In this article we discuss the different methods in which you can buy Litecoin. We will also show you who we think are the best Litecoin brokers and what is the best way to continue trading with Litecoin.
Types of trading platform
A broker is nothing more than a company that owns a large amount of Litecoin which buys and sells it. So consider it a bit like an “Litecoin store”. The price they ask for their Litecoins are often based on the current price, this also includes extra rates that they charge for their service.
Brokers often simple and clean websites. Which is great for many because it is usually the first step they put into the world of cryptos.
Brokers usually have their own inventory of Litecoin, and because this stock is limited it can always run out. Below is a top 3 list of the most popular places to buy Litecoin in the UK:
|€ 50, –||no|
|€ 75, –||no|
|£0, –||$10 free in bitcoins|
ONLINE TRADING PLATFORM
These types of websites are concerned with connecting buyers and sellers of Litecoin and other cryptocurrencies. Unlike brokers, these platforms usually dON’T have their own inventory of Litecoin. This means that you can not go there often if you really want to buy Litecoins. But this is a place where you go if you want to trade your Litecoin against other currencies or actively buy and sell on the fluctuations.
A trading platform is kind of like a marketplace where people can place purchase and sales orders for Litecoins. It also has other useful functions such as stop-loss limits etc. A trading platform is essential for trading Litecoins and other cryptocurrencies, because this is the place where the value of the crypto is derived from.
If your goal is to get the most out of your investment of Litecoin, a trading platform is one of the best places to leave your currency. You can benefit from fluctuations in the price of Litecoin on such a platform (only CFD is more optimal).
You can simply do this by selling your Litecoins on the tops and buying it back in the dumps. Something that is immediately possible on such a platform.
The only drawback of a trading platform is that it can be quite overwhelming for new users. In addition, there is often no option to buy Litecoins directly via an exchange. This is normally bought at a broker and then transferred to an exchange.
Below a top 3 list of the most popular online trading platforms to trade Litecoin:
ONLINE CFD TRADING PLATFORM
For most people, Litecoin is a great piece of technology and they want to buy the coin, not just to use but also to support the network!
But for many investors, Litecoin is a great opportunity to get a higher return on their investment. Especially when you look at the growth in the price that Litecoin has made over the past six months, it is clear why more and more people are willing to take advantage of this opportunity.
One of the best ways to take advantage of this growth without having to buy Litecoin personally is with a CFD trading platform. The abbreviation CFD stands for “contract for difference”. As the name implies, this is a contract between two parties. So you will not trade in Litecoin but in the CFD’s of Litecoin. This brings many benefits.
Firstly, as mentioned earlier, you do not need any intermediate steps such as choosing a wallet, storage etc … Litecoin CFD trading is done with a simple push of a button!
Secondly, within a CFD you have to deal with a concept that is called “leverage”. The advantage of leverage is that you can make more profit with smaller amounts than with a traditional platform.
Thirdly, within a CFD trade you not only have the opportunity to benefit from an increase in the price of Litecoin (long), but also the option to make a profit on the falls (short).
An investor, after some research, concluded that Litecoin will increase in value. He opens a CFD position (long) for 10 Litecoin worth 2000 (10 times 200) pounds.
Normally the investor would have to invest 2000 euros for this; but to keep the CFD open, the investor must only have a certain margin on his account. Set the margin is 10%; the investor must then keep 2000 x 10% = 200 pound margin on his account.
In general, CFD platforms are better suited for beginners who have just started trading. There are several reasons for this, the clear design of the website helps prevent a lot of confusion, this is also accompanied by the absence of many intermediate steps. But in addition, many CFDs offer the option to create a demo account. Where you can trade with virtual coins. This is a very useful way to see if you are making the right decisions and how the cryptocurrencies trade proceeds. All of this without risk of your own capital!
Suppose the value of litecoin rose from 200 to 210 euros. Then the investor’s profit is the starting – end price. Either 2200-2000 = 200 euros. A profit of 100%!
The disadvantage of CFD trading is that you always have to keep the margin, a minimum amount of the total, on your account.
