Litecoin Trading
What do you mean by Litcoin Trading?
Litecoin is also termed altcoin, sharing many features that Bitcoin possesses. Many traders have started Litecoin trading as it has shown growth potential.
Litecoin is an upgraded version of Bitcoin, taking less time while using blockchain technology. It is much faster and safer than Bitcoin and enjoys attention from a broader range of users.
As many experts think that one day it will dominate the cryptocurrency market just as Bitcoin does, traders globally are holding on to Litecoin regardless of what the market sentiments are dictating.
Litecoin can be easily traded across several exchanges and crypto markets or Litecoin trading platforms which are available across the internet.
How can I buy Litcoin?
Litecoin cannot be purchased through a bank or an investment firm, but soon, that might be the case. Until that time, you need to purchase it through various cryptocurrency exchanges and brokerage firms.
You can approach Blockchain Tradein for purchasing Litecoins. Follow these simple and easy steps to buy your first Litecoin on the Blockchain Tradein trading platform. All you need is a smartphone or a computer with an internet connection, government-issued valid photo identity proof, and bank details to complete the transactions on the trading platform. You can experience Litecoin trading with the lowest fees offered at Blockchain Tradein.
Furthermore, the entire operation, from opening up a crypto trading account on Blockchain Tradein to depositing funds to purchase Litecoin, will take less than 20 minutes.
Litcoin Buying Steps
Search for Blockchain Tradein Platform
With simple-to-use features and an appropriate cryptocurrency trading platform, Blockchain Tradein is available. Additionally, the platform and the services provided at a reasonable cost are comparable to the best in the industry.
Create an account on Blockchain Tradein
It would be ideal if you went online to the exchange to register. However, your identity must first be confirmed by an email address. Therefore, keep your phone and a legitimate photo ID close. According to government Anti-Money Laundering (AML) and Know-Your-Customer KYC) regulations, these steps are necessary.
Deposit in your Blockchain Tradein Trading Account
Once all the requirements have been satisfied, you can proceed to make the payment using the ways that best suit you. For instance, wire transfers, online bank transfers, and payments made with credit or debit cards are all commonly accepted.
Purchasing Litecoin from Blockchain Tradein
You can buy Litecoin with fiat currency like the US dollar. Since LiteCoin can be purchased in fractions, you have to convert your fiat currency into LiteCoin to input the desired amount and click the buy button. You can move your Litecoin tokens to your wallet if you’d like.
Why Litecoin?
Litecoin frequently serves as an early warning system for the rest of the cryptocurrency market. Litecoin, according to the community, “lit the route that paves the way to alt season.” So even if they decide against trading it, traders will keep an eye on the price of LTC. When Litecoin starts to gain traction, risk tolerance increases, and numerous smaller markets experience spectacular growth.
Almost the same computer code powers both Bitcoin and Litecoin. Like Bitcoin, Litecoin has a limited supply that will eventually halve. This indicates that the benefit of mining blocks will diminish with time. Litecoin employs proof of work, just like Bitcoin.
With a maximum of 84 million LTC, Litecoin has a four times larger supply cap than Bitcoin. Litecoin’s block creation time was reduced from 10 minutes on the Bitcoin network to just 2 1/2 minutes, making it a speedier option for sending and receiving. While the cryptocurrency industry has had a challenging year in 2022, the Litecoin market has demonstrated time and time again that it can withstand even the most extreme circumstances. As a result, once this standing is established, Litecoin will again be a wise investment for those who are prepared to take the risk.
Where can I trade Litecoin?
One option is to avoid buying Litecoin and use a regulated broker like Blockchain Tradein to trade derivatives like Contracts for Difference (CFDs), FX, or options. This enables you to profit from changes in the market even if you have never owned a single Litecoin. Blockchain Tradein offers you Litecoin options trading so that you can make the best use of your funds to maximize your profit potential.
Reasons to trade in litecoin
This depends on your market understanding and whether you want to wager in favor of or against Litecoin. Some traders choose to trade this alternative coin for the following reasons.
Network Effects
Whenever someone first learns about Bitcoin and begins to understand the principles of cryptocurrencies, they inevitably reach a point where they look to see which other coins are the market leaders.
As the “silver” to Bitcoin’s “gold,” Litecoin has come to be known. It shares parts of Bitcoin’s first-mover advantage because it has been around since 2011, is a dependable cryptocurrency, and has developed a strong community.
High Upside
By filling up some of the void left by Bitcoin, which is becoming a more scarce and expensive resource, as seen by its rising transaction fees, Litecoin will benefit.
Many believe Litecoin could fill in the gaps and serve as a buffer or transaction overflow for Bitcoin as it continues to establish itself as a store of wealth.
At such a low buy-in, the upside potential of Litecoin should be clear if it takes over this use case from Bitcoin.
Potential Interoperability with Bitcoin
SegWit was implemented on the Litecoin network before the Bitcoin network.
Both networks have Lightning Network and Atomic Swaps on their roadmaps and share many other essential features.
If both solutions are successful, then the Bitcoin and Litecoin networks can support low-fee cross-chain payments, enabling users of both networks to transmit money to one another.
Reasons not to trade in litecoin
Follower, Not a Leader
Although Litecoin is quicker than Bitcoin to adopt new concepts and technology, as seen by the implementation of SegWit months before Bitcoin. When Bitcoin eventually implements these enhancements, Litecoin’s advantages rapidly become irrelevant as all attention shifts back to Bitcoin. Furthermore, Litecoin doesn’t seem to choose any features that aren’t already in the works for Bitcoin and almost never introduces any new ones.
