Litecoin, often referred to as digital silver, is the largest global ‘Scrypt’ based network and has been operating uninterrupted since 2011.
As one of the more established coins, Litecoin aims to be a P2P cashless currency for the world and is seen as an innovator for developing new tech for transaction networks: such as the Litecoin Network for instant global settlement and atomic swaps.
Buying Litecoin directly with PayPal is not really possible right now. Generally you will have to go through a broker or exchange to secure some LTC.
PayPal does however offer some advantages over other payment methods.
eToro is one of the first cryptocurrency providers that allow you to buy using many payment methods as well as other services. The actual process is very simple as well and one of the reasons we do recommend eToro for both beginners and experts.
To get started, you'll need to register with eToro. It is free to sign up and you don't need to deposit right away, which means you can get used to the platform before going live.
Once you're happy with the platform and ready to buy for real, it is time to deposit some money into your account. Click the deposit button in the bottom left, then choose PayPal. Enter the amount you want to deposit, we'd recommend starting low before adding extra over time.
Now your account is live and ready to go, the process is like any other CFD provider, you will need to search for the coin you want to buy, be it bitcoin, ethereum or whatever your preferred choice is. Hit the 'Buy' button and then 'Trade', make sure you understand your risk parameters before you jump in.
Before Buying Litecoin or other digital currencies with PayPal, you will first have to understand the type of investor you are. Do you want to take possession of your LTC and store it in a hardware wallet for the long term?Or are you simply content to gain exposure to Litecoin price movements, quickly and easily without the hassle of owning the coins?
If you are the former, you will need to find an exchange or P2P marketplace that will allow you to deposit funds using PayPal. Unfortunately, PayPal is not widely accepted by exchanges. The reason for this is that PayPal transactions are reversible, while blockchain transactions are not.
Brokers typically offer PayPal as a payment method, so are a good alternative to exchanges. This is because broker transactions are not directly on the blockchain so they are not limited by block confirmations. Brokers typically use CFDs rather than the actual asset.
A contract for difference (CFD) is a type of contract that offers greater flexibility and fewer fees for active traders than crypto exchanges can offer.
If you can’t find an exchange or broker that accepts PayPal and lists LTC, you might like to buy another coin first like Bitcoin and trade your Bitcoins for Litecoin.
There are only a couple of formalized ways to directly buy Litecoin with Paypal. We are aware of some other…shadier…alternatives, but these are somewhat difficult and fraught with perils, so we’ll limit ourselves to the best one.
eToro is a well regulated CFD trading broker based in the UK, which is now available in more than 60 countries around the world (recently including, significantly, the United States of America). With CFDs you don’t buy Litecoin in the traditional sense. Instead, you pay the current market price of Litecoin, and this money is locked up in a contract. When the contract expires, if Litecoin is worth more than it was when you initiated the contract, you’ll get your money back plus the associated profits. Losses are incurred the same way, so this isn’t a get rich quick scheme. You’ll have to do your due diligence when making trading decisions on eToro, but they’re the same as those you would have to make with conventional ownership investment. eToro just cuts out the hazards of ownership. Here are a few other excellent perks of the eToro platform.
Sign up by providing the simple personal information requested by eToro. Nobody likes giving personal ID online, but eToro needs it because of their regulatory requirements. They have to prevent fraud and money laundering, so knowing a bit about their customers is essential.
Choose Paypal as your Payment method and decide how much you want to deposit. $200 is the minimum for first deposit and $500 is the max.
Navigate to the Crypto trading page and choose Litecoin as your currency. The trading interface you see below could not be more simple. Quickly choose how much you wish to buy, then decide if you want to use leverage to get more Litecoin access with less money. Leverage opens you up to the possibility of greater profits and losses, so take care when using it. Early traders should consider not using leverage until they’re comfortable with the platform.
As we’ve already stated, most places that sell Litecoin do not accept Paypal. This eliminates traditional exchanges like Binance, and even P2P options like Localbitcoins. However, the P2P option is still available, though you may have to do a little bit of extra legwork.
Litecoin used to be available on eBay, though the selling of digital currencies on the platform has since been banned. This leaves buying from sellers in the physical world. You can meet Litecoin owners all kinds of places, like online forums and local advertising. You can transact directly by sending them the money via Paypal and getting them to send the Litecoin to your Litecoin address. While this method is normally considered risky (especially if you’re meeting in person), the reason we list it here is because Paypal makes it easy to get your money back if there’s any funny business in this trade. Always trust your gut and work with honest people, but should someone scam you, just get Paypal to get.
Paypal is a great option for buyers, because you can report fraud and scams to Paypal, and they are very likely to get your money back. However, this conversely makes Paypal a sketchy payment option for Litecoin sellers, because buyers could always claim that they didn’t receive their funds, and Paypal would be likely to take their side. We recommend only using Paypal through trusted platforms like eToro, if you can possibly help it. However, if you find a different exchange, or want to trade with an individual, Paypal may still be a solid option.
PayPal provides a level of convenience that bank transfers do not, as well as offering reduced fees compared to credit cards.
Many people are surprised to learn that PayPal does not actually charge for payments. However, the company does charge merchants for receiving payments and that is why you will still encounter fees when you deposit to a cryptocurrency broker or exchange.
These fees are passed on to you and are sometimes referred to as ‘convenience fees’. Typically, they are less than 5%, but it is a good idea to confirm these fees before depositing to a platform.
If you plan on taking profit regularly with repeated transactions made to a platform, you may want to consider a bank transfer to preserve more of your profit.
That said, PayPal still offers a convenient solution for people who are not tech savvy and merely want to buy Litecoin in bulk for a one-time purchase.
As mentioned earlier, the best method for buying Litecoin will depend on the type of investor you are and your priorities.
If you value cost then there are more affordable methods than PayPal, such as a bank transfer. However, if you prioritise convenience then there are more convenient ways, such as a credit card.
PayPal is useful because it provides a combination of convenience and speed (approx 2.5 minutes per transaction) with a fee structure that is fine for one-off transactions.