When Satoshi Nakamoto successfully launched BTC, the first decentralized cryptocurrency, in 2009, the goal was to revolutionize digital currency. One and a half decades later, this technology transformed the digital currency world.
Today, Litecoin (LTC), considered the silver to Bitcoin’s gold, is one of the major digital currencies as global enthusiasm for cryptocurrency rises.
That said, while crypto fans would like to see digital currencies overtake fiat currencies, this milestone is yet to be achieved. As a result, it has become vital to understand how to convert digital currencies such as LTC to fiat before making everyday payments.
This article will explore the best ways to convert LTC to USD in today’s market and highlight the do’s and don’ts to guarantee a successful trade.
Best Ways to Convert Your Litecoin Into USD
Below are some of the most efficient ways to exchange LTC for USD in 2024.
Peer-to-Peer Platforms
Peer-to-peer platforms allow traders to exchange cryptos directly instead of using an automated engine to execute the transactions. In cryptocurrencies, peer-to-peer platforms are the Craigslist or Facebook Marketplace of crypto trading.
To convert LTC to USD on a peer-to-peer platform, a trader can create an advertisement indicating the Litcoin amount they want to sell and their terms for exchange, then wait to receive offers. Alternatively, they can browse through the ads already available and find a trader who wants to buy LTC and make them an offer.
Although peer-to-peer platforms differ from established crypto exchange platforms that utilize exchange engines, they still have measures in place to guarantee the security of exchanges. Traders must deposit the cryptos to be traded on the platform's digital wallet, and the crypto will only be released to the recipient once the platform confirms that the cash transfer has been made.
Peer-to-peer platform trading is ideal for traders who prefer maximum freedom in picking the exchange rate and the payment method. Additionally, because peer-to-peer platforms allow traders to deal with each other directly, there is enhanced privacy for crypto transactions.
Over-the-Counter (OTC) Services
Over-the-counter services refer to crypto brokerage firms facilitating cryptocurrency exchanges between two parties. These firms act as intermediaries connecting crypto buyers and sellers outside of centralized, established platforms. OTC trading is most suitable for traders engaging in large-volume transactions as it offers heightened liquidity and is unaffected by appreciable price slippage.
Exchanging LTC for USD via OTC services requires a trader to solicit the services of a crypto broker. This broker will be responsible for seeking buyers who meet the seller's terms for exchanging the crypto and connecting the two parties. Upon connection, the two parties will be expected to negotiate over trading terms and reach an agreement on the price, quantity, mode of settlement, and duration of the deal for the transaction to occur.
Over-the-counter trades can be settled through bank transfers, escrow services, or even in-person meetings. These transactions tend to be quicker and more adaptable compared to traditional established exchange platforms.
However, OTC trading carries the risk of a party defaulting, resulting in financial losses. Additionally, OTC transaction prices might differ from prices posted on public crypto exchange platforms due to factors such as market demand, crypto volume, and negotiated terms.
Cryptocurrency ATMs
Crypto ATMs are the latest innovation in increasing access and use of cryptos in today’s market. These automated teller machines allow traders to pay cash for cryptocurrency or sell cryptocurrency for cash.
However, as is expected from crypto traders, understanding the mechanics of how innovations work is critical before they are on board. Similar to how the top query was “what is Litecoin mining” when this crypto was introduced in the market, most crypto traders are now researching the technology behind the crypto ATM innovation.
Crypto ATMs operate by connecting to a digital ledger to produce blockchain-based transactions. These blockchain-based transactions send or receive cryptocurrency from the trader’s crypto wallet. To convert LTC to USD through crypto ATMs, a trader must first locate a Litecoin ATM.
Currently, the United States is leading in the provision of cryptocurrency ATMs, with approximately 33,948 ATMs spread out across major cities.
Once at a Litecoin ATM, traders will be required to supply the cryptocurrency ATM with a wallet address by scanning the QR code provided and then authorizing the transaction of selling LTC. After the transaction is completed, the crypto ATM will dispense the USD cash. The use of crypto ATMs is expected to grow significantly thanks to the easy access and convenience offered by this innovation.
How to Convert LTC to USD
When it comes to converting LTC to USD, the best option of the three aforementioned will depend on an individual trader. Traders can consider factors such as the amount of crypto to be exchanged, the exchange rates, the fees associated with various exchange options, the confidence in using different platforms, and the current market trends, just to mention a few.
However, while it boils down to preference when deciding on the best ways to convert your Litecoin into USD, there are several standard do’s and don’ts that give the best opportunities for successful trades.
What You Should Do
For a successful LTC to USD trade, irrespective of the exchange option preferred, it is critical for traders to:
- Leverage limit orders
- Understand fees and charges
- Consider market timing
- Research the exchange rates
- Ascertain security measures
What You Shouldn't Do
Every trading option for cryptocurrencies comes with potential risks. While it is impossible to eliminate all risks from a crypto exchange, traders can minimize the possibilities of running into financial loss, scams, and other risks associated with exchanging LTC for USD by ensuring they do not:
- Use unregulated exchanges
- Use low-quality wallets
- Ignore liquidity concerns
- Forget about taxes
- Make rushed decisions
In Summary
The global cryptocurrency market is projected to reach US$51.53 billion in revenue by the end of 2024. Additionally, the number of cryptocurrency users is expected to grow to an astounding 992.50 million by 2028. This growth trend in adopting cryptocurrency as a viable currency for trade is the motivation behind the rise of different innovative ways to convert crypto to fiat currency.
Litecoin’s popularity is also rising as this crypto works on a cheaper and faster scale, with its transactions being processed four times faster than the world’s leading crypto, Bitcoin.
To make investments using Litecoin in markets that are yet to accept digital currencies as payment, converting the crypto to USD is easy and available through peer-to-peer platforms, over-the-counter services, or cryptocurrency ATMs, depending on your preference.
These three options offer different advantages to traders but guarantee successful trading of LTC to USD. The goal is to use the conversion option that works best for you and meets your needs.
