Many think of Bitcoin or Ethereum when crypto is mentioned, but Litecoin is right behind as a valuable cryptocurrency. Litecoin is a sideproduct of Bitcoin, so learning how to buy Bitcoin or Litecoin is pretty similar. LTC was invented in 2011 by an ex-Google employee, Charlie Lee. The best way to invest in Litecoin is to know a little about its history. What’s great about it is that its main goal was not to stand as competition to Bitcoin. Instead, the goal was for it to be a currency that can be transferred faster and with a lower fee.
We will cover the basics about the cryptocurrency and how to invest in Litecoin. It is an excellent investment if you know how much you should invest in Litecoin and what your goal is. Let’s begin!
The must-know basics
Litecoin operates successfully because of an open-source cryptographic protocol. People want to invest in Litecoin because it uses a software algorithm for mining. This software prevents random individuals from making alternatives to this so they can mine themselves. While Bitcoin needs 10 minutes for one coin to mine, Litecoin wins by the fastest transaction time at around 2.5 minutes for a coin.
Another reason to invest in Litecoin is the fact that it is the cheapest when we look at the top cryptocurrencies, and its price is still around $40.
How to buy Litecoin
People tend to forget that every crypto is a currency. Therefore you are exchanging your currency for Litecoin. It is not a stock, but it’s still an investment if you choose to hold it. Remember that you are exchanging for a much bigger value – $1 is $43 in Litecoin. When you are investing in Litecoin, the long-term goal is to wait for its value to rise. Then, you naturally should look for exchanging your Litecoin again for dollars.
What you need for investing in Litecoin
You will need a crypto (digital) wallet since you can’t invest in Litecoin using a broker. Digital wallets are great since you can store any crypto in them and you usually have an app for it, as well. With a digital wallet, you can sell, buy, or send any crypto to anyone. You can even buy regular stuff if a specific store is accepting crypto of your choice. Digital wallets offer better security, and you can use them offline as well.
How to trade Litecoin
There are several ways to trade Litecoin successfully. The first and the best one being Contract for Difference (CFD). Despite saying you cannot invest in Bitcoin via your stock trader (because he deals with stocks, which Litecoin isn’t), CFD is a financial contract made in most cases between an investor and a broker. It relies heavily on opening and closing one trade and what later happens between those two.
The catch is that you agree to pay the difference in the value of security between these two-time frames. That’s why many investors and traders use a holding strategy when they invest in Litecoin because you can predict better when the price is going to rise or drop. That’s how you can have a chance in selling it if you think the price is going to fall, and this is great for any short trading time frames. You are not buying Litecoin in this case, but you have a connection to it and remember that you can set limits (stops and losses). Margin trading once you access the crypto market using CFDs gives you a chance of 2:1 for one crypto.
Many people ask if they can buy Litecoin with Paypal, and the simple answer is no. But! You can use PayPal to buy Bitcoin and then exchange it for Litecoin, which is an option, but you will probably lose more than gain from it. You can also buy Litecoin using a wire transfer. But what you need is to purchase stablecoins first that is on a Binance list, wiring the money and trading Litecoin. After that, you can buy Litecoin with your cc. We have mentioned these ways as well, but they are additional steps we consider rather unnecessary, and they can easily confuse you if you are doing it on your own.
Trading safely
Remember that finding a platform that is licensed and easy to use is primary if you want to have a safe trading experience. When you want to invest in Litecoin, or anything else, this should be a priority, because it’s easy to find trustworthy companies, if you are willing to do the research. Having a support system that’s working 24/7, and using apps where you can see predictions and various charts can be of great help once you start investing in Litecoin. Good luck!
COMMENTS