Buy Litecoin in Canada - Beginner's Guide to LTC-CAD (2024)

How to Buy Litecoin in Canada

The easiest way to buy Litecoin in Canada is to purchase it online from a crypto exchange. Exchanges make buying and selling Litecoin and other cryptocurrencies easy from your smartphone, tablet or computer. Check out our recommended platforms below and follow the steps to safely buy Litecoin in Canada.

1. Choose a platform

The platform you pick should work specifically in Canada, operate within the financial services laws and ideally be regulated by a native government agency or by one recognised by local authorities. Our top picks below all fulfil these criteria.

2. Create and fund your account

Input your name, contact information, and other details in the sign-up form usually displayed after clicking a Sign-Up button on the home page. To fund your account, you must pass KYC by submitting identity and address documents like an ID and a utility bill.

3. Buy Litecoin Canada

Navigate to your account explore or discover page and search for Litecoin. You may see tickers like LTC/CAD or LTC-USDT, depending on the platform. Purchase Litecoin directly using a funding method of your choice or with your account balance.

Where to Buy Litecoin in Canada?

Several platforms allow Canadian residents to buy Litecoin. We break down four of the best online exchanges in the region, what makes them unique, and their pros and cons.

Wondering where the best place to buy Litecoin is in Canada? Check out our list of carefully selected crypto brokers and exchanges.

1. OKX – Best Overall Place to Buy Litecoin in Canada

OKX is an all-round platform that provides a holistic crypto experience. While it is suitable for buying Litecoin, its services extend far beyond buying and selling to include DeFi, crypto gaming, and NFTs.

A toggle at the top left of the homepage transforms the platform into a wallet that serves as a portal into everything blockchain technology offers. Another click on the toggle turns the platform into an exchange with over 318 cryptocurrencies.

The exchange supports over 112 payment methods for buying Litecoin directly with fiat, including credit cards, Simplex, bank transfers, Banxa, and Apple Pay. It also has a recurring buy feature that allows users to automatically purchase Litecoin periodically.

Deposit methods for topping up the account balance are mostly through crypto. Alternatively, the peer-to-peer (P2P) market can be used to buy and sell Litecoin with other individuals locally or internationally and supports even more payment methods like Wise, Skrill, and PayPal.

Once your balance has been funded, you can either convert to Litecoin using the convert feature that buys Litecoin at prevalent market rates or use the trading terminal to set limit orders.

OKX charges 0.10% for fiat-crypto transactions, although your payment provider may charge an extra fee. Trading fees vary with level but generally range between 0.06% – 0.08% as maker fees and between 0.08% – 0.10% as taker fees for the spot market.

For users who wish to profit from Litecoin’s price movement without owning the coin, OKX offers futures and options trading.

To create an account, you’ll need a phone number or an email address and KYC documents like a valid form of ID and a proof-of-address document like a utility bill.

Pros

• 24/7 customer support

• Robust crypto derivative products

• Large selection of cryptos on the spot market

• Quick sign-up and verification process

Cons

• Confusing support content

2. Coinbase – Easiest Place to Buy Litecoin in Canada

Coinbase is a US-based crypto exchange operating in over 200 countries, including Canada, that offers over 190 cryptocurrencies to choose from, including Litecoin. The platform is exceedingly easy to use and is a great choice for beginners.

Making deposits on Coinbase is easy as the platform supports popular traditional transfer methods like credit cards and PayPal. Users can use credit cards to buy Litecoin with fiat and PayPal to sell. Unfortunately, Coinbase does not support bank transactions or other payment methods for Canadian residents.

Coinbase does not allow Canadian users to deposit fiat directly to their accounts, you must buy crypto using a credit card. However, you can keep crypto balances and trade between them.

Credit card purchases cost 2.49% while withdrawal fees vary with PayPal. For conversions, Coinbase charges a 1% fee for direct crypto conversions, however, the trading terminal charges between 0.05% – 0.60% for trades.

The minimum trade size on Coinbase is 2 USD, however, an initial deposit of 50 USD is advised to help verify your bank account and create a PayID.

For more info, read our Coinbase review.

