Litecoin is a digital currency founded by Charlie Lee in 2011 who was inspired by Bitcoin. But, he wanted to make something that works faster with more accessibility. It’s a peer-to-peer cryptocurrency whose system is decentralized, but they also use blockchain for transaction recording purposes. Litecoin is used pretty often to test out new technologies before Bitcoin adopts them. Having a more significant number of transactions has almost zero fees, which makes it so appealing to traders.
How to sell Litecoin?
To know where to sell Litecoin, you should know where you can buy it first. Since it’s a digital currency, you can buy it on online trading markets. Of course, if you are starting with crypto, you will need to do a bit of research before you open your account and set up a crypto wallet where you can store Litecoins. It’s essential to take some time and research before you settle with a company of your choice because everyone will offer different options and payment methods.
Once you get that covered, there are three types of markets where you can sell Litecoin;
One way is the exchange. It’s very similar to a stock exchange and allows traders to trade with each other. The main thing is that the number of buyers and sellers determines the price of Litecoin. Since this can be hefty, traders are usually the ones who will buy some Litecoins and hold them, while investors or professional traders will do the frequent exchange.
The second way would be via a broker, where they offer the Litecoin purchase from their asset stock. By not making a transaction with another trader, brokers tend to charge higher fees, but people who like to do it fast and transparent will opt for this.
The third way is P2P (peer-to-peer) platforms, where you can trade with someone else directly without any third party involved. You should be careful if you decide to go with this option since the absence of the third party makes the trade much riskier.
Verification is something beginners are afraid of the most. But it is a standard process and is the same as when you want to open an account with a bank. Identity verification is necessary as proof of residency. Once you have that out of your way, you can verify your new account and start selling Litecoins (once you acquire them).
Since Litecoin is a digital currency, you need software that can keep your digital assets safe. That’s what digital wallets are for. There are markets that will offer you built-in wallets. But usually, inexperienced traders will use them. Be prepared to learn a lot, since having a wallet and making it secure takes a lot of effort.
As we mentioned above, the price of Litecoin is determined by supply and demand. Meaning that its price will rise and fall depending on the number of traders who are willing to buy and sell. Cryptocurrency exchanges are the main factor for determining market prices. So they will usually offer Litecoin at a lower cost with lower fees than brokers. Pay attention as there can still be deposit and withdrawal fees. Additionally, there may be fees to deposit and withdraw your cryptocurrencies.
To sell Litecoins, you need to transfer your money to a marketplace first. Most exchanges offer exclusively limited payment methods, for example, a wire transfer. In comparison, broker services will usually provide faster or almost instant payment methods such as credit cards as an example.
When do you sell Litecoin if at all?
Some banks allow you to cash-in Litecoin, so you can do a little bit of research on that topic in-depth. Many traders (usually the experienced one), will buy and sell Litecoin multiple times a day. Thus, paying attention to what’s happening on the market and staying aware of current situations is important with buying and selling. If you want to sell Litecoin for cash or a specific currency such as GBP, you will have to buy Bitcoin first, and then exchange it for Litecoin. This already sounds like a lot of work. From the looks of it, it seems like the best thing is to first learn the basics of how Litecoin works and the three different methods that we mentioned, and then decide what you want to do. Maybe you will still want to sell it, but who knows? It’s up to you, in the end.