In this guide a clear view of the steps to acquire Litecoin on the Binance cryptocurrency exchange with Bitcoin and also with a credit card.
First of all, Litecoin is a cryptocurrency similar to bitcoin with a limited supply of coins. In addition, this very promising alt-coin has accompanied ‘big brother’ Bitcoin in its impressive rise since the start of the cryptocurrency market back in 2011. In the most recent bear market(entire 2018) alt-coins showed some massive sell-offs and Litecoin price reached a bottom of about 30 USD. Currently(June 2019), Litecoin is one of the best performing altcoins and is priced at 114 USD. This is a stunning 275% increase in net gains! Later on more in this guide about the steps to get Litecoin, but first some Litecoin history.
Short history of Litecoin
As stated above, Litecoin is a cryptocurrency that has a limited supply. Not more than 84 million coins will be ever mined or created in existence. Also, when talking about Litecoin you can’t deny it’s big brother Bitcoin upon which Litecoin is created. Litecoin was released back in 2011 via an open-source client on Github. Additionally, Litecoin was the first fork out of the Bitcoin source-code and was released under its own unique properties.
Bitcoin as Gold Litecoin as Silver
While Bitcoin was seen as “gold” and a store of value for long-term purposes, Litecoin was seen as the “silver” and a means of a transaction for cheaper and everyday purposes. In other words, Bitcoin has a limited supply of 21 million coins and Litecoin has a limited supply of 84 million. This is a ratio of 1:4 and should make Litecoin much cheaper on a daily basis.
Litecoin vs Bitcoin: The statistics
|Coin limit||21 million||84 million|
|Mean block time||10 minutes||2.5 minutes|
|Difficulty retarget||2016 block||2016 blocks|
|Block reward details||Halved every 210000 blocks||Halved every 840000 blocks|
|Initial reward||50 BTC||50 LTC|
|Current block reward||12.5 BTC||25 LTC|
|Created by||Satoshi Nakamoto||Charlie Lee|
|Creation date||January 3rd, 2009||October 7th, 2011|
|Market cap||$143 Billion||$7 Billion|
One of the main differences in both currencies lies in the way both coins are mined and scripted. In fact, both coins are so-called PoW-coins and use a lot of electricity to mine the different blocks on the decentralized Blockchain networks.
Litecoin price to $1000 & Charlie Lee
Charlie Lee, a former IT-engineer, is the original founder of Litecoin cryptocurrency. Back in 2017 when Litecoin price was at its peak, something remarkable happened. In a Twitter message, he stated that he would get rid of his large Litecoin bag and would sell for fiat currency.
Until today, a lot of Litecoin enthusiasts and investors are not happy with his action and hold him accountable for the large price drop later on in 2018. As a result of this, Charlie Lee was recently being interviewed by Anthony Pompliano. Pompliano asked some tough questions about his selling action back at the end of 2017. Also, he wanted to know the current state of the Litecoin cryptocurrency. Charlie Lee’s reaction to his selling action was:
I actually personally did think it was going to keep going up. Also, I didn’t think that was the peak…I thought it was going to hit $1,000.Charlie Lee, Founder of Litecoin
What are the Benefits of Binance Exchange
In general, Binance is one of the biggest cryptocurrency exchanges out there and because of this, it makes them very trustworthy to start out with. They are also a very young exchange which got launched back in 2017. Since then, the exchange has witnessed massive growth and gained a lot of popularity among cryptocurrency traders. Nowadays Binance is one of the largest exchanges with a 24-hour trading volume of more than 1 billion USD!
Below I have listed the overall advantages and disadvantages of buying Litecoin from Binance.
|✓ More than 140 different coins listed||✗ Buying alt-coins with fiat is not possible|
|✓ Low trading fees||✗ Customer support help-section poorly translated|
|✓ Large liquidity|
|✓ Perfect to trade for beginners as more advanced traders|
|✓ Free deposits and cheap fee to withdraw Litecoin|
|✓ Excellent security|
|✓ Live chat functionality|
Steps to buy Litecoin on Binance
Acquiring Litecoin on Binance is quite easy, but before you can do this you have to sign up and perform some steps for setting up your account the right way.
|Take attention if you are a US customer!|
|Since September 2019, US residents aren’t allowed to trade on the regular Binance Exchange. To be able to trade altcoins, Binance has created a new exchange which is approved by the Financial Crimes Enforcement Network(FinCen). Use the link below instead.|
1. Register and sign up
The first step to make is going to the Binance website and perform a signup process here. Like any other registration, an email address and password are needed. After signing up a confirmation email will be sent to you.
