Litecoin is one of the most popular altcoins on the market, often featuring in the top 10 of market capitalisation. By choosing the right platform, it can be quite easy to buy and sell Litecoin. We take a look at how to do it in a quick and secure way,
How to buy and sell Litecoin in a few simple steps
Choose an exchange
The easiest way to buy and sell Litecoin is on a cryptocurrency exchange. There are many options available on the market including centralised (CEX), decentralised (DEX), crypto-to-crypto and fiat-to-crypto exchanges. .
- A CEX will have custody over your funds, meaning you trust a third-party to keep your funds safe.
- With a DEX, you will be responsible for maintaining your own funds and keeping them safe.
- Crypto-to-crypto exchanges allow you to buy Litecoin with another currency such as Bitcoin and sell it too.
- Fiat-to-crypto exchanges all you to buy Litecoin with euros, for example, and sell it for euros too.
Some exchanges and their dedicated wallets will require you to complete Know-Your-Customer (KYC) and Anti-Money Laundering (AML) checks. These are standard tests to identify who you are, so you may be asked to provide photographic ID and a utility bill.
Be sure you do your research before selecting an exchange and be aware of the trading options available to you.
Choose the amount to buy and sell
Once you are registered with an exchange, you can begin buying and selling Litecoin. The steps you follow will be different based on whether you’re buying and selling Litecoin for fiat or another cryptocurrency. In this example, we’ll look at a fiat-to-crypto exchange.
Some exchanges may allow you to buy Litecoin using your credit or debit card. Other exchanges will require you to deposit money into its dedicated and connected eWallet and use your fiat from there to buy Litecoin. The process of buying Litecoin itself is quite simple. Place your buy order by requesting either the amount of Litecoin you want to buy or the amount of fiat you want to spend. Exchanges that have high levels or instant liquidity will allow your order to be fulfilled quickly.
To sell your Litecoin on a fiat-to-crypto exchange, simply select the amount you want to sell and confirm the sale. As long as their in someone available to buy your Litecoin, the sale will complete. With the right exchange, it will convert to fiat in just a few minutes.
Pay attention to the market
There are a lot of aspects to trading, such as bid/ask prices, moving averages, and going long or going short. Technical knowledge is incredibly important when trading, since it can be very easy to make mistakes.
Exchanges have visible ‘order books,’ which portray buy and sell prices in accordance with the current market value of cryptocurrency. Alongside this, there are typically graphs which can help you visualise price action. This can help you to buy and sell Litecoin at the right time.
It would be wise to play around for a while with a small amount of funds to get acquainted with the exchange of your choice. After all, you don’t want to spend all of your savings into Litecoin and lose it straight away because you do not know the mechanics of the exchange.
Exchanges are not your only option for buying and selling Litecoin. You could also use a broker or an over-the-counter (OTC) intermediary to facilitate your needs. You can learn more about OTC deals here.
Trading does not need to be a quick process. You could buy Litecoin when the price is low then hold on to it until the price goes back up. This would be an investment. Once the price has risen and does not look to rise again, you can sell it for profit.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.