You can buy Litecoin (LTC) on any major cryptocurrency exchange in just a few minutes. The process involves opening an account, verifying your identity, depositing funds, and placing an order. Here’s how to do it step by step, plus what you need to know about fees, storage, and taxes.
Choose an Exchange
Litecoin is one of the oldest and most widely supported cryptocurrencies, so nearly every major exchange lists it. Your choice of platform mostly comes down to fees, ease of use, and availability in your state.
Coinbase is the most beginner-friendly option, with a straightforward interface that walks you through your first purchase. Kraken stands out for lower trading fees, with maker fees (the cost when your order adds liquidity to the market) ranging from zero to 0.25% and taker fees from 0.05% to 0.40% on its Pro platform. Gemini is available in all 50 U.S. states and offers FDIC insurance on uninvested cash along with crypto insurance. Crypto.com has a polished mobile app if you prefer buying from your phone.
All of these platforms support Litecoin. If you already have an account on one of them, there’s no reason to open a new one just for this purchase.
Set Up and Verify Your Account
Every regulated exchange requires identity verification before you can buy crypto. This process, called KYC (Know Your Customer), is a legal requirement for platforms operating in the U.S. You’ll typically need to provide:
- Email address and password to create the account
- Government-issued photo ID such as a driver’s license or passport
- Personal details like your full legal name, date of birth, and Social Security number
- A selfie or photo to match against your ID in some cases
Most exchanges verify your identity within minutes, though it can occasionally take a day or two during high-demand periods. While you’re setting up, enable two-factor authentication (2FA), which requires a code from your phone each time you log in. This is the single most important step you can take to protect your account from unauthorized access.
Deposit Funds
Once verified, you need to add money to your account. The most common funding methods are:
- Bank transfer (ACH): Free on most platforms, but takes one to three business days to settle. Some exchanges let you trade immediately while the transfer clears, though you won’t be able to withdraw until it does.
- Wire transfer: Faster settlement, but exchanges and banks often charge fees on both ends.
- Debit card: Instant funding, but typically carries a higher fee, often around 2% to 3.5% of the transaction.
If you’re making a one-time purchase and aren’t in a rush, ACH is the cheapest route. Kraken lets you start with as little as $1, and most other exchanges have similarly low minimums.
Place Your Order
With funds in your account, search for Litecoin (ticker symbol LTC) on the exchange and choose your order type:
- Market order: Buys Litecoin immediately at the current price. This is the simplest option and what most beginners use.
- Limit order: Lets you set a specific price you’re willing to pay. The order only fills if Litecoin drops to that price. This gives you more control but means the trade might not execute right away, or at all.
Enter the dollar amount you want to spend. You don’t need to buy a whole Litecoin. Like most cryptocurrencies, Litecoin is divisible into tiny fractions, so you can invest $10, $50, or any amount you choose. Review the order details, confirm, and you’ll own Litecoin within seconds.
Decide Where to Store It
After your purchase, your Litecoin sits in a wallet on the exchange. This is fine for small amounts or if you plan to sell soon, but for larger holdings or long-term storage, moving your coins to a personal wallet gives you more control.
There are two main types of wallets. Software wallets are free apps you install on your phone or computer. Exodus, for example, supports Litecoin and provides a clean interface with portfolio tracking and built-in exchange features. Hardware wallets are physical devices that store your private keys (the cryptographic codes that prove you own your coins) completely offline, making them immune to online hacking. Trezor and Ledger are the two most established brands. Trezor’s full lineup, from the Model One to the Safe 7, supports Litecoin and connects to the Trezor Suite app for managing your holdings on desktop or mobile.
The tradeoff is straightforward: exchange wallets are convenient but depend on the exchange’s security. Hardware wallets give you full custody of your coins but require you to safeguard the device and your recovery phrase (a set of words that can restore your wallet if the device is lost). If you lose both the device and the recovery phrase, your Litecoin is gone permanently.
Understand the Tax Rules
The IRS treats all digital assets, including Litecoin, as property rather than currency. That classification means every sale, trade, or exchange of Litecoin is a taxable event. Simply buying and holding does not trigger taxes.
When you eventually sell, the tax you owe depends on how long you held. If you sell within one year of buying, any profit is taxed as a short-term capital gain at your ordinary income tax rate. If you hold for more than one year before selling, it qualifies as a long-term capital gain, which is taxed at lower rates. Losses work the same way in reverse and can offset gains.
Your federal tax return includes a yes-or-no question asking whether you received, sold, or exchanged any digital assets during the year. You must answer truthfully, and you’re required to report all transactions whether they resulted in a gain or a loss. Sales and dispositions go on Form 8949. Starting in 2025, crypto brokers began issuing Form 1099-DA to report your transactions, similar to how stock brokerages issue 1099 forms. Brokers must also report cost basis on transactions beginning January 1, 2026, which should make filing simpler going forward.
Keep records of every purchase, including the date, the amount in U.S. dollars, and the quantity of Litecoin acquired. These records establish your cost basis, which is what you subtract from the sale price to determine your taxable gain or loss. Most exchanges provide downloadable transaction histories, but saving your own copies is a good habit.
Tips for Your First Purchase
Start with an amount you’re comfortable losing entirely. Cryptocurrency prices are volatile, and Litecoin is no exception. There is no deposit insurance or safety net if the price drops.
Pay attention to fees at every step. The sticker trading fee on an exchange is only part of the cost. Funding with a debit card, using a simplified “instant buy” interface instead of the exchange’s trading platform, or withdrawing to an external wallet can each add charges. On many exchanges, the default buy screen charges a higher spread or convenience fee than the advanced trading view, so it’s worth learning the full trading interface even as a beginner.
If you plan to buy regularly, most exchanges offer recurring purchases that automatically buy a fixed dollar amount of Litecoin on a schedule you set. This approach, sometimes called dollar-cost averaging, spreads your purchases over time so you’re not trying to guess the best moment to buy.