What is Litecoin?
Litecoin is a peer-to-peer digital currency. It was invented by Charlie Lee in 2011 and is in many technical
nearly identical to Bitcoin. The system works without a central repository or administrator, but uses a
ledger called blockchain to record transactions. Litecoin offers technical improvements over Bitcoin which
faster and a greater number of transactions as well as almost zero payment cost. Furthermore, the
often used to test new technologies before they are adopted by the Bitcoin protocol.
How to buy Litecoins
Litecoin can be bought on cryptocurrency marketplaces. Before you are able to buy your first litecoins, you
open an account and verify your identity with one of them. If the chosen marketplace does not offer a wallet
service, you also have to setup a litecoin wallet to store your litecoins. The process of account creation,
verification and payment processing can take from few minutes to several weeks, depending on the
process and used payment method.
Where to buy Litecoins
There are three different types of cryptocurrency marketplaces where you can buy Litecoin.
Exchanges resemble traditional stock exchanges such as the New York Stock Exchange and allow
individuals to trade
Litecoin directly among each other. Cryptocurrency exchanges are thereby responsible for matchmaking, i.e.
determine a price for litecoin where there are enough buyers and sellers. Cryptocurrency exchanges are
targeted towards professional traders and offer many advanced trading features and interfaces which can
confusing for beginners.
Brokers, by contrast, offer the purchase of litecoin out of their own asset stock. This
when you buy
litecoins from a broker, you do not make a transaction with another individual, but the broker.
brokers therefore act as market makers and charge a higher fee than cryptocurrency exchanges. Nevertheless,
cryptocurrencies from broker services is often very easy and straightforward.
Lastly, peer-to-peer (P2P) directories are platforms where two individuals can trade bitcoin
directly between each
other and without a third-party or matchmaking algorithm. However, there it is more risky to buy Litecoin on
directory due to the lack of a third party.
What to consider when buying Litecoins
After learning more about cryptocurrency marketplaces, you might be wondering: “What’s the best marketplace
Rest assured, you have come to the right place: Cryptoradar lists popular places to litecoins litecoins from
around the world. Simply use our filters to find a marketplace of your preference.
Verification: Most marketplaces require identity verification (e.g. by uploading a copy of
passport) and proof
of residency (e.g. by uploading a recent utility bill) before you can buy litecoins. The verification of
account can take from few minutes to several weeks.
Wallet Service: A litecoin wallet is a piece of software where you can store your litecoins.
with cryptocurrencies, we recommend to choose a marketplace that provides a built-in wallet service.
please note that storing litecoins in a wallet that you manage yourself is usually more secure, but it
learning effort. You can find some basic information about different types of wallets here.
Prices & Fees: The price of litecoin is determined by supply and demand, meaning that its
rise and fall
depending on the number of people willing to sell and buy litecoins. As cryptocurrency exchanges are
determining the market prices, they usually offer litecoins at a lower price and with lower fees than broker
services. Additionally to trading fees, there may be fees to deposit and withdraw your cryptocurrencies.
Payment method: To buy litecoins, you need to transfer money to a marketplace. Most
payment methods such as wire transfer, while broker services often offer faster or near instant payment
as credit cards or Skrill at an extra fee.
Security: When investing into cryptocurrencies, security plays a major. Cryptoradar helps
security features such as two-factor authentication (2FA) or cold storage. We also advise you not to store
significant amounts of fiat or cryptocurrencies on marketplaces as they may be subject to cyber attacks.
When to buy Litecoin?
Is now a good time to buy Litecoin? We don’t know. However, if you are looking at a specific price at which
like to buy Litecoin, we can help you to not miss a favourable opportunity: Sign up for a Cryptoradar account and
set up a price alert to get notified when bitcoin trades below or above your target price.