How to Buy Litecoin (LTC)
Beginner’s Guide
What is Litecoin (LTC) ?
Litecoin (LTC) is a cryptocurrency that was designed to provide fast, secure and low-cost payments by leveraging the unique properties of blockchain technology.
To learn more about this project, check out our deep dive of Litecoin.
The cryptocurrency was created based on the Bitcoin (BTC) protocol, but it differs in terms of the hashing algorithm used, hard cap, block transaction times and a few other factors. Litecoin has a block time of just 2.5 minutes and extremely low transaction fees, making it suitable for micro-transactions and point-of-sale payments.
Litecoin was released via an open-source client on GitHub on Oct. 7, 2011, and the Litecoin Network went live five days later on Oct. 13, 2011. Since then, it has exploded in both usage and acceptance among merchants and has counted among the top ten cryptocurrencies by market capitalization for most of its existence.
The cryptocurrency was created by Charlie Lee, a former Google employee, who intended Litecoin to be a “lite version of Bitcoin,” in that it features many of the same properties as Bitcoin—albeit lighter in weight.
How to Buy Litecoin Summary
- Get a Litecoin wallet (e.g. Ledger, Trezor ,Guardia, Exodus , AtomicWallet)
- Find an exchange that sells Litecoin (e.g. Binance, Coinbase, Kucoin, Bitfinex , Crypo.com)
- Deposit money and make the trade
- Withdraw the Litecoins to your wallet
Buying Litecoin (LTC) in 3 Simple Steps
Step 1 – Get a Litecoin wallet
Litecoin Hardware Wallets
Litecoin hardware wallets are physical devices designed to securely store and manage your Litecoin and other cryptocurrencies. They offer an extra layer of security by keeping your private keys offline and inaccessible to potential hackers.
Here are some popular Litecoin hardware wallets:
Ledger Nano S: The Ledger Nano S is a popular hardware wallet that supports Litecoin and a range of other cryptocurrencies. It has a secure element chip and a user-friendly interface.
Trezor One: The Trezor One is another well-known hardware wallet that supports Litecoin. It has a robust security architecture and a simple, easy-to-use interface.
Ledger Nano X: The Ledger Nano X is the upgraded version of the Nano S, and it supports more coins, including Litecoin. It has a larger screen and a more powerful processor, making it easier to manage your cryptocurrency.
KeepKey: KeepKey is a hardware wallet that supports Litecoin, as well as several other cryptocurrencies. It has a large, easy-to-read display and a sturdy aluminum case.
CoolWallet S: The CoolWallet S is a slim, credit-card-sized hardware wallet that supports Litecoin and other cryptocurrencies. It connects to your mobile device via Bluetooth, making it easy to manage your funds on the go.
No matter which hardware wallet you choose, be sure to follow the manufacturer’s instructions carefully and keep your recovery phrase in a secure location. This will help ensure that your Litecoin and other cryptocurrencies are kept safe and secure.
The best option for storing any cryptocurrency would be to use a hardware wallet. These are pieces of hardware that store the private key to your coins offline.
Today, there are two leading hardware manufacturers to choose from – Ledger and TREZOR. Both companies have different models of hardware wallets that will get the job done.
If you want deeper insights on specific models, you can read my Ledger Nano X review or my TREZOR Model T review.
Litecoin Software Wallets
Litecoin software wallets are digital wallets that allow you to store, send and receive Litecoin using software installed on your computer or mobile device. Here are some popular Litecoin software wallets:
Litecoin Core: Litecoin Core is the official Litecoin wallet and is available for download on the Litecoin website. It is a full node wallet, which means it downloads the entire blockchain to your computer, allowing you to independently verify all transactions.
Exodus: Exodus is a multi-cryptocurrency software wallet that supports Litecoin and a range of other cryptocurrencies. It has a user-friendly interface and allows you to easily manage your portfolio.
Electrum-LTC: Electrum-LTC is a lightweight Litecoin wallet that focuses on speed and simplicity. It is a popular option for those who don’t want to download the entire Litecoin blockchain to their computer.
Jaxx Liberty: Jaxx Liberty is a multi-cryptocurrency wallet that supports Litecoin, as well as several other cryptocurrencies. It has a user-friendly interface and is available on multiple platforms, including desktop and mobile.
