Why Buy Litecoin? & How-To Guide

  • January 26, 2023
  • 2 Min Read

Litecoin is a proof-of-work coin originally created from Bitcoin’s open-source code.

Step 1: Choose a Wallet

To store your coins, select a compatible wallet, such as Coinbase wallet or Exodus. Ledger hardware wallets also support LTC.

Step 2: Choose a Crypto Exchange

You can buy LTC from well-known exchanges such as Coinbase, Uphold, or Binance. Centralized exchanges require ID verification. You’ll also need to select a funding method, such as a bank account or debit card.

Step 3: Decide on The Amount You Want to Purchase

Choose an investment amount and place a market order or limit order at a specific price to buy LTC on the exchange you chose. Limit orders usually have lower fees.

Step 4: Store, Transfer, or Use Your LTC

The exchange can store your LTC for you using a custodial wallet held by the exchange or you can transfer your LTC to a self-custody wallet, like those mentioned in Step 1 above.

Where to Buy LTC

LTC is a well-established cryptocurrency, so you can buy LTC on several popular exchanges.

LTC Overview

TokenLTC
NetworkLitecoin, with support for Lightning Network
Websitehttps://litecoin.org/
Twitter@litecoin
Reddithttps://www.reddit.com/r/litecoin/
FoundersCharles Lee
Key IndividualsAlan Austin, Charlie Lee, Xinxi Wang, Zing Yang
Year Founded2011
InvestorsKarnika Yashwant, Zachary Snader, Block Ventures, Arbi Khodagholian

Why Does Anyone Buy Litecoin?

Litecoin is a well-established coin dating back to 2011. Similar to Bitcoin, but with a larger supply and faster transaction speeds, Litecoin provides a peer–to–peer payment network with a currency that’s often seen as more “spendable” than Bitcoin.

Investors choose LTC for several reasons.

  • Litecoin is similar to Bitcoin but faster. The Litecoin network uses proof-of-work, like Bitcoin, but processes blocks four times as fast as Bitcoin. Sending fees are also typically lower compared to Bitcoin.
  • Litecoin’s lower price makes it attractive. LTC trades at a fraction of BTC’s price while offering similar features and network security.
  • LTC usually ranks in the top 20 cryptocurrency projects. Crypto projects with higher market caps often offer more liquidity compared to newly launched projects.
  • Litecoin enjoys an active development community. Several important updates to Bitcoin and the Bitcoin ecosystem appeared on Litecoin first. These include Segwit, which optimizes block data, and the Lightning Network, a transaction protocol that delivers near-instant payments.

Is LTC Being Used?

Yes. Litecoin is used daily by individuals and businesses in both large and small transactions.

  • Online transactions: Some major retailers like Newegg accept Litecoin for payment.
  • Friends and family: Litecoin offers a fast and affordable way to send money anywhere in the world, providing more value compared to traditional money transfers.
  • Payment for goods and services: Web hosting is among the growing number of service industries that accepts Litecoin for payment. Sheetz, a large regional convenience store chain, also accepts Litecoin for payment.
  • Splitting the bill: Litecoin’s fast transaction times and low sending fees make LTC an attractive option when you need to split expenses.

LTC Daily trading volume: $421,734,339 (1/2023)

Key Events For LTC

Discover Similar Tokens

  • Bitcoin Cash (BCH): Like Litecoin, Bitcoin Cash is based on Bitcoin’s open-source code. Both coins bring faster transaction times and lower fees. Bitcoin Cash launched in 2017 and has a smaller market cap than Litecoin, possibly signaling room for growth.
  • Dogecoin (DOGE): Initially started as a joke, Dogecoin has become a favorite amongst meme coin enthusiasts and active traders. Like Litecoin, Dogecoin uses proof-of-work to verify transactions and the two networks offer affordable sending fees.
  • Dash (DASH): The Dash network shares the same hashing algorithm with Litecoin, making the two proof-of-work networks similar in transaction security. Like Litecoin, Dash brings fast, low-cost transactions making it viable for peer-to-peer use.

Frequently Asked Questions

  • What is Litecoin?

    Expand to learn more

    Litecoin is a decentralized, open-source cryptocurrency that uses proof-of-work to secure the blockchain. When launched in 2011, Litecoin was based on Bitcoin’s source code, modified to provide faster transaction times, lower fees, and a larger coin supply.

  • How is Litecoin different from Bitcoin?

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    Litecoin quadruples the supply of coins compared to Bitcoin and also reduces the block time by a factor of four. The hashing algorithms for Litecoin and Bitcoin also differ. Bitcoin uses SHA-256, whereas Litecoin uses Scrypt, a less complex algorithm.

  • How do I buy Litecoin?

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    You can buy Litecoin on a cryptocurrency exchange such as Binance, Coinbase, or Kraken. You’ll need to create an account on the exchange, verify your identity, and deposit money from your bank to fund the purchase. Then, buy the amount of LTC you want using a market order or limit order.

  • How do I store Litecoin?

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    For safety, you can send the Litecoin you buy on an exchange to a self-custody wallet, such as Coinbase’s mobile wallet or Exodus wallet, or even a hardware wallet like Ledger. This step gives you control over your coins rather than holding your coins on an exchange.

  • How is the price of Litecoin determined?

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    Like any market, Litecoin (LTC) trades based on supply and demand. Litecoin’s adoption by an enthusiastic community has helped LTC remain in the top 20 cryptocurrencies by market value.

  • Can you buy LTC with a debit card?

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    Yes. Coinbase and Binance both support debit card purchases for LTC. Expect to pay about 4% in additional fees for card-funded purchases.

  • Can you buy LTC with PayPal?

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    Yes. Coinbase allows you to use PayPal as a funding source for LTC and other crypto purchases.

  • Can you buy LTC with a credit card?

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    Yes. Kraken supports credit card purchases for LTC for accounts verified to the Intermediate or Pro level.

  • Can you buy Litecoin with Apple Pay?

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    Yes. Binance supports LTC buys with Apple Pay, but only for debit-card-funded purchases.


Contributors

  • Avatar of Eric Huffman

    Eric Huffman is a staff writer for MilkRoad.com. In addition to crypto and blockchain topics, Eric also writes extensively on insurance and personal finance matters that affect everyday households.

  • Avatar of Shannon Ullman

    Shannon Ullman is a senior editor for MilkRoad.com. Shannon specializes in cryptocurrency and personal finance. Her work has appeared in publications like The Motley Fool and Insider.