There can be no doubt that Bitcoin is the gold standard when it comes to cryptocurrency. Its emergence also spawned the creation of other digital tokens known as altcoins. Many people would contend that Litecoin is the silver to Bitcoin’s gold. Valued much cheaper than Bitcoin, Litecoin could prove to be a worthy asset for those who are taking a long range approach to cryptocurrency investing. Here is a quick primer on how to buy Litecoin.
Litecoin was one of the first Bitcoin imitators to appear on the cryptocurrency market. It became the standard bearer for other so-called altcoins like Ethereum. It was launched in October of 2011 to considerable fanfare, and it has gone on to become one of the few altcoins that has managed to create a fairly stable history.
In most respects Litecoin functions very similar to Bitcoin. From a technical standpoint the two currencies are almost identical. Litecoin uses an open source framework and a blockchain, but there are a few key differences between this popular token and Bitcoin. For starters, Litecoin achieves a much faster processing of transactions. The network tries to process blocks every two minutes compared to the ten minute processing time of Bitcoin.
Litecoin also uses the Scrypt algorithm in its proof of work model. This has an unfortunate side effect. Mining equipment for Litecoin is generally more expensive than that used for mining Bitcoin. As a result, it is impractical for anyone other than professional miners to obtain the coin in this manner. This means that the general rank and populace is left to find other ways in which to obtain the token.
An advantage of Litecoin is that it also offers transactions which are almost devoid of any fees. The low fee structure is just another reason why many users of cryptocurrency have turned to Litecoin as a Bitcoin alternative.
If you had jumped on the Litecoin train when the token first appeared on the scene the returns would have been quite generous. As of October 2018 a single Litecoin was valued at a little more than $50 USD. Some go so far as to say that spectacular growth is on the horizon for Litecoin, but it may never approach the massive gains that were seen by Bitcoin. Nevertheless, it is an attractive option for people who want a Bitcoin-like experience without having to shell out thousands of dollars. It is also positive that Litecoin has a strong community of supporters that includes many retailers who are willing to accept the coin.
Before You Buy Get a Litecoin Wallet
Before you are able to buy Litecoin for your own cryptocurrency portfolio you are going to need a place to keep the tokens. This means that you will need a wallet. A cryptocurrency wallet is a method of storing encrypted private keys that allow you to hold the currency or use it as a means of exchange. There are many types of wallets available.
The official Litecoin wallet is called Litecoin Core. It can be installed for free on your desktop. As a desktop wallet this means that your keys are kept on your computer. Some individuals do not like this form of crypto storage and consider it to be less secure than other methods. You could also opt for a more secure hardware wallet like the Trezor or Ledger Nano. Both of those devices support the use of Litecoin.
Finally, almost all cryptocurrency exchanges support Litecoin. When you create an account with an exchange a wallet is typically provided. This wallet can hold multiple types of tokens, but it is maintained in the Cloud by the exchange and therefore subject to security vulnerabilities. Some exchanges have suffered security breaches which resulted in the loss of coins for account holders, but the majority of them today are safe enough. Always do your diligence and read our reviews on various exchanges before you choose.
Buying Some Litecoin is Easy
Once you have decided where your Litecoin will be stored, the time has come to make a purchase. There are essentially two ways that you can do this. You can choose to buy with fiat currency like the EUR or USD, or you can purchase with another cryptocurrency like Bitcoin.
Most cryptocurrency exchanges today will allow the purchase of Litecoin with fiat just like they facilitate Bitcoin purchases. The most common ways to purchase are with a bank wire or transfer or by using a debit or credit card. Here are some of the exchanges that trade heavily in Litecoin:
You can also check with your preferred exchange to see if they allow purchases of Litecoin. Chances are they will because Litecoin is so popular. The next step is to decide how much Litecoin you want in terms of USD or another currency. You will submit your transfer or enter your credit card info, the purchase will be made, and the tokens will appear in your exchange account. The whole process can take just a few minutes.
If you already have Bitcoin or another form of cryptocurrency in your exchange account, buying Litecoin is even simpler. You will merely exchange one form of crypto for another. You will be given the current exchange rate on your transfer, and most of these transactions are instant.
Either method will involve a nominal fee for the transfer. This is usually based on a percentage of your total buy amount. Many investors like to make a larger purchase instead of several smaller ones because it is more cost-effective.
Why Buy Litecoin?
You should definitely think about adding Litecoin to your portfolio if you are serious about cryptocurrency investing. It shows a lot of promise, and it has endured longer than many other altcoins on the market today. Litecoin also has a track record of relative stability when compared to other crypto assets. Those who buy today could be in for a nice return if the token explodes like Bitcoin.
There is also the fact that Litecoin is more accepted today than other altcoins by retailers. This will appeal more to people who want to actually use their tokens to make purchases of goods and services. Other altcoins serve little purpose other than an investment security.