Buy Litecoin (LTC) 2021: Buying Guide & Forecast
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In the following, we explain what makes Litecoin so special and where the differences to Bitcoin lie. Furthermore, we show you where you can buy Litecoin most safely and give you a detailed step-by-step buying guide.
Finally, we list all the advantages and disadvantages of the cryptocurrency, look at the past price development and give a forecast for the future Litecoin development.
Where can you buy Litecoin?
Buying Litecoin is relatively easy as it is a very popular cryptocurrency. However, its wide availability should not lead you to become careless in the process. It is important that you only make your investments and trades through reliable and recognised platforms.
You can generally buy Litecoin as a real currency or with Contracts for Difference (CFD). With the latter, you do not purchase the actual cryptoasset, but invest in its price fluctuations. If you want to buy Litecoin, you will find two renowned providers here:
The trading platform eToro offers both investment options. It has an extensive product portfolio overall, including 19 digital currencies, which is continuously being expanded. Furthermore, eToro is regulated by the Cyprus Securities and Exchange Commission (CySEC). Deposits are thus protected up to an amount of € 20,000.
In addition, the trading rates at this broker are relatively tight, especially if you are interested in short-term investments. For CFDs, eToro offers you the addition of leverage, which follows the regulations of the European Securities and Markets Authority (ESMA).
Finally, by opening an account with eToro you will be able to use the wallet that is automatically integrated there. Thus, you do not need another digital wallet to manage your cryptocurrencies.
Another interesting platform is Binance, a currency exchange. Until recently, this trader only worked with cryptocurrencies, so it was not suitable for beginners.
Currently, however, it also accepts payments with credit and debit cards as well as bank transfers.
The main advantage of Binance is the variety of cryptocurrencies that the portfolio includes. It is one of the first places where you can find altcoins.
A comparison of the best platforms for buying Litecoin
If you want to buy Litecoin, there are a number of platforms for doing so:
| Trade real cryptos and crypto CFDs |
| Broker fully regulated |
| Many tradable assets |
| Deposit management in Stablecoin USDT offers protection against volatile price movements |
| Many tradable assets |
What is Litecoin (LTC)?
Litecoin, whose nomenclature on exchanges is LTC, is a cryptocurrency based on blockchain technology. It was created in 2011 by Charlie Lee as a lighter version of Bitcoin.
His intention was to develop a crypto chain that was faster and reduced transaction costs. In this sense, it evolved into an alternative to micropayments.
Litecoin's blockchain is completed every 2.5 minutes. This is a quarter of the time that Bitcoin takes. Furthermore, it is estimated that there are 84 million coins in total, four times the volume of Bitcoins.
Litecoin is an open-source project that uses the scrypt hashing algorithm. Since its launch, Litecoin has positioned itself among the top 10 most traded cryptocurrencies, along with Bitcoin, Bitcoin Cash, Ethereum and Ripple.
Name / symbol | Litecoin / LTC |
Litecoin launch date | October 2011 |
Litecoin creator | Charlie Lee |
Total number of coins | 84,000,000 |
Coins in circulation | 66,752,415 (79% of total) |
Cipher block generation time | 2.5 minutes |
Litecoin all time high | $ 350 (2017) |
What are the special features of Litecoin?
The speed and low cost are the keys to the widespread use of Litecoin, especially in developing countries where transaction fees can be a critical factor.
On the other hand, in general, fungibility and privacy are also key factors in the success of cryptocurrencies.
And with Litecoin, these should even be improved. Since the introduction of the MimbleWimble (MW) protocol in 2020, testing has begun in a test network. This is now in its final phase and in a few weeks the protocol could already be integrated into Litecoin's main code base.
Should you buy Litecoin or not?
The market for cryptocurrencies in general is growing. It has had an amazing take-off in the last year and even if there are corrections, we should not expect a sharp decline. Buying Litecoin in particular is potentially a good investment due to different characteristics of this cryptocurrency.
