How to buy Litecoin in the UK: The Ultimate Guide

How to buy Litecoin in the UK: The Ultimate Guide

Litecoin has had a fantastic 2017, so far. Having started the year trading at roughly $7 USD a piece, Litecoin just smashed the $100 USD mark for the first time ever. At time of writing, LTC is sitting comfortably at around 90 bucks a coin. That’s a year-to-date increase of more than 1,000%, more than both Bitcoin and Ethereum.

Broker Pros Min Deposit Coins Available Open Account
FCA Regulated Copy Crypto Traders 83% CryptoFund Return £500 Bitcoin, Ethereum, Litecoin, Ripple, Dash Buy Litecoin
24 Option EU Regulated Multiple Coins Available CFD Trading $100 Local Currency Buy Litecoin

Buy Litecoin (LTC) UK

The best way to take advantage of these lucrative gains in the UK is via the regulated brokerage firms below. That way, there’s no chance of getting your coins stolen or ‘lost on the blockchain’. By using brokerage firms such as eToro, Avatrade, and Plus500, you can trade with confidence because these brokers and fully accountable and have numerous measures in place to protect your money.

Buy Litecoin UK

They offer the easiest and safest method to buy Bitcoin, buy Litecoin, along with other cryptocurrencies.

Buying Litecoin via an exchange and storing them on a cryptocurrency wallet can be a tricky and confusing process and it’s very easy to end up losing coins by sending funds to the wrong addresses or misplacing passwords etc. With brokerage firms, there’s no chance of this happening because you don’t own the coins, but you can still benefit from surges (and corrections!) thanks to leveraging, margin trading, and Litecoin CFDs (more on these later!).

What is Litecoin?

So, if you’re thinking you might like to buy Litecoin, you’ll probably want to know a little bit about what it is. Litecoin is cryptocurrency like Bitcoin. It can be used to buy goods and services on the internet and is a pure currency, meaning it exists purely to be spent and traded and doesn’t, like Ethereum and others, serve as a network for other blockchain-based activity.

Litecoin is a decentralized, peer-to-peer cryptocurrency. It’s the world’s fifth most popular cryptocurrency (at time of writing), per CoinMarketCap, in terms of market capitalization. In 2017, the coin has enjoyed unprecedented gains in value and popularity, rising roughly 750% in the first six months of the year alone.

Unlike other coins which are more accurately categorised as digital assets, Litecoin is a cryptocurrency in the truest sense of the word. Like Bitcoins, Litecoins are intended to be used solely to buy and sell goods on the internet. So, the coins don’t serve as tokens or stock in a corresponding software development project or projects (as is the case with many altcoins). Instead, it’s the coins themselves which are the ‘end-product’, so to speak.

Launched just two years after Bitcoin in 2011 by Charlie Lee, Litecoin was originally introduced with the goal of being, in Lee’s words, ‘the silver to Bitcoin’s gold’. Nowadays, some are beginning to suggest Litecoin may one day surpass Bitcoin in value and influence; given its rampant bullishness, it’s easy to see why.

What’s special about LTC?

Litecoin functions in much the same way as Bitcoin. It runs on a blockchain comparable to that of Bitcoin and it’s a decentralized, peer-to-peer cryptocurrency – again, like Bitcoin. So, why favour Litecoin over Bitcoin?

Well, Litecoin’s biggest selling point and the thing which makes it special is its speed and its scalability. Litecoin’s mean block-processing time is 2.5 minutes whereas Bitcoin’s is ten so that’s one definite advantage. As well as saving time, this is beneficial for investment purposes because users end up spending less in transaction fees compared to with Bitcoin.

Another plus when buying LTC is its capacity for scalability. Without wanting to get too technical, Litecoin is structured in a way which means that even as activity on the blockchain grows, processing times remain steady. Additionally, there are far more Litecoins in existence than there are Bitcoins.

Blockchain

As stated, Litecoin is a blockchain-based currency, like Bitcoin and all other cryptocurrencies. But, what is blockchain technology?

Blockchain technology is a relatively new method of keeping records and exchanging data in an open, decentralized and allegedly incorruptible manner.

‘Distributed database’

Described officially as a type of ‘distributed database’, it is used to maintain a continuously growing list of records called ‘blocks’ (more on these later).

Blockchain technology is growing in popularity as more and more companies and indeed individuals begin to recognize its potential for ‘cutting out the middleman’ within a variety of industries and sectors.

It’s essentially an open ledger which records the transference of goods, services and of course currency.

