Litecoin Trading Guide: Everything you should know

Litecoin trading guide

Litecoin, also known as the “Silver to Bitcoin’s Gold,” is a prominent cryptocurrency that debuted in 2011 and making it one of the most well-known digital tokens in the crypto asset business.

We will educate you on investing in Litecoin safely and which brokers you should consider when purchasing in this guide.

Choosing a Broker for Litecoin Investing

With nearly a decade in the cryptocurrency industry, it’s no surprise that Litecoin is available on hundreds of online platforms. We’ve compiled a list of the best Litecoin brokers currently operating in the market.

  • eToro – Best Overall Litecoin Investing Platform
  • Coinbase – A Great Place for Beginners to Invest in Litecoin
  • Binance – Best Litecoin Investing Platform for Asset Diversification
  • OKEx – Use a crypto deposit to invest in Litecoin.
  • Webull – Invest in Litecoin for as little as $1 (the US Only)

Continue reading to get the full reviews of the above brokers in this guide on investing in Litecoin.

A Quick Guide to Investing in Litecoin in 2022

If you want to invest in Litecoin right now, the instructions below will guide you through the process in less than five minutes. In this article, we’ll teach you how to complete the procedure safely using eToro — a regulated online broker with a $25 minimum Litecoin deposit.

Step 1: Create an Account with eToro – You can easily create an account with eToro by entering your personal information and contact information. You must also select a username and a secure password.

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Step 2: Upload Your ID — to verify your eToro account, upload a copy of your ID.

Step 3: Make a deposit using your debit/credit card, e-wallet, or bank account.

Step 4: Invest in Litecoin — finally, type ‘Litecoin’ into the search bar and select the ‘Trade’ option. Enter your stake and click ‘Open Trade’ to confirm your investment.

You’ve just learned how to invest in Litecoin in less than five minutes by following the four simple steps explained above! You can store your LTC tokens on the eToro platform until you’re ready to cash out, which you can do at any time.

Where to Purchase Litecoin – Complete Broker Reviews

On the one hand, it’s worth noting that there are hundreds of platforms to choose from when deciding where to invest in Litecoin. However, sorting the good platform from the bad platform can be time-consuming. After all, there are many cryptocurrency platforms to avoid because they are not regulated or certified by a recognized financial institution.

To prevent you from having to spend hours and hours researching which broker is best for you. Here’s our list of the best platforms for investing in Litecoin online.

eToro – Overall Best Litecoin Investing Platform

Our researchers discovered that eToro is the best overall platform for investing in Litecoin. eToro, founded in 2007, currently has over 20 million investors, allowing you to purchase and sell cryptocurrencies easily. You don’t need any prior experience in this field to complete the Litecoin investment process, which is extremely useful for beginners. In reality, the entire process of creating an account, depositing funds, and placing a buy order should take no more than five minutes.

Before we get into details about fees and payment options, it’s important to note that eToro is strictly regulated. It is permitted and regulated by financial organizations in the United Kingdom, Europe, Australia, and SEC in the United States. As a result, you may invest in Litecoin from the comfort of your own home without fear of losing your hard-earned trading capital. To begin the Litecoin investment procedure, all you need is a $200 deposit ($50 for US consumers).

You can make your deposit via various methods, such as debit/credit cards, Paypal, and Neteller. At eToro, deposits are only 0.5 percent, albeit this price is waived for US clients. After you’ve deposited funds into your eToro account, you can invest in Litecoin for as little as $25. With eToro’s support for over 30 alternative tokens, diversifying into different crypto assets is a breeze.

Bitcoin, Ethereum, EOS, Cardano, AAVE, Decentraland, XRP, and other cryptocurrencies are included. If you’re not in the United States, eToro also offers stocks, ETFs, commodities, currency, and indices. We also enjoy that you don’t have to worry about keeping your tokens in a secret wallet while using eToro to invest in Litecoin. eToro, on the other hand, offers an in-house custodial wallet, which means it will store your LTC tokens safely on your behalf. It also implies that you may sell your tokens from your eToro account with a single click.

We recommend eToro as the best broker to trade in Litecoin because it offers passive trading tools. For example, you can duplicate another eToro trader, which means that whatever they invest in would be replicated in your account. You can also use a single trade to invest in a diversified basket of cryptocurrencies. The eToro staff will handle this portfolio, so you won’t have to do anything. It is good for people who want to invest but don’t understand how crypto assets work.

