It has been over a decade since the first altcoin was introduced to the cryptocurrency world – Litecoin being one of the most well-known.
If you want to learn how to buy one of the hottest digital currencies in the cryptocurrency market – stay right there.
In this comprehensive guide, we detail how to buy Litecoin from start to finish. We also divulge some of the most commonly used crypto strategies and review the most trustworthy trading platforms in the industry.
eToro - Buy and Invest in Assets
eToro - Buy and Invest in Assets
Table of Content
How to Buy Litecoin in 10 Minutes – Quickfire Guide
In order to buy Litecoin online – you are first going to need to join a brokerage to gain access to this digital coin. Once you have decided which platform to use, you can embark on buying Litecoin with ease.
If you are yet to do your homework in this respect, not to worry, -we review the top 4 platforms shortly.
For those who are looking to buy Litecoin now, but are pressed for time – see a quickfire walkthrough below:
- Step 1: As we said, you will need to join a brokerage – eToro is used by millions and you will not pay commission to buy Litecoin
- Step 2: Complete the sign-up process including a username and a memorable password
- Step 3: As per KYC, you will now be asked for some proof of ID and address – most people use their passport and a recent bank statement for this
- Step 4: Click on ‘Payment Methods’ and select one from what’s available – input the amount you would like to deposit
- Step 5: Search Litecoin, enter the amount you wish to buy (minimum $25), and place your order.
You have just bought Litecoin at eToro commission-free!
Select a Trusted Litecoin Broker
Online brokers provide access to the cryptocurrency markets. As such you need to buy Litecoin via a trusted platform.
There is more than one way to buy Litecoin, so we’ve saved you hours of research and reviewed the top 4 platforms offering this digital currency.
Notably, we have also included CFD brokers – as this enables you to go short on LTC coins, as well as apply leverage.
1. eToro – Top-Rated Commission-Free Litecoin Provider 2021
Business is booming for top-rated broker eToro, with offices in 5 locations and more than 20 million investors and traders on its books. It's easy to see why. Not only can you easily access Litecoin, but there are also 15 other digital currencies, 49 forex pairs, 2,400 stocks, and 250 ETFs.
Moreover, you can buy Litecoin in the traditional sense, or opt to trade this crypto-asset via CFDs. In case you are new when it comes to short-term trading, this means you are able to short Litecoin and make gains if you foresee its value plummeting - as well as leverage your trades. We offer practical examples of CFDs later on.
You can relax when storing Litecoin here too, as not only will eToro look after your coins for free, but the platform holds licenses from no less than 3 tier-1 regulatory bodies. This includes the FCA, ASIC, and CySEC. Furthermore, US customers are protected by FINRA.
Did we mention that eToro charges ZERO commission? In addition to this, you can expect competitive spreads on crypto and various other assets at this trading platform. Our guide found that this averages 1.90% on LTC/USD, around 1.89% on LTC/AUD (Australian dollars), 1.98% on LTC/EUR (euros), and 1.87% on LTC/JPY (Japanese yen).
If you want to trade passively you can check out the Copy Trader feature at eToro. This allows you to copy someone with heaps of experience. Ergo, when they buy Litecoin - it also appears in your own portfolio, but proportionate to your investment. Upon signing up at eToro you will be given two portfolios - a live one and a virtual one. The free demo account will contain $100,000 in practice money and will be as near to real-world conditions as possible.
When you are ready, simply switch over to your real portfolio and deposit some funds into your account. You can then proceed to buy Litecoin from a minimum of $25, using a credit/debit card, wire transfer, or e-wallets like PayPal and Skrill.
- Easy to use trading platform with heaps of assets
- Charges ZERO commission to buy and trade Litecoin
- Multiple payment methods accepted
- No technical analysis
2. Capital.com – Newbie Friendly Litecoin CFD platform - Deposit Only $20
Capital.com serves hundreds of thousands of traders and has been on the scene since 2006. This CFD broker offers in excess of 3,000 markets - including commodities, indices, foreign currencies, shares, and of course digital currencies such as Litecoin. As we said, when trading CFDs you are not buying the underlying asset.