The Stigma of Silver
Being seen as the “silver” to Bitcoin’s “gold” has the drawback of creating a self-fulfilling prophecy that Litecoin would always come in second to Bitcoin.
How does leveraged Litecoin trading work?
Similarities between purchasing Litecoin contract for differences (CFDs) and purchasing LTC on an exchange include the fact that your position will gain value when the price of Litecoin rises (usually against the US dollar). The two do, however, have several significant variances.
First, you need to understand that when you open a leveraged Litecoin trade, you are not taking ownership of Litecoin. Instead, you are simply speculating on the price of the underlying asset. Thus you are not required to open up an account on the exchange. However, you are entitled to open a short and long position depending upon the strategy you have outlined for the trade.
First, you need to understand that when you open a leveraged Litecoin trade, you are not taking ownership of Litecoin. Instead, you are simply speculating on the price of the underlying asset. Thus you are not required to open up an account on the exchange. However, you are entitled to open a short and long position depending upon the strategy you have outlined for the trade.
What Led to the Creation of Litecoin?
Setting up a payment system free from a government agency’s centralized authority was the original idea behind the establishment of Litecoin. Adapting to this role required a coin with rapid transaction confirmations. Depending on where the wallet is located, the typical confirmation time for bitcoin ranges from 30 to 100 minutes. With the ability to handle more transactions per second than Bitcoin, the Litecoin blockchain is a significant advancement in this area. Additionally, the Litecoin network is built to accommodate more frequent production of new blocks, enabling the network to support more transactions without having to make significant software changes in the future. Additionally, the transaction confirmation time has been decreased to just 2 minutes.
As a result, businesses who accept Litecoin as a payment method benefit from quicker confirmation times for transactions on their e-commerce platforms while still having the option to wait longer for confirmations for larger-ticket purchases.
Speculative Trading of Litecoin
Since Litecoin’s price fluctuated so much in 2017, it has become a popular choice for online trading, where investors can benefit from the price discrepancy. A Contract for Difference (CFD) asset can be exchanged on FX platforms, or Litecoin can be traded in the Over-the-Counter (OTC) market on exchanges. On the over-the-counter (OTC) market, Litecoin can be purchased or sold using exchanges expressly set up for this use. Thus many traders are opting for Litecoin day trading.
Trading Litecoin on the OTC Market
A few Litecoin exchanges allow users to purchase, keep, and resell litecoin for a profit. Of course, the trader must have a Litecoin wallet to store the cryptocurrency to do this. You can either get a wallet set up by the exchanges themselves or download one from third-party companies on the app stores.
Start trading by adding money to your wallet using fiat currency, Bitcoin, or Ethereum. From exchange to exchange, different funding requirements will apply.
Trading Litecoin as a CFD
Forex platforms offer contracts, including Litecoin as a pairing with fiat currencies. Litecoin and the US Dollar (LTC/USD) are the most popular pairing. Traders must have adequately funded accounts to handle the margin needs because spreads are frequently significant.
Technical and fundamental analysis can be used to trade LTC/USD. The data of LTC/USD as it reacted to news of the Chinese government’s prohibition on the issue of new initial coin offerings from the nation serves as an illustration of a fundamental trigger and a technical entrance.
Technical analysis skills are essential while trading Litecoin as a CFD product. However, there are certain benefits to trading Litecoin as a CFD:
Why do CFDs make sense for Trading Litecoin?
CDFs are instruments allowing you to trade the price of Litecoin without owning it physically. The advantage is that you are still exposed to the inherent volatility of Litecoin with little money required rather than owning the assets and selling them for a profit once the price of Litecoin surges.
Security
You are not confronted with the fear of losing your digital wallet to a cyber threat or hardware since you don’t own them. You do not even worry about where to store them safely and securely.
Simplicity
Purchasing cryptocurrencies directly can be complicated. With Blockchain Tradein CFD trading, you can select Litecoin from the menu and click “sell” or “buy,” depending on your market position.
Leverage options
You are in a position to maximize your profit potential by opting to use leverage options offered by Blockchain Tradein, meaning you can now open up a more prominent position with little margin money.
Diversify Trading
Blockchain Tradein not only offers CFDs, but you can even pair Forex to trade on the trading platform.
What is Litecoin? 5 trading facts you should know about Litecoin
Litecoin is the brainchild of former Google engineer Charlie Lee and was released in 2011, two years after the advent of Bitcoin. Litecoin was the answer to Bitcoin, and often, Bitcoin is compared to gold, and Litecoin to silver.
| Litecoin is the lighter version of Bitcoin | Factors separate Litecoin from Bitcoin |
|---|---|
| It is based on a decentralized open-source global payment network where peer groups validate each transaction. | Litecoin completes transactions faster than Bitcoin completing each transaction in 2.5 minutes compared to 10 minutes for Bitcoin. |
| The mining process involves a list of Litecoin transactions. | The total supply of Litecoin is 86 million, making it an ideal profitable investment choice. |
| It has a fixed supply of 84 million Litecoin; as of November 2021, 16 million Litecoins are still left to be mined. | It can be used instead of fiat currency to carry out daily payments at the places where Litecoins are accepted. |
| A new block of ledger entry is generated globally every 2.5 minutes. | Litecoin can be used for borderless instant and secure transactions. |
| The miners verify each block that records every transaction of Litecoin ever made. | Litecoin transactions avoid intermediaries, thus making it significantly cheaper than Bitcoin and other cryptocurrencies. |
