technology graduate Charlie Lee. Lee is a former Google engineer who became interested in Bitcoin in 2011 and would, after creating Litecoin, join cryptocurrency exchange Coinbase as director of engineering in 2013.
After joining the crypto exchange, Lee would largely set aside the development of Litecoin. At the time, he said he believed it was important to help people “own Bitcoin and hold Bitcoin” as Litecoin “wasn’t ready” to grow.
In late 2017, Lee left the company to pursue LTC’s development full time. Now, he serves as the managing director of the Litecoin Foundation, a non-profit dedicated to supporting the cryptocurrency.
In December 2017, he revealed that he was selling and donating all of his LTC, as he was often being accused of tweeting about the cryptocurrency for personal benefit. Litecoin was then trading at an all-time high at around $350, and Lee’s move was widely criticized.
But why was Litecoin created? In an announcement by Litecoin’s creation published in October 2011 on the Bitcointalk forum, Lee noted that he wanted “to make a coin that is silver to Bitcoin’s gold,” using the best innovations of Bitcoin and of other alternative cryptocurrencies that were active at the time.
The cryptocurrency came to be after Lee was “playing around with the Bitcoin codebase” in a bid to create a fork of the Bitcoin blockchain. According to him, it was “mainly a fun side project” at first, but it evolved later on.
Litecoin stood out from other alternative cryptocurrencies because of innovations that include a combination of faster block propagation speeds and the use of the Scrypt hashing algorithm. It also largely avoided something called a premine, which allows the creators of a blockchain-based cryptocurrency to mine coins before the project is launched to the public. Premining was originally used as a way to reward the project’s creators and to fund its development.
At the time, a lot of community members wanted alternative currencies with a fair launch, similar to the launch Bitcoin had. When Litecoin launched, Lee addressed these concerns, saying that one person or a group controlling a large number of coins and using them as they see fit “is against the decentralized vision of Bitcoin.”
Litecoin use cases
Litecoin was one of the first successful alternative cryptocurrencies and over time, it faced criticism that it lacked a clear value proposition. As it has a finite supply and has been marketed as the “silver to Bitcoin’s gold,” it has attracted users.
Litecoin’s inflation is controlled through a halving mechanism. Since it was created back in 2011, its blockchain has been proven secure enough to avoid 51% attacks, which occur when a mining entity or entities manage to have over 51% of the computing power that secures the network and use it to alter the blockchain’s history.
Its reliability is a major factor playing in its favor. Because it hasn’t suffered any major exploits, it is indeed seen as the “silver” of the cryptocurrency world: A reliable cryptocurrency that can be used to transact at a relatively low cost.
The cryptocurrency is now also popular among investors and traders who rely on its limited supply and issuance reductions to speculate its price. Given its reliability, LTC may be used in a portfolio to give investors exposure to the crypto market’s movements without any negative surprises.
Maintaining privacy on the Litecoin network is much easier than on networks with higher transaction fees, as the cost of moving funds around is lower. It’s also used to pay for goods and services, with most cryptocurrency payment processors supporting it.
Litecoin is a highly liquid cryptocurrency available on most major cryptocurrency exchanges, making it ideal for traders. As transactions on its network are relatively cheap, some even use it to move funds between different exchanges or lending platforms to avoid high transaction fees on networks such as Bitcoin or Ethereum.
Behind Bitcoin, Litecoin is the second most popular pure cryptocurrency. This success can be largely attributed to its simplicity and clear utility benefits.
As of January 2021, Litecoin is one of the most widely accepted cryptocurrencies, and more than 2,000 merchants and stores now accept LTC across the globe.
Its main benefit comes from its speed and cost-effectiveness. Litecoin transactions are typically confirmed in just minutes, and transaction fees are nearly negligible. This makes it an attractive alternative to Bitcoin in developing countries, where transaction fees may be the deciding factor on which cryptocurrency to support.
Official website: https://litecoin.org/