How To Buy Litecoin Beginner’s Guide | Everything You Need
Should I buy Litecoin? This has become one of the most popular Cryptocurrency questions on the Internet. And for good reason. Litecoin, unlike the excessively priced Bitcoin and moderately priced Ethereum, is still affordable. At the time of writing this article, one full Litecoin would cost you $70. When you first log in to Coinbase to buy Bitcoin, the optics serve up some initial enticement to simply opt for Litecoin. And optics certainly matter; until, of course, they don’t.
You probably should buy Litecoin in some capacity, but maybe not for the reasons you initially make such a consideration.
How To Buy Litecoin
Litecoin, just like Bitcoin and Ethereum, is available for purchase through Coinbase.com. It all works the same. I know this section seems like an odd place to begin, but many people who find this article are people who are simply looking to get Litecoin exposure, AKA, buy Litecoin.
What Is Litecoin
Litecoin is a peer-to-peer cryptocurrency. It is similar to Bitcoin, however, and obviously, it is not as robust or popular. Litecoin was created under the MIT/X11 license. Seeing this is a Buy Litecoin beginner’s guide, we won’t hang on technical details for too long in too extensive of a manner.
When it comes to managing a cryptocurrency investment portfolio, you need to base money decisions on a solid base of information. Even experts at cryptocurrency have troubles predicting volatile price fluctuations, so you shouldn’t expect yourself to be being handed a golden goose. And the fact is, this is a speculative and gamble play, whether you buy Bitcoin or buy Litecoin. But know enough to be a bit informed and don’t put in more than you are willing to lose.
Litecoin is much smaller in popularity to Bitcoin, but it does have some redeeming qualities that make it an enticing investment opportunity to Bitcoin.
Litecoin is considered to be a much faster payment option to Bitcoin. And yes, this matters, until it doesn’t. Litecoin investors cite that Litecoin transactions take 4-times less time to process than Bitcoin. If you are a Bitcoin beginner, you maybe haven’t purchased goods using it. The speed of transactions being slow is one of the major drawbacks to all cryptocurrency. For cryptocurrency to ultimately be a widely used digital currency, it needs to be faster. This is why Bitcoin developers are always in-fighting and wanting to “fork” the currency. Everyone argues which methods will best speed up Bitcoin.
Litecoin is faster than Bitcoin by a good amount. This has caused Litecoin to rise up and become a viable investment option. There is a distinct possibility that Bitcoin could ultimately fail due to being too slow. And in this case, a digital currency such as Litecoin could take its place. In some ways, this makes Litecoin sound ultimately like the better buy. But slow down. It is likely that Bitcoin can and will resolve its speed issues. Bitcoin has a vast and robust amount of resources in play. This doesn’t mean Litecoin can’t overtake Bitcoin, it just means it isn’t a full-proof notion in the slightest.
Litecoin is cheaper than Bitcoin. But that shouldn’t be the only reason to choose Litecoin over Bitcoin. Many people are turned off by Bitcoin’s value. When they see Litecoin value, they get a bit more excited and typically start searching Litecoin or Bitcoin strings. Today, Bitcoin is hovering around $8000, while Litecoin price is hovering around $70. Most people could afford to buy a full Litecoin, but the average person can’t buy a full Bitcoin.
Does it matter? Yes, and no.
Let’s say you take $70 and put it into digital currency. If you get one full Litecoin, your exponential value goes with the market. If you get $70 in Bitcoin, the same is actually true. The difference is you get a partial Bitcoin value returned. If Litecoin doubles in value, this means you are up $70. If Bitcoin doubles in value, you are up $70. Wait, so that doesn’t work out, really?
It could. Buying Litecoin means you are taking a chance that Litecoin will surge to Bitcoin price levels and that Bitcoin may be closer to a maximum price. It Litecoin blows up to $8000, you just made $7930. Bitcoin, by some projections, could hit $50 or $100k, which is the argument against Litecoin investing when you are on a fixed digital currency budget.
The takeway? Having a full digital coin doesn’t mean a lot. What means the most is exponential growth, and so far, that’s favored Bitcoin in relentless fashion. Bitcoin’s growth has been monstrous.