Below are the three most popular CFD platforms for Litecoin and other cryptocurrencies:
|€ 100||Up to € 7500|
COPY TRADING PLATFORMS
Would you like to trade in Litecoin but do not trust your own skills, or would you rather leave it to someone with more experience? Then Copy Trading might be a good alternative for you!
Copy Trading is a fairly new phenomenon and it works as follows. You can follow other experienced investors and copy their steps. The Copy Trade platform always see how much success the investor has scored in the past and what his average percentage is ROI.
This investor, however does not do it for nothing, he or she gets a percentage of the platform as a reward! This costs the people who participated, of course, nothing extra, and is thus a win-win situation for both parties. Furthermore, Copy trading is identical to CFD and is also worked with and acted on.
Most Copy Trade platforms allow you to automatically follow someone. In addition, it is also possible to become an investor that people follow. So it’s a very attractive platform for both new and aspiring investors.
Below are the three most popular copy trading platforms for Litecoin and other cryptocurrencies:
|Differs per broker||No|
OFFLINE TRADING PLATFORM
Unlike Bitcoin, you are quite limited with buying Litecoin if you want to do that offline. There are no special platforms available yet to offer you this option.
- Go to LocalBitcoins and look for a person / trader who sells Bitcoin in the UK for cash. Check his reputation by reading the experiences and reviews from other people.
- Put your purchased bitcoins in an exchange such as Binance or Coinbase .
- Convert your bitcoins to litecoin within those exchanges.
- You can now choose to leave your litecoin in the wallet of the relevant exchange, or to transport it to your own wallet.
How do you rate an Litecoin seller / trading platform?
CHECK THEIR REPUTATION
One of the first things you have to do is of course see if it is a reliable trading platform. This can be done by:
- Google the name of the site + “review” and study the result.
- Read the “About us” page of the Litecoin seller / dealer.
- Ask forums for the experiences of other users, a nice example is bitcointalk
VOLUME AND TRANSACTION COSTS
A good sign of trust is a trade or broker that sells and buys a large volume of Lition. You can often see this on their website.
It is also wise to look at the transaction costs that the broker uses. Do not underestimate this point. That way you can get the most out of your investment! The few euros difference count quickly to a larger sum that you prefer to put in your own pocket.
EXPENSIVE VERIFICATION PROCESS
Some platforms may use a certain form of identification of your requirements for you to use their service. This process can consist of a photo of your ID or passport or transferring an amount (usually 1 cent) to verify your bank account.
This process can sometimes take up to 2 days with some brokers, and is something that still needs to be checked manually.
Can I buy and sell litecoin anonymously?
In our article; buy bitcoins anonymously we explain exactly how you do that with bitcoin. It is a difficult process but it is indeed possible if you have an online service like Local bitcoins used . The only extra step in this process for Litecoin is that you only have to transfer the purchased bitcoins to litecoin.
Litecoin online payment methods
BUY LITECOIN WITH A CREDIT CARD
There are only a limited number of UK brokers offering the option to purchase Litecoin with credit card.
The biggest advantage of using a credit card is that you have the extra security of your credit card company if a payment does not arrive. But it is not wise to fully rely on that, and there are cases where the total amount has not been sent.
It is also possible to buy your Litecoin at Coinbase, but then you have an intermediate step. You first have to purchase Bitcoin and then exchange it to Litecoin within their own wallet.
TIP: For the people who would like to pay with paypal, that option is possible but requires a hefty number of intermediate steps. For that reason we strongly advise against using Paypal to get your Litecoins.
BUY LITECOIN BY BANK TRANSFER
Of course you can also buy your Litecoins by transferring traditional money to your broker. This process takes longer, because a normal bank transfer can usually cost a working day. One of the reasons that makes Blockchains so popular is the transaction speed is minutes rather than days.
The advantage of bank transfer is that you often pay much less on transaction costs. The disadvantage is that you are in a hurry to buy your Litecoin, this is far from optimal.
BUY LITECOIN WITH CASH
Unfortunately there is no website like Local Bitcoins that offers Litecoin just like Bitcoin. But chances are that in the future you can do this.