Litecoin's mining is less centralised and the blockchain is scalable, which gives this cryptocurrency greater transparency. It has been in the top 10 highest capitalised currencies for years. But, like all cryptocurrency investments, it is not without risk.
What makes Litecoin unique?
Litecoin is a very different cryptocurrency from the rest. And this is no coincidence, as it was designed with the intention of differentiating itself. As we mentioned above, the focus was on creating a viable payment instrument. Therefore, Litecoin competes not only with other cryptocurrencies, but also with fiat currencies like the euro or the dollar.
Compared to Bitcoin or Ripple, which also want to be real means of payment, Litecoin's advantage lies primarily in its low transaction fee. This is particularly relevant when it comes to international transfers.
Moreover, Litecoin works in peer-to-peer networks, so the market is not centralised. Both creation and transfer operations are carried out in open source, with autonomous buying and selling.
Litecoin and Bitcoin in comparison
Litecoin has always been related to Bitcoin. It is even said that there is a similar relationship between the two as there is between gold and silver. But the few differences are still remarkable and lead to a completely different functionality. The three distinguishing features between Litecoin and Bitcoin are:
Block creation speed
A Litecoin chain is created every 2.5 minutes, while Bitcoin takes 10 minutes to complete the process. This is because Litecoin blocks are smaller. This makes Litecoin faster and more scalable. In other words, Litecoin has the ability to adapt to increasing transaction demand without compromising payment security.
Total volume
Litecoin's total volume will be 84 million units, while Bitcoin is expected to reach 21 million. The larger number is a direct result of the simplicity and speed of mining.
Hash algorithm
Bitcoin uses the SHA256 algorithm. Litecoin uses Scrypt in its proof of work. This allows mining to be more distributed and decentralised. Many people can mine Litecoin because the algorithm is tailored to optimised CPUs and GPUs. In contrast, mining Bitcoin requires the use of ASICs, so there are financial constraints on production.
Simplifying the algorithm has not reduced security as the network is much smaller and more decentralised. Litecoin is considered by experts to be a neutral and well-protected blockchain.
Broker or exchange: Where is the best place to buy LTC?
Cryptobroker
Pros
Cons
Crypto exchange
Pros
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Litecoin CFDs vs. buying real Litecoin
If there are two ways to buy Litecoin, there are obviously two different types of cryptocurrency:
If you want to trade "real" Litecoin, you do it on exchanges.
If, on the other hand, you want to trade Litecoin CFDs, i.e. financial instruments that are linked to the exchange rate, you do so with brokers.
Here are the advantages and disadvantages of both types of investment:
Buy Litecoin CFD
Pros
Cons
Buy "Real" Litecoin
Pros
Cons
Buy Litecoin with eToro: Step-by-step guide
With this step-by-step guide you can buy Litecoin or trade CFDs at eToro. If you have an account on the platform, you can manage all your trades from both your smartphone and your computer. You also take advantage of having a broker and a cryptocurrency exchange under one roof.
Step 1: Register
First, you need to fill out a registration form in order to buy Litecoin from an online trader. This is a money laundering prevention measure required by the European Parliament Directive 2015/849.
You simply enter a username and your email address and set a password. Don't forget to tick the boxes to accept the platform's terms and conditions. Within a few minutes you will receive a confirmation email with a link to confirm your account.
Step 2: Deposit
Now you need to fund your account to be able to buy LTC. Log in to eToro with your username and password and select the Deposit Money option. A window will appear where you can select one of many payment methods. Enter the amount you wish to deposit and click Submit to complete the transaction.
Step 3: Buy Litecoin
Now you can buy Litecoin or a corresponding CFD. Enter the name of the currency or its acronym (LTC) in the search box to see all options and the respective rates.
To complete the transaction, you need to specify the amount of your investment. You can also add leverage, which is X1 in the case of real currencies. If you prefer to trade a Litecoin CFD, X2 leverage is possible. You can also set stop loss and take profit limits to set an automatic transaction position.
