Everything you will need
- Some spare change to buy cryptocurrency and deposit small amounts to verify and set up accounts
- Photos of – Photographic ID (Driving Licence and Passport)
- A bank account (Not Nationwide)
- A mobile phone (Android / iOS)
As the references at the end of this post will indicate, Litecoin value increased by almost 5000% in the last year, its value relies heavily on being a medium of exchange and it is just about to be connected to Litepay… which is only going to make Litecoin increase as a medium of exchange by quite a lot, which makes an ideal investment. So in theory, this is a sure bet…
How to buy LTC (Litecoin)?
To join Coinbase you will need a form of photographic ID and a mobile phone for extra security. Once you have created an account, simply add your debit/credit card and buy as many Litecoin as you want up to the limit set by Coinbase.
You can sell the Litecoin at any time so that you do not lose if you want to pull out…
So the time to invest is probably now, but don’t forget there’s a huge risk involved so be careful!
How do you make a profit?
There’s two ways to think about cryptourrency, one is an entity that relies on people wanting it, similar to gold. Where it gets its value from demand. And secondly, as just another currency that requires constant use.
So to profit, it’s pretty much like this, to the best of my knowledge:
£1 is worth $1.39 and £1 is also worth 0.01 LTC…
The rate of exchange between all of these currencies (GBP, USD, LTC) is constantly changing.
$1.39 is worth £1, and 0.01 LTC is worth £1
But after a surge, in LTC against the GBP….
0.01 LTC is now worth £60
At which point I sell my LTC to somebody for £60, as that is the new value of 0.01 LTC.
So my £1 initial investment, became £60.
I can no longer buy 0.01 LTC for £1, but I can put the £60 towards other needs instead!!
Send your Coinbase LTC to your local wallet
After purchasing your LTC on Coinbase, you should keep it in a safe location. Sending your LTC from Coinbase to your local wallet will keep your LTC secure, but will include transaction fees. To get started, you must create a wallet by downloading and installing Litecoin Core or by choosing an alternative wallet available at litecoin.org.
- Download and install the Litecoin Core wallet, for your operating system.
- Launch Litecoin Core and then click on the receive tab
- Next you will need to click the request payment button, this is where you will find your LTC wallet address information.
- Now you need to send the LTC to your wallet by visiting Coinbase and navigating to the Accounts tab. The Accounts tab will show your current portfolio and provide options to send and receive fiat and cryptocurrency.
- Find your remote LTC Wallet and then click the send button to open a new modal window. Here you must accurately enter your LTC wallet address as generated in the previous step in Litecoin Core, and the amount you want to send to your local wallet.
- That’s it, now your LTC is safe and secure until you’re ready to sell it or use it to purchase online.
- Don’t forget to backup your wallet!
How to back up your Litecoin Core wallet
Backing up your wallet has been made very easy with Litecoin Core. You simply need to visit the “File” menu and then select “Backup Wallet”. This will save a backup of your wallet and its private and public keys in a .DAT file. You must protect this .DAT file like you would your PIN number on your ATM card, and keep it private, hidden, encrypted, locked away and backed up. (Very important or you will lose everything you have invested into Litecoin if somebody malicious manages to find your backup). In fact, if you lose this .DAT backup then you’ll likely lose all of your coins.
How to withdraw from Coinbase
To withdraw your LTC and convert to fiat currency you need to first sell it on an exchange and then convert it to Euros. You can then send the Euros to a verified bank account.
Using Coinbase as an example, and supposing you’re within the United Kingdom, the withdrawal procedure can be somewhat unfamiliar with it being done via SEPA. This however, should not be much of a problem if you’re using a modern bank account (do not use Nationwide). You’ll just need your bank name, IBAN and Swift/BIC.
I recommend that you download the Revolut app, here to use as your bank account during this procedure.
Once you have the app, you will need to:
- Click the settings icon on the top left
- Add an account, and select EUR
- Click on the newly added EUR account, and activate the local option
You will be given an IBAN / BIC which you can use to add your account to Coinbase.
Your bank name is Revolut LTD
You will need to verify your account by submitting a deposit to Coinbase, which can be done via the EUR account on Revolut.