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Litecoin (LTC) is one of the most popular altcoins in the cryptocurrency market today. With lower transaction fees and major recent gains, it’s becoming an appealing asset for crypto investors. So, if you want this cryptocurrency in your portfolio, here’s how you can buy Litecoin in the UK.
Cryptocurrency exchanges to buy Litecoin in the UK
One of the easiest ways to buy Litecoin in the UK is through a cryptocurrency exchange. While exchanges support a limited number of digital coins, most of them list Litecoin thanks to its longevity and popularity.
You’ll need to create an account on the exchange you’re planning to use. Before making a purchase and trading cryptocurrency, you’ll also have to prove your identity using an identification document issued by your government.
Some of the most popular crypto exchanges for trading and purchasing Litecoin in the UK are Coinmama, Cryptomate, and Bitfinex.
Coinmama makes buying Litecoin in the UK easy for all types of buyers, beginners included. The verification is completed within an hour of signing up, so you don’t have to wait for days before making your first purchase.
Coinmama doesn’t require a deposit either, which means you can buy Litecoin instantly. You can pay for your digital coins in GBP directly with your debit or credit card (both Visa and MasterCard).
The exchange doesn’t store your financial information, so every time you make a purchase, you’ll have to enter the data. It may be a bit annoying, but it’s for your security.
Cryptomate is another user-friendly cryptocurrency exchange where you can buy Litecoin in the UK. For British residents, transactions are fast and hassle-free. All you need to do is enter your email address and crypto wallet details and you can buy Litecoin within seconds. The payment method accepted by this platform is bank transfers.
Cryptomate is pretty fast. The platform claims users receive their coins in 15 minutes from the moment they pay the order. The payment is processed using your bank only, without any other intermediary. This exchange also doesn’t store your financial information.
Bitfinex is a Hong Kong-based cryptocurrency exchange popular with professional traders. The platform allows advanced trading, such as 3.3x leverage margin trading and algorithmic trading. You can buy Litecoin and more than 50 other cryptocurrencies on the exchange paying with crypto and wire transfers.
Bitfinex also has competitive fees – 0.1% for fiat deposits and between 0.1% and 3% for withdrawals, depending on the frequency and volume of your transactions.
Buying Litecoin with PayPal in the UK
Most cryptocurrency exchanges that list Litecoin accept payments through bank transfers or debit and credit cards. If you’re looking to buy Litecoin using your PayPal account, you’ll need to take some extra steps.
You can use your PayPal to buy Bitcoin, for instance. Then, you’ll need to trade your Bitcoin with Litecoin through a cryptocurrency exchange platform. It’s a tricky and slow process that adds up fees, as you have to perform a higher number of transactions.
Getting a Litecoin wallet
A cryptocurrency wallet compatible with Litecoin is a must before purchasing Litecoin in the UK or anywhere in the world. Most cryptocurrency exchanges will ask you for a wallet when buying cryptocurrencies. Furthermore, a crypto wallet enables you to buy, trade, and store your funds safely.
Some platforms provide users with wallets, but do your research before deciding where to store your digital assets.
How to buy Litecoin in the UK: Cryptocurrency tax guidelines
Her Majesty’s Revenue and Customs (HMRC) considers the buying and selling of cryptocurrencies as an investment activity. So, you must pay tax on any gains that you record at the moment of sale.
As a guideline, you owe taxes for selling your Litecoin for money, or when exchanging it for other digital assets. Moreover, you’ll pay taxes when you make purchases with Litecoin or when you give them away to anyone but your partner or spouse.
The level of tax depends on the tax bracket and can go from 0% to 45% when your taxable income is higher than £150,000 per anum.
When looking to buy Litecoin in the UK, you have plenty of reputable sources to rely on. Many cryptocurrency exchanges list Litecoin and most of them allow you to pay with GBP using your credit or debit card, as well as wire transfers.