Litecoin has grabbed investors’ attention in recent years, causing the price of its native token, LTC, to surge. But before you buy LTC, it is crucial you understand the Litecoin ecosystem and how the blockchain works. Keep reading to learn more about Litecoin and how to purchase LTC.
Exploring Litecoin
Litecoin drew inspiration from Bitcoin. It was launched in 2011 with the intention of processing transactions faster than Bitcoin. Its native token, LTC, has a supply cap of 84 million.
How Litecoin Works
Litecoin uses the Proof-of-Work consensus mechanism, just like Bitcoin. That means miners need to solve complicated problems to validate transactions. They usually receive LTC in return. Similar to Bitcoin, Litecoin has its own halving event, which happens after every four years. The last one was in August 2023. Per data on Litecoin’s website, the next halving event will be in July 2027. Such events have continued to influence LTC’s price positively.
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So, why is Litecoin popular? As mentioned, the blockchain seeks to facilitate faster transactions than Bitcoin. It has been able to achieve this over the years, which is why it is popular among big stores like Travala, eGifter, and Snel.com. According to the Litecoin Foundation, the blockchain processed 1 million transactions every week in 2023.
Litecoin vs. Bitcoin
Since both Litecoin and Bitcoin use the Proof-of-Work algorithm, comparing them makes sense. The first difference is that Litecoin mining adheres to the Scrypt language, while Bitcoin follows the SHA-256 algorithm. This means Bitcoin consumes significant energy compared to Litecoin. Secondly, Litecoin’s maximum token supply is four times Bitcoin’s, which stands at 21 million.
The Litecoin Ecosystem
Litecoin’s ecosystem comprises several elements, including Litecoin nodes, ATMs, builders, block explorers, wallets, miners, and trading exchanges. The Litecoin Foundation ensures that this ecosystem continues to develop.
Where to Buy LTC
You now know how Litecoin works and its ecosystem. It is time to purchase its native token. Here are the trading platforms that list LTC:
KuCoin
This exchange has become popular among beginners due to its wide range of educational materials, allowing them to understand everything about cryptocurrencies before buying any. What’s more, the buying process is easy. With just a few clicks, you can have LTC in your wallet.
eToro
This brokerage firm is popular for its social trading service, allowing you to copy trades of proficient traders. So, with eToro, you can buy and open LTC trades under the guidance of an experienced trader, boosting your chances of making profits.
Binance
This is the biggest crypto exchange by trading volume. Most LTC trading activity takes place on Binance. Moreover, due to massive liquidity on this exchange, your LTC trades are likely to be settled quickly.
PancakeSwap
If you don’t want to share your personal information to buy LTC, then PancakeSwap is an excellent alternative. This decentralized exchange lets you participate in crypto trading anonymously.
How to Purchase Litecoin
For the purpose of this article, we will teach you how to buy LTC on eToro. After verifying your identity and funding your account, follow these steps to buy Litecoin’s native token:
Step 1: Click “Discover” within the eToro app and choose LTC.
Step 2: Enter the amount of USD you want to spend on LTC and select “Market” as the order type.
Step 3: Review the transaction and click “Confirm” to complete it. Your LTC will be sent to your eToro account within a few minutes.
Top Litecoin Wallets
After buying LTC tokens, it is vital that you store them in a secure wallet. Some of the recommended Litecoin wallets include:
LiteWallet: The Litecoin Foundation developed this wallet, allowing Litecoin users to store, receive, and send their LTC tokens.
Trust Wallet: Owned by Binance, Trust Wallet is one of the reliable wallets for storing LTC due to its sophisticated security features.
Trezor: This wallet is ideal for storing your LTC tokens in an offline environment where cybercriminals cannot access them.