Litecoin (LTC) is gaining more and more attention every year since it went on the market back in 2011. It’s one of the most popular cryptos among traders, including benefits such as fast transactions and low fees. Investors are becoming more and more interested in LTC, so here is a brief guide on how to buy Litecoin in the UK.
Exchange to Buy
One of the fastest ways to buy Litecoin includes cryptocurrency exchange. Not every digital asset can be exchanged. But Litecoin is on the list thanks to its popularity and longevity, after all.
Of course, you can’t exchange cryptos out of the blue. You need to create an account connected to the exchange you have in mind. For that, you will need to provide identity confirmation. You must use any government-approved document such as your ID or passport, and sometimes a utility bill as proof of residence.
Most cryptocurrency exchanges that have Litecoin on their list will accept bank transfers and credit cards as well. While some have a built-in exchange wallet, others will opt for a digital wallet that is the most popular and secure. Then it will connect to their dashboard. How do you choose the exchange? Factors that you will have to consider are the speed, security level, and how much fee is okay for you to pay.
That’s why you should check out several options before you decide on one. A good exchange should be able to offer customer service that’s available 24/7 and most importantly, instant liquidity. This way you can be reassured that you can find whatever you need from the support, and your buy order will be quick.
The most common (at first unusual) exchange option is crypto-to-crypto trade so you can buy Litecoin. That means buying Bitcoin, for example, to trade it for Litecoin.
Cryptocurrency Tax in the UK
HMRC stands short for “Her Majesty’s Revenue and Customs.” The HMRC rules, crypto buying and selling are considered an investment activity. Therefore, you must pay tax on any gains you record at the moment of sale.
As a simple example, you need to pay taxes for selling Litecoin for money. As well as, when you exchange it for any other crypto or digital asset. You are paying taxes when you are buying something with Litecoin. Also, if you give it to anyone that isn’t your spouse. Tax levels can go from 0 to 45% depending on the tax bracket if your (taxable) income is more than 150,000 pounds yearly.
Why is Litecoin a Good Investment?
We mentioned already that Litecoin is “cheap” compared to other cryptos. But it’s been years, and it’s still among the top cryptos on the market. This means it’s much easier to start investing using Litecoin than it is if you choose Bitcoin or Ethereum. Litecoin is also considered the “silver to Bitcoin’s gold.”
This is because it uses a similar way but a way simpler algorithm which is why it is much easier and faster to mine it (you will need around 2.5 minutes for Litecoin compared to Bitcoin’s 10). Litecoin is a great opportunity to dive into the world of trading. It’s not expensive, and you will have many opportunities to gain from it, even if you choose the holding strategy and keep it in your digital wallet.
Currently, Litecoin is number ten if we consider the market cap, which is $3.3 billion. The price of Litecoin will always be determined by the rule of supply and demand, which depends on the number of traders who want to buy or sell it.
Once you buy Litecoin, you will maybe want to sell it after some time, so it will work almost the same as buying it. You will use exchange and wire transfer (i.e.). Keep in mind that experienced traders can buy or sell Litecoin many times a day. So, if you are a beginner, don’t try to mimic their moves since it would be a bad tactic. You will need lots of experience and information before you start doing that. If you want to sell Litecoin for GBP, you will have to buy crypto first (Bitcoin, Ethereum, etc.). Following that, you must exchange it for Litecoin if you don’t have it anymore, and then exchange it further for cash.
In any case, don’t forget about “Her Majesty’s Revenue and Customs” (HMRC). Be aware that everything you do with any crypto is considered an investment, as it should be. That’s why it’s essential to learn as much as you can about the market itself, devise your goals and strategies, and be consistent with them.