Litecoin (LTC) is one of the oldest cryptocurrencies on the market. The crypto was founded in 2011 by Charlie Lee to enable faster payments with crypto. On this page, Knaken explains what litecoin is, and you get tips for when you decide to buy or sell litecoin.
While bitcoin (BTC) was the first cryptocurrency ever, it is not the best performing crypto in some areas. Charlie Lee, the founder of Litecoin and also a former employee of Google, saw the slow and expensive transactions of bitcoin as significant flaws. These flaws make Bitcoin difficult for use in everyday situations, such as paying for groceries.
Due to the slow and relatively expensive transactions of bitcoin, Lee saw the cryptocurrency more as a store of value. Another well-known store of value is gold. Because of its characteristics, people often refer to Bitcoin as the "digital gold." Lee, therefore, decided to develop a cryptocurrency that can be used more efficiently as an actual payment method.
In short, the creators of litecoin don't intend to compete directly with bitcoin. They do primarily serve the same purpose of providing direct and decentralized payments. However, you can better see Litecoin as a support for bitcoin by enabling faster and cheaper transactions. The idea is that Bitcoin can then be used more as an investment and store of value, and litecoin for paying in shops and restaurants.
To make this possible, the block times, how long it takes for miners to add a transaction to the blockchain, are set at three minutes. For comparison, Bitcoin block times are around 10 minutes. In combination with litecoin's lower transaction fees, LTC enables faster and cheaper transactions.
Buy Litecoin (LTC) safely and easily via Knaken+
As mentioned earlier, Litecoin is one of the oldest cryptocurrencies. Litecoin is also one of the largest cryptocurrencies based on its value. You can, therefore, buy litecoin through most major platforms. Think, for example, of cryptocurrency exchanges such as Binance and Coinbase. There are also other options.
Many over-the-counter (OTC) platforms sell litecoin as well. These are companies, often local, that buy and sell litecoin. When you purchase litecoin through an OTC platform, the transaction will happen directly, which means that when you buy litecoin, you receive the litecoin directly in your wallet. This direct deposit offers more privacy in comparison with buying litecoin through big cryptocurrency exchanges. Your order will not be placed in a public order book. Besides that, OTC platforms are often local, which means that customer service speaks your language. You can also buy litecoin safely and simply at Knaken.
Sell Litecoin (LTC) safely and easily via Knaken+
Selling litecoin is usually as easy as buying litecoin. If you have purchased litecoin via Binance, you can sell your litecoin on Binance in just a few clicks. You can also decide to send your litecoin from your exchange account to your wallet. That way you can sell your litecoin to other parties as well.
Knaken helps you buy or sell Litecoin safely and easily. It doesn't matter if you are a beginner or a veteran. These three simple steps apply to everyone.
• Select your cryptocurrency
• Pay via payment methods such as IDEAL.
• Receive and manage your crypto in your Knaken dashboard or your own wallet.
Why people buy or sell Litecoin?+
People buy or sell Litecoin for several reasons. You can buy litecoin as an investment for the long term. If people start using litecoin more and more, and more stores and places start accepting litecoin as a means of payment, the demand for LTC can grow. This increasing level of adoption can then cause an increase in the litecoin price.
You can also actively trade with litecoin. Based on technical and fundamental analyzes, you can estimate whether the price of litecoin is low. You can then buy litecoin and wait for the price to rise. As soon as you expect the LTC price to peak, you can sell the litecoin and generate a return. However, keep in mind that active trading with cryptocurrencies carries great risks. So be careful and don't make any hasty decisions.
Finally, you can, of course, also choose to use litecoin as a payment method. In more and more places you can use the altcoin to pay for all kinds of products. Litecoin, for example, can offer more privacy than when you pay with your bank account and can, therefore, be attractive as a payment method.
Why choose Knaken?+
• Safe & Easy
• No extra costs
• Manage crypto via your Knaken Dashboard or your wallet
• Knaken has its own exchange
Important tips when buying/selling litecoin+
If you have studied the underlying technology and the purpose of litecoin, you can decide to buy litecoin. Several things are essential to consider before you decide to buy litecoin.
You first need to get a good and secure wallet. Your wallet is the place where you will store your litecoin. There are several types of wallets, such as software wallets and hardware wallets. Many experts consider hardware wallets to be the safest. To use them, you don't always have to connect them to the internet. That way, hackers are less likely to get to your litecoin.
Always do thorough research on the company you want to buy litecoin from or to whom you wish to sell litecoin. Unfortunately, there are many hackers and scammers active within the crypto world. It is, therefore, important to always be careful. If a website looks unreliable and cheap, the advice is to pay extra attention. Also, search for reviews from other users online, such as on Trustpilot. These personal experiences give you a better idea if a company can be trusted or not.