Launched in 2011, Litecoin (LTC) was created with the intention of being an alternative to Bitcoin. Litecoin shares a lot of similarities between the two but differs on the cryptographic algorithms used, with Litecoin using Script versus Bitcoin using SHA-256. Added to this, Litecoin can both produce a larger number of coins and execute transactions quicker
Litecoin is currently the 6th largest cryptocurrency by market cap with a value of £6.633bn. That being said, Litecoin is still the largest cryptocurrency that uses Scrypt. Just like many other cryptocurrencies, Litcoin can be bought and sold via a cryptocurrency exchange or through a platform/broker.
How to Buy Litecoin in the UK Using Our Preferred Trading Platform: eToro
1. Sign up with eToro
First, you need to create an account with eToro. You do this by going to their site, www.etoro.com and selecting the join now button and the below form will appear, complete it and it will take you to the next page.
2. Account Verification
Verify your account. When prompted, complete your profile, and keep your National Insurance number nearby to get everything verified. You’ll need to upload a valid proof of identity (e.g. passport or driver’s license) and proof of address (e.g. bank/credit card statement, internet bill).
3. Deposit fiat currency
Connect your bank or e-wallet, deposit funds to fund your account using the following options pictured below. You must have fiat currency in your eToro account to buy LTC.
4. Navigate to Litecoin and make a purchase
Once your funds are available in your account, you’ll be ready to buy Litecoin! Simply navigate to the Litecoin page and make your first purchase.
5. Litecoin is now added to your eToro portfolio
Best Ways to Buy Litecoin in the UK
eToro is a great platform for trading Litecoin. Given its ambition to be considered the digital version of silver, buying Litecoin on eToro provides an easy way to acquire a cheaper store of value that can then be used to buy other cryptocurrencies without being open to other fees that other platforms might charge. This is because eToro doesn’t charge anything on trades.
|Fees||Cryptocurrencies Supported||Transaction Type|
|$5 for withdrawals (even for UK investors), 0% on trades, although spread costs apply, eToro also only operate in USD so you will also face spread costs for any other currencies||18 supported||Buy, sell, market orders and limit orders|
This benefit is further compounded by the fact that eToro also supports over 18 different currencies including all the main ones. This means that those looking to buy Litecoin as a way to then trade with other cryptocurrencies won’t be stuck with a limited selection of cryptocurrencies.
Finally, its low fees, top-notch security, social trading tools (so investors can recreate the same success that the best performing traders can) and easy user interface making it the best way to buy Litecoin in the UK.
Binance is another platform to consider buying Litecoin on because of its low fees. Similar to eToro, it has very low fees and if someone was looking to buy Litecoin to then use as a tool to buy other cryptocurrencies, Binance is a solid option.
Binance is almost better than eToro for this function as it supports far more cryptocurrencies as well as transaction types. With this in mind though, Binance only supports cryptocurrencies (unlike eToro) and can be quite complicated, even for more seasoned investors.
|Fees||Cryptocurrencies Supported||Transaction Type|
|0.02%- 0.1% purchase and trading, 3% to 4.5% for debit card purchases, free single EuroPayment Area transfer, or $15 per wire transfer in the US, Free UK bank transfers.||Over 500 for global investors.||Limit order, market order, stop-limit order, trailing stop order, post-only order, peer-to-peer trading, margin trading, one-cancels-the-other order.|
Binance is also a good choice due to its multitude of transaction types, which allow for more complex trading strategies compared to other platforms. However, it offers no form of social trading, meaning investors need to know what they’re doing before attempting these, again making Binance more suited to experienced investors.
Binance has low fees, supports a large number of coins, numerous transaction types, very fast trade execution, and as the largest cryptocurrency exchange globally, offers high levels of liquidity.
The final platform to consider when buying Litecoin in the UK is Gemini. Gemini was founded by the Winklevoss twins and launched in 2014. Gemini is a great option not just due to its user functionality, but also because of its regulatory and compliance framework (eToro is similar in this capacity).
|Fees||Cryptocurrencies Supported||Transaction Type|
|Between 0.35% to 0.03% depending on trade size, plus a “convenience fee” of 0.5% on all trades||40+ currencies||Buy, sell, trade, deposit, and withdraw|
From a functional standpoint, Gemini offers a large number of cryptocurrencies which helps traders utilise Litecoin as a tool to trade for other cryptocurrencies. That being said, as Gemini only supports cryptocurrencies, so if you’re looking for one platform to buy and trade crypto along with other investment products, eToro is still the best option.
