How to Buy Litecoin

Co-authored by wikiHow Staff

Updated: January 7, 2020

Litecoin was the world's first altcoin – a cryptocurrency similar to Bitcoin. With a market cap of $8.4 billion, it stands as one of the top 5 largest cryptocurrencies in the world. Its value also increased by 1000 percent in 2018. If you want to get in on the action, you'll first need to set up a cryptocurrency wallet that accepts Litecoin. Then you'll be ready to buy Litecoin either on one of the many cryptocurrency exchanges online or directly from an individual through a peer-to-peer exchange. You can buy Litecoin with your national currency (known as fiat currency in the cryptocurrency community) or with another cryptocurrency.[1]

Method 1 of 3:
Setting Up a Litecoin Wallet

  1. 1
    Choose the type of wallet you want to store your Litecoin. If you're new to cryptocurrency, before you can buy Litecoin you'll need a digital wallet where you can keep it. If you plan on buying a substantial amount of Litecoin, a hardware wallet is more secure. However, for small amounts, you may prefer a software wallet or mobile wallet for their convenience.[2]
    • Litecoin Core is the original Litecoin wallet. It's a software wallet that you can install on your desktop. The download is free but can take some time (and storage space on your computer) since you have to download the entire blockchain, which is essentially a ledger of every Litecoin transaction ever made. As of May 2019, the Litecoin blockchain is more than 23 GB.[3]
    • If you're short on computer space or time and don't want to download the entire blockchain, you might try the software wallet Electrum-LTC. Jaxx and Exodus are 2 other software wallets that support Litecoin as well as other types of cryptocurrency.
    • Loafwallet is a mobile wallet with a strong reputation that supports Litecoin.
    • If you're thinking about a hardware wallet, try the Trezor or the Ledger Nano, both of which support Litecoin.
  2. 2
    Download the software for your wallet from an official and secure source. If you've purchased a hardware wallet, you'll find information in the packaging about how to download the interface. Mobile wallets can be downloaded from your smartphone's app store. If you've decided on a software wallet, go to the official website of the company that makes the wallet to download it.[4]
    • Double-check the URL before you download to make sure you are on the official website of the wallet's creator. Wallets downloaded from a third party may be vulnerable to hacking.
    • If you're using a software wallet, keep in mind that it's only as secure as your computer and network are. Make sure you have a strong firewall enabled and that your virus protection is up to date.
  3. 3
    Create a strong password for your account. Most wallets use your email address as your username. For added security, it's a good idea to create an email address that you only use for cryptocurrency. Do not enter that email address online for any other purpose. Then choose a strong password. Your password for your wallet should also be something that you don't use for anything else.[5]
    • In addition to your password, set up a backup passphrase and two-factor authentication if they are available on your wallet. This provides additional protection for your cryptocurrency.
  4. 4
    Save your keystore file and private keys. After you set up your wallet, you'll have the opportunity to download your keystore file to your computer and copy your private keys. Keep your private keys in a safe place. Anyone who has access to your private key has access to your cryptocurrency.[6]
    • Your keystore file is an encrypted file that includes all of your private keys and other information. Because it's encrypted, no one can open it unless they also know your password.

    Tip: It's a good idea to save multiple copies of your keystore file in different places, such as a smartphone, tablet, or zip drive. That way, if you lose one copy, you'll still have backups elsewhere.

  5. 5
    Copy your public address so you can begin trading. Your public address is similar to your bank account number. When you purchase Litecoin, whether on an exchange or through a peer-to-peer exchange with an individual, you'll use your public address to send your Litecoin in your wallet.[7]
    • Unlike your private key, anyone can know your public address. You can only use it to send cryptocurrency, not to withdraw any.

Method 2 of 3:
Ordering Litecoin on a Cryptocurrency Exchange

  1. 1
    Find an exchange that trades Litecoin and operates in your country. You can find cryptocurrency exchanges online with a simple search for "Litecoin exchange." Research the exchanges you find and choose one with the lowest fees, strongest security, and best reputation. There are numerous websites that rank and evaluate cryptocurrency exchanges that you can use to guide your selection.[8]
    • If you're planning on buying Litecoin with US dollars, you might try Bitfinex or Livecoin. However, as of 2019, Bitfinex no longer accepts US customers.
    • You'll have more options if you decide to buy Litecoin with another cryptocurrency, such as Bitcoin or Ethereum.

    Tip: Unless you already own another cryptocurrency, it typically makes more sense to buy with fiat currency. Otherwise, you'll have a much longer transaction process because you'll have to buy another cryptocurrency first, then trade that cryptocurrency for Litecoin.

