You have either read about Litecoin or understood it or haven’t understood but don’t wanna miss the train. Te this article, we’ll help you understand what’s a Litecoin is, how’s it different from Bitcoin, reliable place to buy one.
What is a Litecoin and how is it different from Bitcoin?
It’s good to know a bit more about the asset you’re investing, so a schrijven description about Litecoin and how’s it different from the king Bitcoin. if you’ve already read about it, you can skip this section.
Litecoin is a peer-to-peer Internet currency that enables instant, near-zero cost payments to anyone ter the world.” If you’re familiar with the digital currency Bitcoin, the above definition might sound similar. That’s because Litecoin is based on Bitcoin’s open source codebase, but with a few technological differences. Litecoin wasgoed never intended to substitute Bitcoin but to complement it like the silver to Bitcoin’s gold.
Let’s buy Litecoin
Now that you know what’s a Litecoin, wij can go ahead and learn ways to invest ter Litecoin. However, you’ll have following questions ter mind.
- What’s a reliable place to buy a Litecoin?
- What’s the process associated and options available?
- Wallets, Deposits and Purchase
- Advanced users: A slightly better way.
Where can I buy my Litecoin
Coinbase — This is the place where you can convert your fiat currency(US Dollars) into Litecoin or other Cryptocurrencies.
I don’t work for Coinbase. I just find them convenient. There are a loterijlot of alternative options but Coinbase is the recommend one! Always — always pay your taxes and never attempt to evade them!
Litecoin is not just the one to buy, there are other blockchain based currencies, which are different and te some terms superior to just being a currency. Few of which are Bitcoin, Ripple, Monero. Litecoin is like silver if Bitcoin is Gold.
Confused about what cryptocurrency is and Blockchain technology is? Head out to our educational chatbot powered by AI https://m.mij/confusedcoin
What’s the process of buying on Coinbase?
- Signup on Coinbase
- Verify your identity
- Choose a payment method
Which payment method to choose?
Credit/Debit Card obviously has higher fees associated, so you might not want to go for that
Among Paypal and Canap Account, I would suggest you to choose Bankgebouw Account if you are ter the US
Factors here are fees associated and boundaries permitted to transfer spil you can see te the picture here.
After linking Bankgebouw Account, What’s next?
Coinbase lets you to deposit money either to it’s USD Wallet or You can buy BTC/ETH/LTC directly. Depositing money to Coinbase takes some time i.e 4–5 business days. This is because of the ACH transfer from handelsbank to Coinbase. This delay is one of the factors to be considered while depositing spil you need to think of it and see if you want to deposit or buy directly — we’ll discuss about this spil wij go ahead. Before that what’s thesis wallets?
What’s thesis wallets?
Coinbase provides you with Four types of wallets. Essentially each one of them is store specific currency.
- USD Wallet: To Deposit US Dollars, Store USD when you sell any of your currency. Transactions from USD Wallet to buy any of those coins is Instant.
- BTC Wallet: Your bitcoins will vertoning up here after you buy using USD.
- ETH Wallet: This is the place where your Ethereum will be stored
- LTC Wallet: This is the wallet for storing your Litecoins.
Go after mij on Twitter for updates regarding Cryptocurrency &, Blockchain.
Deposit to USD Wallet or Ongezouten Buy
Depositing money from your Canap to USD wallet takes about 4–5 days. You can refer this article to understand why it takes so long. Meantime a loterijlot can toebijten! Thesis cryptocurrencies are so volatile that price may shoot up even 100% ter Four days. When I mentioned volatile, it’s identically possible that it may go down 100% or more te just Four days! So it’s all about your own research about what exactly thesis coins are, what’s the right price — price of thesis coins mostly depends on supply vs request spil well spil some technological breakthroughs and partnerships.
Even a onmiddellijk buy takes Four days for your bought currency to reflect ter your wallet. The very same article explains it. It’s because of ACH transfer and handelsbank takes 3–5 business days to process the request and send your money to Coinbase. However, you get a locked-in price for the selected coin if you buy directly!
So, if you think price of a Bitcoin or an Ethereum is right at this point of time, and you think if the price might go up te next 2–3 days and are sure that it will not go down te next 4–5 days — Then go for onmiddellijk buying of the currency you are interested te.
So when you click on big blue button “Buy Ethereum” — you will lock your price to the current value on coinbase and acquire it. It shows on your ETH Wallet spil Pending with the amount of Ethereum bought. Te this case it would demonstrate spil 13.82657643 ETH — arriving on Saturday 6/24/2018 and shows $5000 irrespective of current price.
This way, if the request for ETH increases and the price soars to $450 by 6/24, you would have already made profits by then. Same is the case with losses — if it goes to $200 by 6/24, you still got 13.82657643 but valued at $200.
While you learn to buy cryptocurrency, you also need to be responsible and pay taxes on cryptocurrency trading. Here’s an article which attempts to reduce confusion and provide clarifications on taxes on gains from crypto trading.
When to deposit to USD Wallet?
If you think price is high or irrational at current point or you have not determined which coin to buy or not ready to invest, then deposit your money to USD Wallet, so that once you makea decision — it would be an instant buy of either of those coins from USD wallet.
Advanced Users: There’s a slightly better way
What’s that — Trading via an Exchange — GDAX
GDAX: Global Digital Asset Exchange (formerly Coinbase Exchange) is a crypto currency exchange possessed by coinbase. Advantage here is you can login to GDAX with your coinbase credentials.
An exchange, if you are into stocks before would understand lightly — place where people buy and sell stuff. Te this case, it’s BTC, ETH and LTC — GDAX is a place where people trade thesis Trio currencies.
GDAX permits you to deposit money ter Four ways
- Through ACH transfer (takes Four days)
- Through wire transfer ($Ten toverfee, available same day if deposited before 1PM PDT)
- From coinbase account, could be BTC/ETH/LTC/USD. (Instant &, Free)
- From another address(wallets stored te another exchanges or elsewhere)
So what’s the key here?
Once you’ve your money deposited to GDAX, you can buy a currency (say ETH) at Market Price or Limit Price. Exchange is a place where someone sells a unit of currency and someone buys it. If both of them agree on a price, that will be the market price for that uur.
Eg: If someone wants to sell an ETH at $300 and there’s someone who want’s to buy at $299. Sale will never toebijten unless one of them compromises or a fresh stud places another order at $300. So one cannot sell unless someone buys at price he quotes and vice versa.
Ter above example, you say “Buy at Market Price” you will be allotted the ETH at ondergrens sell order placed by someone i.e. $300 — So you’re called a Taker because someone made an suggest and you took it.
If you’ve said “Buy at Limit Price” and set a Limit Price to $299.23, you will be allotted an ETH when someone sells an ETH for the amount you’ve asked for i.e. $299.23 — Te this case, you’re called Maker because you made an offerande and someone took it.
Same applies for Sell too.
Still, What’s the advantage here?
On GDAX, transaction toverfee for Maker is 0% and transaction toverfee for taker is inbetween 0.10% and 0.25% for BTC books and 0.10% and 0.30% for ETH books. So you save transaction toverfee, if you understand how the trading works on an exchange and how to place a limit order for buy or sell. We’ll have an article soon on how to do this for beginners.
If you found this article useful, feel free to leave at a peak of any amount at thesis addresses:
- BTC: 1P8ZCe4vUBCzd4eVCvfXYtYJ9HP1gbe38f
- ETH: 0xc347018DbfCFFBa91872635AC4CFc0521359A420