Litecoin (LTC) was founded in 2011 as a second-generation cryptocurrency, aiming to utilise new functionality to improve on Bitcoin’s technology. Learn more about Litecoin, and how to buy and store your LTC tokens.
Introduction to Litecoin (LTC)
Litecoin (LTC) is a cryptocurrency that aims to make storing wealth and making transactions cheaper and more user-friendly. Litecoin combines strong brand recognition and neat functionality to cement its position as one of the world’s most recognised cryptoassets.
Compared to some other cryptocurrencies, LTC feels more akin to a “traditional” payments system, but it remains true to the core ethos of the sector by offering uncensored peer-to-peer transactions, secured using blockchain technology.
Litecoin (LTC) is decentralised money, free from censorship and open to all. Send low cost private, secure, borderless payments to anyone, anytime, anywhere.
Litecoin
Where to buy Litecoin
It is possible to buy Litecoin (LTC) in different ways, with most investors choosing to use a cryptocurrency exchange or trading platform. The former focuses entirely on the cryptocurrency sector, while trading platforms, such as the one offered by eToro, also offer markets in other assets, including stocks and commodities.
Cryptocurrency exchanges are categorised as being either centralised or decentralised.
- Decentralised exchange (DEX) — this is an online, person-to-person marketplace. Trades are carried out directly with another investor and buying LTC on a DEX can usually only be done using another cryptocurrency.
- Centralised exchange (CEX) — some exchanges have been set up in which the exchange itself acts as an intermediary for those looking to buy and sell LTC. Exchanges may hold positions in Litecoin (LTC) to satisfy the “buy” orders of investors.
How to keep and store Litecoin
Rapid growth in the popularity of cryptoassets meant that early-day investors were exposed to security risks based on gaps in the technology. Thanks to service providers now offering a more professional approach, there are a variety of ways to keep and store Litecoin (LTC) safely.
- Cold wallets — A cold wallet can be thought of as an external hard drive. After buying LTC, investors can download the details of the transaction to a physical device which is then held offline. This is one of the safest methods of storing LTC tokens, but it does require investors to keep the physical device safe.
- Hot wallets — Hot wallets store details of your cryptocurrency transactions online. For example, Exodus and Coinomi are specialised wallets that can be used to store cryptocurrencies, including LTC. The wallet’s security and the fees charged by providers will vary.
- Broker platforms — If you buy Litecoin using a broker platform such as eToro, your holding will be held securely in your account on that platform. Some brokers also have separate mobile wallets for storing cryptocurrency tokens. For example, investors can send LTC to the eToro Money crypto wallet for additional security.
Learn more about Litecoin
Litecoin is a layer 1 blockchain that was developed using open-source software. Much of Litecoin’s technological infrastructure is based on the Bitcoin model, but Litecoin has also implemented additional technologies in an attempt to make transactions faster and more cost-effective.
As one of the first altcoins, Litecoin has had time to establish a position in the crypto ecosystem. The supply of LTC is four times greater than that of bitcoin, meaning that the Litecoin blockchain also benefits from greater liquidity than its predecessor.
To learn more about Litecoin, consider accessing any of the following resources:
| eToro Academy | Online | A simple-to-use platform for learning about cryptocurrency, blockchain technology and the financial markets. |
| Whiteboard Crypto | YouTube | An in-depth, beginner-friendly YouTube video explaining exactly what Litecoin is and how it works. |
| Litecoin Wiki | Wiki | A Wiki operated by the Litecoin team, it contains detailed information about the Litecoin network, as well as the general cryptocurrency space. |
How to buy Litecoin (LTC) on eToro
It is possible to buy Litecoin (LTC) on eToro, a user-friendly, multi-asset broker that supports trading in a wide variety of asset classes, including cryptocurrencies. The broker’s user-friendly platform is ideal for beginners and offers investors the opportunity to buy and hold LTC.
Buying Litecoin (LTC) on eToro involves the following steps:
- Create an eToro account
New client onboarding is completed online. It involves providing personal details and following the necessary Know Your Customer (KYC) checks.
- Deposit funds
After creating an account, click the “Deposit Funds” button and decide how much fiat currency you want to deposit.
- Buy Litecoin (LTC)
Head to the Litecoin page on the eToro platform by using the search function or accessing the cryptocurrency page. From here, click “Invest” and choose the amount of LTC you want to buy. If you want to build an automated order for buying Litecoin at a set price in the future, select “Order.”
- Download the eToro Wallet
After completing your purchase, your LTC holding will show up in the Portfolio section of your account. Consider sending your Litecoin (LTC) to the eToro Money wallet on iOS and Android devices.
Final thoughts on investing in Litecoin
Interest in cryptocurrencies continues to grow. As with any financial instrument, the number one priority is ensuring that your account and holdings are secure. If you are interested in buying Litecoin, remember that cryptocurrencies are more volatile than most other assets and will require additional risk management.
Learn more about cryptoassets such as Litecoin on the eToro Academy.
FAQ
- Is Litecoin better than Bitcoin?
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Litecoin is capable of handling a higher number of transactions than Bitcoin because blocks are generated more often. Litecoin also has additional functionality compared to Bitcoin. For example, the Scrypt algorithm increases decentralisation, and the MimbleWimble protocol enhances performance and allows investors to make confidential transactions.
However, Bitcoin is the world’s most popular cryptocurrency, and so, will likely always beat Litecoin in terms of wider adoption.
- What is Proof of Work?
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Litecoin operates using a Proof of Work (PoW) consensus mechanism. Proof of Work is a technique used by blockchains to validate new transactions and ensure the distributed ledger is accurate and up to date. The time taken to complete the process varies from blockchain to blockchain and determines the speed at which transactions can be processed.
- Do I own Litecoin on eToro?
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This will be determined by your location and which eToro entity you open an account with. In line with conditions set out by global financial regulators, some accounts will hold cryptoassets as a Contract for Difference (CFD), meaning you don’t own the underlying instrument. On the other hand, in some regions, your Litecoin (LTC) will be held in your name in an eToro-managed nominee account, and you will own the underlying cryptocurrency.
This information is for educational purposes only and should not be taken as investment advice, personal recommendation, or an offer of, or solicitation to, buy or sell any financial instruments.
This material has been prepared without regard to any particular investment objectives or financial situation and has not been prepared in accordance with the legal and regulatory requirements to promote independent research. Not all of the financial instruments and services referred to are offered by eToro and any references to past performance of a financial instrument, index, or a packaged investment product are not, and should not be taken as, a reliable indicator of future results.
eToro makes no representation and assumes no liability as to the accuracy or completeness of the content of this guide. Make sure you understand the risks involved in trading before committing any capital. Never risk more than you are prepared to lose.