Cryptocurrency stands for cryptographic currency, or: encrypted money. There are a lot of different words that are used to describe cryptocurrency. It is also called token, digital currency or virtual money. To explain what cryptocurrencies are and how they work, it is important to understand the network behind a cryptocurrency. The network that is used by a cryptocurrency is called the blockchain.
The blockchain can be compared with the network that banks have with each other. The difference is that with the banking network only the banks have insight and control over all transactions (central) and with a blockchain everyone has insight and control over the transactions (decentralized).
Anyone who downloads the blockchain software on his computer becomes a participant of the network. All these linked computers check whether transactions are correct. If more than half of these computers agree, the transaction is approved.
A transaction is sent from one wallet to another. A wallet can be compared to a bank account. The blockchain can be seen as an archive in which everyone can find the history of the transactions. This means that a blockchain can also be used for other purposes in the future. Besides sending a cryptocurrency (for example Bitcoin), property rights of houses or assets could also be transferred.
LiteBit offers a wide range of cryptocurrencies as a broker. The purchase of cryptocurrencies works as follows:
Click on Buy at the top of the navigation bar.
Select the desired cryptocurrency.
Enter the amount of cryptocurrency you would like or the amount you want to spend.
We recommend using the LiteBit wallet. Are you using an external wallet? Then enter your external wallet address.
Select the payment method and complete the payment for your order.
Finally, your order can be tracked in your LiteBit wallet.
With the first purchase, we are required by Dutch law to verify your IBAN. With this transaction, you confirm that you are the owner of the specified bank account. This can be done by transferring €0.01 to us. When you place an order and pay with a new bank account, we immediately offer the possibility to link the bank account so that the order can be completed as quickly as possible. Did you pay with SEPA*? Then your IBAN verification can take up to three business days.
*Please note: SEPA transactions (bank transfer) will be received within a maximum of three business days on our bank account. Are you buying cryptocurrencies with a SEPA transfer? Then the cryptocurrencies are only purchased when we have received the money from your order. In this case, we recommend that you first purchase LiteBit credits in order to make direct purchases on our platform.
With the other payment methods, your order is valid for a short time. When the order is completed within this time, the order will be sent to your wallet. When the order is completed too late, the order will be purchased again for the current price. After completing the order, it can be followed in the LiteBit wallet.