Litecoin (LTC) is an open-source, peer-to-peer cryptocurrency designed for large-scale payment processing. It is sometimes referred to as the “silver to Bitcoin’s gold.” Litecoin, like Bitcoin, has a limited supply. The maximum quantity of Litecoin is restricted at 84,000,000, which is four times the maximum supply of Bitcoin. When compared to Bitcoin, Litecoin has certain distinct advantages. The network of Litecoin is based on Bitcoin’s technology, but with a few tweaks to allow for better throughput.

Instead of 10 minutes, the Litecoin network combines transactions into blocks every 2.5 minutes. When contrasted to Bitcoin’s main net, this means reduced transaction prices and faster transfer speeds. However, this comes at a cost: the Litecoin ledger grows 4x faster than Bitcoin’s. If storage doesn’t expand to match, a larger blockchain can become a problem down the road, making the network extremely concentrated and hence insecure.

Investing in cryptocurrency has never been easier than it is right now. This tutorial will show you how to buy Litecoin, how to select when to sell your coins, and a handful of the most popular sites that handle Litecoin trading right now.

How to buy Litecoin

Follow the steps explained below to buy your Litecoin

Open an online account

Opening an account with a cryptocurrency exchange that facilitates the direct purchase and sale of Litecoin (and other cryptocurrencies) is the simplest way to buy Litecoin (and most cryptocurrencies). You’ll open an account and place buy orders to purchase cryptocurrencies on a cryptocurrency exchange, just like you would with a stockbroker. You’ll see your Litecoin in your exchange wallet after your order is completed. Interactive Brokers is the best option if you’re wanting to open an account with a bitcoin broker with incredibly low fees. eToro and Webull are two other wonderful options for beginning investors.

Before you can access trading capabilities, you’ll need to provide your broker with some personal information, just like you would when opening a bank account or a stock brokerage account. You may be asked to submit the following information:

• Your entire legal name and address are required.
• Your phone number and email address
• Some details about your earnings and cryptocurrency trading experience
• Information about your bank account or information about another payment method (like PayPal and credit card info)
• A photocopy of your driver’s license, passport, or other photo identification
• Social Security Number (SSN)

Buy a wallet

While most exchanges have built-in custodial wallets, you should save your coins in a private wallet. Hardware and software wallets are the two main forms of bitcoin wallets. Hardware wallets are often “cold,” which means your Litecoin wallet’s private key will never be exposed to the internet. Software wallets are designed for ease of use and for keeping tiny amounts of money for spending. Because software wallets are internet-connected, utilizing them over an unprotected network could result in the loss of your funds.

When it comes to crypto wallets, the ideal practice is to get a hardware wallet like the Ledger Nano X and then download a software wallet like ZenGo.

Your ledger will serve as a personal vault, while ZenGo will serve as a daily wallet for smaller sums.

Make your purchase

It’s finally time to place your order once you’ve set up your account, funded it, and determined where you want to keep your money. A buy order will be used to place an order to purchase Litecoin. There are many different sorts of buy orders; here are a few of the most typical ones you’ll encounter.

Market order 

A market order is a purchase order for a specific amount of Litecoin at the current market rate. Market orders are filled instantly if someone is selling Litecoin at the time you place your purchase. Market orders are far more likely than other order types to be filled, but they provide you with less control over the amount you pay per coin.

Limit order 

A limit order allows you to purchase a particular amount of Litecoin at a specific price. You can pick the number of coins you wish to buy as well as the highest price you’re ready to pay per coin when you place a limit order. If you place an order to buy 5 Litecoins at a limit price of $80 per coin, your order will be fulfilled only if the price of Litecoin falls below $80. Limit orders allow you to have more control over the price per coin you pay.

You can finally unwind after placing your buy order. When the order is complete, your coins will appear in your account.

How to trade

Do you want to put your crypto trading talents to the test? Start with eToro’s practice account, which provides you with $100,000 in fictitious virtual cash to perfect your trading talents. With a simple design and a variety of innovative tools, eToro may be an excellent choice for both novice and advanced investors.

Litecoin can be a wonderful addition to any investor’s portfolio due to its unique technology and low transaction fees. It’s vital to keep in mind that the bitcoin market remains mainly uncontrolled. If you do decide to invest in Litecoin, keep in mind that it should only be a minor part of your entire portfolio.