If you are thinking about venturing into cryptocurrency, consider investing in Litecoin. Litecoin is one of the oldest digital coins and continues to grow in popularity thanks to its high liquidity and accessibility. LTC is also widely accepted across the globe, making it easy to spend and swap. Read on for a complete step-by-step guide on how to invest in Litecoin (LTC).
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1. Pick a crypto exchange
The first step to investing in Litecoin is choosing a suitable crypto exchange. An exchange helps you ensure cost-effective transactions and the safety of your digital assets. It is also easier and more secure to convert Litecoin to USD via a crypto exchange. With that being said, there are many third-party brokers in the market, so choosing the right one can be challenging. Here are factors to consider when selecting a crypto exchange:
- Supported currencies. Ensure the exchange you pick supports different digital coins, including Litecoin
- Transaction charges
- Ease of use
- Security
- Reputation
- 24/7 customer support
2. Open an account
Once you identify a suitable crypto exchange, proceed to create an account. To sign up, you need to provide a valid ID, email address, and state of residence, then create a solid password to secure your account. Most crypto platforms do not charge fees to sign up for an account.
3. Deposit cash into your account
Once you have successfully created and verified your account, deposit money to start trading. There are various ways to fund your account, including linking the account to your bank account or paying via a debit or credit card. You could also use a third-party channel that is widely acceptable in your country.
4. Purchase Litecoin
You are set to make your first Litecoin purchase once you deposit cash into your account. Depending on the crypto exchange platform or app you pick, buying Litecoin could be as simple as clicking “buy” and then choosing the amount you want to invest. Once you complete the transaction, you will likely own partial coins or full coins. For instance, if a single Litecoin goes for $200 and you invest $200, you will own 1 LTC. If you make a $100 purchase, you will have 0.5 LTC.
5. Store your LTC
Most exchange platforms feature built-in personal digital wallets that enable users to store their digital assets. You could keep your Litecoin in these wallets or cash out your investment.
With that being said, Litecoin provides users with various offline digital wallet options to keep their holdings. Offline wallets are not connected to the internet, reducing the chances of losing your investment to hackers. If you are wary of cyberattacks and fraud, the following are separate offline wallets where you could store your Litecoin:
- Paper wallets. A paper wallet, also known as a cold wallet, requires using a private key to transfer funds. For a paper wallet, you should print your personal keys and recovery passcode on paper and store it securely.
- Hardware wallet. This digital storage option requires users to store private keys in a hardware device and enables you to access your wallet without exposing data to a third party. The hardware devices can be linked to your smartphone, PC, or tablet to trade Litecoin. Hardware wallets supporting Litecoin include BitBox, Leger, and Trezor.
Endnote
To invest in Litecoin, choose a crypto exchange, open an account, deposit cash, buy, and store your LTC. With that being said, ensure you conduct in-depth research before investing in Litecoin to minimize the risks involved in trading cryptocurrency.