Litecoin is a decentralised open-source global payment system founded in 2011 by Charlie Lee. It was created as a better alternative to Bitcoin.
While it shares many similarities with Bitcoin, Litecoin differs in that it uses scrypt as a cryptographic algorithm in contrast to SHA-256 in Bitcoin, and it generates blocks faster than Bitcoin.
Because of this, Litecoin has a faster transaction execution time and produces a larger number of coins.
Litecoin is one of the world’s biggest cryptocurrencies, ranked 21st with a total market cap of $4.2 billion. Also, it is the second-largest cryptocurrency that uses scrypt behind Dogecoin.
Like any other cryptocurrency, Litecoin can be bought or traded via a crypto exchange platform. Although it is easy to do, for newcomers there can sometimes be a bit of confusion concerning how to buy Litecoin in the UK.
This article will guide you on how to buy Litecoin in the UK safely and cheaply.
A quick guide on how to buy Litecoin in the UK instantly on eToro
- Open an Account – Register on eToro and complete their user verification process.
- Deposit Funds – UK residents are only required to deposit a minimum of $10 (approximately £7). Choose from a debit card, Paypal, or Skrill to have your deposit credited instantly.
- Search for Litecoin – You’ll see a search bar at the top of the page. Simply enter ‘Litecoin’ and click on ‘Trade’.
- Buy Litecoin UK – Input on eToro how much money you want to invest in Litecoin (LTC). Confirm the purchase by clicking the button saying ‘Open Trade’.
Where to Buy Litecoin UK?
Despite its slight drop-off, Litecoin still has a multi-billion dollar valuation. Because of this, you can buy Litecoin in the UK from a large selection of online platforms.
We’ve reviewed the best places to invest in Litecoin in the UK below.
1. eToro – Overall Best Place to Buy Litecoin UK
The best platform to buy Litecoin in the UK is eToro. It provides a seamless and easy way to buy and store LTC at a low-cost way.
eToro also cuts out unnecessary hidden fees that can add to the trading cost. Additionally, it charges zero fees on trades.
|Straightforward account registration||Fiat deposit is limited to USD only|
|Large crypto listings of over 50 cryptocurrencies||Does not offer non-crypto investments to US traders|
|Social trading and copy trading function||High withdrawal and non-trading fees|
|Low deposit and withdrawal threshold|
|Offer access to non-crypto investments like ETF, commodities, |
stock, and forex trading
Another benefit is the wide range of cryptocurrencies that eToro offers. eToro features over 50 coin listings, including all the top cryptocurrencies by market cap.
This gives traders flexibility and a wide range of options to trade their Litecoin.
When it comes to risk management, eToro offers regulation by the stringent Financial Conduct Authority (FCA) of the UK. The broker is also regulated by ASIC of Australia and CySEC of Cyprus.
To join in the UK, you can deposit funds into your eToro account using PayPal, bank transfer or debit card with no deposit fee. Other deposit methods are available for UK investors, whilst options vary by country.
One of their most unique features is the ‘CopyTrader’ feature, a social trading platform that allows users to automatically copy the trades placed by other users, some of which are professional traders.
This is ideal if you’re looking for a hands-off approach to crypto trading as eToro’s social investing can help you completely automate the trading process.
Overall, eToro provides top-notch security, a wide variety of coins to choose from, an easy-to-use interface and unique trading features like ‘CopyTrader’, making it our top choice for buying Litecoin in the UK.
2. Binance – Largest Crypto Exchange to Buy Litecoin UK
Binance is a solid alternative for buying Litecoin due to its low fees.
It also has a wide variety of cryptocurrencies to choose from, making it a good choice for those looking to invest in numerous coins and diversify their portfolios.
The platform supports all the major transaction types making it accessible for everyone. One major difference between competitors, such as eToro, is that it only supports crypto investment and not others like stocks, bonds, and ETFs.
Additionally, Binance has quite a complex user interface which can be difficult for new users to navigate.
|Swift and free account funding||Although the trading commission is cheap, other exchange |
platforms do not include these fees
|Extremely wide range of coin listings, the largest in the |
|Complicated UI is mainly designed for experienced users|
|A wide range of supported transaction types|
The complex trading interface and its trading tools make the platform most suited to experienced investors and traders.
Unfortunately, unlike eToro, it doesn’t offer any social or copy trading features.
Overall, if you’re looking for advanced trading and analytical tools, with a wide range of cryptocurrencies to choose from, Binance is best for you.
Another great option for buying Litecoin in the UK is Gemini. Founded by the Winklevoss twins in 2014, Gemini is functional and compliant with some of the regulatory bodies in the world.
|Has EMI licensure in the UK||A low number of coin listings. Also, high market cap coins like Ripple are unavailable|
|Provision of teaching and educational materials||Fees are high, especially for new traders with small trades|
|Low minimum deposit requirement|
Gemini offers more than 65 crypto listings, making it useful for traders looking to diversify their crypto investment or exchange other cryptocurrencies with Litecoin.
