What is the current value of Litecoin? How can you buy Litecoin? Is LTC trading high or low? Those are the questions we aim to answer in this article as we focus on cryptocurrencies yet again.
For some, this is one of the currencies of the future. For others, it’s a lesser version of bigger and more well known currencies. So, where do we stand here at Buy Shares In and where do other experts stand?
What is Litecoin?
Litecoin is a cryptocurrency that operates on a peer-to-peer platform under open source software. It is not managed or controlled by any central banking system or authority and it was first introduced back in 2011, just two years after Bitcoin.
There are several different cryptocurrencies on the market, all with their own unique attributes. Litecoin is not really one of these and is more or less a copy of Bitcoin. However, some believe that it is an improvement on Bitcoin, suggesting that the creators took what was good about BTC and then improved upon it for Litecoin.
This is promising news for anyone looking to buy Litecoin, but that would beg the question: why is Litecoin not as popular as Bitcoin?
Will Litecoin be Worth Millions?
Some certainly seem to think so, but there are just as many who think otherwise. The truth is, no one knows. If you look at the rapid pace at which cryptocurrencies have evolved over the last few years then the smart money is to suggest that they will continue growing. If that is the case then all of the big currencies, including Litecoin, should increase in value.
However, there is no way of knowing for certain. The price of Litecoin could be 100 times more than it is now in just a year’s time, but it could also have bottomed out. If you want to buy Litecoin then you have to make the decision y0urself, because no one can say for certain. Everyone has their opinion and the reasons behind it, but only time will tell.
We have personally recommend that people buy other cryptocurrencies. We were one of the ones to tell everyone to get on Bitcoin after a slump, and within a year were were proved right when it went from $500 to $2,500. But even we have had a hard time with Litecoin. It hasn’t moved in the way that ETC and BTC have. Its future is not as bright, we have a good feeling about that, but even if it operated in the shadows of those two currencies it could still be hugely popular.
How to Buy Litecoin
To buy Litecoin, you need to be signed up to an exchange, and this is where it gets complicated. Many first-time buyers are put off by the press and by the fact that everything can feel a little dodgy if you are not used to the process.
Simply put, you need to use a third-party exchange that facilities peer-to-peer trading. You won’t actually need to buy from another user and much of this process is automated. As soon as you make a purchase, then the Litecoins will be transferred. However, before you start buying Litecoins you need to create a verified account on one of these exchanges.
To do this you are required to send a passport/driver’s license and to jump through several other hoops. It is is all standard stuff, but it can be time consuming and frustrating. As mentioned above, the distrust that is out there concerning exchanges means that some people are unwilling to go through with this. But if you stick with the major ones, such as Coinbase, then you’re safe.
There are also ways to buy Litecoin as well, as explained below.
How to Buy Litecoin Without Using Exchanges
If you signup to platforms like eToro or FxPro then you can trade in Litecoins without actually owning any and without going through a strict verification process. You are not dealing with fellow users via an exchange and are instead dealing with a major trading company who will facilitate the trades for you and will then allow you to sell immediately.
These trading programs have been discussed here on Buy Shares In already. Just bear in mind that this only works with CFD trading programs, and not with the likes of the Halifax Share Dealing platform.
They are a safer, quicker and easier way to trade. However, you don’t technically own any Litecoins and there is often a limit to how much profit you can make based on a single trade of them. If you are looking to buy Litecoins because you think they will drastically increase in value (much like Bitcoin) then this is not the way to do it. You will miss out on most of that profit because you will hit the maximum amount fairly quickly.
Some programs don’t have these maximum amounts and Markets.com is one of them. If you click the banner on the sidebar to the right, you’ll get a free £25 to trade here courtesy of Buy Shares In. We have been informed that there are also either no limits or very high limits on Trade.com.
Litecoin can also be mined into existence, of course. This is how it is product in the first place and if you have the means then you can do it too. See our Litecoin Mining page to learn more about this.
As mentioned above, Coinbase is one of the best Litecoin exchanges out there. There are more, but not all exchanges will allow you to trade Litecoin. This is often considered to be one of the top 5 cryptocurrencies, but it’s just not as popular as Bitcoin or Ethereum, and they are the ones that take priority for many exchanges
We can’t personally endorse any Litecoin exchange here on Buy Shares In because we don’t use any of them ourselves. We are certainly big fans of these currencies of the future, but we prefer the CFD trading route. And that’s not because they’re paying us to say that (we tried, but they refused).
Litecoin vs Bitcoin
So, just what is the difference between Litecoin and Bitcoin, which one should you buy, which one is better for your needs and your budget? Well, the latter doesn’t really matter. Litecoin is a lot cheaper than Bitcoin at the time of writing, but you can buy fractions of coins, so it’s not really an issue of budget.
Both of these are also very volatile, although Litecoin is considered to be the lesser currency of the two and that has created a more unstable value. The prices have been up and down as expected for all cryptocurrencies, but there is less confidence here and investors have been quick to jump ship at the first sign of trouble.
In terms of statistical and technological differences between Litecoin and Bitcoin, Litecoin has a higher limit, with around 4 times as many coins in existence. It was created two years later an at the time of writing its market cap is around 20 times less.