A Guide To Investing In Litecoin: India Edition

Investing in cryptocurrencies like Litecoin in India has become as easy as shopping online, thanks to the many crypto exchanges in the country. However, the legal status of cryptocurrencies in India is still uncertain. While it is not illegal to trade or invest in cryptocurrencies, it is also not promoted by the Indian government. In this article, we will discuss how to invest in Litecoin in India, the legal status of cryptocurrencies, and the risks involved.

Choosing a Litecoin exchange in India

When choosing a Litecoin exchange in India, there are several factors to consider. Firstly, it is important to select a reputable and secure exchange, as the sector is still developing and not yet fully regulated. Look for exchanges with strong security measures, such as two-factor authentication and cold storage of funds. It is also crucial to consider the number of cryptocurrencies offered by the exchange, as well as other factors like liquidity, exchange policy, and user-friendliness.

• CoinDCX: CoinDCX is known for its security and transparency. It offers a wide range of products and services, including margin trading, staking, and lending options.
• CoinSwitch: CoinSwitch is a beginner-friendly platform with low trading fees and an easy-to-use interface. It supports INR as a fiat currency and offers an extensive range of educational resources.
• WazirX: WazirX has a user-friendly interface and is suitable for novice and intermediate traders. It offers a wide range of tradable pairs and coins, as well as a referral program.
• ZebPay: ZebPay is well-known for instant trading and crypto lending. It supports a large number of crypto coins and offers fixed return options for lending cryptocurrencies.
• Bitbns: Bitbns offers a wide variety of cryptocurrencies, including Litecoin. It provides educational resources and advanced trading features, such as margin trading and automated trading options.
• UnoCoin: UnoCoin is one of the oldest crypto exchanges, offering BTC and other merchant processing activities. It supports over 100 kinds of digital currencies and provides features like systematic buying plans and crypto baskets.
• BuyUcoin: BuyUcoin is popular among millennial users due to its simple interface and features like free wallets and real-time spot trading. It offers low fees and various perks, such as crypto cashback offers.
• Giottus: Giottus is a fast-growing exchange that allows users to trade and earn through various crypto instruments. It offers fixed deposits, SIPs, and the creation of themed crypto baskets.

Setting up an account and verifying your identity

To set up an account and verify your identity, you will need to follow the steps outlined below:

Firstly, you will need to sign up on a cryptocurrency platform that offers Litecoin. Some of the most popular platforms in India include ZebPay, WazirX, Coinbase, Coindesk, and Unocoin. These platforms offer user-friendly interfaces and mobile applications that allow you to link your bank account for quick transfers.

Once you have chosen a platform, you will need to create an account by providing your personal information, such as your name, email address, and creating a password. After signing up, you will usually receive a verification email to the registered email address. Click on the link in the email to verify your email address and secure your account.

The next step is to complete the Know Your Customer (KYC) process, which is mandatory for trading and withdrawing funds. This process may vary slightly depending on the platform, but it generally involves submitting important documents such as your Aadhaar card and PAN card. Some platforms may also require you to verify your phone number.

After completing the KYC process, you can set up two-factor authentication for added security. This can be done through an authenticator app or by receiving codes via SMS. The authenticator app is generally considered more secure, as it eliminates the risk of delayed reception or SIM card hacking.

Once your account is set up and secured, you can start using the platform to buy, sell, and trade Litecoin. Remember to always do your research and understand the risks involved before investing in cryptocurrencies.

Completing the KYC process

To complete the KYC (Know Your Customer) process when investing in Litecoin in India, you will need to provide certain personal information and documents to verify your identity. Here is a step-by-step guide on how to complete the KYC process:

• Sign up and create an account with a cryptocurrency exchange platform that offers Litecoin trading in India, such as ZebPay, Changelly, Mudrex, or BuyUcoin.
• Once you have created your account, look for an option to start the KYC process. This is usually found in the account settings or profile section of the platform.
• Provide the required personal information, including your full name, date of birth, residential address, and email address. Some platforms may also ask for your mobile number and occupation.
• Upload or submit clear copies of your government-issued ID documents, such as your Aadhaar card, PAN card, passport, or driver's license. Make sure the name and other details on your ID match the information you provided during registration.
• Some platforms may also require a proof of address, such as a recent utility bill, bank statement, or government correspondence with your name and address on it.
• Review and confirm the information you have provided. Double-check that all the details are correct and accurate.
• Submit your KYC application. The platform will then verify your documents and information. This process can take up to a few days, depending on the platform.
• Once your KYC application is approved, you will receive a notification or email confirming that your account is verified and ready for trading.

It is important to note that the specific KYC requirements may vary slightly between different cryptocurrency exchange platforms. Therefore, it is recommended to carefully review the instructions and requirements provided by the platform you choose. Additionally, keep in mind that the KYC process is mandatory for investing in cryptocurrencies in India, as it helps ensure the security and legitimacy of transactions.

Adding funds to your wallet

Adding funds to your Litecoin wallet is a straightforward process, but it can differ slightly depending on the type of wallet you have. The most common types of Litecoin wallets are mobile wallets, software wallets, and hardware wallets. Each has its own unique features, ease of use, and security protocols.

Mobile Wallets

Mobile wallets are ideal for casual investors as they are user-friendly and can be accessed anywhere. They are available for both Android and iOS devices. Some popular mobile wallet options include Freewallet, Litewallet, and Uphold. To add funds to these wallets, you can either buy Litecoin directly through the app or deposit Litecoin from another wallet.

Software Wallets

Software wallets are suitable for both beginner and advanced investors as they can be managed through a computer or laptop. One example of a software wallet is the Exodus wallet, which can be downloaded on your computer. To add funds to a software wallet, you will typically need to log in to your wallet, locate the "Receive" button, and find your receiving address, which starts with an "L" or an "M." You can then use this address to receive Litecoin from another wallet or platform.

Hardware Wallets

Hardware wallets are physical devices, such as USB drives, that are ideal for long-term LTC investors as they offer an extra layer of security by allowing offline transactions. While these wallets are more expensive, they are considered the safest option for storing Litecoin. To add funds to a hardware wallet, you may need to connect it to your computer or mobile device and follow similar steps as software wallets to locate your receiving address.

It is important to note that when receiving or sending Litecoin, it is recommended to always copy and paste the receiving address to avoid mistakes. Additionally, make sure to keep your seed phrase, which grants access to your funds, stored offline in a secure location.

Buying Litecoin

There are several ways to buy Litecoin in India, including via a crypto exchange or a crypto wallet.

Crypto Exchange

You can buy Litecoin on a crypto exchange such as BuyUcoin, Binance, or CoinSwitch. Here's a step-by-step guide:

• Sign up for an account on the exchange and verify your identification. You may need to provide a valid ID and proof of address.
• Add a payment method, such as a bank account or debit card.
• Search for Litecoin on the exchange and select it from the list of assets.
• Enter the amount of Litecoin you want to buy, either in INR or LTC.
• Review the details of your purchase and confirm the order.

Crypto Wallet

You can also buy Litecoin using a crypto wallet such as Guarda Wallet. Here's how:

• Download the Guarda Wallet app or visit their website.
• Create a Litecoin wallet within the Guarda Wallet.
• Choose the currency you want to use to buy Litecoin and enter the amount.
• Complete the transaction.

Other Options

You can also buy Litecoin directly through peer-to-peer (P2P) trade or from a decentralized exchange (DEX). However, these options may be more complex and require finding a trustworthy seller.

Frequently asked questions