Pros

  • Invest in cryptocurrencies only based on the spread.
  • Each trade requires a minimum amount of $25.
  • Debit/credit cards, e-wallets, and local bank transfers are all supported.
  • The FCA, CySEC, and ASIC govern the firm, registered with FINRA/SEC.
  • There is a $50 minimum deposit and no transaction fees for US citizens.
  • Over 20 million individuals use it.
  • Beginners-friendly.
  • Social and copy trading tools are available.
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Cons

  • For advanced traders, it can be a little too basic.
  • MT4 and MT5 are not supported.

 

  • Coinbase

When buying digital currencies for the first time, many inexperienced buyers will use a platform like Coinbase. The site is simple to use and requires little to no knowledge of cryptocurrency to get started. Before getting started, you must first complete a KYC process, which needs a copy of your ID and a selfie. After that, you can make a fee-free transfer of funds from your bank account and then invest in Litecoin.

Coinbase’s typical trading cost is 1.49 percent, making it one of the most expensive pricing systems we found. Furthermore, investing in Litecoin with a debit or credit card makes things even more expensive. It is because Coinbase will charge you a 3.99 percent transaction fee. Then, when you’re ready to withdraw your Litecoin investment, you’ll have to pay a 1.49 percent charge. Coinbase, on the other hand, has its advantages, particularly in terms of security.

Coinbase, for example, has a solid reputation in the industry and is properly regulated in the United States. Furthermore, Coinbase’s parent business is listed on the NASDAQ exchange. Over 56 million clients use the platform. It requires Two-factor authentication and device whitelisting. If you log in with a new laptop or phone, you’ll need to take an extra security step. Importantly, 98 percent of client money is in cold storage by Coinbase.

 

Pros

  • One of the most well-known crypto exchanges
  • More than 56 million people utilize it.
  • You can make your instant purchase with a debit card.
  • There are many different digital currencies available.
  • Security procedures that are fit for a university

 

Cons

  • Deposits made with a debit card are pricey, costing 3.99 percent.
  • 1.49 percent charge on regular trade commission.

 

  • Binance – Best Litecoin Investing Platform for Asset Diversification

Binance is a cryptocurrency exchange and broker that has a large number of cryptocurrencies available. The specifics of what you’ll be able to access and how much you’ll pay will ultimately be determined by your location. If you live in the United States, for example, you can invest in Litecoin with a debit or credit card for a cost of 0.5 percent. For every $1,000 spent, this works out to just $5. Alternatively, outside of the United States, the same debit/credit card can cost up to 4% more.

However, when it comes to keeping your Litecoin tokens, Binance offers a variety of choices. Some investors, for example, will prefer to store their tokens on the Binance platform, which means you won’t have to bother about keeping your private keys safe. Binance provides two-factor authentication and IP/device whitelisting, so you’ll still have a safe place to store your funds. Furthermore, most clients store digital assets in cold wallets. You can also withdraw your tokens to the Binance-backed Trust Wallet app.

The alternative option is to save your digital tokens in a Binance account. The only concern is that Litecoin pays a very low annual percentage yield of 0.32 percent. On the other hand, other cryptocurrencies have interest rates over 10%, so this is something to think about if you want to diversify. Binance’s typical commission is only 0.10 per slide regarding trading fees. Binance also offers cryptocurrency futures, options, and leveraged markets if you live in a nation that allows digital asset derivatives.

 

Pros

  • It has a daily trade volume of billions of dollars.
  • Hundreds of digital asset pairs are supported.
  • Debit/credit card deposits are almost instantaneous.
  • The initial trading commission is only 0.1 percent per slide.
  • Binance provides cryptocurrency savings accounts.
  • It’s ideal for both new and seasoned traders.

 

Cons

  • You can’t buy all supported cryptocurrencies with a debit or credit card.
  • There are no e-wallet deposits or withdrawals available.
  • OKEx

If you’re already participating in the cryptocurrency world and have digital tokens in a private wallet or exchange, why not consider exchanging them for Litecoin? Not only will you profit from extremely low costs, but you may also be able to invest without having to go through a KYC process. OKEx is a wonderful alternative because it allows you to trade digital currencies for Litecoin for a 0.10 percent commission rate comparable to Binance.