However, you are able to short Litecoin. This is unlike when investing in traditional assets like stocks, where you only benefit from a rise in value. This CFD broker will also allow you to trade Litecoin without paying a cent in commission fees. This means all that is left to think about is the spread. At Capital.com we found the spreads to be tight. For instance, Litecoin against the USD comes with an approximate spread of 0.4%, LTC/EUR averages 0.8%, and crypto-crypto pair LTC/BTC comes in around 2.99%.
This broker will offer up to 1:10 leverage on Litecoin for pro traders, and 1:2 for retail clients. Furthermore, Capital.com is approved by regulatory bodies the FCA and CySEC. As such, you can expect a high level of compliance and customer care when trading Litecoin - which includes keeping your money separate from the broker's own working capital.
Furthermore, if you are a newbie and are still honing in on your skills, you can check out the various trading tools on offer. This comprises webinars, financial news, and various economic calendars. Fancy having a practice run at trading Litecoin CFDs? Capital.com offers all clients a $10,000 virtual account reflecting the real markets.
This gives you the opportunity to strategize without dipping into your own crypto budget. You can begin your Litecoin trading adventures by depositing the minimum amount of $20 at the platform. This can be done via credit/debit cards, traditional bank transfers, and e-wallet.
- Trade Litecoin CFDs commission-free
- Get started from $20
- Regulated by FCA and CySEC
- No fundamental analysis available
3. AvaTrade – CFD Broker and a Wide Range of Techincal Analysis Tools
AvaTrade is another commission-free CFD broker on our list that is able to provide you with access to Litecoin. There are also over a dozen other cryptocurrency CFDs, as well as more than 1,000 markets across indices, forex, ETFs, stocks, and bonds. Our guide found the typical spread on Litecoin CFDs to be 0.6% over the market.
Furthermore, this trading platform will offer leverage on Litecoin trades where permitted. The site states that this will be 1:2 for European clients and 1:25 for non-EU traders. The latter means for every $1 you stake, you can trade with $25. There are no concerns about the legitimacy of this platform. Not only has AvaTrade been around for over a decade - but the company is regulated in 6 jurisdictions. This includes Europe, Australia, Japan, and more.
Not all Litecoin traders like to dive right in. As such, AvaTrade offers a full educational center packed with various trading videos, indicators, and strategies. You will also find lessons on crypto order types and tips on advanced trading techniques. Furthermore, you can hook your account up to MetaTrader4 and utilize the wide range of trading tools on offer there.
Before going live with real money, you may want to try out the free demo account. This enables you to trade Litecoin CFDs without risking a cent of your own money. Instead, you will be using a paper trading balance of $100,000. In terms of accepted payment methods, you will see the most commonly used. This includes major credit/debit cards and wire transfers. Some people will be able to deposit funds using e-wallets such as Skrill, Boleto, and Neteller. Finally, the minimum requirement to start trading Litecoin CFDs at AvaTrade is just $100.
- Trade Litecoin from $100
- Regulated by 6 regulatory bodies
- Litecoin CFDs come with 0% commission
- Fee payable after 12 months account inactivity
4. EuropeFX –CFD Trading Site With Several Platforms
EuropeFX is a highly rated CFD trading platform. Here you can access over 200 markets to trade, inclusive of Litecoin. If you decide to diversify your portfolio you can also access assets such as commodities, indices, stocks, forex pairs and other crypto CFDs.
As this platform is commission-free, you will of course have to factor in the spread, which is considered to be tight here. For instance, our guide found that this online broker offers a floating spread of 0.1 pips on LTC/USD. The CFD broker is fully compatible with MT4, but if you prefer, you can stick to EuropeFX's web-based platform EuroTrader 2.0. The latter still offers a generous amount of useful features, such as customizable crypto charts and indicators, one-click trading, and several timeframe options.
eFXGO is another optional platform offered by the team at EuropeFX. This includes crypto analysis, a stand-alone trading suite, analysis, charting tools, chat areas, and more. Further, if you wish, you can register for a free demo account to trade Litecoin CFDs with real-life features and practice money.
