Additionally, it should also be mentioned that while the Litecoin blockchain performs better than Bitcoin, there are far more advanced blockchains in the space. If you bought Litecoin in early 2018 at its peak, you would have encountered huge losses in the 12 months to follow. In fact, hitting 2018 lows of just $24, this works out at 93% less than its prior highs of $350.
However, Litecoin doesn’t have this issue because the developers behind the project have put solid projects that can make it stand the test of time. Before you choose to invest in Litecoin, it’s important to consider certain things, which will help you make the right investment decision.
This Is My First Time Trying To Buy Litecoin In Uk Can You Guide Me?
It takes minutes to get started, it supports lots of convenient payment methods, and investing is straightforward. In terms of what you can trade, eToro offers a full selection of asset classes. Put simply, this meant creating a digital payments network that is faster and more scalable. In terms of the former, Litecoin is able to confirm a fund transfer in just 2.5 minutes, while Bitcoin takes 10 minutes.
The first one is generally used when you intend to trade Litecoin consistently on the exchange. On the other hand, cold storage will keep your Litecoins safe and away from cyberspace. Another reason for its popularity amongst traders is its lower transaction fees. If you’re looking to have a bite of the Litecoin cake, you will need to buy the token from an exchange. You can consider the Litecoin digital asset a good investment for your portfolio because of the huge potential it promises. Litecoin is definitely worth buying when it comes to investing in the crypto market.
- If you want to buy Litecoin anonymously, you won’t be able to use a debit/credit card, e-wallet, bank transfer, or any fiat currency method for that matter.
- As an extra layer of security, it also holds licenses with ASIC and CySEC.
- On the one hand, those who bought Litecoin when the project was still in its infancy are looking at monumental returns.
- Founded by Charlie Lee, Litecoin was created to improve on the ‘deficiencies’ of its older brother Bitcoin.
The other main difference is that Litecoin tends to be more open to development. This has led to new features like a ‘lightning network’, allowing for near-instant transactions, that may ultimately improve Bitcoin as well. Litecoin is considered one of the first major altcoins in the cryptocurrency space, and for a long time was considered the ‘Silver’ to Bitcoin’s ‘Gold’. This narrative has changed in recent years as Litecoin has started to implement changes that remove its similarity with Bitcoin.
Should You Buy Litecoin?
This means no dealing charges or monthly fees, and it even scraps stamp duty on UK stocks. The platform is also suited to those on a small budget, as account minimums are small. As we have established, Litecoin is a multi-billion pound crypto asset that is available at hundreds of online platforms. However, most of these platforms should be avoided – as they operate without a regulatory license. As we briefly mentioned earlier, the vast majority of exchanges supporting Litecoin purchases are unregulated. The problem is that as an inexperienced investor, you might not be aware that this is the case.
This makes Binance useful if you want to buy Litecoin right now. On top of offering a safe, secure, and regulated way to buy Litecoin, Coinbase is also popular for its user-friendly interface. The platform is simple to use and requires no prior experience in investing. You can complete your Litecoin purchase online or via the Coinbase app. For example, although you need to deposit at least $200, the minimum Litecoin investment is just $25.
Coinbase is one of the most trusted cryptocurrency brokers globally and is one of the best crypto exchanges. Based in the US, it now has over 35 million customers from more than 100 different locations. The Copy Trading feature allows you to copy an eToro investor like-for-like. In other words, if they risk 3% of their portfolio on Litecoin, you’ll do the same. Then you have CopyPortfolios, which are fully managed by the eToro team. This includes a portfolio that focuses purely on digital currencies. Irrespective of whether you buy Litecoin, stocks, ETFs, or CFD instruments – eToro is a 100% commission-free free broker.
You will then be taken to a confirmation page where you can verify your order. Although eToro allows you to buy Litecoin in the UK at a minimum of $25, you will need to deposit at least $200. This is why you should explore the platform’s regulatory standing before opening an account – and most definitely before you make a deposit. In most cases, if you scroll down to the bottom of the website in question, it will display which regulators it is authorized by. If, for example, you see an FCA license number, this is a good sign. However, when it comes to the specifics, Litecoin actually possesses the better technology of the two. Firstly, and as we briefly noted earlier, Litecoin transactions are four times faster than Bitcoin.