Guarda Wallet: Guarda Wallet is a multi-cryptocurrency wallet that supports Litecoin and several other cryptocurrencies. It has a user-friendly interface and is available on multiple platforms, including desktop and mobile.
When choosing a software wallet, it’s important to ensure that the wallet is reputable and secure. It’s also important to back up your wallet and keep your private keys secure. This will help ensure that your Litecoin and other cryptocurrencies are kept safe and secure.
Hardware wallets cost money, so if you’re not sure how serious you are about cryptocurrencies and just want to get a taste of what they feel like, perhaps you would be better off starting with a software wallet.
A software wallet is a free program that lets you store your coins on your computer or mobile phone.
The easiest Litecoin software wallets to get started with are undoubtedly Exodus, AtomicWallet and Guarda . All wallets are very intuitive. Exodus, Atomic Wallet and Guarda is available on desktop for Windows, Mac and Linux, as well as on mobile for both iOS and Android. If you want more information you can read my Exodus, AtomicWallet and Guarda review.
Once you have your wallet ready, you will need to locate your Litecoin address. Your Litecoin address is a long string of letters and numbers starting with “L”, “ltc” or “M”.
Here’s an example:
- ltc1qdj77cjyxnl62vvwd9ndjptvsrqlu9dur0uxljp
- MVQy5Ua2SWvgb9gvJNxTENrHhDJVPsHiwz
- LTB6yqcZVB2dUHAE2tVE1zxxRamrXjDGmE
Step 2 – Find an LTC Exchange
Buy Litecoin through Binance
- Binance is a cryptocurrency exchange which is the largest exchange in the world in terms of daily trading volume of cryptocurrencies. It was founded in 2017 and is registered in the Cayman Islands. Binance was founded by Changpeng Zhao, a developer who had previously created high frequency trading software.
Buy Litecoin through Coinbase
- Coinbase is a convenient and cheap way to buy Ethereum and the platform is open to 100+ countries). Coinbase will sell you LTC for a variable fee that depends on your payment method (credit cards have a higher fee than wire transfers), order size and market volatility. Here’s how you buy Ethereum on Coinbase: Open a Coinbase account Add your payment method (Credit card or bank account) Go to “Buy/Sell” and select the amount of Ethereum you desire Click “Buy Litecoin”
Buy Litecoin through Kucoin
- Kucoin is a global cryptocurrency exchange for numerous digital assets and cryptocurrencies. Launched in September 2017, KuCoin has grown into one of the most popular crypto exchanges and already has over 8 million registered users from 700+ countries and regions. According to Alexa traffic ranking, KuCoin’s monthly unique ranking is in the top 5 globally. Known as the “People’s Exchange”, KuCoin operates in Seychelles, providing users with multi-language and 24/7 customer service. Meanwhile, KuCoin has established local communities all over the world in South Korea, Japan, Spain, Italy, Vietnam, Turkey, Russia, India, and other regions, providing users with the most local services. Currently, 1 out of every 4 crypto holders in the world is with KuCoin.
Buy Litecoin through Bitfinex
- Bitfinex is a cryptocurrency exchange owned and operated by iFinex Inc registered in the British Virgin Islands.Their customers’ money has been stolen or lost in several incidents, and they have been unable to secure normal banking relationships.Bitfinex was founded in December 2012 as a peer-to-peer Bitcoin exchange, offering digital asset trading services to users around the world. Bitfinex initially started as a P2P margin lending platform for Bitcoin and later added support for more cryptocurrencies.
Buy Litecoin through Crypto.com
- Crypto.com is a cryptocurrency exchange company based in Singapore. As of May 2022, the company reportedly had 50 million customers and 4,000 employees. The exchange issues a token, Cronos.
Step 3 – Withdraw Your Litecoin
Once you decide on an exchange, open an account and buy your Litecoin. Make sure to withdraw the Litecoin from the exchange to your personal wallet.
Never leave coins on an exchange, as you risk losing them all if that exchange gets hacked or shuts down (which has happened in the past).
OVERVIEW
Who Are the Founders of Litecoin?
As we previously touched on, Litecoin was founded by Charlie Lee, an early cryptocurrency adopter and a name held in high regard in the cryptocurrency industry.
Charlie Lee, also known as “Chocobo,” is an early Bitcoin miner and computer scientist, who was a former software engineer for Google. In addition, Charlie Lee held the role of director of engineering at Coinbase between 2015 and 2017 before moving on to other ventures.
