If you trade altcoins, you might be losing money on every transaction…and not even know it. This one simple tip can usually get you a few more coins on every purchase.
That can add up.
Watch this video to learn the tip.
The Biggest Mistake New Altcoin Traders Make
New traders usually know about Bitcoin, so that’s the coin that they purchase.
The trouble with buying Bitcoin is that when there are a lot of transactions on the network, the cost of moving Bitcoin between wallets can be huge. Transaction times can also be slow.
For example, let’s say that you purchase your cryptocurrency through Coinbase. But Coinbase doesn’t have the Aeon (AEON) cryptocurrency available for purchase.
That’s not a recommendation for Aeon, I’m just using it as an example of a smaller altcoin.
Most new traders would buy Bitcoin on Coinbase, then transfer the Bitcoin to an exchange that has Aeon available. Once the Bitcoin is transferred, they would simply exchange the Bitcoin for Aeon.
But if you did that, you could lose out on quite a bit of money. If Aeon ever goes up in price, you would not make as much money because you didn’t get as many coins as you could have on your initial purchase.
Here’s why…
Transferring Bitcoin between wallets or exchanges costs more when there are a lot of people using the Bitcoin network.
This is one of the big downsides of Bitcoin, it does not scale.
As this is being written, Bitcoin has an average transaction fee of $14.35. It’s been much higher in the past, so this is actually a mid-range transaction fee. Here’s a historical chart from BitInfoCharts.
The price of Aeon is currently $1,98. So if you didn’t have to pay the high Bitcoin transaction fee, you would have an extra 7.24 Aeon coins on every purchase.
That can add up, especially if Aeon becomes very valuable later on. What if Aeon goes to $50? If that happened, you would have lost out on an extra $362 in profit, per transaction you did with Bitcoin.
Bitcoin average transaction fees have been as high as $62.77!
So what’s the answer?
It’s simple, just use Litecoin to transfer between wallets and exchanges.
In comparison, the average transaction fee is currently only $0.071 right now.
Seven cents!
Litecoin is available on all exchanges and transactions are fast. So it’s actually easier to move LTC, compared to BTC.
How to Buy Altcoins with Litecoin
The process to buy altcoins with Litecoin is very similar to using Bitcoin, but with one extra step.
First buy Litecoin on an exchange like Coinbase.
Then send it to your wallet on the exchange that has the altcoin you want to buy. Once it gets there, exchange it for BTC, if there’s no LTC market for the altcoin you want.
Finally use the Bitcoin to purchase the altcoins.
What About Trading Fees?
Sure, there will be one extra step to exchange Litecoin for Bitcoin, then exchange that for the altcoin you want.
But the trading fees to convert Litecoin to Bitcoin will usually be minimal. If you’re on an exchange that charges high trading fees, dump them and look for a better exchange.
Conclusion
Litecoin is a mature, fast and low cost alternative to Bitcoin, when moving cryptocurrency between wallets.
When you use LTC to move your money, it saves you a lot in transaction fees and will usually transfer faster. Use the money you save to buy more altcoins 🙂