You can trade Litecoin in numerous marketplaces, including BTC/LTC, ETH/LTC, and USDT/LTC. However, you can use any supported cryptocurrency to make a deposit. For example, if you currently have a less liquid cryptocurrency such as AAVE, you can put it into OKEx, exchange it for Bitcoin, and afterward trade BTC for Litecoin. OKEx, like Binance, provides bitcoin derivatives. Futures and high-leverage cryptocurrency markets fall under this category.

OKEx has been active since 2014 and supports over 20 million clients in over 200 countries in terms of security. You can store your Litecoin tokens in the exchange’s custodial wallet, but you might want to consider using the OKEx mobile app instead. You will have complete control over your Litecoin investment as a result of this, not least because you will be the only one with access to your wallet’s private keys. A savings account, crypto loans, and trading markets on over 400+ pairs are OKEx’s other significant features.

Pros

  • A trusted cryptocurrency exchange platform.
  • There are over 400 different digital currency pairs.
  • You can buy and trade cryptocurrencies with a debit/credit card or a bank transfer.
  • Commissions start at 0.1 percent.
  • On Android and iOS, there’s a full-featured app.
  • It has High security and a strong reputation.

Cons

  • Fees for using a debit or credit card could be lower.
  • Beginners should avoid derivatives since they are far too complex.

 

  • Webull – Litecoin Investing Starting at $1 (the US Only)

Webull, a popular stock, ETF, and cryptocurrency broker situated in the United States, is the last option worth exploring. This option will appeal to US clients who want to invest a few dollars in Litecoin. After all, Webull only demands a $1 deposit, so you’ll be purchasing a fraction of a single token. For example, if LTC is worth $200 and you invest $2, you will own 1% of a single Litecoin. It is also true for the other digital currencies supported by Webull.

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Bitcoin, Dash, Ethereum, Stellar, Cardano, and other cryptocurrencies are among the assets available in the Webull asset library, which isn’t particularly large. On the one hand, it’s worth noting that Webull charges no commission. It means no charges on direct trading costs, regardless of how much you opt to deposit. However, keep in mind that Webull must still make profit, which it does through the spread. 

Webull specifies that this starts at 1% when investing in cryptocurrencies, but we discovered that it is significantly greater when acquiring Litecoin. Nonetheless, we enjoy that there is no minimum deposit requirement, making Webull even more appealing to people on a tight budget. You can deposit funds via ACH at this brokerage site, as a domestic bank wire costs $8. Finally, Webull allows you to invest in Litecoin through its official site or its iOS/Android mobile app, all of which are simple to use.

Pros

  • For iOS and Android devices, a user-friendly trading app is available.
  • All assets are subject to a 0% commission policy.
  • There is no minimum deposit.
  • Fee-free ACH deposits and withdrawals
  • Investing starts at $1.

Cons

  • Spreads on cryptocurrencies begin at 1%.
  • For experienced traders, it’s too basic.
  • E-wallets and debit/credit cards are not supported.

How to Invest in Litecoin – Step-by-Step Guide

If it is your first attempt investing in Litecoin, we expect you to need a more extensive overview than the one we provided before in our quickfire guide.

Step 1: Create a Litecoin Investment Account.

Regardless of the cryptocurrency you choose to invest in; you must do so through a reputable broker who accepts your preferred mode of payment. We concluded that eToro was the best option because it is regulated and accepts various deposit methods. You first create an account before proceeding with the payment process.

You can do so by going to the eToro homepage and clicking on the ‘Join Now’ button. Then, as directed, fill in your personal information and contact information. 

Step 2: Add your ID.

Before investing in Litecoin, you must also complete an automated KYC process. We say the document verification process takes about 1-2 minutes. You will have to provide two important documents; proof of identification and residence; you can use a passport, a driver’s license, or any other acceptable government-issued identification.

Step 3: Make a deposit.

You need to put funds into your account before investing in Litecoin on eToro. There is no such thing as an Instant Buy tool. As a result, if you choose one of the supported payment methods listed below, you can deposit funds immediately.

