So much talk about Bitcoin. What about Litecoin?

Lately Bitcoin has got a lot of coverage from news outlets. It went from trading at USD14 (when I first took notice, but didn't buy) to USD75! So is it a ponzi scheme? Is it a pump and dump scheme? One thing's for sure, there's not much use to it as a currency just yet. Once the acceptance widens, it could be that even at USD75 (US Dollars) it is genuinely undervalued, considering the limited amount of coins circulating in the market. 

I'm not a sucker for investments not backed by any real assets, but pure market trust.

However, what caught my eyes was its competitor (Litecoin) who claims to aim to be the Silver Standard, should Bitcoin be considered the Gold Standard. Currently trading at USD0.56, it is far cry from USD75 ! 

In Malaysia, it ain't that easy to acquire Bitcoins nevertheless! Thus for newbie investors who might want to try and dabble a litte, here are my recommendations.

1.Remember, to first download your bitcoin wallet from Bitcoin.Org. Make sure it is fully synced.  

2.a. Register at MtGox (https://mtgox.com/). You can proceed to fund your account by doing a wire transfer. (Standard wire transfer should cost you RM25 on top of the amount you might want to deposit). Buying and selling Bitcoins can be done at MtGox. 

Screenshot of MtGox.com : Click to Enlarge

OR

2.b. Buy from DgtMkt (https://dgtmkt.com/). It costs a bit more, but is worth it if you just want to buy 1 or 2 coins.

i. Copy your bitcoin wallet address, and remember to use it for your transaction. 

ii. Wait for confirmation, and remember to sync your bitcoin wallet (100%) so that you can see your account balance. 

3. For those more adventurous to capitalize on the undervalued Litecoin, you can proceed to download the wallet from Litecoin.Org

4. Register an account with https://btc-e.com

Screenshot of Btc-e.com: Click to Enlarge 

5. You can proceed to transfer your Bitcoin to your account, and trade in the exchange to get your Litecoins.  (Note that transfer of Bitcoins does involve a small fee. i.e. 1 Bitcoin will cost you 0.0005 Bitcoin. The higher fee you contribute, the faster your approval process)

OPTIONAL

6. Once you get your Litecoins, you could proceed to Google around for exchanges that trade in stocks, bonds, or funds that use Litecoins, OR you could hold on to your Litecoins and hope that it will appreciate in value.

If you should decide to sell your Litecoin, have it converted back to Bitcoin, and offer to sell it back. There is not existing market in Malaysia, so you might want to ask around (DGTMKT does buy back), or have it converted to USD in your MtGox account. I wouldn't worry too much because as this becomes more mainstream, there will be a bigger market. Remember, you are getting in earlier than most people.