Is this your first time purchasing Litecoin? This step-by-step tutorial will walk you through the whole procedure.
Litecoin has continuously been rated among the top cryptocurrencies. It was created to be a speedier, more efficient counterpart of Bitcoin. It also has a cheaper price than Bitcoin, which makes it a popular option.
If you’ve done your homework on Litecoin and believe it’s a good investment, it’s time to understand how to purchase some for yourself. There are several methods to buy cryptocurrency, but there are also numerous frauds. To purchase Litecoin securely, follow the instructions below.
Choose a cryptocurrency exchange
An exchange, such as Coinbase or Gemini, is the most frequent way to purchase cryptocurrency. Cash App, PayPal, and Venmo are just a few of the investment and payment applications that offer cryptocurrency. Here are some things to check for while looking for a place to purchase Litecoin.
- Security: Examine the platform’s security procedures and see whether any issues, such as hackers or stolen payments, have occurred in the past. The most crucial aspect of a crypto platform is that it protects your funds and personal data.
- Costs: Both purchasing and selling bitcoin incur fees. Make sure the platform you pick offers fees that are comparable to those of other leading exchanges.
- Ease of use: Buying cryptocurrency shouldn’t be a burden, so choose a platform that you’re familiar with.
Cryptocurrency selection is another factor worth considering. It’s not a major issue.
Set up your account
After you’ve decided where to buy Litecoin, you’ll need to register an account. The method differs for every exchange, but on the front page, there is generally a button that reads “Get started” or “Register.”
To create an account, fill in the essential information. Most applications and exchanges will require the following information:
- Complete name
- E-mail address
- Phone number
That was simple enough, but you’re not finished yet. Your identification must also be verified by cryptocurrency exchanges. “Know Your Customer” is the name of this technique (KYC). You won’t be able to buy crypto until you’ve done this, or you’ll only be able to buy a modest amount before reaching your account’s limit.
Expect to supply the following information as part of the KYC process:
- Your date of birth
- Your SS#
- Address
A scanned copy of a valid passport, driver’s license, or identification card
Decide how much Litecoin you want to buy
With Litecoin, like with other cryptocurrencies, the golden rule is to only invest what you can afford to lose.
Cryptocurrency values are fickle, and although they might surge, they can also plummet. Don’t use crypto as a retirement fund, and don’t use it as an emergency fund either. A decent rule of thumb is to keep cryptocurrencies to no more than 5% to 10% of your whole investing portfolio.
Consider how frequently you’ll purchase Litecoin. Some investors make a single huge buy or make sporadic purchases without planning ahead of time. Dollar-cost averaging is typically a preferable technique for bitcoin investing.
You make recurring investments through dollar-cost averaging. You may, for example, buy $250 worth of Litecoin every two weeks or once a month. This works well for volatile investments since you haven’t put all of your money in at once, even if the price declines.
Make your purchase
The buying procedure and payment options accepted are determined by the exchange you select. An ACH transfer from a bank account, a debit card, or a credit card are all possible payment options. Because paying with a debit or credit card might result in extra costs, bank transfers are usually the best alternative.
There is one drawback to bank account transfers, and that is their slowness. Typically, the transfer will take several days to complete and the monies will appear in your account.
Select Litecoin from the “Buy” menu once the funds are available. Enter the amount you wish to buy and check the transaction preview to see the costs and the quantity of Litecoin you’ll get. Confirm the transaction if you’re happy with everything.
Remember to keep track of how much you spent and how much Litecoin you got for tax purposes. It’s considered a taxable event when you sell Litecoin or swap it for another cryptocurrency.
You’ll have your own Litecoin after finishing those tasks. Finally, you might want to check into crypto wallets to store your cryptocurrency. Many investors retain their cryptocurrency on the exchange where they purchased it, but moving it to a crypto wallet provides additional protection.
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