  • Debit and credit cards are accepted.
  • Paypal
  • Neteller 
  • Skrill

eToro also supports bank transfers as a method of depositing funds. However, this may take a few days to complete. So, if you want to invest in Litecoin right away, use a debit/credit card or an e-wallet.

Step 4: Browse Litecoin on the platform.

You have to search for Litecoin and proceed to the investment page. Multiple eToro markets feature Litecoin; click on the result if you wish to directly invest in Litecoin rather than trading the digital token via CFD instruments.

You’ll find some Litecoin-related information on the following page, including a current price chart and a news feed from other LTC investors. Click the ‘Trade’ button to invest in Litecoin right now.

The order box will then appear, as shown in the figure above. It would be best to input your stake, which is the amount of Litecoin you desire to invest ($25 minimum).

Click the ‘Open Trade’ button to complete your order. It takes a few minutes for eToro to complete your Litecoin investment, and the tokens will appear in your portfolio.

How to Make a Litecoin Sale

The best way to profit from investing in Litecoin is if the crypto asset’s value rises in the open market. If it does – and your profits are satisfactory – you will need to convert your Litecoin to fiat currency. You may do this at eToro 24/7. Go to your portfolio and select the ‘Sell’ option.

eToro will sell your LTC tokens at the next best available rate if you use a market order.

It means you can add funds to your eToro account balance in a matter of seconds.

Once you are through with verifying your identity, you can withdraw the money to your bank account or debit/credit card, depending on whatever payment method you used initially.

Investing in Litecoin: What Are the Different Options?

As this guide has shown, there are various ways you can invest in Litecoin. The approach you choose is solely your choice, so read the mini-sections below to help you decide.

Litecoin Broker

When you use a Litecoin broker to finalize the investing procedure, you will certainly be dealing with a regulated company. It means you can be certain that you are using a reliable platform.

For example, the SEC (US), ASIC (Australia), CySEC (Cyprus), and the FCA (Financial Conduct Authority) all regulate eToro (UK).

Coinbase and Binance US are two other regulated brokers in this market (US clients only).

Not only can you invest in Litecoin safely with a registered broker, but you can also pay for your digital tokens using fiat money.

eToro accepts debit/credit cards and PayPal, whereas Webull only accepts bank transfers.

Additionally, you will be buying Litecoin straight from the broker. The regulated broker will hold your tokens for you after you finish your purchase, making the investment procedure even easier.

Litecoin Exchange

You can also purchase Litecoin through a cryptocurrency exchange. Surprisingly, while several exchanges now accept deposits via debit/credit cards and bank transfers, most of these sites remain unregulated. OKEx, which is based offshore in Seychelles, is a good example.

You can never be certain that your capital and digital tokens are safe until you have a license from the SEC or the FCA.

Is Litecoin a good investment?

If you’re a new trader wanting to invest in Litecoin without first conducting an extensive study, you might want to reconsider. Importantly, like all cryptocurrencies, Litecoin is volatile and speculative. It means that if the markets flip against you, you will almost certainly lose money on your investment.

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Continue reading to understand the pros and downsides of investing in Litecoin.

One of the most well-known cryptocurrency assets

There are approximately 11,000 digital tokens you can trade online, according to the cryptocurrency data aggregation website CoinMarketCap. 

 

On the other hand, you have well-established cryptocurrency projects such as Litecoin, which debuted in 2011.

When you compare Litecoin to the rest of the industry, Litecoin has a strong track record.

To put it another way, Litecoin has survived dozens of downturn markets and is still alive to tell the tale.

 

Price Change

In 2021, Litecoin, like most cryptocurrencies, had a lot of success. The digital currency rose to $124 per token at the start of the year. Litecoin reached a 52-week high of $401 in May of the same year. In five months, this equates to a 223 percent increase. However, as of September 2021, the price of Litecoin decreased to a level of $170 and $230. We hope to see Litecoin hit high in 2022.

Notable Collaborations

Collaborations are critical in the cryptocurrency world, especially for tokens that want to become widely accepted forms of payment. In this regard, Litecoin distinguishes out because it has formed several important partnerships in recent years. WEG Bank AG and worldwide real estate agency RE/MAX are two examples.

Litecoin has also been named the official cryptocurrency of the UFC and the Miami Dolphins of the National Football League. Each relationship that Litecoin forms strengthen the project’s validity.

