What is Litecoin?
Litecoin is a peer-to-peer Internet currency that enables instant, very low cost payments to anyone in the world. Litecoin is an open source, global payment network that is fully decentralized without any central authorities. Mathematics secures the network and empowers individuals to control their own finances. Litecoin features faster transaction confirmation times and improved storage efficiency than the leading math-based currency. With substantial industry support, trade volume and liquidity, Litecoin is a proven medium of commerce complementary to Bitcoin.
1. Create account on a exchange
The best way to buy Litecoin in Canada is with a cryptocurrency exchange that accepts CAD.
Create an exchange account
In comparison to other cryptocurrencies buying Litecoin with an exchange is pretty easy.
We recommend QuadrigaCX.
However, if you want to buy Litecoin, without a account verification delay, and if you want to buy only a small amount ($250 CAD or less) consider using Coinbase it will be the fastest method. However you will pay a slightly higher fee, in comparison to QuadrigaCX.
For a comparison of the Canadian exchanges and a more comprehensive guide on how to pick one, see the Exchanges Guide.
Verify and Fund
In order to fund your exchange account you will need to verify your identity. This often involves sending in copies of your drivers license, a utility bill, and in many cases a selfie of you holding your ID. This is normal for Canadian exchanges.
2. Buy your Litecoin
Once your account is funded all you need to do is place an order to buy. You have two options, a market order or a limit order.
Place an order for Litecoin on the exchange
The next step is to actually buy Litecoin. This should be fairly obvious once you have access to your account.
For small or quick-fill orders where setting a limit price may not be of great importance, you can buy using a market order. For larger trades we recommend using a limit order and wait for it to fill at a specific price you desire.
3. Store your Litecoin in a wallet
It is best practice to store your cryptocurrencies in a wallet that is not hosted with the exchange. If you have more then $1000 in cryptocurrencies you should strongly consider storing the funds in a wallet that is not connected to the internet, a cold wallet (hardware). Each cryptocurrency has it's own wallet.
If you are just getting started you will probably want to use a software wallet. They are typically free and are considered more secure than leaving Litecoin on the exchanges.
A desktop software wallet that supports Litecoin is Exodus.
Feel free to do a google search to research what wallets are available and know what the options are.
Download and install your software wallet. Then withdraw your Litecoin from your exchange account. It is common for a small fee to be associated with the withdrawal.
The safest way to store Litecoin, or any cryptocurrency, is with a hardware wallet that is not connected to the internet. This is to prevent it being stolen or hacked from a exchange or a wallet connected to the internet.
A common hardware wallet for Litecoin is the Ledger Nano S.
Leaving it on an Exchange
This is generally not recommended. However, you might want to do this if you are actively trading and need access to Litecoin. Be aware you are taking an extra risk. Exchanges have been known to get hacked or disappear.
The advantage of doing this is instant access to your Litecoin, and saving the fees associated with transactions and withdrawing.
If you are going to be doing this, make sure you have 2 factor authentication enabled and that you are using a reputable exchange.
- Create an account on a Canadian exchange.
- Place a order for Litecoin
- Send your Litecoin to a wallet to keep it safe