Lіtесоіn is a рееr-tо-рееr сrурtосurrеnсу аnd open ѕоurсе software project released under “MIT/X11” lісеnѕеѕ. Its properties are similar to that of bitcoin, however, litecoin operates on the “Scrypt” algorithm (this algorithm incorporates the “SHA-256” algorithm). A positive of Scrypt is that it favors large amounts of high-speed RAM rather than raw processing power alone and as a result, is known as a “memory-hard-problem”. Litecoin makes use of a blockchain to maintain a public ledger of transactions. These transactions are processed quickly, and a small fee of around 1/50th of the transaction amount is cut per transaction (service fee). The average block mining speed for litecoin is 2.5 mins (Bitcoin takes 10 mins). It is currently selling at over $170 USD per coin and has a market cap of over $9.5 billion USD.
A newly introduced and interesting feature of litecoin is the “Atomic Swap”; users can swap cryptocurrency directly without having to go through the process of first selling a cryptocurrency and then purchasing another. This reduces time and efforts. Users are advised to store their cryptocurrency in cryptocurrency wallets after purchasing it to ensure safety and prevention against hacking. A cryptocurrency wallet is a secure digital wallet used to send, receive and store digitized currency and hardware wallets are the best option when looking for security. More than 35% of cryptocurrency users make use of hardware wallets which are designed like USB devices and can be connected to any computer (Trezor and Ledger Nano S are two of the most popular).
So now that we’ve taken you through some of the advantages of litecoin, here are a few ways to buy it:
How To Buy Litecoin On An Exchange
A cryptocurrency exchange provides a surer path towards trade but always keep in mind that when trading in crypto, extreme wit and subtle luck can play a major part in your success! Renowned exchanges like Kraken and BitStamp are popular and using such reputable exchanges will alleviate any theft or privacy concerns you may have. Every exchange has a unique operating environment but in general, a user must authenticate his identity and link his bank account to the preferred exchange, only after which, crypto can be purchased. The most popular and quickest exchange for the purchase of litecoin is Coinbase but of course this is only one. Depending on the exchange, there are different ways in which Litecoin can be purchased; a user can buy Litecoin by buying another cryptocurrency first and the purchasing Litecoin with that cryptocurrency (like Bitcoin or Ether for examples). Users can purchase Litecoin directly as well using fiat currency (like USD or Yen). So signup, authenticate your email, choose a password and get started!
The video linked below will guide you through buying litecoin on Coinbase:
How To Buy Litecoin With Other Cryptocurrencies
As mentioned, there are several ways to purchase Litecoin. If you want to buy it with other cryptocurrencies like Bitcoin or Ethereum, then the use of an “Asset Exchange” site might be for you. These sites are prevalent as they provide an easy manner of trade between different cryptocurrencies. Gdax is one such example of a trusted asset exchange site. Litecoin can also be bought from an exchange like BitStamp and traded on a site like Kraken. It may sound like a complicated procedure but it is quite simple to execute. Paxful and Cointall allow for direct asset exchange as well, but it depends on the availability of Litecoin and the market demand. Like buying on an exchange, users must signup, authenticate their email and choose a password to get started.
The video below will guide you through trading for Litecoin on Gdax:
How to Buy Litecoin Through Direct Trade
Direct trade serves as a sure method in purchasing Litecoin and removes the tension surrounding the volatile nature of an exchange. Cointal is a trusted site that allows you to trade currency for Litecoin. It makes use of peer-to-peer transactions and supports almost all cryptocurrencies. Users can pay using PayPal, credit or debit cards, or their bank accounts. A user must authenticate his account, choose his method of payment, and simply specify the amount of Litecoin they want to buy (or the amount of money they are willing to spend). Several trade options will appear on the screen and the user can choose any that suits him. And as always, in order to store the cryptocurrency safely after purchase, the use of a cryptocurrency wallet is recommended.
The video linked below will guide you through buying litecoin on Cointal:
Choosing a Wallet
In order to buy any cryptocurrency, you will need to use a cryptocurrency wallet. This is a software that allows you to easily store and manage your private keys (secure digital code known only to you and your wallet) and public keys (a public digital code associated to a certain amount of currency). Simply stated, a cryptocurrency wallet is like a safe locker for your cryptocurrency. It is strongly recommended to never store your Litecoin on an Exchange as the risk of it being stolen can be too great. Wallets are secure and prevent theft of your cryptocurrency. Ledger Nano S, Trezor, Exodus and Jaxx are a few examples of good wallets that a user can trust. After purchasing litecoin, always make sure to transfer it to a secure wallet.
Featured Image: twitter