Pros

• Straightforward deposit and withdrawal methods

• Low minimum trade size of $2

• Low transaction fees

• Has a mobile app

Cons

• Deposit and withdrawal methods are somewhat limited

3. YouHodler – Best Overall Place to Buy Litecoin in Canada for Traditional Payment Methods

YouHodler is a European-based crypto platform that offers services like crypto conversions, crypto-backed loans, stablecoin lending, high-yield crypto savings accounts, and a crypto payment infrastructure.

The platform operates in over 100 countries, including Canada, and offers over 58 cryptocurrencies to buy through its in-built exchange that supports fiat-to-crypto and crypto-to-crypto conversions.

For deposits, YouHodler supports credit cards, bank transfers, SWIFT, and SEPA payments in US dollar (USD), British pound (GBP), European euro (EUR), and Swiss francs (CHF). Canadian residents may be subject to a conversion charge unless they operate a foreign currency account or card.

Bank wire deposits in any supported currency are free but subject to a minimum limit of 100 USD/EUR/GBP/CHF. SWIFT deposits cost 25 USD or 20 GBP, while card deposits cost 4.5% of the transaction value or 1% with AdvCash.

For withdrawals, YouHodler supports bank wires, SWIFT, and SEPA payments. Bank wires cost 1.5% (or a minimum fee of 70 USD for SWIFT dollar transactions and 55 EUR for euro transactions), 5 EUR for SEPA transactions, and 0.15% (55 GBP, 15 CHF minimum)

The minimum withdrawable amount for each payment method includes a 500 USD equivalent for SWIFT dollar and euro transactions, 50 EUR for SEPA transactions, and 100 CHF for swiss transactions. Withdrawals take 5 business days for SWIFT, and 2 business days for SEPA.

Trading fees on the platform vary but generally cost around 0.19% of the transaction value.

Pros

• Simple and easy to use

• Low transaction fees

• Has a mobile app

Cons

• High deposit and withdrawal costs

4. CoinSmart – Best Place to Buy Litecoin in Canada with Native Currency Support

CoinSmart is a Canada-based crypto exchange that offers services first to Canadians, and then to Europeans. It is registered as a Money Service Business (MSB) with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) and a virtual currency service provider with the Estonian Financial Intelligence Unit (FIU).

The exchange supports over 15 cryptocurrencies, including major ones like Bitcoin and Ethereum, paired natively with the Canadian dollar (CAD). Its verification process is quick, typically within minutes, and it secures funds with industry-leading technology from Bitgo and Fireblocks.

Making deposits is easy as the platform supports three major payment methods in Canada, Interac e-transfer, bank wire, and bank cards. Deposit fees include a 1.5% charge for transfers between 100 USD and 1,999 USD, and no charge for transfers between 2,000 USD and 10,000 USD for Interac e-transfer.

For bank wires, deposits are free but subject to minimum and maximum limits of 10,000 USD and 5,000,000 USD processed within 3-5 business days. Credit card deposits are instant but can cost up to 6% and are limited to 100 USD and 5,000 USD.

Withdrawals follow a similar pattern. Interac e-transfer transactions cost 1.6% and are limited to a 50 USD minimum and 9,999 USD maximum. Electronic transfers cost 1%, are limited to a 50 USD minimum and 15,000 USD maximum, and are processed within 1-5 business days. Bank wires cost 1%, are limited to a 10,000 USD minimum and 5,000,000 USD maximum, and are processed within 1-5 business days.

Crypto conversions cost 0.20% for single trades and 0.30% for double trades. Doubles trades are a special type of conversion that allows users to swap between two altcoins without first converting to Bitcoin, Ethereum, or cash.

If customers run into trouble, customer service is available via email and live chat from 9 AM to 9 PM EST.

Pros

• Clean and easy-to-use interface

• Straightforward verification process

• Transparent pricing structure

• CAD-native crypto pairs

Cons

• High deposit and withdrawal costs

• Long processing periods for payment methods like bank wire.

How to Buy Litecoin in Canada - Tutorial

Our guide focuses on OKX as it is our overall best place to buy Litecoin in Canada. However, these steps are applicable to other crypto exchanges in this guide.