Solve the very easy puzzle, this to verify you are not a bot.
The confirmation email which has been sent to you contains a link to confirm your account. Click this link to continue the sign-up process.
And after clicking submit button in your email :
Log in to your Binance account.
After logging in for the first time, Binance comes with a warning screen that you have to read carefully. This Safety risk notice screen comes up with 5 questions that you have to answer before continuing.
The next step is to click the continue button.
2. Continue setting up your Binance account
After logging in you will be taken to your start-up screen within the Binance trading portal. It’s highly recommended that you enable 2-Factor Authentication (2FA) on any exchange you use to trade cryptocurrency to improve your account security. Specifically, I recommend using the Google Authenticator app, as SMS 2FA has a variety of security vulnerabilities. Google Authenticator is free to use from both the Google Play Store and Apple IOS Store.
Initially, your account withdrawal limits will be set to a 2 BTC equivalent every 24 hours, but you can raise these limits by completing “Submit verification documents”.
Personal or Business depends on what you are interested in. The next screens need your personal information like passport, driver license or identity paper and submitting a selfie. These are all optional and only needed if you want to trade with large amounts of BTC( > 100 BTC pro day).
3. Buy Litecoin on Binance
After installing and setting up your personal account it’s time to buy Litecoin or any other cryptocurrency at this trading platform. To do so, there are currently two ways of doing this and it depends whether you already own some cryptocurrency or not. If not, don’t panic, because Binance also makes it possible to buy Bitcoin with a credit card. In particular, for acquiring Litecoin you have to get Bitcoin or Ethereum first and purchase LTC with it later on. In addition, I will show you later how to do this on the Binance exchange.
3.1 Steps to buy Litecoin: Use a credit card
To get Bitcoin with a credit card you have to choose “Funds” on the left and then click “Buy with credit card”.
Also, after this screen, you have to give the details about your credit card company and you’re ready to go.
3.2 Deposit cryptocurrency to Binance
There’s a large number(more than 140 coins) of cryptocurrencies available to deposit onto Binance, although trading pairs are denominated in BTC, ETH, USDT, XRP, USDC, USD, PAX, TUSD, and USDS.
Notably, whatever crypto coin you choose, click deposit then send funds to the given address.
It takes some time for the blockchain to handle the transaction, but you can check this in a separate screen on Binance:
Now, just wait until the transaction has done 6 confirmations on the Blockchain network. Additionally, after these confirmations, the sent Bitcoin will be added to your available balance.
4. Acquire Litecoin with Bitcoin
Once your deposit has been completed, it’s time to trade your deposited cryptocurrency for Litecoin. First, click the “Exchange” button in the menu and choose “Advanced”. Now you see the window which shows the current chart and price of several cryptocurrencies.
Second, for buying Litecoin with Bitcoin you have to search in the menu for the Litecoin symbol. In the menu choose “BTC” and give the LTC(this is the symbol for LTC).
Place a buy LTC order using either a limit or market order. Binance charges a .1% fee for trades. Furthermore, to keep it simple, I purchased 1.5 LTC using a market order. If you’re placing a market order, you can choose the percentage of your Bitcoin balance you wish to use to get LTC.
In particular, a market order will purchase the maximum amount of LTC available for the Bitcoin amount you’ve chosen to spend. As a result, it will purchase the cheapest available LTC until it has filled this amount.
After the market order has been completed you will receive the amount of LTC in your LTC crypto wallet on the exchange. In addition, this wallet will automatically be generated for you by the Binance exchange.
In general, Litecoin is one of the most promising altcoins which has a lot of potentials to grow in the future. In August 2019, the last Litecoin halving event took place. Moreover, this permanent reduction in rewards for the miners will definitely have an impact on the Litecoin price.
Investors are willing to invest in this token with USD dollars or just Bitcoin. As a result, Binance offers a quick but simple way to buy on their trading platform. Finally, with this guide in the steps to buy Litecoin, I hope I have given you a clear view of the process to acquire LTC on Binance.
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