Litecoin is a digital currency created by Charlie Lee and is based on the open source code of Bitcoin. It has been commonly dubbed as the silver to Bitcoin’s gold. The digital currency was developed with an aim to lower transaction costs for microtransactions. It has a block time of 2 minutes 30 seconds compared to the 10 minutes of Bitcoin. The total number of Litecoin that will be mined over the course of time stands at 84 million while the circulating supply is at 56 million. Additionally, Litecoin uses the scrypt mining algorithm whereas Bitcoin uses SHA-256. Buying Litecoin is similar to purchasing other cryptocurrencies.
How to purchase Litecoin
Litecoin can be purchased on various exchanges via fiat currencies or Bitcoin. Buying Litecoin with fiat currencies can be difficult as most exchanges only trade it for Bitcoin. Hence, it is recommended to buy Bitcoin first with traditional currency and then use it to buy Litecoin. Exchanges like Coinmama, CEX or Coinbase allow purchasing Litecoin with fiat currencies. Credit and debit cards can be used for purchasing Litecoin on Coinbase. Coinmama accepts users from all around the world and has low fees compared to other exchanges when purchasing with credit or debit cards. There are other platforms like eToro which allows trading of Litecoin for fiat currency but it does not give you access to your coins. This means that users will not be able to withdraw their coins or use them in any way aside from trading on eToro. Bitpanda allows buying Litecoin with credit cards, a Skrill account, SEPA transfer or a SOFORT transfer. Buying on Bitpanda requires prior verification. Bitstamp supports buying Litecoin through a wire transfer of USD or EUR.
Buying Litecoin with Bitcoin can be done on Poloniex, Bitfinex, Bitstamp and many other exchanges. Bitcoin can be bought with fiat currencies more easily as compared to Litecoin. After purchasing the required amount of Litecoin, it is better to withdraw them to a personal wallet. Leaving coins on an exchange can be risky. If the exchange is hacked or gets shut down, you may lose all your funds.
Buying Litecoin with PayPal
To buy Litecoin with PayPal, you must first buy Bitcoin with PayPal and then convert it into Litecoin on an exchange.
LocalBitcoins is a peer to peer exchange service that allows customers to buy and sell Bitcoin with other users. Users are allowed to choose their own payment options and the rate at which they want to sell. LocalBitcoins was launched in 2012 and is based in Finland and now serves customers across the globe. Buying Bitcoin on LocalBitcoins involves finding a seller which accepts PayPal and buying Bitcoin from them. After finding a seller, simply enter the amount you wish to buy. After the seller accepts your request, you will receive their PayPal address. Now the LocalBitcoins escrow service will lock the seller’s Bitcoin. After the seller has received their payment, the Bitcoin is released from escrow. LocalBitcoins also has a rating system to leave feedback after the completion of a trade.
VirWoX was created in 2007, as a platform which allows users to trade a virtual currency known as ‘Second Life Lindens’ or SLL. This currency is used in ‘Second Life’, an online virtual world. It allows players to purchase virtual goods. It is not a cryptocurrency and cannot be used outside the game. VirWoX allows users to trade SLL and Bitcoin and also accepts PayPal. The procedure here is to buy SLL through PayPal on VirWoX. Finally, exchange those SLL for Bitcoin on VirWoX itself. Then, withdraw your Bitcoin to an exchange and convert them into Litecoin. Optionally, you may leave your Litecoin on an exchange or withdraw them to a personal wallet.
How to Store Litecoin
Litecoin and other cryptocurrencies are stored in digital wallets. Litecoin Core is the original Litecoin wallet made by the developers of Litecoin. But it downloads the entire Litecoin blockchain, which will consume a lot of bandwidth, time and storage. This may be inconvenient. A better option might be Electrum-LTC, which is a lighter version but not very secure. Other desktop wallets such as Jaxx or Exodus have multi-coin capability, which allows storing multiple coins in the same wallet. LoafWallet is a mobile wallet, created by Charlie Lee. The most secure wallets are hardware wallets such as Trezor or the Ledger Nano. There are also paper wallets available such as Liteaddress.
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