Gemini is also a solid option as like eToro, it is regulated and staying in the good books of local regulators in the countries it operates in. This company behavior can help reassure investors that Gemini is unlikely to come under regulator scrutiny that could make withdrawing funds hard or cause unnecessary losses to investors.
What is Litecoin?
Founded in 2015, Litecoin was founded by Charlie Hoskinson, one of the co-founders of Ethereum. He split from Ethereum as he wanted to take the platform in a more commercial direction, opposed to his counterparts who didn’t.
Litecoin uses a proof-of-stake protocol called Ouroboros, which is different from other cryptocurrencies that use proof-of-work. One of the main benefits to the Litecoin platform is its power usage, around 0.01% compared to Bitcoin.
Litecoin uses a coin called LTC to power its platform, which operates in a similar way to Bitcoin to track transactions.
Why Buy Litecoin?
Litecoin is designed to be an alternative to Bitcoin in the sense that it wants to be a “store of value” to be used in everyday transactions. As of today, Bitcoin holds the market power in this standpoint, but it’s very likely that over time as more people engage in the market, Litecoin could also increase its market value as it becomes more widely accepted. This adoption could become more prevalent as Litecoin can execute trades quicker than Bitcoin (2.5 minutes versus 10 minutes respectively).
Despite its size, Litecoin has only really just begun demonstrating its power in real-time. Its founder described it as the “Swiss Army knife of protocols”, as it is a platform aimed at solving many issues in a sustainable way.
The platform could be used to build solutions to address the inability for a lot of people to open a bank account, through to improving Microfinance solutions to help the world’s poorest (there’s a great book called “Banker to the Poor” addressing how Microfinance can help this group). Litecoin can also help with solutions such as identity verification, all built off of the platform.
Finally, the platform announced it will support decentralised finance services in 2021 to allow decentralised applications to be built off of the platform, adding more power to the platform.
Litecoin Price Analysis and Prediction
Litecoin is unlikely to ever be more valuable than the larger currencies such as Bitcoin or Ethereum, however, it’s not just about the total market cap when looking at price, percentage change is equally, if not more important.
Litecoin did suffer the same issues a lot of other cryptocurrencies did in May/June 2021 when the market dipped quite drastically, dropping down to a current price of £105 per coin, its drop started with the wider market depreciation. When the issues around its proof of stake methodology arose, its price dropped from £151 per coin down to just under £130 per coin, then the wider dip happened, dropping its price further to £105 per coin.
Whilst the proof of stake issues could create issues, it’s likely Litecoin will look to address these, which could lead to a recovery of the currency by the same amount it dropped when the issues first occurred. Further to this, many analysts currently believe Litecoin could reach £160 per coin by the end of 2022 and just over £325 per coin by the end of 2025, showing there is the belief that it could grow very well over the next couple of years.
There are skeptics though, who believe that the coin may not hit these highs as it has been in the market much longer than other cryptocurrencies, yet it has never reached these highs before. It could all depend ultimately on the wider acceptance of cryptocurrency.
Things to Remember Before Buying Litecoin
Don’t put in more than you can afford to lose – remember, Litecoin like all cryptocurrencies are speculative and you may lose more than you gain, make sure you only trade amounts you’d be willing to lose.
Resist ‘fear of missing out’ – avoid trading on emotions, FOMO is the Achilles heel of many traders who jump in when it’s too high and don’t stay the course, meaning they end up losing money as they invested on an emotional level without thinking things through.
Understand tax consequences – make sure you stay on the right side of your taxes, and cryptocurrencies, like everything else in life, are subject to taxes. Make sure you know your tax liabilities and comply with them
Long vs short-term investment – consider the benefits and drawbacks when looking at trading any cryptocurrency as a long versus short-term investment. It’s also worth looking at whether your chosen platform or exchange is better suited to long versus short-term positions.
Is Litecoin legal in the UK?
Yes, buying Litecoin is perfectly legal in the UK.
Will Litecoin become the most valuable cryptocurrency?
Anything is possible, especially with cryptocurrency. That being said, it is unlikely that Litecoin will become the most valuable cryptocurrency.
Can you buy less than 1 Litecoin?
Yes, fractional trading is available with Litecoin meaning you don’t have to buy 1 coin.
Is it too late to buy Litecoin?
We wouldn’t say it’s too late to buy Litecoin as prices are currently in a dip and could recover. Given Litecoins use cases and new functions, it may not be too late, but it’s still a little too speculative