How to buy Litecoin online

Litecoin was introduced to the cryptocurrency market in 2011 and was considered the first successful alternative cryptocurrency. It was designed to expand the user base for cryptocurrencies by altering Bitcoins code and using it to launch new networks. 

This guide will cover the foundations of the coin and how you can buy Litecoin in 2021. 

Best platforms to buy Litecoin – 2021

What is Litecoin?

Litecoin was the worlds first ‘successful’ alternative cryptocurrency, designed to expand the user base for cryptocurrencies. It was not the first cryptocurrency to alter Bitcoins code, however, it was considered one of the most important modifications during the early years of crypto.

It was the first cryptocurrency to reduce the amount of time it takes for new blocks to be added to its blockchain. This was attractive to businesses at the time, and allowed Litecoin to build new innovative features such as the Lightning Network and Segregated Witness, two cutting-edge technologies now live on Bitcoin.

Instead of positioning itself as a competitor of Bitcoin, Litecoin was designed to complement the currency. This was accepted by investors who began to see the two as linked. To get this point across, Litecoin launched a market campaign describing itself as the “silver to bitcoin’s gold,” a tagline that is still used today. 

Litecoin was founded by Charlie Lee, a computer scientist and graduate of the Massachusetts Institute of Technology. Before creating Litecoin, Lee had a career in technology working at Google. He also joined the cryptocurrency exchange Coinbase in 2013, working as the Director of Engineering. 

As of September 2021, Litecoin has a market cap of $12,168,998,446 with 66 million tokens in circulation. It has a fully diluted market cap of $15,398,399,236 and a maximum supply of 84 million. One token currently costs $183.33 and reached an all-time high of $412.96 in May 2021. 

Now that you know what LTC is, you can get started and buy Litecoin using one of the brokers above. However, if you’re still unsure, keep reading! 

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How does Litecoin work?

Litecoin was created as a modification of the Bitcoin code and therefore shares many features with the currency. It uses cryptography to enable ownership and exchange of its cryptocurrency, LTC, which is capped at 84 million. Litecoin also uses proof-of-work mining to enable dedicated miners to add new blocks to its blockchain and earn Litecoin during the process. 

There are two main differences between Litecoin and Bitcoin. The first is that Litecoin aims to finalize transactions faster. To achieve this, new blocks are added to the blockchain every two and a half minutes. Litecoin also uses a different mining algorithm. The algorithm is aimed at reducing the effectiveness of specialised mining equipment, equalling the playing field for miners. However, this algorithm would later become ineffective, with specialist equipment still having an advantage. 

In 2017, Litecoin adopted “Segregated Witness”. This technology helps cryptocurrencies add more transactions into each block. In late 2017, the first Lightning transaction was also completed on Litecoin, which shows that the currency could use a layered network design. 

Pros

• The biggest advantage of Litecoin is its speed. Litecoin on average is around 4 times faster, completing transactions in around 2 and a half minutes. Bitcoin on the other hand can take more than 10 minutes. 
• This additional speed makes Litecoin more secure against hackers. This is because hacks have less time to attempt double-spending attacks, which keeps transactions secure. 

Cons

• Litecoin has failed to keep up with modern cryptocurrency innovations. Investors are now focusing on DeFi projects, leaving transactional coins such as Litecoin behind. As a result, Litecoin only just beat its all-time high price in the 2021 bull run. 

How to buy Litecoin online

Just like buying other cryptocurrencies, Litecoin (LTC) can be bought on most exchanges with both cryptocurrency and fiat currencies. It’s commonly bought on Binance and Coinbase, as well as several other exchanges.

Here’s a step-by-step guide on how to buy Litecoin online:

1. Before you can buy Litecoin, you will need an exchange account. Start by setting up an account with an exchange or broker like eToro. If your account is new, you’ll need to verify it.
2. Once verified, make sure your account is funded and select the number of tokens you want to buy.
3. To complete your transaction, click “Buy”. You’ll receive a confirmation email and your LTC will now appear in your wallet. 

Congratulations, you’ve just bought your first Litecoin!

Top platforms to buy Litecoin

How to trade Litecoin

Although Litecoin is relatively easy to trade, it’s not the most popular trade amongst investors. Many investors are looking for newer cryptocurrencies to trade with greater upside potential.

Litecoin however is seen as something more stable, but with less potential. If you want to trade Litecoin, you can do so on any popular exchange. Trading Litecoin is slightly different to buying Litecoin online. Simply search for the cryptocurrency you want to trade your Litecoin for and select the amount you want. Click “Trade” and your LTC will be replaced with the new currency.