1. Open an account

Click on the Sign-up button on the top right side of the homepage to get started. Fill in your details on the form and create an account. You can also download the mobile app from the Play Store/App Store and do the same.

2. Verify your account

After creating your account, verify and register as an individual (if you plan to buy personally). Complete your profile by filling out your full name, date of birth, and residential address, and uploading ID documents and a utility bill.

3. Make a deposit

Once your account is verified, you can deposit funds into it. Click on Funding Account on your profile to deposit. You can only deposit cryptos like BTC, USDT, USDC, LTC, and OKB into your account.

4. Buy Litecoin Canada

Search for Litecoin in the Markets tab. You can either use your account balance to buy Litecoin at your desired price using a trading terminal or buy Litecoin at market price with traditional payment methods like credit cards.

Is Litecoin a Good Investment?

We cannot outright say whether or not Litecoin is a good investment. However, we can give pointers to help you arrive at that decision yourself.

Decentralisation

Firstly, Litecoin is decentralised. It does not depend on governments to legitimise it or companies to run and maintain its blockchain infrastructure. Transactions are free from many of the controls and drawbacks of traditional finance networks like high fees for international transfers.

As the digital age progresses, more components of our lives will be moved to the digital space. Crypto technology mathematically safeguards digital assets and places ownership with users, making it crucial for a free digital future.

Liquidity

Cryptos are generally very liquid and portable assets. They can be bought on one crypto exchange, moved to another exchange in a different country and sold in a matter of minutes, creating a way to move wealth easily.

High Return Potential

Litecoin has a track record of delivering high returns on investment either due to its volatility or more fundamental reasons like growing adoption and institutional interest. Combine this with the fact that blockchain technology is still in its early stages, the growth (and profit) potential is significant.

Store of Value

Crypto can be used as a long-term store of value, especially those with deflationary mechanics, like Litecoin. Because supply is capped, the value of deflationary coins are projected to grow over time, provided demand remains constant. This makes digital currency a possible long-term alternative to gold.

Portfolio Diversification Option

Litecoin is a digital asset that can be used as an asset class when building a diversified portfolio. Its equity potential (the possibility to increase in value) makes it worthy of consideration for modern portfolios.

Risks of Buying Litecoin

There are downsides to buying Litecoin. The first is its volatility. Crypto is known to swing wildly, losing significant portions of its value within a few weeks and often leaving investors reeling from losses.

There is also a risk of rug-pulls, blockchain attacks, and wallet hacks. These are technological risks that involve an attacker hacking a crypto’s blockchain network or your wallet and usually end with funds getting stolen.

Finally, crypto at large is still the target of legal crackdowns and harsh regulatory policies that could stunt its growth and adoption rate.

What Payment Methods Can I Use to Buy Litecoin in Canada?

Credit/Debit cards

Credit or debit cards are the most widely accepted payment method across all platforms and are usually more expensive than their counterparts. OKX credit card purchase fees depend on the transaction volume, while Coinbase and YouHodler charge 2.49% and 4.5%, respectively.

Discover the best places to buy Litecoin with a debit card.

Bank Transfers

Bank transfers and wires through Canadian banks are available for the platforms listed, aside from OKX and Coinbase. Transfers are free on native platforms like CoinSmart but can cost up to 25 USD per transfer on other platforms. Conversion fees may be charged on deposits where the platform account denominates in a foreign currency.

Interac

Interac is a Canadian payment network that allows residents to pay for products and services and send money with their phone, email, or debit card. While popular in Canada, Interac doesn’t work with most major platforms like OKX or Coinbase. However, it works with Canadian exchanges like CoinSmart.

Fees include 1.5%-1.6% for transactions below 2000 USD.

Ways to Invest in Litecoin in Canada

There are several ways to gain exposure to Litecoin and profit from its price movements in Canada. This section dives into them and how they relate to Litecoin.

Buy and Hold Litecoin

The buy-and-hold strategy involves buying Litecoin and holding it for a long time, usually as long as possible. This strategy is popular in the industry as it has proven effective over long periods, usually years.

Buy and Hold can be varied using a buying technique called dollar cost averaging (DCA) where you buy a set dollar amount of at fixed intervals, regardless of price.