This virtual facility expires after 30-days. However, the site states you can contact customer support for an extension. To start trading Litecoin CFDs today, you will need to deposit a minimum of $200. Accepted payment types are credit/debit cards, bank transfers, and e-wallets like Neteller, SafeCharge, Skrill, and Emerchantpay.
- More suited for seasoned Litecoin traders
- Pay no commission
- Regulated and licensed by CySEC
- $25 withdrawal fee
Consider Your Litecoin Strategy
Strategies are used by both novice and expert Litecoin buyers. After all, having a plan aids you in maintaining better control over your finances.
If you don’t know where to start, you will see the two best options below.
Buy and Hold Litecoin
If you decide to buy and hold Litecoin – you are purchasing digital coins and keeping a hold of them for months or years – before selling them.
Why you might ask? Some people don’t wish to be concerned with the short-term price fluctuations this particular digital asset experiences. As such, you might be more interested in purchasing Litecoin at a low price and then selling it later on, for much more than you initially paid.
For further clarification, see a practical example of a Litecoin buy and hold strategy:
- Based on current prices, you think that Litecoin represent a good investment
- As such, you place a $300 buy order with your online broker
- You leave your LTC coins in storage for a little over 9 months
- Upon checking the price again, you see that Litecoin is now valued 21% higher than when you initially placed your order
- You quickly grab the opportunity and cash-out by placing a sell order on your Litecoin purchase
- From your $300 buy order, you made $63 in gains by holding onto your digital coins ($300 x $21%)
Importantly, you must pay some consideration to where you will store your purchase. You could sieve through the hundreds of crypto wallet apps available, and download one of those. The issue is that you then need to take on the responsibility of encrypting and securing the digital currencies yourself.
Our above example saw you storing your LTC tokens at your chosen brokerage. This is undoubtedly the safest and least complicated way to take care of cryptocurrencies. For example at eToro, you can buy, trade, and store your Litecoin investment in a regulated and safety-conscious space – at no extra fee.
If you choose to trade Litecoin, this will usually be achieved via CFDs (Contracts for Differences) at your carefully selected trading platform.
We talked about trading CFDs throughout our trusted broker reviews. This is because they are so flexible and convenient for traders of all levels of experience. If you have ever engaged in forex trading, you will know that currencies are grouped into minor, major, and exotic pairs.
In cryptocurrency trading, pairs are usually categorized as either crypto-crypto or crypto-fiat. The former will see you trading Litecoin against a crypto-asset like Ethereum – traded as LTC/ETH. Alternatively, you might look for a pair like LTC/XRP which is Litecoin against Ripple, or LTC/BTC (Bitcoin).
The most common way to trade Litecoin is against a fiat currency such as euros or US dollars. For instance, if you see LTC/EUR, you are trading Litecoin against the value of the euro.
Importantly, CFDs will track the price of the underlying security. As such, if LTC/AUD is priced at $262, the CFD will be $262 as well. This means you can trade the direction of Litecoin’s value without having to actually own it.
See an example below, to clear any confusion:
- You want to trade Litecoin against the Australian dollar via a CFD – priced at $262
- Having analyzed this market for a while now you think the pair has been hyped-up and will soon fall in value
- With this in mind, you go short on LTC/AUD with an $800 sell order
- Sure enough, 2 days later the trading platform is quoting $220 – this illustrates a 16% price drop
- As such, your speculation was well-founded and you create a buy order to cash out your $128 profit ($800 x 16%)
The thing with crypto CFDs is that you are able to make a prediction in either direction. For instance, if you think Litecoin is undervalued and will soon skyrocket in price – you simply need to go long by placing a buy order with a trusted cryptocurrency broker .
We also mentioned leverage earlier. Importantly though – restrictions and limitations will be dependant on your jurisdiction. With that said, let’s shed some light on what it entails.
