How to Buy Litecoin (LTC)
Buy Litecoin (LTC) on Kraken step by step: KYC, fiat deposit, order types, self-custody withdrawal. Covers address formats, MWEB privacy and delisting risk.
Litecoin fundamentals worth knowing first
Litecoin launched in October 2011, created by former Google engineer Charlie Lee as a fork of Bitcoin's code with faster blocks and the Scrypt hashing algorithm in place of SHA-256. It is one of the longest-running proof-of-work networks in existence, with a hard supply cap of 84 million LTC and a block reward that halves on a fixed schedule. Since 2014 Litecoin miners have also merge-mined Dogecoin, earning both coins from the same work — a symbiosis that concentrates substantial Scrypt hashpower on securing both chains.
Native UTXO chain, three address formats
LTC is the native coin of its own blockchain — no token standard involved, no memo or destination tag ever required. You will encounter three address styles: legacy addresses starting with "L", P2SH addresses starting with "M", and modern bech32 addresses starting with "ltc1". All are valid Litecoin; when withdrawing from an exchange, any of these formats identifies the mainnet chain.
Listings and costs
As one of the oldest listed assets, LTC trades with deep liquidity on Kraken, Coinbase and Binance against fiat and stablecoins. Beyond standard maker/taker trading fees, Litecoin's practical appeal is cheap movement: on-chain transfers confirm in minutes for a few cents' worth of LTC, which is why it persists as a workhorse for exchange-to-exchange transfers.
Wallets
Ledger and Trezor hardware wallets both support LTC, as do long-standing software options in the Litecoin ecosystem. Setup is conventional — see how to set up a Trezor — and there is no staking to configure: Litecoin is proof-of-work, so any "LTC yield" product is lending with counterparty risk, not protocol staking.
MWEB: optional privacy with real-world consequences
In May 2022 Litecoin activated MWEB (MimbleWimble Extension Blocks), an opt-in privacy feature that hides transferred amounts inside extension blocks. Regulators noticed: five major South Korean exchanges — Upbit, Bithumb, Coinone, Korbit and Gopax — delisted LTC in 2022 citing anti-money-laundering rules, and Binance announced it would not credit deposits sent via MWEB.
The LTC-specific risk
MWEB cuts both ways. Never send exchange deposits through MWEB — they may be unrecoverable — and be aware that further jurisdictions could restrict LTC over its privacy features. Keep exchange-bound transfers on the transparent main chain.
What you'll need (prerequisites)
- Government-issued ID
- Bank account or debit card
- Email address
- Authenticator app for 2FA
Recommended for this tutorial
Tools and accounts referenced in the steps below:
Step-by-step
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Step 1: Open an account on Kraken
Visit the official Kraken website. Click "Sign up" and enter your email and a strong password. Confirm the email link in your inbox.
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Step 2: Verify your identity (KYC)
Most regulated exchanges require ID verification before fiat deposits. Upload a government-issued ID (passport or driver's licence) and a selfie. Verification usually completes in minutes, occasionally up to 24 hours.
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Step 3: Enable two-factor authentication
Open your account security settings and enable 2FA using an authenticator app (Authy, Google Authenticator, Aegis). Avoid SMS 2FA — it is vulnerable to SIM-swap attacks. Save the recovery codes offline.
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Step 4: Deposit fiat
Link a bank account, debit card or use SEPA / ACH / Faster Payments. Bank transfer is cheapest; card deposits incur a 1.5–4% surcharge. Wait for the deposit to credit (instant for cards, hours-days for bank transfer).
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Step 5: Place a market or limit order for LTC
Navigate to the LTC/USD or LTC/EUR pair. A market order fills immediately at the best available price. A limit order only fills at your chosen price; better for large orders to avoid slippage.
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Step 6: Withdraw to self-custody
Once filled, transfer LTC from the exchange to a wallet you control (a hardware wallet such as Ledger or Trezor, both of which support native LTC). Exchanges are custodial — your keys live with them. Send a small test transaction first to confirm the address before moving the full balance.
Common errors and fixes
- KYC delayed >24h. Re-upload a clearer photo of your ID with the corners visible and good lighting. Contact support if it still takes longer than 48 hours.
- Bank transfer rejected. Some banks block transfers to crypto exchanges. Try a different bank, debit card, or stablecoin on-ramp like MoonPay / Banxa.
- Withdrawal address rejected. Confirm you copied the entire address (not truncated) and selected the correct network — sending ERC-20 to a Bitcoin address loses the funds permanently.
- 2FA code rejected. Server time and authenticator clock must be in sync. Re-sync your phone clock or regenerate 2FA from the recovery codes.
- High network fees on withdrawal. Bridge to an L2 or use a chain with cheaper fees if available; or batch withdrawals to amortise the fixed cost.
FAQ
What is the cheapest way to buy LTC?
Bank transfer (ACH / SEPA / Faster Payments) on Kraken is the cheapest, with fees typically under 0.5%. Card deposits add 1.5–4%. P2P platforms can be cheaper but riskier.
Do I need to do KYC to buy LTC?
On regulated exchanges (Kraken, Coinbase, Binance), yes — KYC is required for fiat on-ramps. Decentralized routes via DEXes plus stablecoins do not require KYC but require crypto already in self-custody.
Should I leave LTC on the exchange?
For small amounts (< $1,000) or active trading, yes. For larger amounts or long-term holding, withdraw to self-custody (Ledger or Trezor recommended). "Not your keys, not your coins."
What is the minimum amount of LTC I can buy?
Most exchanges allow purchases as low as $1-5 worth of LTC. LTC is highly divisible, so you can buy fractional amounts far below 1 whole coin.
Can I buy LTC with a credit card?
Yes, but card issuers often code it as a cash advance, triggering high APR and fees. Debit card or bank transfer is safer.