Trade Litecoin

This strategy profits from Litecoin’s volatility. Trading LTC involves relatively short-term buying and selling, usually from as little as a day to as long as a year. Positions held for longer are often classified as investments.

Trading creates an opportunity to explore other financial derivatives like futures, options, and CFDs that give traders exposure to LTC’s price movement without the need to buy the coin. It also allows for leverage facilities that can magnify traders’ wins (or losses).

Choosing a Litecoin Wallet in Canada

Wallets are important because they store your valuable cryptos, so choosing the right one is crucial. Crypto wallets are generally split into hardware and software wallets. Hardware wallets store cryptos offline on a device while software wallets store cryptos online and are always connected to the internet.

Software Wallets

• Web wallet: These wallets come as either browser extensions or web apps that store your private keys in your browser. Web app variants are accessible through any browser, however, the extension variant must be installed on a new browser and a seed phrase must be used to recover your wallet.

• Mobile wallet: This wallet is a mobile app downloadable from the Play/App stores or the internet. Binance’s mobile wallet is called Trust Wallet, and it supports Litecoin.

• Desktop wallet: This is an application that runs on your computer and stores your private keys on your hard drive. There are several desktop wallets available depending on the level of control you want and your familiarity with blockchain technology. However, a good option for beginners is the Electrum wallet available for Windows, Mac, and Linux PCs.

Physical and Hardware Wallets

• Hardware wallet: A hardware wallet is a physical device that stores private keys offline. They are much harder to hack and are currently the safest storage option. Hardware wallets that support Litecoin include Trezor and Ledger.

• Paper wallet: A paper wallet is a piece of paper with public and private keys printed on them. While they are a good way to keep your private key offline, they are not recommended as you may lose the paper or the ink could wear off with age. Paper wallets have gone out of fashion since the advent of hardware wallets.

Wallet Combinations

You can combine two or more wallets for added security or a better user experience. For example, you can use a hardware wallet like Ledger with a web wallet extension to buy

Should I Buy Litecoin Now? - Things to Consider Before Buying Litecoin in Canada

Whether or not you should buy Litecoin now depends on the state of the economy, your investment goals, your risk tolerance, and the cost of investments. Consider these factors when making a decision.

Litecoin Fees

The total cost of buying Litecoin is made up of network fees, exchange fees, and deposit fees across exchanges.

The network fee is the charge the blockchain takes for processing transactions. This fee usually goes to computers that help secure and run the network. It could rise and fall based on the volume of transactions for certain blockchains, however, newer networks are built to accommodate high volumes without significant changes to transaction fees.

Exchange fees are charged for conversion, trading, or other related services. Some platforms are cheaper than others in certain regards. For example, conversions on Binance are cheaper than eToro at 0.1% per trade compared to 1% charged by the latter.

However, eToro trumps Binance when it comes to deposits as it supports free deposits while Binance charges $1 for bank transfers and 1.8% for credit card payments.

Aggregate the costs of using various components of an exchange to obtain a holistic view of the cost of using that exchange, then compare it with others to find a cheap option.

Litecoin Price

Litecoin’s price is known to change rapidly and swing wide i.e. change quickly and by a considerable amount. For traders, this is good news as it presents opportunities to profit from this volatility.

Long-term investors, on the other hand, may not be too bothered by short-term fluctuations as price historicals show an overall uptrend with pocket downtrend periods. In the long-term investment case, a simple buy and hold strategy, or one combined with a DCA, may prove effective.

Buying Litecoin in Canada Safely

Security is of the utmost concern when dealing with cryptocurrencies and the exchanges that sell them. The first thing you should observe is the exchange’s regulatory status. The ideal situation is when the exchange is registered in its country of operation.

However, this is not always the case. Crypto exchanges sometimes offer services to users in certain geographical regions using entities registered in a nearby jurisdiction or in a jurisdiction where regulations allow them to onboard users from other countries.

In this case, ensure the regulatory agency is transparent and enforces industry-standard security and legal practices.