  2. 2
    Open an account on the exchange of your choice. To open a cryptocurrency exchange account, navigate to the home page of the exchange and click on the button to register for an account. You must provide correct information about your identity – exchange accounts are not anonymous.[9]
    • After your initial registration, you'll have to verify your identity. The process varies among exchanges, but typically involves scanning and submitting a digital copy of a government-issued photo ID.
  3. 3
    Link a bank account if you want to trade fiat currency for Litecoin. If you link a bank account, you can pay for cryptocurrency with the currency used in your own country (known as fiat currency in the crypto world). Most exchanges also give you the option to link a debit or credit card.[10]
    • You'll typically have to transfer money into your exchange account before you can buy cryptocurrency on the exchange since the exchange can't tell how much fiat currency you have available – similar to how you would transfer cash to an investment account before you bought stock.
  4. 4
    Place your order on the exchange. Once you've funded your account, you can place an order similar to how you'd place an order for stock on an online stock exchange. You can either order a specific amount of Litecoin at the market rate, or you can order however much Litecoin you can get for a specified price.[11]
    • For example, if you were buying Litecoin with US dollars, you could place an order for $100 worth of Litecoin – however much that turned out to be.

    Tip: Typically, you can also set a maximum amount that you will pay per Litecoin, based on the market prices. This can be a good idea because of the volatility of cryptocurrency, especially if Litecoin's value has been fluctuating recently.

  5. 5
    Withdraw your Litecoins to your wallet. Once your order is processed, your Litecoin will show up in your exchange account, minus any exchange fees. Because cryptocurrency exchanges are highly vulnerable to hackers (even the most secure of them), you'll want to transfer your Litecoin to a cryptocurrency wallet that you control as soon as possible.[12]
    • To transfer your Litecoin to your wallet, simply click on a "withdraw" or "send" button in your exchange account and enter the public address of your wallet.
    • Monitor your wallet for confirmation of the transfer. It typically will not be instantaneous, but it shouldn't take longer than a few minutes for your Litecoin to show up in your wallet.

Method 3 of 3:
Trading Litecoin on a Peer-to-Peer Exchange

  1. 1
    Browse offerings on a peer-to-peer (P2P) exchange. P2P exchanges, such as Cointal, allow users to exchange cryptocurrency directly. The exchanges typically have a marketplace that you can browse before setting up an account, similar to eBay.[13]
    • Get a good idea of what's available and the going rate for Litecoin before you set up an account. You can also look at the reputation ratings for various sellers. Sellers involved in numerous transactions on the exchange platform typically have higher ratings.
  2. 2
    Sign up for an account on the P2P exchange. If you find offers to sell Litecoin that you want to take advantage of, you'll have to first create an account on the exchange. Unlike cryptocurrency exchanges, P2P exchanges allow for a degree of anonymity and typically will not verify your identity.[14]
    • While you may appreciate the opportunity to exchange Litecoin anonymously, keep in mind that the same goes for the sellers you're potentially buying Litecoin from. The PTP exchange platform has no way for you to verify that the Litecoin that user is offering even exists.

    Use caution: While some P2P exchange platforms, such as Cointal, do offer insurance on transactions, you undertake any transaction on a P2P exchange at your own risk.

  3. 3
    Click on Litecoin offers that interest you. On P2P exchanges, sellers typically list the amount of Litecoin they have available to sell and what they will accept in exchange for it. They'll also provide the exchange rate they're using.[15]
    • Users may exchange Litecoin for fiat currency or another cryptocurrency. Some also request payment in gift cards, typically for online retailers, such as Amazon. The info page for the sale typically also lets you know how quick the user is to respond to trade requests.
    • Evaluate the seller's reputation carefully. If the seller is new to the exchange, they may not have many ratings. This isn't necessarily a bad thing (you're new too), but a transaction with another new account should be approached with more caution. For example, you might agree to do a smaller, "test" trade first, or break up a larger trade into multiple transactions.
  4. 4
    Open a trade with a Litecoin seller. When you've found a seller you want to do business with, click the link on the page to open a trade. The seller typically has a limited amount of time to respond. For example, Cointal gives users 50 minutes to contact each other and work out the details of the trade.[16]
    • If the user requests payment in gift cards or a cryptocurrency that you don't currently own, you'll need to get that payment together before the user will send your Litecoin.
    • Protect your private information when talking to a seller. Keep in mind that they don't need to know your real name, your address, your phone number, or your email address to complete this transaction.
  5. 5
    Confirm the transaction in your wallet. If you decide to go through with the transaction, you'll pay the seller and give them the public address for your wallet. You'll first see the transaction as pending, then it will be confirmed. Once the transaction is confirmed it cannot be reversed by the seller.[17]
    • It's a good idea to keep in contact with the seller until the Litecoin is confirmed in your wallet.

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      • Cryptocurrencies are volatile and considered fairly risky investments. Do not put any more money in cryptocurrency than you can afford to lose.[18]

      About This Article

      Co-Authored By:
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      Co-authors: 4
      Updated: January 7, 2020
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      Categories: Cryptocurrencies
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