Today, Charlie Lee is an outspoken advocate of cryptocurrencies and is the managing director of the Litecoin Foundation—a non-profit organization that works alongside the Litecoin Core Development team to help advance Litecoin.
Besides Lee, the Litecoin Foundation also includes three other individuals on the board of directors: Xinxi Wang, Alan Austin and Zing Yang — all of which are accomplished in their own right.
What Makes Litecoin Unique?
Litecoin is a cryptocurrency that was created by Charlie Lee, a former Google engineer, in 2011. Here are some features that make Litecoin unique:
Faster Transaction Speeds: One of Litecoin’s key features is its faster transaction speeds compared to Bitcoin. Litecoin has a block time of 2.5 minutes, which means transactions are processed faster than Bitcoin’s block time of 10 minutes. This makes Litecoin a more practical choice for everyday transactions.
Lower Transaction Fees: Litecoin’s transaction fees are also lower compared to Bitcoin. This is because Litecoin’s blockchain is able to process more transactions per second, reducing the demand for higher fees.
Scrypt Algorithm: Litecoin uses a different mining algorithm than Bitcoin called Scrypt. This makes Litecoin more accessible to miners with consumer-grade hardware, rather than specialized mining equipment.
Active Development: Litecoin has a strong and active development team, with ongoing updates and improvements to the network. This has helped to maintain the network’s security and improve its functionality.
Complementary to Bitcoin: Litecoin is often seen as a complementary cryptocurrency to Bitcoin, rather than a competitor. Many users see Litecoin as a way to diversify their cryptocurrency portfolio, and the two cryptocurrencies often have similar price trends.
Overall, Litecoin’s faster transaction speeds, lower transaction fees, and strong development team make it a unique and valuable cryptocurrency in the market.
Litecoin Mimblewimble Upgrade
Litecoin Mimblewimble is a proposed upgrade to the Litecoin protocol that would enhance the privacy and scalability of the network. Here are some key features of the upgrade:
Improved Privacy: Mimblewimble would introduce new privacy features to Litecoin, including confidential transactions and the ability to hide the amounts being sent in transactions. This would make it more difficult for third parties to trace transactions and link them to specific users.
Increased Scalability: Mimblewimble would also improve the scalability of the Litecoin network by reducing the size of the blockchain. This is accomplished by using a technique called “cut-through,” which allows transactions to be combined and verified without being stored on the blockchain.
Compatibility with Bitcoin: Mimblewimble is designed to be compatible with the Bitcoin protocol, which would make it easier for Litecoin to adopt new upgrades and improvements to the Bitcoin network.
Active Development: The Mimblewimble upgrade is currently in active development, with the development team making progress on the implementation and testing of the new features.
The Mimblewimble upgrade has the potential to significantly improve the privacy and scalability of the Litecoin network, which could make it more attractive to users and investors. However, it is important to note that the upgrade is still in development and it may be some time before it is fully implemented and widely adopted.
Some Exchanges Delist LTC After MimbleWimble Upgrade
MimbleWimble is an upgrade enabling users to achieve much-needed privacy while transacting on the network. The MimbleWimble upgrade was first proposed in November 2019 through a Litecoin Improvement Proposal. At the time, the Litecoin developers aimed to further focus on improving anonymity between senders and receivers.
Following the MimbleWimble upgrade at Litecoin block 2,257,920, users could opt for moe transaction privacy and explore other benefits, including blocks containing less needless transaction data. More specifically, long transactions are broken down into a single transfer by recording one input-output pair.
The MimbleWimble Extension Blocks (MWEB) upgrade was successfully activated on May 19, 2022. However, the upgrade puts Litecoin in the crosshairs of regulators who do not take kindly to privacy-capable cryptocurrencies.
Some effects of the upgrade became rather apparent when several South Korean exchanges started delisting Litecoin from their platforms shortly after the MWEB upgrade went into effect. Upbit, Bithumb, Coinone, Korbit and Gopax have delisted LTC over the MimbleWimble upgrade, due to how it makes it impossible for these companies to adhere to the Act on the Reporting and Use of Specific Financial Transaction Information. Per South Korean regulation, crypto exchanges need to mitigate money laundering and illicit activities at all costs. That means removing any currencies that provide users with additional privacy or anonymity.