You need to create an account before you can start trading on an exchange. This is usually simple, just make sure you have your contact details and a copy of some photo ID to hand.
Your choice of exchange will depend on the fees you’re willing to pay, the level of security you expect, and the speed of transaction you prefer. Coinpass do not make any representations or recommendations regarding the advisability or otherwise of trading in crypto assets or any particular transaction. We have already stated that one way of laying your hands on Litecoin s is by mining. The process of mining is however too energy-consuming and too technical for some people. As an alternative, those looking for Litecoin s can simply visit Cryptomate exchange platform where they can purchase Litecoin s using the British Sterling Pound.
Step 1: Open A Brokerage Account At Etoro
The only thing required from you to use Cryptomate is access to online banking within the UK. Joining the cryptocurrency revolution has never been simpler! You make your payments through your online banking service, not through a 3rd party processor. If you bought Litecoin at an online broker, you simply need to click on the ‘sell’ button from within your portfolio. The funds should be added to your brokerage account instantly, and then available for withdrawal. Not many online brokers allow you to buy Litecoin with Paypal. You will need to deposit at least $200, but you can invest from just $25 into Litecoin thereon.
As one of the oldest and most popular cryptocurrencies, Litecoin has established itself as a market leader. The best way to buy Litecoin in the UK or anywhere else is by using a crypto exchange. It shouldn’t be difficult to find one that supports Litecoin since it is one of the oldest and biggest cryptos around. Litecoin works by using a blockchain, or public ledger, in place of a bank. Every time a transaction is made, it’s added as the next block on the blockchain, which then cannot be changed.
Step 4: Store Your Litecoins
For short term traders, it’s better to wait for the right opportunity. Cryptocurrency can be volatile, so maybe you want to wait for Litecoin’s price to drop before you take the plunge.
Litecoin transactions are not only faster, but the underlying blockchain can handle eight times as much data. On the flip side, this does allow you to buy Litecoin in the UK at a more favorable price.
In this guide, we show you how to buy Litecoin in the UK online. You can fund your broker account with fiat currency but note that you might need to pay a deposit fee. Brokers make their money with fees like this, so keep an eye out for withdrawal and trading fees too. 67.7% of retail investor accounts lose money when trading CFDs with this provider.
Although it was only launched in 2017, it often processes over $15 billion in trading each and every day. These numbers of uncanny and largely unrivaled by any traditional brokerage site.
Even if the exchange does have good intentions, time and time again we hear about platforms getting hacked and users losing their funds. Litecoin is a top-10 cryptocurrency with a current market capitalization of over $5 billion. As such, there are now hundreds of third-party cryptocurrency exchanges that give you access. For example, in the UK, brokers selling Litecoin in exchange for British pounds must be authorized and regulated by the FCA. As you can imagine, shady platforms don’t quite meet the requirements of the FCA, so they choose to remain unregulated. That is to say, as more and more people show interest in Litecoin, its price will naturally increase. But, if the market sentiment is on the decline, the price of Litecoin will follow suit.
The similar features the token shares with Bitcoin make investors and the crypto community call it a relative of Bitcoin. The price of Litecoin has always moved in the same direction as Bitcoin’s price.
Once you’re selected your option, you will be asked to review your selections before the order is executed or received in the case of limited order. Additionally, as an open-source platform, Litecoin offers a flexibility that allows developers to implement modern software security patches continuously. Ethereum, Tron, Cardano, EOS.io, NEO, Flow and Polkadot, among others, have improved on the possibilities of blockchain technology. Litecoin can be upgraded to compete with such cryptocurrencies through DeFi protocols and applications. Inasmuch as such an investment must be celebrated, the future of cryptocurrencies largely remains unknown. Litecoin faces stiff competition from other cryptocurrencies that were also created solely with the primary aim of serving as a transactional currency.