See a simple example of a Litecoin CFD with leverage:
- You create a sell order on LTC/AUD and are offered leverage of 1:2
- That original $800 order is now boosted to $1,600 by your chosen trading platform
- As such, instead of making gains of $128, you have leveraged your profit to an impressive $256
As you can clearly see, leverage allowed you to increase the value of your Litecoin trade. On the flip side, had LTC/AUD gone the other way and experienced a price increase, you would have ballooned your losses 2-fold. As such, always use leverage with caution.
Where to Buy Litecoin
Naturally, you will need to contemplate where you might look to buy Litecoin. With this in mind, we have listed some commonly used methods below.
Buy Litecoin Debit Card
Our guide found that the lion’s share of online cryptocurrency platforms will let you buy Litecoin using a debit card. However, the fees can be steep. For example, both Binance and Coinbase charge between 3% and 4% on each transaction – depending on various circumstances.
In stark contrast, eToro will only charge a small deposit fee of 0.5%, for anyone not choosing to deposit using US dollars on the platform. In other words, if you pay in USD, you can buy Litecoin via debit card for free free.
Buy Litecoin Credit Card
Some platforms will allow you to buy Litecoin using a credit card. The main thing to be wary of is that you might have to pay a cash advance fee, which is typically around 3-5% of the transaction amount.
Furthermore, some trading platforms will also charge you from their end for using this particular method to buy crypto. Apart from the previously mentioned charge for not using USD, you will not pay anything to buy Litecoin via credit card at eToro.
Buy Litecoin Paypal
PayPal is one of the most well-known e-wallets of all and is considered by some investors to be the preferred deposit method. Despite the hundreds of brokers offering access to crypto-markets, not many accept this payment type.
Whether you wish to use this payment method for speed or convenience – you can buy Litecoin using PayPal at eToro – commission-free.
Crypto ATMs require the user to put fiat cash into the machine to buy Litecoin. On the screen, you will be given important details such as how many coins you will get for your offering.
Since the first Bitcoin ATM popped up in a coffee shop over 10 years ago, there are now thought to be over 10,000. They can be found all over the world, and whilst some will only enable you to buy BTC coins, there are hundreds of LTC compatible terminals. These can be found everywhere from the US and the UK to Spain, and South Africa.
Before getting ahead of yourself we should point out that these machines often come with huge commission fees. As such, you will be better off making your purchase via a commission-free broker like eToro.
We talked about the different strategies available, based on long or short-term Litecoin goals.
However, there are many simple systems you can add to build a solid strategy moving forward. See a few tips below to spark your imagination
Dollar-cost averaging, also known as ‘the dollar plan’, involves sticking to a regular investment budget.
You may check out your finances and decide you can afford to top up your investment account with $400 each month. Accordingly, you can then think about your strategy and proceed to buy a specific amount of Litecoin per week or on a specific date of the month.
For instance, with a budget of $400 a month you might decide to buy $100 of LTC tokens every Thursday afternoon, or perhaps $50 every Tuesday and Friday. As you can imagine, this is a slow but steady way to increase your collection of Litecoin, crucially, without laying too much cash on the line.
Buy the Dip
If you like the simplicity of adding dollar-cost averaging to your Litecoin strategy – you might want to also try buying the dip. In fact, both can be used in conjunction with one another when the moment takes you.
Let’s offer a simple example:
- Litecoin has had a very eventful time of late, falling in value by 23% in just a week
- Knowing how volatile this market is, you are all but certain the digital coins will soon recover
- As such, you head over to your trading platform and place a buy order on Litecoin
- This is what it means to buy the dip
In a nutshell, purchase your Litecoin whilst it is going cheap – so that you can reap the rewards in the future by selling when prices rise again.
You will have no doubt seen the word ‘diversify’ used a lot in guides like this. The reason is – it’s unwise to depend on success based on a single asset – Litecoin.
Sure, the speculative asset might be making you gains now, but everything can change in an instant in this arena. As such, why not think about investing in something completely different like stocks indices?
In most cases, the more of a contrast there is between the asset classes in your portfolio – the better. Consequently, if one isn’t doing so great, you still have various different sectors to lean on.