Autonomous

The advantage blockchain technology has over more traditional forms of ledgers and other methods of recordkeeping is that it is completely transparent and, for all intents and purposes, pretty much autonomous.

All parties contributing to the blockchain retain an up-to-date, synchronized version of the database (hence the name, distributed database), eliminating the possibly of backhand deals or any other shady goings-on of that nature.

Transactions

Each new transaction must be approved by usually five or six (unless otherwise specified for added security) ‘nodes’ (other participants or traders on the blockchain). This is to guarantee authenticity and to guard against duplicate transactions and fraud. This process occurs automatically.

The blockchain is simply a continuous chronological record of every transaction that has ever been successfully executed.

It is constantly growing as ‘completed’ blocks, containing all the most recent transactions, are added to it with a new corresponding set of recordings.

Continuing with the analogy of blockchain as physical ledger, a new block is a bit like a new page being added to the record or ledger.

Mining

New blocks must be discovered or ‘mined’ (to use the technical term) to facilitate this process of updating the record or ledger.

This involves many nodes (people who want to earn Bitcoin) using their computers (often vast setups of many linked computers) to solve complex algorithms – hence the ‘crypto’ in cryptocurrency.

Don’t worry if this is all a bit confusing. Although it is useful to have a basic understanding of blockchain technology, you don’t need to be an expert to buy Litecoin via CFDs and earn money. Just like you don’t have to be able to build an iPhone to invest in Apple.

Litecoin (LTC) – recent behaviour

As mentioned, Litecoin has performed exceedingly well recently and reached an all-time high of approximately $111 USD in late November 2017.

It’s dipped a bit since then and it is now trading at a little under $100 USD, at time of writing. So, now might just be the perfect time to buy as it’s possible another surge is on the horizon. Coins tend to dip following a big surge and we’d always encourage traders to ‘buy on the dip’, as they say.

Alternatively, if you take out a CFD on Litecoin, you have the option to short it. By this, we mean wait for the coin to increase in value once more and then bet on the coin falling. This is an effective technique and is another advantage of trading via a brokerage firm. If you own Litecoins, you cannot benefit from dips and corrections.

Buying Litecoin – Shall I do it?

Now’s a perfect time to buy Litecoin as it looks set to soar again in the near future. We’d recommend opening an account with eToro (or one of the other brokerage firms we recommend), and investing via CFDs. Don’t worry, this page will take you through the process of setting up an account with eToro and buying Litecoin (the process is the same to buy Bitcoin and buy Ethereum). So, you’ll never feel lost or overwhelmed even if you’ve never traded before! This guide has been specifically tailored to cater to new traders.

Should I Purchase Bitcoins or Altcoins?

Bitcoin is the original cryptocurrency. It has consistently silenced the very vocal mob of naysayers who often claim that the coin is a bubble akin to the Dotcom boom of the late nineties and early two-thousands which is doomed to burst in spectacular fashion, leaving investors out of pocket.

Honestly, even if Bitcoin is a bubble, there have been so-called bubbles which last for decades so, bubble or no bubble, you can still generate good returns by buying Bitcoin.

However, many altcoins, such as Litecoin, may be better to buy at this stage because many of them are yet to have their Bitcoin moment, so to speak. Bitcoin’s gains are impressive but, in terms of percentage, many altcoins such as LTC put even the likes of Bitcoin to shame.

Where to buy Litecoin online

If you’re looking to buy Litecoins online, you have basically two options. You can buy them directly or indirectly. Buying Litecoin directly means you own the asset and must go through several stages to own it. This process can be tedious and time-consuming. Thankfully (as mentioned), you have another option, you can buy Litecoin as a CFD.

What’s a CFD (Contract for Difference)?

CFDs, or contracts for difference, give you exposure to the price fluctuations without having the hassle of finding the correct wallet and downloading it. That is not to say that buying directly does not have its advantages. However, utilising CFDs means you can benefit financially even when a coin dips in price, if you’re smart, which obviously you can’t do if you own a coin outright.

eToro – Advantages of CFDs

eToro CFDs

Leverage – Reduce your risk

The great thing about CFDs is they provide much higher leverage than traditional trading. Standard leverage for CFDs starts at 2%, meaning you only have to put up 2$ of the total trade price to open a CFD on Litecoin. For other underlying assets, margin requirements can reach 20%. Lower margin requirements mean less capital requirement for investors, and greater potential returns. Although, be aware that increased leverage can also magnify losses.