Finally, click on Open Trade and your Litecoin purchase is complete.
Buy Litecoin on Binance: Step-by-Step Guide
Likewise, here is a guide on how to buy Litecoin on Binance in 3 steps:
Step 1: Register
The process is basically the same as already explained in relation to eToro. You need to fill out a form with your details and then you will receive an activation email.
Step 2: Deposit
In order to trade on the Binance platform, you need to deposit money into your account there. You can send cryptocurrencies from your own wallet or pay with fiat currency to do this. Click on the Funds tab and select Deposits.
Highlight the option of your choice and you will receive the public key address to deposit your coins or, in the case of a classic payment method, the corresponding instructions. It may take a few minutes for your funds to appear, but it shouldn't take more than half an hour.
Step 3: Buy Litecoin
Once your transfer has taken effect, you can make your buy or exchange transactions with Litecoin. If you wish, you can set a buy limit price so that the transaction will be processed when it reaches this value. Otherwise, select Market and Litecoins will be deposited into your account as soon as they become available.
Litecoin price development
2011 | 2014 | 2017 | 2021 |
|---|---|---|---|
Start: $ 0.01 | 03/02: 1 LTC = $ 21.50 | April: Overcoming 1-digit limit ($ 10). | LTC in circulation: 66,752,415 = equivalent to 79% of the total. |
What influences the Litecoin price?
The price of Litecoin can fluctuate due to internal and external factors:
Internal causes
According to its own development model, there are planned events that reduce the supply of coins. This can prevent devaluation or even increase it. For example, there is the Litecoin halving. This consists of halving the reward received by those who mine Litecoins.
Every time 840,000 blocks are completed, which is about every four years. This feature is part of Litecoin's programming and is designed to ensure deflation. In 2019, the time of the last Litecoin halving, the reward was reduced to 12.5 Litecoins. If demand is maintained, the value of Litecoin will increase while supply decreases.
External causes
On the other hand, the entire cryptocurrency market is very sensitive to security breaches. This has already been experienced with other cryptoassets, whose prices have collapsed due to investor fear.
Similarly, political decisions, such as restrictions on movement in major economies, can have a major impact on prices. This was evident when China banned exchanges in 2017 and subsequently appeared to support the crypto economy in 2019. The Asian giant's initiatives for or against cryptocurrencies can trigger a veritable tsunami on the markets.
Litecoin forecast: Does Litecoin have a future?
Favourable forecasts
Some analysts have very optimistic forecasts for Litecoin. Their arguments are based on:
Distribution on the Dark Web
The dark web can be a very lucrative market in which Litecoin is also interested. It is important to note that not all content there is negative. Originally, the name comes from the fact that it uses an anonymisation cipher. For example, a lot of valuable information from countries with restrictions on freedom of expression and information circulates on the dark web.
Chinese market
Another aspect that also causes some controversy is the great popularity of Litecoin in China. In economic terms, at any rate, it is a strong support. The Chinese market theoretically has the largest user potential in the world.
Compatibility
Managing and storing cryptoassets is a legitimate concern. Some currencies are not compatible with all hardware wallets and this causes inconvenience. Litecoin can be bought and stored in any wallet as it is 100% compatible. This undoubtedly promotes the wide acceptance of LTC and increased trading volume.
Resistance story
Litecoin's development has not always been positive, but this cryptocurrency has managed to hold its own and overcome the difficulties. Despite the fluctuations, it is one of the top ten cryptocurrencies. Perhaps the uncertainty of the pandemic even contributed to this. Today, the price is 8 times higher than in March 2020.
Pessimistic forecasts
Other market specialists, on the other hand, point out the potential risks of Litecoin. Their long-term forecast is less encouraging. They justify their concerns with this:
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Confusing positioning
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Failed projects
With the introduction of SegWit, which Bitcoin has done, LTC is losing important competitive advantages. The market is waiting for a reaction that will bring Litecoin back to the forefront of technology.
