In This Article
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.
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.
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.
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.
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.
The second thing you need to understand is that you are not committing the entire amount while speculating on the price trend of Litecoin; instead, you are just depositing a small amount called margin money. Although you are bound to make a massive profit with such a position, misinterpreting the market cues can result in an equally colossal loss.
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:
- You are permitted to utilize leverage, which allows you to open up big bets with little capital and still earn from the leveraged position. Some platforms may even provide leverage of up to 1:400, requiring the trader to deposit just 2.5 percent of the total needed to open the position.
- Litecoin trading is ongoing every day of the year, offering endless trade opportunities.
- You might hire the help of signal suppliers or businesses that offer copy trade services for Litecoin. They are now widely available and offer buy and sell entry/exit points for the LTC/USD pair.
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.
Besides this obvious advantage, there are other advantages which have been listed below;
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. As CFDs are derivative products, the only concern you are left with is how much profit can be gained with the frequent price fluctuation of Litecoin.
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. It is so simple that you can carry out trades on the move on a smartphone or a tablet with an internet connection.
Trading with 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.
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, sharing striking similarities;
- It is based on a decentralized open-source global payment network where peer groups validate each transaction.
- The mining process involves a list of Litecoin transactions.
- It has a fixed supply of 84 million Litecoin; as of November 2021, 16 million Litecoins are still left to be mined.
- A new block of ledger entry is generated globally every 2.5 minutes.
- The miners verify each block that records every transaction of Litecoin ever made.
- Miners are rewarded 12.5 Litecoins for each successfully verifying a block compared to Bitcoin, which rewards 6.25 Bitcoins.
However, five distinguishing factors separate Litecoin from Bitcoin, and they are as follows;
- Litecoin completes transactions faster than Bitcoin completing each transaction in 2.5 minutes compared to 10 minutes for Bitcoin.
- The total supply of Litecoin is 86 million, making it an ideal profitable investment choice.
- It can be used instead of fiat currency to carry out daily payments at the places where Litecoins are accepted.
- Litecoin can be used for borderless instant and secure transactions.
- Litecoin transactions avoid intermediaries, thus making it significantly cheaper than Bitcoin and other cryptocurrencies.
Litecoin is built on the Scrypt algorithm Proof-of-Work (PoW), thus making it ASIC-resistant and more accessible for mining to regular users, all the while making it more centralized.
History – The beginning of Litecoin
In October 2011, ex-Googler Charlie Lee made Litecoin available through an open-source client on GitHub. He became very interested in Bitcoin while working at Google, and in his spare time, he utilized it as motivation to create the Litecoin blockchain technology. Litecoin was never meant to be a direct rival to Bitcoin, according to Lee. It’s intended to be used for smaller transactions instead.
Before Litecoin’s public launch on October 13, 2011, Lee only mined 150 coins. It is regarded as a source code fork of the Bitcoin Core client and is thus a division of the cryptocurrency. The next few years saw Litecoin grow gradually, and its value spiked by 100% in just one day in November 2013. In addition, it became the first major coin to adopt SegWit in May 2017, solidifying its position as one of the top five cryptocurrencies by market cap.
After leaving Google, Lee began working for Coinbase, one of the most well-known bitcoin exchanges at that period. However, he disclosed on Reddit in December 2017 that he has nearly completely sold all of his Litecoin assets due to a deemed conflict of interest. Since making this disclosure, he has come under fire, and Litecoin’s value has fallen.
One Litecoin was worth more than $300 on December 15, 2017, but it quickly fell to half that value. In the years that followed, it could not reach those heights and was valued below $100 for 2019 and 2020. Then, however, it began to surge once more in the late 2020 and early 2021 bull market.
Trading Litecoin: Purchasing and selling
Trading Litecoin is as simple as trading any other cryptocurrency. You go long (buy) when the price of Litecoin is low and go short (sell) when the price of Litecoin has appreciated. There are many ways you can carry out Litecoin trade.
You can enter into day trading Litecoin based on the research you have carried out and open up a position based on the strategy you might have outlined.
Besides day trading, you can also use different trading techniques while Litecoin cryptocurrency trading.
You can purchase Litecoins from an exchange or a brokerage firm at a low price. Remember Litecoin is a cryptocurrency rampant with volatility, thus the frequent price fluctuation in the price trend. You can buy some Litecoins and sell them in the future when the price of it has been appreciated.
You can also short trade if you like. For example, financial instruments like derivatives, CFD, or Contract Of Difference are some of them. The advantage of such instruments is that you can trade the underlying asset’s price without the need to own one.
While using CFDs, you can enter day Litercoin trading. You can enter with a small amount of money called margin and speculate on the price trend of Litecoin. Thus, you get total risk exposure to Litecoin without even owning one. CFDs are pretty popular with traders, who can enter a position without colossal money and make a substantial profit.
Along with CFDs, you can also use leverages that further magnify your profit potential while investing small margin money.