Buying Litecoin in Canada Anonymously

Buying Litecoin anonymously is not as easy as some may assume due to widespread regulation on all major exchanges and platforms. The key to remaining anonymous is to refrain from providing personally identifiable data. Platforms do this to varying degrees.

Crypto ATMs are a way to buy crypto anonymously. They only require the money with which you buy crypto and the wallet address you want to send it to. Currently, most ATMs are limited to Bitcoin, Ethereum, Litecoin, but more are popping up with support for more coins.

Another method is using prepaid cards to purchase cryptos on peer-to-peer markets. You send the code to the counterparty and they send your crypto. Visa offers prepaid cards, but you’ll need to ensure you won’t have to give up personal details to obtain it.

Is Buying Litecoin Legal in Canada?

Yes. Buying Litecoin is legal in Canada. According to the Financial Consumer Agency of Canada (FCAC), consumers can buy and sell crypto freely on exchanges that are registered with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) as money service businesses.

Canada has one of the most progressive cryptocurrency laws as the world’s first Bitcoin-backed Bitcoin Exchange Traded Fund (ETF), Purpose Bitcoin ETF, was approved in February 2022. Cryptocurrency is also accepted as a form of payment in several online and local stores.

However, under the Bank of Canada Act, crypto is not legal tender and cannot be used to pay taxes and other governmental fees.

What Banks Let You Buy Litecoin?

If you’re looking for which banks support Litecoin, then you should consider those listed below.

KOHO

KOHO online bank lets you use your account to purchase crypto on exchanges like CoinSmart

Tangerine

Tangerine is an online bank under Scotiabank that allows crypto purchases through Interac e-transfers.

Toronto Dominion

Toronto Dominion bank is a popular bank that allows account holders to buy crypto using their credit cards or Interac e-transfers.

Is Litecoin Taxable in Canada?

Yes, Litecoin is taxable in Canada. The Canada Revenue Agency (CRA) administers tax laws in Canada for several provinces and views cryptos as commodities in relation to income and capital gains tax.

How much tax you pay on crypto depends on what you do with it and the situation around the entire transaction. For example, crypto mining is viewed as a business activity, so the value of the crypto mined in Canadian dollars (CAD) is considered income and is subject to tax.

Buying crypto is not a taxable event, however, the cost in CAD must be noted in the event that the crypto is disposed of in the future (“disposed of” meaning sold, exchanged for another crypto, gifted, or used to buy goods and services). The price at disposal determines whether or not it is taxable.

When calculating taxes, the Canadian government gives room for circumstances that do not conform to their laid-out rules, however, you must keep track of how you value the cryptos you buy and use the same method throughout your reporting.

Final Thoughts

Canadian citizens and residents have several options to buy Litecoin, and we believe that OKX is the best because of its holistic approach to providing a crypto experience. It also has the lowest conversion fees of all the exchanges on our list.

Furthermore, the platform allows users to buy Litecoin directly with their credit cards and through third-party services like Simplex. It also provides a P2P market with alternative payment methods like Wise, Skrill, and PayPal.

The exchange’s services span from quick conversions to spot trading, margin trading, bot trading, futures, and block trading for investors looking to buy Litecoin and trading looking to profit from its price movements.

To begin investing in crypto, visit OKX, sign up, and buy Litecoin cheaply.

More Cryptocurrency Guides in Canada

Check out more of our popular crypto guides for Canada below.

• How to Buy Solana in Canada
• How to Buy Chainlink in Canada
• How to Buy Cosmos in Canada
• How to Buy The Graph in Canada

Methodology - How We Picked the Best Platforms to Buy Litecoin in Canada

We decided on the best platforms by first testing them individually. Our criteria for assessment include fees, deposit and withdrawal methods, reputation, credibility, security, ease of use, trading features, coin selection, and competitive edge.

The platforms listed on this page are ones that we found to be the best at the features we listed them under e.g. cheapest way to buy Litecoin. All platforms have a track record of providing value to users.

We also placed an onus on security and credibility. These platforms have millions of users and employ some of the highest security measures in the industry.

Finally, we considered fees and limits. These platforms have various fees and deposit/withdrawal limits, however, they are all within reasonable limits.

To learn more about how we test and choose platforms, visit our why trust us and how we test pages.