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Paying with Crypto: An Introduction To Litecoin

Education

A guide on how to pay with Litecoin and Coinbase

What are cryptocurrencies?

Cryptocurrencies are virtual currencies based on the blockchain technology.

While current banking systems are centralized (such as banks or PayPal), cryptocurrencies are decentralized and rely on a secured peer-to-peer network that keeps a permanent record of all transaction that have taken place.

Bitcoin is the first cryptocurrency and was founded in 2009. Almost ten years later, cryptocurrencies are being used by millions of people, businesses and states to transfer value, goods and services. For more information on how cryptocurrencies can be used and how they will change our society, watch this inspiring TED talk that explains the blockchain.

Why paying with crypto?

Paying with cryptocurrencies is a simple and affordable alternative to fiat money. More and more businesses are opting for cryptocurrencies in order to be more flexible, faster and independent.

Using cryptocurrencies has several benefits, such as…

  • Low transaction fees: transaction fees are usually below 1%, while banks or PayPal charge up to 4-5% per transaction in addition to currency exchange fees.
  • Instant transactions: transaction delivery time is a matter of minutes, not days, which facilitates cash flow management and company operations
  • Security: all cryptocurrency transactions are secure, encrypted and trackable
  • Long-term growth: the value of cryptocurrency has been upwards growing, regardless of short-term fluctuations

While there are several cryptocurrencies and exchange platforms, the simplest way is to use the cryptocurrency Litecoin and the exchange platform Coinbase.

  • Litecoin is a cryptocurrency with fast transfer time (below 3 minutes)
  • Coinbase is a simple and leading online platform to buy and store cryptocurrencies

You can then use this procedure to send money to friends or receive your own payments. The procedure can be used for any type of cryptocurrency offered on Coinbase.

How to pay with Litecoin via Coinbase

Step 1: Create your Coinbase account

Go to www.coinbase.com and sign up for an account.

Step 2: Buy Litecoin

First, you will need to buy Litecoin before you will send it to an account.

  1. Click on “Buy / Sell”
  2. Add a payment method (if not done yet)
  3. Click to buy Litecoin
  4. Enter the amount you want to buy – on the right side, you will see how much worth of Litecoin you will receive and the fees that apply to buying it.
    Important: Make sure to buy a bit more than the amount you will send to cover your fees
  5. Buy Litecoin – the amount will then be transferred instantly to your Litecoin wallet

Step 3: Send Litecoin

Now that you own Litecoin, you will be able to send it to an account.

  1. Click on “Accounts”
  2. Click on “LTC Wallet” – which is your Litecoin wallet
  3. Click on “Send”
    1. Enter the recipient address
    2. IMPORTANT: Always double check the recipient address before sending any payments (!)
    3. Enter the amount you want to send – it will be shown both in euros and Litecoin
    4. Optionally, enter a note to the recipient
    5. Click on Continue and finish the transaction

You’re all set – you just finished your first cryptocurrency payment!

How to receive Litecoins via Coinbase

Step 1: Share your wallet address

  1. Go to “Accounts”
  2. Click on “LTC Wallet”
  3. Click on “Receive”
  4. Copy and share your wallet address

The sender will then have to follow the steps above and send you Litecoin to this address.

Step 2: Exchange your Litecoin to Euro

One you received the Litecoin amount, you can keep it as Litecoins or convert it to euros.

  1. Go to “Buy / Sell”
  2. Click on “Sell” and chose your LTC Wallet
  3. Enter the amount of Litecoin that you want to convert to euro.
  4. Sell your Litecoin

Now, you will own euros in your Euro wallet under “Accounts”.

Step 3: Transfer your euros to your bank

If you want to withdraw your euros from Coinbase and transfer them to your bank account, simply follow the following steps. The transaction time is ~24h.

  1. Go to “Accounts”
  2. Click on “EUR Wallet”
  3. Click on “Withdraw”
  4. Add a Bank account (if not done yet)
  5. Transfer the money to your bank account

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