What is Litecoin in a nutshell?
Litecoin was created by Charles Lee, a former employee of Google. It has taken the general idea behind Bitcoin, but changed a few key component:
- The block time, is 2.5 minutes versus 10 minutes for Bitcoin.
- The mining algorithm which blocks the use of powerful ASIC miners like you have in Bitcoin.
- The total number of Litecoins available is 84 million as opposed to Bitcoin’s 21 million.
How to buy Litecoin? (PayPal, credit card, bank transfer)
Litecoin, Bitcoin’s younger brother has recently taken off to new heights. Since Litecoin reached its all time high on December 2013 of $38 it then plummeted and kept a steady exchange rate of around $3 for the last 3.5 years. However recently Litecoin started booming again, many people say this is due to the fact the currency has adopted the Segwit soft fork implementations.
Today Litecoin is trading over over $40 on most major exchanges. In this post I will cover how you can buy Litecoins using a credit card, your Paypal account or wire transfers. Keep in mind that using the first two methods will probably cost more than using the wire transfer. This is due to the fact that if you buy Litecoin with Paypal or a credit card the seller takes the risk of your requesting a chargeback on your transaction.
Step 1 – Get a Litecoin wallet
Before you buy your Litecoins you should first get a wallet to store them on. Between some of the most popular wallets today for Litecoin are Coinbase, Exodus and Jaxx. If you’re looking for better security for your Litecoins you can use hardware wallets like TREZOR or Ledger to store them as well.
Step 2 – Find a Litecoin exchange
One of the main issues it’s currently hard to buy actual Litecoins is because most exchanges trade it only for Bitcoins (and not for USD or EUR). Therefor one option you have is to buy Bitcoins and then exchange them to Litecoins on exchanges like Polonix, BTC-e or Shapeshift. However, there are some exchanges that allow you to buy Litecoins directly.
eToro – Platforms like eToro don’t give you actual access to your coins and you can’t send coins from eToro to other people. The only thing that can be done with the platform is to buy and sell Litecoin for fiat currency (i.e. Dollars, Euros, etc.). Meaning this platform is good if you only want to speculate on the price. This method is only valid if you live outside of the US.
Coinbase – Allows you to buy up to $500 worth of Litecoins using your credit card. Higher limits can be achieved once you verify your identity. Coinbase accepts buyers from 33 countries around the world and the fees on the exchange are relatively low (mainly for ACH transfers inside the US).
Bitpanda – Allows you to buy Litecoin using your credit card, Skrill account, SEPA transfer or SOFORT transfer. Buying on Bitpanda requires verification and buying limits are relatively low (600 euros).
Bitstamp – One of the oldest cryptocurrency exchange out there. Bitstamp allows you to buy Litecoin through a wire transfer of USD or EUR. You can also exchange your Bitcoins to Litecoins as well.