How to Buy Litecoin With Cash
Your interest in purchasing Litecoin is well founded. Its increased popularity as an altcoin — a cryptocurrency other than Bitcoin — has been on the rise. This is due to a combination of factors. Some view its blockchain as having a more secure encryption algorithm. Others are fond of the fact that there are twice as many Litecoin due for release than Bitcoin. Others find the fact that Litecoin can be “mined” faster than Bitcoin resulting in faster transaction processing times to be a desirable attribute.
Whatever path you took for deciding to purchase Litecoin, chances are that you have some questions on how to go about it. If you intend to use cash to purchase Litecoin this guide will provide you with the information that you need to do so safely and efficiently.
1. Consider All of Your Payment Options
While this guide will focus on how to buy Litecoin with cash, just bear in mind that it is possible to purchase it with a credit and debit card as well. There is also a method that allows you to use your PayPal account. We have guides available for each of those methods.
2. Fees
When you purchase Litecoin with cash you will encounter fees. These fees will be assessed by the platform that is facilitating the transaction. These can be cryptocurrency exchanges or peer-to-peer marketplaces. More on those later.
The types of fees that you will incur can take the form of processing or transaction fees. These can be based on a percentage of the transaction or set as a predetermined amount.
Some platforms will not charge a fee. Instead, they make their money from the spread. This refers to the price difference between the purchase and selling price of Litecoin that they offer on their platform. Think of it as being similar to how a currency exchange house makes its money.
3. Revealing Personal Information
One of the most common reasons why people choose to purchase Litecoin with cash over credit or debit cards is due to the privacy and anonymity factors.
If this is your motivation for using cash, you need to be aware that it can provide some degree of anonymity — with certain limitations. Usually, the smaller the amount of Litecoin that you purchase, the less stringent identification verification requirements will be.
Cryptocurrency exchanges will have standardized rules and protocols in place regarding information required from users to open an account. When using one of those exchanges you should be prepared to submit images of your identification and proof of address. These can usually be fulfilled with a driver’s license, passport, utility bill, and bank statement.
On the exchanges that are more forgiving, they will allow you to purchase amounts ranging from $50 to $250 dollars per month before triggering that requirement. Others will do so before you conduct any transaction, regardless of size.
3. Peer-to-Peer Marketplaces
A peer-to-peer marketplace is a unique type of platform for purchasing Litecoin. All of the selling is done by individuals. The platform only exists as a place to bring buyers and sellers together.
On these platforms, sellers dictate identification verification requirements. Some will require them, others will not. These provide you the best chance for buying Litecoin with cash and avoiding having to submit identification verification.
4. Need for a Litecoin Wallet
Regardless of whether you use the services of a cryptocurrency exchange or a peer-to-peer marketplace, one thing that you will need is a Litecoin wallet. This consists of a set of two alphanumeric keys. One is called a private key. This is what you use to authorize transactions on the Litecoin blockchain and to authorize the transfer of a determined amount of Litecoin from your control to that of another party. The public key is what you can safely give to other people in order for them to send Litecoin to you. When you purchase Litecoin, there is never a need for you to release your private key. As a matter of fact, your private key is called private for a reason. Only you and you alone should ever have possession or knowledge of it. Your public key, on the other hand, is safe to disclose. Even if you were to lose it there is not much that other people can do with your public key except deposit Litecoin to you.
We have articles and guides dedicated to explaining how cryptocurrency wallets work, the different types that exist, and walkthroughs of different specific Litecoin wallets.
When it comes to purchasing Litecoin, some of the cryptocurrency exchanges offer their users online cryptocurrency wallets when they register for free. Online cryptocurrency wallets are convenient because you can access them anywhere. However, for that same reason, some people recommend against using them and instead suggest using hardware-based, air-gapped, or paper wallets. Those types of Litecoin wallets offer you greater control over your own keys and do not have them exposed to the cloud.
Of course, if you are just getting started with the purchase of Litecoin and if you are dealing with smaller amounts, an online wallet might be a good first solution. Online Litecoin wallet services like LiteVault.net, Cryptonator, and BitKey offer strong viable solutions. Just remember, as your Litecoin holdings begin to grow it would be recommended that you transition from an online wallet to a hardware-based or paper-based wallet solution.
5. BitRush.nl
If you live in the EU or the UK, BitRush is a cryptocurrency exchange that facilitates the purchase of Litecoin with cash. Be advised that the definition of a cash purchase is not limited to physically exchanging fiat currency with another individual. It also covers payments made via a bank deposit, bank transfer, or wire transfer. In the case of BitRush, users can choose from using the iDeal, Bancontact or MyBank payment systems in order to transfer money from their traditional online banking account to BitRush for payment of the Litecoin that they intend to purchase. BitRush does not offer teller bank deposits as a payment option.
BitRush does not charge individual transaction or processing fees when you purchase Litecoin. They use the spread base model that we discussed in the earlier sections of this guide. Normally, the spread with BitRush ranges from one to two percent above current market prices.
BitRush requires all users to verify their identity with a driver’s license or passport before engaging in any type of Litecoin purchase. Additionally, they also require users to verify their mobile phone number.
Visit Bitrush Now6. Coinbase
Coinbase is a well-known cryptocurrency exchange that can be used in over 125 countries around the world. It allows you to purchase Litecoin directly via bank transfer. In order to do so, you must open a Coinbase account. This requires you to submit personal identification information in order to pass their verification process. You must also authenticate having ownership of the bank account that you will be using for your purchases. In fact, you must link that bank account to your Coinbase account.
In terms of privacy, Coinbase may not be the best choice. In terms of ease of use and speed of platform, it is very efficient. They also offer users the option of a free online wallet.
Visit Coinbase Now7. LitecoinLocal.net
LitecoinLocal.net is a peer-to-peer marketplace that allows you to find individual sellers of Litecoin that are willing to accept direct cash payments, bank deposits, and wire transfers as a form of payment. Being a marketplace and not an exchange, that means that finding available sellers that accept a cash-based form of payment and that are willing to sell you the amount of Litecoin that you are seeking will vary on an hour-by-hour or even minute-by-minute basis. Likewise will the fee structures and the verification requirements involved as each seller can determine their own.
That notwithstanding, LitecoinLocal can be a very effective way to source your Litecoin via cash-based payments. Since LitecoinLocal offers a form of escrow service, when you use the bank deposit or wire transfer payment option you know that your transaction will be safe. Face-to-face direct cash payments can be a little riskier. Some people may want to avoid them — others, on the other hand, may seek them out as they would offer the highest level of anonymity possible.
8. Cointal
Cointal is another peer-to-peer marketplace that you can use to purchase Litecoin with cash-based payments. The payment options available on Cointal include physical cash, wire transfers, bank transfers, Western Union payments, and MoneyGram transfers — among others. On Cointal you can search for available sellers of Litecoin. If none are available, you can post your own offer to buy Litecoin and wait for sellers to contact you.
Cointal uses an escrow service similar to LitecoinLocal to make the process safe and secure for both buyer and seller. Cointal also offers its users a free online cryptocurrency wallet that accommodates Litecoin. You can, however, use your own cryptocurrency wallet solution if you so desire.
9. Conclusion
As you can now determine for yourself, using cash-based payment solutions to purchase Litecoin does not complicate the process whatsoever. This means that if your country of residence or individual banking institution — for whatever reason — prohibits you from using a credit or debit card to purchase Litecoin, you can still do so using cash.