However, you do not have the patience, the will or the computing power to accrue your litecoin through the mining process. Don’t worry! Just as with bitcoin, it is possible to buy litecoin either through a litecoin exchange or on the open market. Let’s take a look at your options.
Use an exchange
So, the first option is through an exchange. Many of the more reputable bitcoin exchanges will also offer you the option of converting your traditional fiat currency into litecoin. In order to do this, simply open an account with the exchange of your choice (make sure you do your research has bitcoin exchanges are not yet regulated and you want to make sure that you go with an exchange you can trust). Having opened your account, deposit your domestic fiat currency. You can then use this currency to buy litecoin. Once bought, the litecoin will appear in your account balance and you can withdraw to the litecoin address. As a quick aside, we covered how to set up a litecoin address in the previous lesson but if you’re short on time, simply go to the litecoin website at www.litecoin.org – you will likely be required to offer some form of ID to the exchange you choose so as they can verify your identification. Don’t be concerned about this, it’s completely normal and standard operating procedure across the reputable exchanges.
Buy on the open market
Just as with bitcoin, it is also possible to buy litecoin on the open market. There are numerous websites that bring together potential buyers and sellers of litecoin in return for what often amounts to a small percentage of the overall transaction. As ever, just as you would if you are buying something on eBay, make sure you check the reputation of the seller before handing over your traditional fiat currency. The seller you choose should have strong feedback across the platform through which you have decided to transact. All you need to do is give your chosen seller the address of your litecoin wallet, transfer than your funds and check your wallet to ensure they have been sent.
So now you know how to buy, sell, store and mine bitcoin litecoin. But what can you do with them? What are the current laws surrounding any capital gains or taxation etc.? Find out here…