Many traders trade smartly and invest in Litecoin for the long term and carry out short-term trades. Thus they make the most of both worlds.
Outlook for the Future: What does Litecoin’s future hold?
The internet is filled with gurus who predict the price movement of Litecoin based on the historical data available. However, it is challenging to predict the price movement correctly as many factors are involved. Nevertheless, if the experts are through with their cryptocurrency analysis, then they might predict the general price trend of Litecoin based on the data available.
Many traders regretted the chance of buying Bitcoin when the price was trending at mere hundreds of dollars. Today, the price of each Bitcoin is trending at around $20,000. So many fear that the same might be true with Litecoin; today, it is trending roughly around $50.
A cryptocurrency like Litecoin is notorious for its volatile pricing, which can rise or fall anytime. As a trader, you can exploit these ideal conditions to make a profit.
Some businesses also accept Litecoin as a mode of payment, and their numbers are growing daily; thus, if you have a lot of Litecoins, you can use them for daily transactions.
What’s the risk?
Litecoin had reached roughly $350 in May 2021; it was an all-time high that the coin had reached. The experts predicted that the price of Litecoin will keep on appreciating and could be the next big thing after Bitcoin.
There were two reasons for the experts to believe so; first, Litecoin and Bitcoin share several similarities. Second, even Bitcoin struggled with its price trend during the initial stages, but today dominates the entire cryptocurrency world.
As we mentioned previously, the price of Litecoin enjoyed its highest position roughly at $350; today, it is trending at around $50.
Nonetheless, the cryptocurrency market is full of surprises; the rapid price moment, surging almost 10% and declining at the same rate the next moment, makes it an ideal currency to trade.
Suppose you have maintained a portfolio and have Litecoins and other cryptocurrencies, and the crypto market is continuing its bearish trend. In that case, the overall price of the portfolio will suffer. But such setbacks are to be considered temporary. Cryptocurrency markets are deemed to bounce back.
This risk makes it difficult to assess if Litecoin can make it big someday but simultaneously makes it ideal to trade.
The simplest way to earn more money is to invest in cryptocurrency. But it is not all that easy. It requires knowledge and a basic understanding of the market. We are here to make it seamless for you.
Customers connect to and update their portfolios on dependable servers that follow the security guidelines set forth by the governing authorities. We have customers around the globe who are current;y trading securely through our services. Because we value our customers’ right to privacy, a data breach is extremely unlikely.
Since we are devoted to providing excellent customer service, we ensure that clients can call us and get assistance for their problems in every time zone.
Why choose us?
- Our dedicated staff of wealth managers is ready to manage your portfolio and carry out trades on your behalf to increase your wealth.
- Our wealth managers offer trading advice to help you develop in-depth publications for your benefit.
- We are committed to trading transparency and the abolition of under-handling; thus, no deal will be made without your knowledge and consent.
- Our user-friendly trading software will make trading pleasurable for you and offer litecoin trading with lowest fees in the industry.
- You can get in touch with our passionate customer support staff any time of the day or night, they are just a click away, always.
Frequently Asked Questions
Yes. Blockchain Tradein allows you to trade Litecoin by opening both long and short positions because you are speculating on price changes rather than purchasing and holding LTC.
To give you the best deal possible, Blockchain Tradein sources the prices for litecoin from the most active exchanges on the planet.
Yes. You can choose your preferred entry level in addition to trading Litecoin at the current price. Stops and limits can also be added to your holdings to control risk or lock in profits.
Over time, Litecoin has maintained its status as a well-liked cryptocurrency, consistently ranking among the top 10 by market capitalization. However, Litecoin is also one of the better cryptocurrencies for trading because its price action is still very volatile and dynamic. Litecoin has had multiple peaks and valleys throughout 2019 and 2020. In some cases, the price has increased by 50% or decreased by 100% in just a few short months. While this volatility does raise the danger of trading Litecoin, it also significantly raises the benefits that could be earned.
Since Litecoin is a digital asset, there are no centralized exchanges where it may be traded. As it uses peer-to-peer technology, you could exchange Litecoin with a group of buddies if you wanted to do so. Naturally, that wouldn’t be particularly lucrative either. We advise traders to steer clear of purchasing actual Litecoin and instead opt to trade CFDs to capitalize on the price movement of the cryptocurrency. Because doing so requires knowledge of how these new cryptocurrency exchanges operate in addition to wallets and private keys.
Given the coin’s strong price swings, we prefer to trade Litecoin using technical analysis. Breakouts, support and resistance, and oscillators can all determine when a level is overbought or oversold. Additionally, unless you intend to hold Litecoin as an investment, we advise avoiding the actual purchase of the cryptocurrency and instead using CFDs to concentrate entirely on the price movement and possible profits to be earned by trading Litecoin. At Blockchain Tradein, we’ve made CFD trading on Litecoin simple and uncomplicated so that you may accomplish it without any difficulty.
To start trading Litecoin, get started with Blockchain Tradein now.