Litecoin is one of the oldest and most tested assets in the world of crypto. Litecoin was created by Charlie Lee, a former Coinbase engineer, in 2011 and has been a top 10 crypto by market cap for most of its existence. Litecoin shares similarities with bitcoin and often acts as a testnet where future upgrades to bitcoin are implemented to ensure that they function properly. Unlike Bitcoin, the Litecoin protocol has 4x shorter block times which allows the blockchain to process transactions quicker. This gives holders of Litecoin the ability to quickly and cheaply transact using LTC. Various crypto exchange platforms, such as Coinbase, Coinmama, and BitPanda, offer online purchase of Litecoin via a credit or debit card. This includes payment with Mastercard or Visa. Fees are typically around 3-4%, with Coinbase fees being 3.99% for a Litecoin credit card translation. Beaxy is currently exploring direct support of Litecoin buys with credit and debit cards. We currently support direct buys of Ethereum and Bitcoin with credit and debit cards. Beaxy offers the ability to connect your bank account and purchase Litecoin from our exchange. The process is typically instant, allowing you to immediately trade once you connect your bank, using a variety of different FIAT currencies. Currencies supported include USD, EUR, JPY, CAD, AUD, and GBP. You can also use Paypal to convert cash into Litecoin.
Via crypto to crypto transactions. The other way to purchase Litecoin is by swapping from one crypto to another. On Beaxy we offer the ability to swap Bitcoin for Litecoin directly. So to access Litecoin in this scenario you would need to purchase Bitcoin first, then trade it on the market for Litecoin. On Beaxy, you can buy or sell LTC by using other digital currencies like Bitcoin (BTC). Follow the steps below to learn how to buy or sell LTC on Beaxy.
1. Open an account on Beaxy
Before you can make financial transactions on Beaxy Exchange, you must register and verify your account. Start by going to Beaxy.com and completing the registration form. Once you have registered, you will need to verify your personal information in order to remain compliant with KYC and AML regulations. You can verify your account by submitting a driver’s license if you are in the United States or a passport if you reside in a country outside of the United States.
2. Purchase Bitcoin
Beaxy will soon offer LTC buys and sells directly with fiat currency. Until that technology is implemented, you must use BTC in order to acquire or sell LTC. To get BTC, you can enter the Simplex portal and use your credit card details to purchase BTC. Once you have established and verified your information with SImplex, navigate to their portal, and enter the amount of your chosen fiat currency that you want to spend on BTC. Be sure that the amount of BTC you are buying is enough to eventually cover the amount of LTC you wish to own.
3. Exchange BTC to LTC
Now that you have purchased BTC with your credit card via the Simplex portal, you will see the BTC in your wallet on Beaxy. Now, all you have to do is find the LTC-BTC pair on the exchange. Select the type of order you wish to submit and enter the amount of LTC that you wish to buy, and if applicable, the limit price that you wish to pay for the LTC. The order form will show you how much BTC you will need to spend to buy the amount of LTC that is entered into the order form.
LTC value and price
On 10th June 2020, the cost of Beaxy was 0.0047 BTC, and its market cap was 2,886,504,330 dollars. It is ranked 7 amongst all cryptos with a daily volume of 1,717,000,000 dollars.
LTC advantages and disadvantages
Litecoin is often referred to as “silver to Bitcoin’s gold”. This is because the Litecoin protocol was developed, in part, to act as a test net for upgrades that would be deployed to the Bitcoin blockchain. Whenever an idea for an implementation to the Bitcoin code arises, developers will deploy the code on Litecoin’s blockchain first to ensure that works property and any bugs that are found can be addressed before they otherwise create larges consequences on the Bitcoin protocol.
2. Faster transaction confirmation
The Litecoin blockchain has a larger block size than Bitcoin and is thus able to be more nimble. Currently, the Litecoin protocol can process roughly 56 transactions per second. This is almost 20 times faster than Bitcoin, which can process anywhere from 3-7 transactions per second.
1. Less scarce
The Litecoin digital currency, LTC, has a maximum supply of 84,000,000. This is four times greater than the amount of Bitcoin (BTC) that will ever exist. This means that LTC is much less scarce and wouldn’t be considered as good of a store of value as the stock-to-flow ratio of LTC is much less appealing than that of Bitcoin.
Best LTC wallet – how to choose
Before you acquire any digital currency, you must have a plan in place that outlines how you will securely store it. There are a variety of options available that are referred to as a wallet. There are two primary types of digital currency wallets. They are called cold storage wallets and hot wallets. The difference between the two is that cold storage wallets are not connected to the internet in any way. The hot wallet, on the other hand. Is connected to the internet and may be custodied by a third party. This means that if you are using a hot wallet you may not have access to your private key.
To decide how you want to store your digital currency first consider the length of time you want to store it for and the frequency with which you will send or receive digital currency to this wallet. If you want to hold your LTC for a long time and don’t plan on spending any of them for years, the recommended option is the cold storage wallet. Conversely, if you are only holding the LTC for a short period of time or you may need to frequently spend them, your best option may be a hot wallet. This is because cold storage wallets are much more secure but the extra security comes at the price of lost convenience. Cold storage wallets can be more difficult and time-consuming to access. If you are more interested in an easy-to-use and convenient wallet, go with the hot wallet. If you are more concerned about overall security, you should be using a cold storage wallet.
Buying Litecoin (LTC) is easy when you have a verified Beaxy account. Take a few minutes to get set up today and you will have access to a great digital asset exchange. The LTC trading pairs offered on Beaxy have the liquidity that is on par with the world’s top digital asset markets.