How to trade Litecoin: the Ultimate LTC Trading Guide

While this volatility does increase the risk or trading Litecoin, it also dramatically increases the potential rewards. Litecoin has established itself as the leading competitor to Bitcoin, and now you can trade this exciting digital currency with AvaTrade. AvaTrade is an industry-leading broker with some of the best trading conditions available, including the lowest crypto spreads on the market. Cryptocurrency exchanges or online wallets are far from immune to the dangers of cybertheft. The infamous case of the Mt Gox Bitcoin exchange highlights this.

Litecoin is a cryptocurrency that is built on a modified version of Bitcoin’s code. The blockchain and economic structure are very similar and even have the same block reward halving mechanism every four years. The regulatory framework for digital assets has shifted greatly over the past few years.

With Litecoin, it seems as if the developers have settled on coming second after Bitcoin. This can deter any investors looking to invest in a cryptocurrency that has the potential to replace Bitcoin. Moreover, the Litecoin network does not seem to have an original roadmap. The network seems to choose features that are on the Bitcoin network. The failure of the network to grow and make its upgrades independently has made it lose a huge chunk of followers.

Buy and sell Bitcoin the easy way

In this guide to trading Litecoin , we’ll explain how and where to buy this altcoin. We also compare regulated brokers and cryptocurrency exchanges that allow you to buy cryptocurrency outright or speculate on its price. Litecoin has remained a very popular cryptocurrency over time, holding in the top ten largest by market cap for the past several years. Along with that the price action of Litecoin remains extremely volatile and active, making this one of the better cryptocurrencies for trading purposes. In 2019 and 2020 Litecoin has seen several peaks and valley, with its price doubling in some cases within months, or being cut in half in the same short period of time.

• When the MACD histogram crosses the 0 line bottom-up, it’s a sign of an uptrend.
• This is considered a short-term investment as CFDs are used within shorter timeframes.
• Our exchange also makes it easy to sell LTC for traditional fiat currencies, including USD.
• Here are some reasons why you should consider NAGA if you are interested in trading Litecoin and other cryptos.

Alternatively, they can trade a contract for difference on a particular cryptocurrency, and speculate on the price difference. This is considered a short-term investment as CFDs are used within shorter timeframes. For instance, to trade Litecoin CFDs, you can speculate on the LTC/USD pairing.

Buy more cryptos

On Bitfinex, we offer many trading pairs with Litecoin price charts that are always updated. For more info on how to get started, you can go to our how to trade cryptocurrency guide. A crypto exchange is one of the best places to buy cryptocurrency.

Always enable two-factor authorization and try to avoid keeping all your coins in a single wallet. There are also platforms like Coinbase and eToro that offer crypto-derivatives alongside real LTC spot and margin trading. You may close your trade if you think that you have already got the maximum available profit or if the amount of the loss is getting closer to an amount you can afford. We recommend placing take profit and stop loss orders, so you won’t have to check the price constantly.

If the Bitcoin and Litecoin networks mature and reach the desired levels of development, they could become interoperable. The two could work together and achieve transaction processing at low fees. Interoperability between Bitcoin and Litecoin will allow the users of the two networks to make payment transactions between each other.

I was so happy because I didn’t expect it to be that fast. Best application for trading your crypto with ease, reliable and fast in payment. In short, I am impressed and I wish to introduce my friends to this.

This is a virtual https://www.beaxy.com/ installed on a desktop or on your laptop. Some of them may come with additional options, such as node software or exchange integration. Desktop wallet security may be easily compromised if your computer isn’t sufficiently protected, so it’s a good idea to improve your computer’s antivirus systems as much as possible.

84how to trade litecoin investor accounts lose money when trading CFDs with this provider. Instead, we source prices from multiple exchanges, and offer our own buy and sell prices. There is also a cap of 84 million litecoins that can ever be mined.

Trade Alt-Coin Litecoin

Transactions need to be matched i.e. a buyer needs to be found when selling Litecoin and the reverse, which can delay order execution. At no extra charge, access multiple types of integrated analysis. Choose from four different platforms depending on how you consume and what type of data you use when trading.

Future orders like Buy Stops and Buy Limits are also available. You can also use our ground-breaking AvaProtect risk management tool which covers your trades against losses. Negative headlines surrounding litecoin – or negative headlines surrounding cryptocurrencies in general – will tend to play out on its price in a big way. Phemex is a professional and trustworthy global cryptocurrency and derivatives trading platform. With your Breet wallet, you can receive Litecoin from any part of the globe and from any wallet!

This is similar to the broader market that has been shrouded with a lot of negativity, given that it is yet to be regulated on a comprehensive scale. As Bitcoin gains value, it has now been deemed a store of value. Some investors believe that Litecoin could pick up from Bitcoin and become an affordable network to conduct transactions.

Giving you even more choice when trading, easyMarkets offers Bitcoin as a base currency. Deposit Bitcoin, trade any of our 200+ instruments, and withdraw Bitcoin. Much like its other cryptocurrency counterparts, its price movement is characterized by exciting swings, frequent reversals and dynamic patterns. Litecoin was one of the earliest Bitcoin ‘spinoff’ cryptocurrencies launched in October of 2011.

This is because you trade on the prices offered, which we derive from multiple exchanges on your behalf. Miners must successfully solve hash functions in order to add new blocks of a cryptocurrency to the blockchain. Litecoin and bitcoin use different mining algorithms, with Scrypt being the hash function used for litecoin, and SHA-256 the hash function used for bitcoin.

The Bitcoin network has seen increased adoption over the years, resulting in growing transaction fees. Litecoin is one of the oldest cryptocurrencies; thus, this coin has been traded for many years now. Going by its price performance over the years, LTC has made major gains, and it could be open to more LINK gains in the future. To sell your Litecoin on a fiat-to-crypto exchange, simply select the amount you want to sell and confirm the sale.

As Bitcoin’s blockspace is becoming a rare and expensive resource, as witnessed by its rising transaction fees, Litecoin stands to gain by picking up some of the slack. One option is to not directly buy Litecoin at all, and to instead trade derivatives like Contracts for Difference , forex, or options using a regulated broker. Not only do you have to negotiate the exchanges but you also need to take extra care to keep your computer secure. Keep in mind that you will need to be serious about your security when using an exchange.

Litecoin is a digital asset and as such there are no centralized exchanges for trading Litecoin. In fact, as a peer-to-peer technology you could trade Litecoin with a group of friends if you wanted to do so. Cryptocurrencies continue to gain momentum around the world, and at the start of 2021, there are more than 4,000 cryptocurrencies in existence.

Litecoin has been proclaimed as the “digital silver”, reducing any chances the network has to surpass Bitcoin. Some networks in the market have been working to become the top cryptocurrencies. The Litecoin network has the potential to grow and gain a high level of adoption. However, it faces stiff competition from a crypto and blockchain space that has grown significantly over the years.