When trading through CFD providers, you are exposed to two markets liquidity: What does that mean?

That means that it is a lot easier to get into and out of a trade. Having liquidity from both markets means that executions are instant. When buying directly through an exchange you only have that exchange’s liquidity. And because cryptocurrencies are so new, it often means that you get in or out of a trade a worse price because there aren’t enough buyers or sellers in that market.

This problem does not happen with brokers like eToro.

FCA & CySEC Regulated

The final point is regulation. Crypto exchanges are not regulated, meaning there is no third party to enforce security proceedings or similar processes. What does this mean? Well, for example, if you were to lose your cryptocurrency wallet password, there is no customer support to help you gain access. Once it’s gone, it’s gone!

Regulation requires these types of services from brokers. If the same scenario occurred with eToro, you would have to go through a few security checks but ultimately you would not lose the funds in your account.

Other Advantages of using eToro:

  • Crypto CopyFund
  • Accepts PayPal and multiple other payment methods
  • Very low spreads and almost zero fees
  • How to buy Litecoin in the UK – Step-by-Step Guide

How to buy Litecoin in the UK – Step-by-Step Guide

Okay, so let’s run through how to buy Litecoin, via a CFD, using eToro’s cryptocurrency trading platform. Don’t worry, it’s a very quick and straightforward process and we are going to take you through the process, step-by-step. So, let’s dive in and buy Litecoin!

First, log on to eToro to arrive here:

Homepage

The homepage may have changed slightly by the time you get there but don’t worry, the steps will be the same… Click on the ‘Join Now’ button to arrive here:

As you can see, eToro asks you to enter your name, email, and phone number, and to create a username and password. So far, so good.

Please note: If you’d rather, eToro also gives you the option of signing up via Facebook or Google Plus but for this guide we’re going to do it the normal way.

Fill in your details and click on the blue ‘Create Account’ button to arrive here:

eToro trading dashboard

As you can see, eToro immediately takes you to the main trading dashboard. Here you can see some of the top forex indexes, along with popular stock options. Obviously, we are only concerned with buying Litecoin so let’s click on the ‘Trade Markets’ button on the left-hand side of the screen under the ‘DISCOVER’ subheading to arrive here:

Here you’ll find a list of all the options eToro offers and, as you can see, cryptocurrencies (including Litecoin itself) feature in a prominent position. To buy Litecoin, simply click on the blue Litecoin (LTC) tab and you’ll arrive here:

As you can see, eToro provides plenty of info, user comments and stats relating to Litecoin along with a short description of the coin.

What eToro says about LTC:

“Boasting a market cap of over $1.5B, Litecoin’s technology is very similar to that of Bitcoin. Introduced in 2011, this cryptocurrency has faster processing times and an increased number of maximum coins. LTC price is affected by movements in Bitcoin’s price and general trends in the cryptocurrency market.

Click on the blue ‘Trade’ button in the top right-hand corner of the screen and eToro will generate the following dialogue box:

As you can see, eToro generates a popup dialogue box to allow you to choose exactly how much Litecoin you wish to buy via a CFD and how you’d like to leverage said CFD.

So, choose the amount you wish to buy/leverage and click the blue ‘Open Trade’ button and you’ll arrive here:

‘Let’s get to know you better’

Once you’ve done that, eToro will take you to the above page in order to obtain some additional information on you for security reason. Don’t worry, this is a quick and easy process.

Click on the blue ‘Continue’ button to arrive here:

Enter your name, gender, and birthday, and click on the blue arrow on the bottom right-hand side of the box to arrive here:

Now, enter in your address and tick the box if you are buying Litecoin in the UK to confirm you are not a US citizen and were not born in the US (if applicable) to arrive here:

Trading experience

Now, eToro wants to get an idea of you trading experience so simple click on the icon which best describes your trading experience and click on the blue arrow to arrive here:

Now, click on the icon which best describes your trading knowledge to arrive here:

Why Litecoin?

eToro wants to know why you have chosen to trade Litecoin so, again, click on the icon which best sums up the purpose of you trading and click on the blue arrow to arrive here:

Answer the questions to give eToro an idea of your attitude to risk (including the question shown in the below screenshot), and click on the blue arrow.

Once you’ve answered all the questions as accurately as you can, click on the blue arrow to arrive here:

 Answer the questions re your financial status and click on the blue arrow to arrive here:

Success! Read the above message carefully and click on the blue ‘Continue’ button to arrive here:

Almost ready!

