What is Litecoin?
Litecoin was launched as a lighter version of Bitcoin for faster and cheaper transactions. It was created by Charles Lee in 2011 to address the issue faced by Bitcoin during that time. Bitcoin was becoming controlling and it gradually became difficult for large-scale miners to get an upper hand. Litecoin was also built on the same blockchain network as Bitcoin. However, it differs from Bitcoin in various aspects by providing faster blocks, higher total supply, and hashing algorithms.
Litecoin can be considered one of the first alternatives to Bitcoin and it was even called digital silver owing to Bitcoin’s digital gold. As the creator puts forward, Litecoin was never created as a competitor or successor to Bitcoin. It was merely created to complement Bitcoin. Litecoin gained much popularity among crypto users as it benefitted them with lower transaction fees and faster transactions. Litecoin was created as a suitable option for smaller transactions and can deliver many transactions with four times more supply and blockchain creation every 2.5 minutes. With its high supply and lower transaction costs, Litecoin became a popular trading pair among traders.
How to buy Litecoin?
Cryptocurrencies are usually purchased on cryptocurrency exchanges. Litecoin are also available on different platforms. Each platform differs from one another in many factors. Investors can choose the accurate one to purchase Litecoin depending on their security needs and preferences. The choice of the platform will have a major influence on the entire trading process. There are many reputable centralized exchanges like Coinbase and financial applications like PayPal from where Litecoin can be purchased.
Litecoin is most popularly purchased from centralized exchanges as these platforms provide a structured and regulated space for trading. Most investors rely on centralized platforms like Coinbase, Binance, or Kraken to purchase and trade cryptocurrencies like Litecoin. Let us take a look at how to buy Litecoin from centralized exchanges.
- The users can create their accounts on a centralized exchange of their choice by providing the necessary details and information.
- After creating the account, the users have to go through a Know Your Customer (KYC) verification process.
- The user has to deposit cryptocurrency to their exchange wallet to purchase Litecoin.
- Then they have to spot a Litecoin trading pair on the platform.
- Users can either choose to buy Litecoin based on the price or they can set their own price.
- They can then purchase the Litecoin. For additional security, users can transfer their LTC to their personal wallet which will be available on the centralized platform.
Users who prefer to trade cryptocurrency without much effort can choose financial platforms like PayPal. PayPal is one of the leading financial platforms. It provides a user-friendly interface for users looking for a convenient method to invest in cryptocurrency. Let us look at the step-by-step process of buying Litecoin on PayPal.
- The first step involves setting up a PayPal account. User has to provide their details like name, email address, and card details for opening the account.
- PayPal then initiates a verification process to confirm the details provided by the users.
- The next step involves purchasing LTP or Litecons. PayPal consists of a crypto section and the user can choose Litecoin from a list of other available cryptocurrencies.
- To purchase Litecoin, the users should enter the amount they prefer to spend.
- While purchasing Litecoin, the users need to read the transaction details and exchange rates provided by the platform.
- After purchasing Litecoin, it will be added to the user’s PayPal cryptocurrency account.
- The users can use their crypto assets for selling or making new purchases.
Conclusion
Litecoin has gained much popularity among investors over the years. Even though many cryptocurrencies facilitate cheaper and faster transactions, Litecoin has remained a leader in providing day-to-day payments of goods and services.
It is also important to note that investing in Litecoin is not an easy process. Users should be aware of the costs associated with holding a Litecoin and the impact it can have on the entire trading process. Litecoin also attracts tax implications and this varies across different jurisdictions. Users investing in Litecoin have to be well aware of all the regulatory laws and tax implications of their country. Selecting an accurate platform to purchase Litecoin is also a crucial factor in deciding the investment process. Centralized exchanges and financial applications have different fee structures that have to be deposited by the users before purchasing the cryptocurrency. These exchanges also offer different trade volumes. Users can select the platforms depending on their needs and preferences.
Apart from these factors, users investing in Litecoin should also have an idea about Litecoin technology and its stability in the future market. By considering these crucial factors, investors can come to a proper decision about purchasing Litecoin for a healthy investment.