Easy Way to Invest in Litecoin(LTC) Step-by-Step: Best Exchanges for 2017-2018
In January 2017 the price of Litecoin was just $3.75 and the currency, known as the rival of Bitcoin, was not in a very good position in the cryptocurrency market. Fast forward to present date, after the upgrade to Segregated Witness system (SegWit) in order to boost the speed and capacity of the cryptocurrency, Litecoin has it records currently trading at $157.98 and looking to grow even further.
Investors are interested in getting involved with this cryptocurrency, and it’s no surprise at all with it’s market cap at around $8.565 billion.
Here’s some easy steps to follow if you want to become a Litecoin investor:
1. You need a Wallet – A digital wallet is a safe place to store your Litecoins after your purchase. You can choose between a desktop, mobile or hardware wallet.
Most Popular online wallets for Litecoin are “Jaxx” and “Exodus“, however, hardware wallets such as “Ledger Nano S” and “Trezor Wallet” are recommended more because they offer much better security and privacy for your currencies.
2. Choose a reputable Exchange to create your account – Best Exchanges to buy Litecoin include: Coinbase, Shapeshift and Poloniex.
3. Verify yourself – It takes a while to go through the verification process within an exchange, however it is important to do so.
4. Deposit Regular Currency – Once Fiat Currency is in your account you will be able to purchase Litecoins and trade them for any other currency.
5. Withdraw LTC in your wallet. – After you’ve purchased Litecoins, make sure you withdraw the cryptocurrency into your own wallet to prevent it being stolen online.
Why is Litecoin’s value lower than Bitcoin?
Imitating other alt coins (alternative currencies of Bitcoin), Litecoin’s price is linked to Bitcoin. If Bitcoin’s value increases so will Litecoin’s value. Same thing happens if Bitcoin’s value falls. Due to the volatility of cryptocurrencies, Litecoin’s value is expected to have major fluctuations.
However, Litecoin’s value is not even close to Bitcoin’s. Bitcoin’s advantages of being the first in cryptocurrency, as well as having more time to win the market have sure played a big role on the cryptocurrencies value.
The current relatively low value(increasing rapidly lately) in Litecoin is proving to be more of a blessing as it keeps Litecoin trade fees lower as well as has a greater reach of new investors.
How to Select the Best LTC Exchanges:
As a new trader, you might find it difficult to select the best exchange as there is a plethora of Litecoin exchanges at the moment. Always look for these points when selecting a cryptocurrency exchange:
Basic Exchange Info: Gather as much basic information as you can. It’s good to know things like, the name of the founder, exchange location, market it focuses on. To be on the safe side, select exchanges that are not anonymous and can be researched.
The location of the exchange is another important factor due to every country having a different set of laws regarding cryptocurrencies. Whilst some of the countries do not have any laws, you need to know that once laws come into effect they might affect the trade.
Supports other Currencies: Ensure that the exchange you are using not only supports Litecoin but also other currencies the trader is interested in such as Ethereum or other alt coins.
Easy to Use: Exchanges should be user-friendly, simple and easy to use with quick loading times and mobile application support.
Trading Fees: Trading currency costs money, and exchanges take away a small percentage of that amount. In a few exchanges the percentage usually decreases with an increase in monthly trading volume. This kind of exchanges are what you should be leaning on.
Customer Support, User Experience and Security are other very important factors to watch out for when choosing a cryptocurrency exchange.
Changelly (Convert Bitcoin or other Cryptocurrencies for Litecoin)
Changelly is a unique kind of exchange where purchasing of one cryptocurrency for another is done without the need to store your coins on an exchange. It’s done simply by converting your currencies from one wallet to another within seconds. With Changelly, you specify the amount of Bitcoin or any other coins you have to switch into Litecoin, and it displays how much Litecoins you get for that transaction. By clicking on the Exchange button and specifying your litecoin wallet address, you are set to receive your coins in some few minutes.
Coinbase (Pay With Credit/Debit Cards or Bank Account Transfers)
Coinbase Exchange is the most popular place you can think of to purchase cryptocurrencies, litecoin included. Depending on your country, you can fund your account on the platform with a bank transfer or make a direct purchase with your credit or debit card. Using cards to purchase is available for citizens of the United States, UK, Europe, Canada, Australia, and Singapore. Using ACH transfer for Americans take between 5-7 days and the SEPA transfer for those in Europe takes between 1-3 days. Fees for credit card purchases are at about 3.99% while for bank account transfers are approximately 1.49% per purchase.
Bitfinex (Exchange Bitcoin and Ethereum For Litecoin)
For those who already know about cryptocurrencies and also hold some, the Bitfinex Exchange platform may be your best option. Here you need to fund your account with the same amount of Litecoin you want to purchase in Bitcoin. After that, there is a trading environment where you can swap your Bitcoin for Litecoin at the current market price. The purchase is instant, and in a moment, you should have your Litecoins ready to be sent out to your external wallet.
Similar to Bitfinex. It’s also an exchange site that conveniently converts your Bitcoin or other alternative cryptocurrencies into Litecoin. The clause with Bittrex though is you must be verified before you can make any withdrawals from the platform so you should make sure you have all the requirements ready and uploaded for verification before you send in your Bitcoins. Otherwise, you wouldn’t be able to withdraw any of the Litecoins you just bought.
If you’re new to investing cryptocurrencies I would recommend using the Coinbase exchange as it is one of the least expensive exchanges to use. Kraken is for more experienced traders. However, whatever you do always withdraw you Litecoins in your wallet. Happy trading!