Yeah both of those uses are fine in English. The first usage is "more" correct I would say. Literally is supposed to be used to basically say that the thing is actually happening. The second usage is also common at least in American English. Usually it's used with common figures of speech. "I was literally judging books by their cover." Technically he wasn't, he was judging people. Some people will be pedantic and call you out for that. So if you're taking an English class I'd avoid that usage but it's really common to hear it used that way. "I would literally die." It strengthens the phrase.