With such a contradictory outlook, it is worth keeping a close eye on Litecoin's performance. There are both bullish and bearish signals, with those arguing for a favourable outlook being correct so far with their price forecast for 2021. It was estimated that LTC would be between $210 and $270 between June and October, and in April the price already exceeded $250.
Litecoin Mining
Litecoin mining is the set of processes required to validate transactions. Each Litecoin trade is added to a blockchain of the cryptocurrency. This process takes only a few minutes and is done via a computer connected to the network. Mining cryptocurrencies consumes processing resources and has high energy costs.
The calculations performed at the various points in the network are linked together to form a chain. When this is complete, the miners involved receive a reward. Today, this consists of 12.5 litecoin. These are new coins created with each completed blockchain. The LTC amount of the reward is halved every four years.
In addition, those who mine cryptocurrencies also receive commissions for transactions added to the blockchain. With these two options, one can profit from Litecoin mining.
Store Litecoins safely with a Litecoin Wallet
If you buy Litecoin, you probably want to store them safely. You can use your own digital wallet for this purpose. However, this is not mandatory.
In fact, you can also use eToro's wallet instead, which is automatically created when you register an account there. Cryptocurrencies are managed directly from the application at eToro, which has several security measures. This even allows you to manage your investments from the comfort of your smartphone.
However, such functionality does not exist on other platforms. In this case, you need to use a wallet suitable for the system in question. Fortunately, LTC is compatible with virtually all online wallets. There are also external hardware wallets that protect your investments in case the exchange platform you are using goes bankrupt.
Finally, if you decide to invest in Litecoin CFDs, you won't need a digital wallet at all. This is because it is not buying the cryptocurrency itself, but investing in its fluctuations in value.
Litecoin Advantages and Disadvantages
Before deciding whether or not to buy Litecoin, you should review all the pros and cons. Only by matching the features of LTC with your personal investment needs can you make a truly informed decision:
Pros
Cons
Tips for buying cryptocurrencies
Tip 1: Find out about technologies and projects in the background before buying.
Tip 2: Choose a suitable trading platform (stock exchange or broker)
Tip 3: Never invest more than you are prepared to lose.
Tip 4: Remember: you can lose everything or win a lot
Tip 5: Do not pay attention to the media, but do your own research
Tip 6: Distribute: Never put everything on a single coin or token
Tip 7: Compare: Trading fees often make profits melt away
Tip 8: Define a trading strategy and follow it consistently
Tip 9: Stay calm: Short-term price drops are normal
Tip 10: Do not share private keys and passwords with anyone
Conclusion: Buy Litecoin or not?
Litecoin offers an interesting investment opportunity, but also carries a certain risk. This cryptocurrency has had a relatively long bull phase and was able to overcome its price declines. It is much cheaper than Bitcoin and more advanced both technologically and functionally. However, these innovations can be imitated by other cryptocurrencies with more financial strength.
If you decide to buy Litecoin, eToro is definitely a good and reputable place to go. There you will be able to make safe investments and trades in LTC or in corresponding CFDs, at competitive prices.
Social Trading Function
Fair and transparent fee structure
State regulated and licensed
Wide range of cryptos, incl. Litecoin
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FAQ
You can buy Litecoin or trade Litecoin using CFDs. Both options are available on eToro's platform. One of the advantages of this broker is that you can buy Litecoin using PayPal, credit or debit cards, bank transfers, Neteller or Skrill.
If you trade CFDs, you do not need a cryptocurrency wallet. Besides, eToro already provides you with an integrated digital wallet.
Litecoin is compatible with most digital wallets. To be sure, check your supplier's technical documentation.
Investing in cryptocurrencies is generally risky and returns cannot be guaranteed. However, Litecoin has been on the rise for a few years and the prospects for growth remain good.