However, unlike eToro, which offers crypto and non-crypto investments, Gemini offers only crypto investments.
The platform always strives to become regulated in any country it operates, including the UK. Therefore, investors can be assured their assets are always secure.
How to Buy Litecoin in the UK Using Our Preferred Trading Platform: eToro
1. Sign up with eToro
Before buying Litecoin on eToro, you must sign up and verify your account. To do this, visit www.etoro.com on your web browser.
Select the JOIN NOW button and fill out the registration form—complete registration by verifying your email address.
2. Account Verification
After completing registration, the next step is verifying your KYC. Enter your profile information and keep your National Insurance Number near for the KYC verification.
Submit valid proof of identity with your passport or driver’s licence and a valid proof of address. Proof of address can be from your internet bill, bank statement or any other utility bill.
3. Deposit fiat currency
After KYC verification, you need to make a fiat deposit to proceed with your trade. To do this, connect your bank, e-wallet or other available payment options. Input the desired amount and complete your fiat deposit.
4. Navigate to Litecoin and make a purchase
Once your deposit has been confirmed, proceed to the crypto section of the website. Select Litecoin and buy the desired amount to make your first Litecoin investment.
5. Litecoin is now added to your eToro portfolio
Once the trade is completed, the equivalent value of Litecoin will be added to your crypto portfolio.
What is Litecoin?
Founded in 2011 by Charlie Lee, a former Google engineer, Litecoin is considered a lite version of Bitcoin.
As one of the first coins derived from Bitcoin’s open-source code, Litecoin uses Ouroboros’s proof of stake. One of Litecoin’s main benefits is its extremely low power usage, almost 0.01% of Bitcoin’s.
It powers its network via the LTC coin, which has transaction tracking similar to Bitcoin.
Why Buy Litecoin?
Litecoin was basically designed as an alternative to Bitcoin as a better store of value and efficient payment form.
Today, Bitcoin holds control as the most-used store of value. However, experts predict Litecoin may someday be much more widely accepted as a better store of value, increasing its market value.
Also, Litecoin’s extremely fast trading execution is about 7.5 minutes quicker than Bitcoin, potentially leading to greater mass adoption.
Litecoin is known as the “Swiss Army knife of protocols” for solving different financial problems and simplifying financial transactions.
It has built a solution to address shortcomings of a centralised financial system like the inability to open a bank account.
It has helped lower incomer people in the world through improved microfinancing. Additionally, Litecoin is useful in developing and improving identity verification and more.
Litecoin made a huge announcement and declared its support for DeFi applications in 2021 to increase and improve its use cases. This will enable DApps to be built off the platform to add to their power, usage and function.
Litecoin Price Analysis and Prediction
Litecoin is one of the biggest cryptocurrencies by market cap, currently ranked 20th. However, despite its large number of holders and use cases, it is unlikely to overtake Bitcoin and Ethereum as the most valuable cryptocurrency.
Apart from the wider market price crash, Litecoin also suffered a price loss due to issues arising from its proof of stake methodology,
Litecoin is actively looking to address its proof of stake methodology issues and other issues that will help its recovery,
Furthermore, expert analysts believe its price can surpass £160 before the end of 2022. They also speculate its long-term future price to be £325 by 2025, showing optimism about its price growth over the next couple of years.
Things to Remember Before Buying Litecoin
Don’t put in more than you can afford to lose – It is important to note that cryptocurrency is unpredictable and volatile like other financial assets. Gains and losses are both possible, therefore ensure you invest only what you can afford to lose.
Resist ‘fear of missing out’ – Trading on emotion remains one of the most common failures of many traders. Fear of missing out on trends or potentially rewarding impulsive moves can result in massive losses if emotions are chosen over proper price analysis. Traders need to be disciplined and follow price analysis rather than emotion.
Understand tax consequences – Every financial asset, including cryptocurrency, incurs a tax. Ensure you know the tax liabilities of holding and buying a cryptocurrency and also ensure you are tax compliant. You can find out about crypto tax here.
Long vs. short-term investment – Before considering investing in Litecoin, ensure you carefully choose and understand the implications of long vs short-term trading strategies. Equally, it’s important to choose a platform that supports your investment strategy.
Is Litecoin legal in the UK?
Unlike some countries like China, trading and buying Litecoin and other cryptocurrencies are legal in the UK.
Will Litecoin become the most valuable cryptocurrency?
Cryptocurrency price actions are unpredictable. Anything can happen. However, the chances of Litecoin becoming the most valuable cryptocurrency are low.
Can you buy less than 1 Litecoin?
Yes, you can buy less than one unit of Litecoin with fractional trading.
Is it too late to buy Litecoin?
Prices are currently in a dip and may soon recover; therefore, it’s not too late to buy Litecoin. Also, given its new use cases and functions, Litecoin may potentially make a good investment.