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Simple ways to Buy Litecoin with PayPal

Litecoin PayPal

Litecoin, often referred to as digital silver, is the largest global ‘Scrypt’ based network and has been operating uninterrupted since 2011. 

As one of the more established coins, Litecoin aims to be a P2P cashless currency for the world and is seen as an innovator for developing new tech for transaction networks: such as the Litecoin Network for instant global settlement and atomic swaps.

Buying Litecoin directly with PayPal is not really possible right now. Generally you will have to go through a broker or exchange to secure some LTC.

PayPal does however offer some advantages over other payment methods.

Buy Litecoin with PayPal on eToro

eToro is one of the first cryptocurrency providers that allow you to buy using many payment methods as well as other services. The actual process is very simple as well and one of the reasons we do recommend eToro for both beginners and experts.

Step 1: Registration

To get started, you'll need to register with eToro. It is free to sign up and you don't need to deposit right away, which means you can get used to the platform before going live.

Step 2: Deposit

Once you're happy with the platform and ready to buy for real, it is time to deposit some money into your account. Click the deposit button in the bottom left, then choose PayPal. Enter the amount you want to deposit, we'd recommend starting low before adding extra over time.

Step 3: Start Trading

Now your account is live and ready to go, the process is like any other CFD provider, you will need to search for the coin you want to buy, be it bitcoin, ethereum or whatever your preferred choice is. Hit the 'Buy' button and then 'Trade', make sure you understand your risk parameters before you jump in.

Advantages and Disadvantages of Buying Litecoin with PayPal

Pros

One of the most convenient methods
More reasonable fees than credit cards
Rapid processing
Good SSL security encryption
Suitable for bulk purchases

Cons

Pricier than bank transfers
Not available on many exchanges

Fees when Buying Litecoin with PayPal

PayPal provides a level of convenience that bank transfers do not, as well as offering reduced fees compared to credit cards.

Many people are surprised to learn that PayPal does not actually charge for payments. However, the company does charge merchants for receiving payments and that is why you will still encounter fees when you deposit to a cryptocurrency broker or exchange.

These fees are passed on to you and are sometimes referred to as ‘convenience fees’. Typically, they are less than 5%, but it is a good idea to confirm these fees before depositing to a platform. 

If you plan on taking profit regularly with repeated transactions made to a platform, you may want to consider a bank transfer to preserve more of your profit.

That said, PayPal still offers a convenient solution for people who are not tech savvy and merely want to buy Litecoin in bulk for a one-time purchase.

Is Buying Litecoin with PayPal the Best Method

As mentioned earlier, the best method for buying Litecoin will depend on the type of investor you are and your priorities.

If you value cost then there are more affordable methods than PayPal, such as a bank transfer. However, if you prioritise convenience then there are more convenient ways, such as a credit card. 

PayPal is useful because it provides a combination of convenience and speed (approx 2.5 minutes per transaction) with a fee structure that is fine for one-off transactions.

Frequently Asked Questions

  1. Charlie Lee launched Litecoin in 2011 as a "lite version” of the bloated Bitcoin blockchain.

  2. Before you buy Litecoin for the first time there are a number of things you should consider. These include the broker or exchange to use, your preferred payment method, storage options, security and fees.

  3. Brokers typically have a far simpler interface than cryptocurrency exchanges, so their ease of use is a big advantage for beginner traders who wish to make a one-time purchase.

  4. They vary widely and it is a good idea to only use recommended brokers and exchanges. Look for one that employs two-factor authentication (2FA) for security, an authentication mechanism that requires users to provide two pieces of digital evidence for verification. If you have coins on an exchange, withdraw them to a wallet you control.

  5. It depends. If you purchase Litecoin with an exchange instead of a broker, you will need to store your coins safely. A number of storage options currently exist with varying degrees of risk. Current options include leaving the coins on an exchange, moving them to a mobile or desktop wallet , or moving the coins to a hardware wallet like a Ledger Nano. If you are happy just to buy exposure to Litecoin price movements, consider a broker.

  6. When you trade Litecoin on a cryptocurrency exchange you will be subject to numerous fees, including exchange fees, blockchain fees and in some cases gas fees. Litecoin brokers offer a platform where you can speculate on the LTC price without these fees and without costly slippage — this is when a market order is executed at a different rate than was set in the order.

  7. Yes. Litecoin will never produce more than 84 million coins compared with Bitcoin’s 21 million coins. This disparity will likely not matter in the long run, as Litecoin is attempting to be a point of sale (P2P) currency, while many argue that Bitcoin has diverted from that vision.

  8. Litecoin has been a staple of the top 20 coins on the cryptocurrency market cap for years now. With cryptocurrency only beginning to see real adoption, Litecoin could be well positioned to capitalise on the switch to digital money.

  9. Private keys are a sophisticated form of cryptography that allows a user to access his or her Litecoin. If you lose your private keys, you lose your coins.

  10. than Litecoin’s blockchain is seeing currently.