Litecoin (LTC) was one of the first alternatives to Bitcoin and was developed in 2011 by Charlie lee, a former Google employee. The aim of Litecoin was to bring a faster and cheaper alternative to the market, which is mainly aimed at transferring smaller values. In this way, Bitcoin and Litecoin would not compete with each other but could complement each other.
The working of Litecoin shows quite a lot of similarities with the working of Bitcoin. With Litecoin you can transfer values quickly and cheaply from party A to party B. All transactions are recorded in the Litecoin blockchain. The Litecoin blockchain is a transparent digital ledger in which all Litecoin transactions are permanently stored.
The Litecoin blockchain uses Proof-of-Work (PoW) as a consensus mechanism. The computing power of a computer (also known as miner) is used to process transactions and to secure the network. Litecoin is paid as compensation for the processing of transactions and for securing the network.
Bitvavo makes it as easy as possible to buy digital assets and cryptocurrencies.
1. Sign Up
Create a free account with which you can buy, sell, send, receive and store Litecoin. Access your Bitvavo account from every location, on mobile and desktop.
2. Transfer Funds
Verify your account and transfer Euros to your Bitvavo wallet using one of the 8 supported payment methods.
3. Buy and Trade
Buy or sell over 150 digital assets and pay a maximum trading fee of 0.25%. Store your assets in your Bitvavo wallet or send them to your external wallet.
Storing Litecoin and other digital assets requires a wallet, but don’t worry: Bitvavo’s hosted wallet allows you to store Litecoin without any technical knowledge. Here is a brief overview of the existing wallet options to store your Litecoin:
Hosted wallets are wallets where the private keys to your Litecoin are managed by a third party such as Bitvavo. Access to your account is protected by a password and other advanced security features. Once you are logged in, you can easily and conveniently manage your Litecoin online. Bitvavo offers standard hosted wallets for all digital assets that are offered on the platform.
A software wallet is a program installed on your computer or other device in order to use and manage your Litecoin. Using a software wallet gives you full control over your private keys, so you are not dependent on third parties. The risk is that you alone are in charge of the security of your Litecoin, and if malicious parties have access to your device, your private keys (and therefore your Litecoin) can be stolen.
A hardware wallet is a physical device on which you can store your Litecoin offline. It is one of the safest ways to store your Litecoin, because the private keys are stored on a separate and offline device. Access to this device is often protected by a password. In many ways, a hardware wallet can be compared to a safe in which your Litecoin is stored.
You can use Bitvavo's hosted wallet to easily store, send and receive Litecoin. Once you have purchased Litecoin on Bitvavo, you can choose to send your Litecoin from your Bitvavo wallet to your own software or hardware wallet.