Litecoin (LTC) is one of the most popular altcoins in the cryptocurrency market today. With lower transaction fees and gains from time to time, it’s becoming an appealing asset for crypto investors. So, if you want this cryptocurrency in your portfolio, here’s how you can buy Litecoin in the UK.
Using exchanges to buy Litecoin in the UK
One of the easiest ways to buy Litecoin in the UK is through a cryptocurrency exchange. While exchanges support a limited number of digital coins, most of them list Litecoin thanks to its longevity and popularity.
You’ll need to create an account on the exchange you’re planning to use. Before making a purchase and trading cryptocurrency, you’ll also have to prove your identity using an identification document issued by your government.
Most cryptocurrency exchanges that list Litecoin accept payments through bank transfers or debit and credit cards. Some exchanges will have their own dedicated wallet built in to the exchange, while other exchanges will use a nominated eWallet and connect it to the dashboard. The choice you make will often depend on the speed you need, the level of security you expect and even how much in fees you’re willing to pay.
You should look for an exchange that offers instant liquidity and high quality customer service. That’s because your buy order will be fulfilled quickly and there will be a team around to support you with any questions.
Fiat-to-crypto also isn’t the only option available to you. You could make a crypto-to-crypto trade to buy Litecoin in the UK, meaning you could trade Ethereum for Litecoin for example.
Cryptocurrency tax guidelines in the UK
Her Majesty’s Revenue and Customs (HMRC) considers the buying and selling of cryptocurrencies as an investment activity. So, you must pay tax on any gains that you record at the moment of sale.
As a guideline, you owe taxes for selling your Litecoin for money, or when exchanging it for other digital assets. You’ll also pay taxes when you make purchases with Litecoin or when you give them away to anyone but your partner or spouse.
The level of tax depends on the tax bracket and can go from 0% to 45% when your taxable income is higher than £150,000 per annum.