4 steps to buying Litecoin safely

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Created to be a faster and more efficient version of Bitcoin, Litecoin has consistently ranked among the best cryptocurrencies. It also trades at a much lower price than Bitcoin, making it a popular alternative.

If you’ve been researching Litecoin, think it’s a smart investment, and want to get some on your own, now is the time to learn how to buy it. There are many ways to buy crypto, but there are also many scams. Follow the steps below to buy Litecoin safely.

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1. Choose a cryptocurrency exchange

The most common way to buy crypto is through an exchange, such as Coinbase or Gemini. Several investing and payment apps also sell crypto, including Cash App, PayPal, and Venmo. When shopping for where to buy Litecoin, here’s what to look for.

Security: Review the security measures taken by the platform and if there have been any incidents in the past, such as hacks or stolen funds. The most important part of a crypto platform is that it protects your assets and personal information. Fees: There are fees for buying and selling crypto. Check that the platform you choose has competitive fees compared to other major exchanges. Ease of Use: Buying crypto shouldn’t be a chore, so be sure to choose a platform that you are comfortable with.

To see which options tick all of these boxes, review the best cryptocurrency apps and exchanges.

Another feature you might want to consider is the cryptocurrency selection. It’s okay if you’re only interested in Litecoin, as it’s available on most exchanges. But if you think you’ll want to invest in smaller coins in the future, the selection of cryptocurrency is important when choosing an exchange.

2. Configure your account

Once you’ve chosen a place to buy Litecoin, it’s time to create an account. The process varies by trade, but there is usually a button that says “Start” or “Register” on the home page.

Enter the information required to create an account. Most applications and exchanges will require the following:

Full Name Email Address Phone Number

It’s pretty easy, but you’re not done yet. Crypto exchanges must also verify your identity. This process is called “Know Your Customer” (KYC). Until you do this, you won’t be able to buy crypto, or you will only be able to buy a small amount before you reach your account limit.

For the KYC process, expect to provide the following:

Date of birth Social security number Scan address of a valid passport, driver’s license or identity card 3. Decide how much Litecoin you want to buy

The golden rule with Litecoin, and with any cryptocurrency, is to only invest what you can afford to lose.

Cryptocurrency is volatile, and while prices can skyrocket, they can fall just as quickly. Don’t make crypto your retirement fund, and definitely don’t use crypto as an emergency fund. A good guideline is not to devote more than 5% to 10% of your investment portfolio to cryptocurrencies.

Also consider how often you will be buying Litecoin. Some investors make a single large purchase or make occasional purchases without a strategy. For cryptocurrency investments, averaging dollar costs is often a better method.

With the average costs, you make periodic investments. For example, you can buy $ 250 of Litecoin every two weeks or every month. This works well for volatile investments, because even if the price goes down, you haven’t put all your money in at once.

4. Make your purchase

The purchase process and accepted payment methods depend on the exchange you have chosen. Payment methods may include an ACH transfer from a bank account, debit card, or credit card. Bank transfers tend to be the best option, as paying by debit or credit card can incur additional charges.

Bank transfers have one downside, and that is speed. You usually have to wait several days for the transfer to process and the funds to arrive in your account.

Once the money is available, choose the “Buy” option and select Litecoin. Enter the amount you want to buy and look at the transaction overview to see the fees and the amount of Litecoin you will get. If you are satisfied with everything, confirm the transaction.

Remember to record the amount you spent and the amount of Litecoin you received for tax purposes. When you sell Litecoin or exchange it for another cryptocurrency, it is considered a taxable event.

After completing these steps, you will have your own Litecoin. One last thing you might want to do is look for crypto wallets where you can store it. Many investors keep their crypto on the exchange where they bought it, but transferring it to a crypto wallet is a good way to have additional security.

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