Litecoin Trading Signals
When looking to buy Litecoin you may have seen crypto signals advertised? Put simply, this is a free or paid-for service offering traders and investors inside knowledge on market sentiment. This is obtained either through automated robots or actual seasoned traders.
For example, at Learn 2 Trade we offer a hugely popular Litecoin Trading signals service, which is offered via our Telegram group. Our signals are sent off the back of intense and advanced technical analysis, performed in-house.
Here, we offer a free service that includes the Litecoin pair we see potential in, what price to enter the market at, and what value to input as your stop-loss and take-profit. If 3 signals a week isn’t enough you can try out the Premium account – which comes with a 30-day money-back guarantee. This will get you 3-5 crypto signals per day!
How to Buy Litecoin Online – Full Walkthrough
If you are looking to buy Litecoin for the very first time and need a bit of guidance – check out the walkthrough below. In doing so, you can buy Litecoin at regulated brokerage site eToro without paying any commission.
Step 1: Sign Up With a Litecoin Broker
We are using eToro for this walkthrough because you can buy and trade Litecoin commission-free, with no fuss – in less than 10 minutes!
Upon landing at eToro look for the ‘Join Now’ link and fill in the required information. This will include your name, location, home address, date of birth, and contact details.
Step 2: Upload Some Identification
After providing the broker with some basic details about who you are, you will be asked to upload some identification. This is standard amongst all regulated platforms.
The fastest ID for eToro to process is a passport. Once that is done, all you need to do is upload a copy of a recent utility bill or bank statement to confirm your address.
You may leave the documentation part right now, but this must be done before you are able to make a withdrawal later on. The document verification takes minutes regardless, thanks to automated ID validation.
Step 3: Deposit Funds Into Your Account
Once you have opened an account you will then need to make a deposit. At eToro, you can choose from a debit/credit card, Paypal, Neteller, and Skrill. This will be credited to your account instantly.
Enter the monetary amount you wish to deposit in the relevant box and confirm.
Step 4: Buy Litecoin
Now that you have deposited funds, enter ‘Litecoin’ into the search box at the top of the page.
Then, an order box will appear like the above. All you need to do is enter the amount you wish to invest – ensuring you meet a $25 minimum.
Finally, click on ‘Set Order’ to buy Litecoin commission-free!
When you are weighing up your options and considering how to buy Litecoin – consider focusing your attention on more than one asset, to hedge against crypto volatility.
Never go into the cryptocurrency market blindly or naively, so make sure you have one strategy or more lined up. Also, do your research and only entertain the idea of investing in Litecoin via a regulated brokerage.
At eToro, you can buy Litecoin with ease and you won’t be liable for a cent in commission. Plus, you can instantly deposit funds with a debit/credit card or e-wallet and the minimum investment is just $25!
eToro - Buy and Invest in Assets
eToro - Buy and Invest in Assets
What is the minimum amount of Litecoin you can buy?
No two brokers are the same. As such, the minimum amount of Litecoin you can buy depends on which platform you sign up with. eToro enables you to buy Litecoin at a minimum investment of just $25.
How much is Litecoin likely to be worth in 5 years?
Some crypto analysts predict that Litecoin could be worth $6,500 in 5 years time. If you would like to keep an eye on how likely this might be you will need to learn the ins and outs of technical analysis and keep tabs on reliable financial new sources.
Where is the best place to buy Litecoin?
The best place to buy Litecoin is eToro. The brokerage offers tight spreads, a variety of different markets, and is heavily regulated. If that's not enough, the broker charges ZERO commission to buy Litecoin.
How can I sell Litecoin?
The simplest way to sell Litecoin is at eToro. If you used a buy order to enter the market - simply create a sell order to cash out. The regulated broker will add the money to your trading account and you can withdraw it as you wish.
Can Litecoin make you rich?
A common misconception since the dawn of time is there there is an effortless way to get rich quick in the crypto space. However, this market is volatile, and trading Litecoin does not come without risk. Create a clear strategy, set a budget, and think about using trading signals until you learn the ins and outs of technical analysis