Whether you are new to cryptocurrency or well versed in digital currency, there may come a time when you want to add Litecoin (LTC) to your holdings. Litecoin is often called “the silver of Bitcoin’s gold”, even though it is a completely separate cryptocurrency.
Created by Charlie Lee in October 2011, Litecoin was one of the first cryptocurrencies to be launched after Bitcoin. Crypto aims to be a global digital payment designed for everyday transactions with its fastest speed and lowest costs.
Where can I buy LTC?
You can buy LTC with a number of different fiat currencies at various crypto exchanges. Here are some exchanges where you can exchange Canadian dollars for LTC:
With Kraken, users can pair LTC with various fiat currencies, not just the US dollar. You can pair LTC with the Euro, British Pound, Australian Dollar, and of course the Canadian Dollar to name a few. Kraken allows you to buy Litecoin with Canadian dollars directly via an Interac wire transfer from your bank account, initiate a wire transfer, or make a payment in person at your local Canada Post.
Be aware of the “peer trading” terminology, which comes up quite often on crypto exchanges. An example of a trading pair is LTC at Tether (USDT). In the case of LTC/USDT, bitcoins can be converted into Tether, a stable coin whose value is pegged to the US dollar.
If you are looking to buy and trade LTC with Tether, here are some exchanges that combine USDT with LTC:
- Bybit (all provinces except Quebec)
How to buy LTC
1. Choose a cryptocurrency exchange
You can buy Litecoin directly through Litecoin-specific wallets, such as Litewallet, a mobile app available through Google Play.
If you are completely digital at heart and want to use Litecoin for payments, you can probably get by with a Litecoin-specific app that allows you to buy and sell Litecoin.
If you plan to use Litecoin as an investment, you will probably be better off opening an account with a cryptocurrency exchange.
You’ll also want to make sure the crypto exchange you choose offers Litecoin, which won’t be too difficult since it’s a popular digital currency. Beyond availability, you’ll want to compare the best cryptocurrency exchanges for qualities such as fees, security and simplicity.
2. Buy Litecoin
Once you decide on an app or exchange to buy Litecoin, you will need to determine how to finance your purchase. If you are using a Litecoin-specific or payment app, you can fund your account by linking a bank account, credit or debit card. Please note that not all banks or credit card issuers in Canada allow you to conduct crypto-related transactions.
Once you have funded your account, you are ready to make your first Litecoin purchase. Depending on the app or exchange you are using, the purchase transaction may be as simple as a click, or you may have to enter the ticker (LTC) and indicate the amount you wish to purchase.
When your purchase is complete, you can own full Litecoins or partial coins. For example, if Litecoin is trading at $100 and you want to invest $50, you will have 0.5 LTC. If you make a purchase for $100, you will have 1 LTC.
3. Save your Litecoin
If you’re new to crypto, you may not be used to having options on where to “store” an asset. But with Litecoin, you have several options.
Most of the popular cryptocurrency exchanges have built-in digital wallets where you can store your Litecoin and other cryptocurrency purchases. Some people prefer to store their crypto in a separate place digital wallet that is not tied to the internet to help keep your crypto safe from hackers.
While the major exchanges have insurance against hacking events and such, you can choose to store your Litecoin in one of these offline wallets.
Here are some options for storing your LTC:
- hardware wallets These are a common method of storing digital assets, where hardware devices store the owners’ asset private keys and allow you to interact with the wallet without exposing your data. These devices can be connected to your PC, phone or tablet to transact with LTC. Some hardware wallets that support LTC include Leger, Trezor, and BitBox.
- Paper wallets. For paper wallets, use a private key to send funds. For your paper wallet, simply print your private keys and recovery passwords on a piece of paper and then keep it for safekeeping. This is known as a “cold wallet.”
- Desktop/Mobile Wallets. Mobile and desktop wallets are generally considered “hot wallets” known for their ease of use. But hot wallets can be vulnerable to online attacks, so it’s important to research the reputation of the wallet where you plan to store your crypto. Some mobile wallets that allow you to store LTC include Edge, Mobi, and Exodus.
- Crypto exchanges. Many exchanges that trade LTC will allow you to store your crypto. A couple of crypto exchanges include Coinbase and Newton.
Should you buy Litecoin?
Before you invest your money, be aware of the risks of cryptocurrencies and keep your investment to a small amount of your net worth.
As with all cryptocurrencies, Litecoin can be a highly volatile asset. Experts suggest limiting your investment to a small fraction of your net worth in cryptocurrencies, including Litecoin.