- So then, why dedicate money to Litecoin over Bitcoin?
- Litecoin may be nowhere near a cap. If Litecoin surges, you’d be in early.
- Bitcoin could be near a max level, but that max level could set a precedent for other cryptocurrencies, such as Litecoin.
- Its never a bad idea to expose yourself to the big prominent digital currencies, such as Bitcoin, Litecoin, and Ethereum. If you put in $70 into Litecoin and $70 into Ethereum and $70 into Bitcoin, all bases are covered. If one of those takes off, and the other two crash, you likely make money even with the $140 loss.
Litecoin value has historically been the lowest of the big three digital currencies. But Litecoin works, some say, better than Bitcoin. And the fact is, Litecoin is inside of Coinbase. Let me give you a natural scenario to play with.
Mainstream money is not into Bitcoin (yet). Futures contracts will help this happen, but as of today, most normal people aren’t investing in Bitcoin. You may feel like a beginner, but the truth is, just by reading this article, you are a fringe investor type. Once Bitcoin gets a huge break, for example, Wall Street futures money starts to pour in. Or, Amazon takes them on as a payment option (Bitcoin already is a payment option on a variety of large websites). The first thing that happens is investors will search how to buy Bitcoin. They will end up getting a Coinbase account. When they log into Coinbase, Litecoin will be hanging out there, looking like a beautiful and easy and no-brainer investment opportunity.
In other words, Bitcoin’s success will likely infuse more and more cash into the likes of Litecoin and Ethereum just based on optics and Coinbase exposure. And if you got into Litecoin early, you’d be ground up.
The way Litecoin works is similar to Bitcoin. You can move Litecoin to an offline wallet and if you have enough Litecoin (or Bitcoin, or Ethereum), I strongly encourage you to do so. I have an entire article I suggest you read after you buy Litecoin that shows you how to move Litecoin from Coinbase to Trezor. A Trezor is an affordable, offline, cryptocurrency wallet.
With a Trezor, you can easily move Litecoin and Bitcoin and Ethereum back and forth from Coinbase. This protects your investment from hackers. It also allows you to make purchases from a safe hard drive. If you don’t own any cryptocurrency, don’t worry with this yet. If and when you do, check out my Trezor article.
How To Convert Litecoin To Bitcoin
This is a subject that I really don’t think is brought up enough. A lot of people feel as though if they buy Bitcoin, or Litecoin, they are stuck with it. Clearly, you can make a purchase at merchants who accept it. But most people don’t realize that they could do one of three things with digital currency:
- Make a purchase (discussed already)
- Cash withdrawal – just pull it out of Coinbase and sent to bank or Paypal
- Buy digital currency – BOOM!
Let’s say you buy Litecoin and you see it slumping or barely rising, but Ethereum and Bitcoin both keep breaking records day after day and you feel as though you made some huge mistake. Well, you are likely best to just sit on your Litecoin and buy a little in Bitcoin to grow your portfolio, but under the circumstances that you budgeted X dollars to crypto and you sent it to Litecoin and now have regrets, you can just use the Litecoin to buy Bitcoin.
If you have a Coinbase account, visit GDAX.com. Sign up. They will allow you to use your Coinbase credentials because Coinbase owns them. GADX is really for heavy trading. If you’ve traded stocks, GDAX will look pretty familiar to you. If not, I encourage you to research a lot before making any moves in GDAX. GDAX allows investors to set BUY and SELL prices, which likely contributes to Bitcoin’s volatility. But it also allows you to freely move Litecoin, Bitcoin, and Ethereum into GDAX. It cost nothing.
So, say you load your GDAX account with $70 in Litecoin. You can then click BUY BITCOIN and use that $70 Litecoin for Bitcoin. You could do this Ethereum to buy Bitcoin, or Bitcoin to buy Litecoin, etc.
Litecoin Price as of today.
Litecoin, like Bitcoin, can be pretty volatile. It is important to never put in more money than you are OK with losing into any cryptocurrency.
In conclusion, I hope this article helps any newbies considering buying Litecoin. A
Author: Jim Satney
PrepForThat’s Editor and lead writer for political, survival, and weather categories.
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