Almost ready to start trading now. Just fund your account using one of the many approved methods of payment which eToro supports and hey presto, you’re free to trade and buy Litecoin to your heart’s content. Simple, right?

To do this, simply navigate back to the Litecoin page (click on ‘Trade Markets’ and then select Litecoin from the list) and open the buy Litecoin dialogue box (as shown earlier) and specify how much Litecoin you’d like to buy and how you’d like to leverage it.

Buy Litecoin through exchanges

As well as taking out a CFD on Litecoin using eToro or one of the other reputable brokerage firm websites, you can also buy Litecoin directly via exchange websites such as Coinbase, Poloniex, and Kraken.

Coinbase is one of the more reputable exchange sites so here’s a brief rundown of what they offer:

Coinbase Coinbase

It is the easiest and fastest way to buy bitcoins:

It offers you the possibility of having your wallet with them and of buying or selling cryptocurrencies as bitcoins in a very simple way. If you sign up with my invitation, You will earn $10 when you buy or sell $100 or more of bitcoins, Ethereum or Litecoin.

  • If you do so via bank transfer, you’ll have to wait 1-2 days (1.5% commission)
  • By using a credit card you can buy them instantly (3.5% commission)
  • You can also use your Paypal account for instant transactions (3.75% commission)

If you do lots of shopping and want to speed up the process of buying Litecoins and other cryptocurrencies, it is best to link a debit/credit card or bank account to your account. Once you’ve done this, you can purchase Litecoins very quickly and these will be deposited in your exchange-hosted wallet.

Buying Litecoin through Coinbase is definitely the easiest way to get your hands on Litecoin tokens. You can’t buy them directly through any other means, which is why Coinbase is so popular.

Commissions when buying Litecoins directly

If you choose to buy Litecoin via an exchange such as Coinbase you’ll have to pay a commission each time you buy Litecoin or sell Litecoin.

The amount you will be charged will depend on the exchange you are using but usually lies between 1% and 5%.

To encourage you to buy more Litecoins, Coinbase lowers the rate based on how many you purchase, which is a rather sneaky tactic. Coinbase charges a commission of roughly 1.5% when you buy and sell Litecoin.

So, buying Litecoin via Coinbase or another exchange will cost you more than it would if you were trading CFDs with Litecoin serving as the underlying.

Buying Litecoin with Paypal

If you want to buy Litecoins with Paypal, eToro (and other comparable brokerage sites) makes this very easy for you. However, if you wanted to actually buy the asset, it’s slightly trickier.

Coinbase only allows you to buy Litecoin with Paypal if you are a US citizen, which is annoying if you don’t live in the US. For this reason, it is best to use eToro if you want to buy Litecoin using Paypal.

Buying Litecoin with Credit Card

If you want to buy Litecoin using a credit/debit card, you can use either eToro or Coinbase. One advantage eToro has over Coinbase and most other exchange sites is the speed at which you can get verified.

With eToro you can buy Litecoins almost immediately, whereas with Coinbase the verification process can take days or even weeks. This is another reason why we’d recommend sites like eToro over exchange sites like Coinbase.

Coinbase also enforces annoying limits on how much you can deposit and how much you can withdraw which can be very frustrating for traders who want to buy Litecoin and sell Litecoin quickly.

Broker Pros Min Deposit Coins Available Open Account
FCA Regulated Copy Crypto Traders 83% CryptoFund Return £500 Bitcoin, Ethereum, Litecoin, Ripple, Dash Buy Crypto

Coinlist’s Litecoin Recommendation

As you’ve no doubt seen, buying Litecoin is incredibly easy and straightforward so what are you waiting for? Why not take this opportunity to enter the most exciting market in the world: the cryptocurrency market!

Litecoin is a great little coin with a solid development/support team and a proven track record. Charlie Lee, it’s creator, maintains an active presence on Twitter and often informs his many followers of upcoming announcements/changes re the coin so we’d recommend following @SatoshiLite on Twitter – it’s a bit like legalised insider trading!

Buy Litecoin via eToro

As explained, we’d recommend buying Litecoin via the eToro cryptocurrency trading platform using CFDs to give yourself the best chance of turning a tidy profit from trading Litecoin. Obviously, you should make your own decision on this but we really believe that for beginners who are new to cryptocurrencies and maybe even new to trading altogether, eToro (or one of the other reputable brokerage firms we recommend), is the easiest and the safest option.

Thanks for reading and good luck on your quest to buy Litecoin. Happy trading!

How to buy Litecoin in the UK: The Ultimate Guide
Rate this post