Litecoin’s Network Outperforms Bitcoin

On the one hand, Bitcoin outnumbers Litecoin in various areas, particularly when it comes to market capitalization and global recognition. The Litecoin network is far more efficient than the Bitcoin network, with good transaction speed. Litecoin takes only 2.5 minutes, but Bitcoin takes 10 minutes.

What Are the Disadvantages of investing in Litecoin?

Along with researching the advantages of investing in Litecoin, you must also consider the risks. As with all investments, the primary risk is that you will end up with less money than you started.

The following are the primary risks or disadvantages of investing in Litecoin:

Decrease in Market capitalization

Litecoin was a top-five cryptocurrency in terms of market capitalization for many years. In this regard, though, Litecoin is slowly but steadily going away. Litecoin, for example, is presently the 12th most valuable digital asset at the time of writing in late 2021. Dogecoin, Uniswap, Polkadot, and Solana have since surpassed it in popularity.

Much Better Blockchain Networks on the Market

Litecoin is by far faster than Bitcoin for confirmation transactions, taking only 2.5 minutes for each block. In today’s market, however, this is currently considered exceedingly slow. There is a slew of other blockchain initiatives, for example, that can instantly – or in less than a few seconds – authenticate transactions. In many ways, this may render Litecoin obsolete.

Speculation and Volatility

Finally, you must take into account the volatility of Litecoin. This danger isn’t limited to Litecoin; it affects the entire cryptocurrency market. Nonetheless, the value of a Litecoin investment can fluctuate wildly, with double-digit percentage gains and losses frequently occurring within a24 hours.

What Is the Cost of Investing in Litecoin?

To invest in Litecoin safely, you’ll need to employ a reputable online broker, which will cost you money.

Some brokers offer free deposits when you use a bank account transfer, but this is a lengthy and inconvenient technique that might take several days to complete.

Debit and credit card deposits are usually instant, but they can come with a hefty cost.

When paying for your Litecoin investment using Visa or MasterCard, beginner-friendly broker Coinbase costs 3.99 percent.

The good news is, if you do some research, you will almost certainly find cheaper alternatives on the market. For example, eToro will only charge you 0.5 percent if you use a debit or credit card and nothing if you are a US customer. Finally, when you open an account with your selected broker, you must thoroughly understand their pricing structure.

Conclusion on How to Invest in Litecoin

Investing in Litecoin has become a straightforward process, especially when using a secure and licensed broker such as eToro. According to our research, you can invest in Litecoin for as little as $25 and in under five minutes. To buy and sell LTC tokens, you will pay the spread, and best of all, the broker accepts fast payments using debit/credit cards and e-wallets like Paypal.

 

FAQs

What is the right way you can invest in Litecoin?

Some investors may want to purchase Litecoin using a conventional cryptocurrency exchange. However, because these exchanges are usually unregulated, it’s advisable to use a regulated brokerage service like eToro. To do so, create an account and pay for your Litecoin investment using a debit/credit card, an e-wallet, or a bank transfer.

What are the best places to invest in Litecoin?

The best place to invest in Litecoin, according to this guide, is eToro. The primary advantages of utilizing this broker include the fact that you only need to spend $25 on Litecoin, that it accepts several payment ways, that its costs are quite cheap, and that it is tightly regulated.

Should I invest in Litecoin?

It’s impossible to say whether Litecoin is a good long-term investment. Litecoin’s price is mostly determined by market speculation, as with all digital currencies. With this in mind, you should conduct extensive independent research before making a financial decision. Only then can you determine if Litecoin is the correct asset for your portfolio. It’s impossible to say whether Litecoin is a good long-term investment. Litecoin’s price is mostly determined by market speculation, as with all digital currencies. With this in mind, you should conduct extensive independent research before making a financial decision. Only then can you determine if Litecoin is the correct asset for your portfolio.

How can I invest in Litecoin safely?

Using a regulated broker like eToro, you may invest in Litecoin safely.

What are my options for cashing out my Litecoin investment?

You can exchange your Litecoin tokens for fiat currency through a registered broker. The ideal choice here is eToro because the LTC coins will stay on the platform until you desire to withdraw them. When you’re ready, you can exchange your Litecoin token for US dollars by submitting a sell order on eToro.

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