Setting up your Litecoin trade is, of course, only half of the process. As we have already mentioned, if you opened a sell order, then you close the trade with a buy order and vice-versa. The disadvantages involved in HODLing are probably fairly apparent.

Please ensure you understand how this product works and whether you can afford to take the hhttps://1investing.in/h risk of losing money. In November 2013, the value of Litecoin experienced a surge in growth, which included a 100% gain in value over 24 hours. By the end of that month, Litecoin reached a market capitalisation of $1 billion. In December 2017, Lee announced that he had sold almost all of his Litecoin holdings because of a perceived conflict of interest. He had been criticised for tweeting whilst holding Litecoin, accused of attempting to make personal gain because this had a possible price effect on Litecoin.

Accordingly, I expect to see investors look for higher-growth projects to ride this wave of momentum, at least over the near term. Bitcoin was born in 2009, largely as a result of the Great Recession and the banking crisis that led to it. Litecoin, launched in 2011, was another very early option for investors and is often viewed as a smaller version of Bitcoin, due to many similarities between their networks. Deposit your account with the required amount of cryptocurrency. If you’re new to crypto, you might not be used to having choices for where to “store” an asset.

The best way to buy Litecoin is to use a regulated broker like eToro. The social trading platform offers low fees, commission-free trades and is highly user-centric in design. With handy tools like CopyTrade and CopyPortfolio, you can easily make profits without having all the technical know-how of an asset. Several deposit channels are supported by Libertex, such as Skrill, Neteller, credit and debit cards, bank transfers, Multibanco, Sofort, Trustly, and others. Like many other brokers, Libertex also offers a demo account you can use before real trading.

About Litecoin

Derivatives are contracts whose value is tied to an underlying asset, such as Litecoin. A contract gives you the right to your original money plus any profit or loss you make when it expires. When trading with a broker, you don’t actually own a digital asset; you instead buy or sell a derivative contract that is tied to the market price of LTC. Bitstamp is a leading cryptocurrency exchange which offers trading in fiat currencies or popular cryptocurrencies.

Once the cost of LTC did not exceed $5, but in recent years the cost has not fallen below $29. Now the coin is trading at $136, and the historical maximum reached the level of $412. Binance – The commission when buying Litecoin is only 0.1%, which is why the exchange constantly attracts new customers.

What moves Litecoin’s price?

It should be noted that cryptocurrencies like Litecoin are called alternative currencies . This means that they are tied to the hip of Bitcoin price action. As with any asset, the values of digital currencies may fluctuate significantly…. Revolut does not allow you to trade crypto directly on the platform; you can only buy, transfer or withdraw crypto here. The platform provides access to loans as well as both phone and travel insurance.

This is a safe place to trade Litecoin commission-free, with tight spreads. Trading commissions are a straightforward charge that is levied for every trade that you make. Some providers charge a flat rate, but most will charge a percentage of the trade. Once again, these vary quite a bit, but are typically between 0.10% and 0.25% per trade.

Despite being in development, Cardano currently occupies the third position on the crypto chart. This shows that several investors are keen to buy into the Cardano dream. Compared to Litecoin, the network is on the frontier of a new blockchain ecosystem and may likely continue its upward climb. As cool as this may sound, trading Litecoin requires you to have a good grasp of the market and conduct analysis on an asset’s price action.

Because of its secrets to winning reverse auctions what is agraphic techniques, the network is more effective, and blocks are created more quickly. Invariably, when people first get familiar with Bitcoin and start grasping cryptocurrency concepts, at some point, they start looking to see what other coins dominate the space. This depends on your knowledge of the market and whether you want to bet for or against Litecoin. Here are some reasons some traders decide to trade this altcoin. 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. IG International Limited is licensed to conduct investment business and digital asset business by the Bermuda Monetary Authority.

Other Things To Consider When Trading Litecoin (LTC)

Keep in mind that trading with margin may be subject to taxation. One popular signal in Ichimoku is the Tenkan Sen and Kinjun Sen lines. If the two lines cross above each other, the trend is bearish, and if they cross below, the trend is bullish. If Bitcoin surges in the future, Litecoin will probably rise; hence, an investor can predict what will happen to LTC by predicting what will happen to BTC. The next step is to upload a copy of your photo ID – passport or driver’s license.

Binance is one of the largest cryptocurrency exchanges in the world. It is better suited to more experienced investors and it offers a large number of cryptocurrencies to choose from, at over 600. Binance is also known for having low trading fees and a multiple of trading options that its users can benefit from, such as; peer-to-peer trading, margin trading and spot trading.

Combine Fundamental and Technical Analysis

They also offer a demo account you can use before trading for real, which provides a risk-free way of gaining exposure to the trading platform. When transactions occur on the Litecoin network, funds are transferred from one wallet to another. This takes about two and half minutes to validate the transaction – not minding where both transacting parties are.Litecoin’s history is closely tied to that of Bitcoin.

Fraudsters are known to use public figures’ profiles and faces to swindle gullible investors into parting away with their digital assets. Tesla boss Elon Musk has been featured, without his consent, in several of these fraudulent schemes. Investing in Litecoin may be the best strategy to adopt if you are just starting and have basic knowledge of how the financial markets work. You can sell or liquidate your position when you feel like you have made enough return on investment . Litecoin – like all the other cryptocurrencies – is highly volatile. So, their price will constantly be in an influx throughout a given day.

We may receive financial compensation from these third parties. Notwithstanding any such relationship, no responsibility is accepted for the conduct of any third party nor the content or functionality of their websites or applications. A hyperlink to or positive reference to or review of a broker or exchange should not be understood to be an endorsement of that broker or exchange’s products or services. While they may seem minor, all of these variables can factor into the success of your trades.

Using Bitcoin as an instance, many have suggested that the next top-out for Bitcoin will take place in 2025, during which it can hit $200K. The platform’s uniqueness comes from its zero spreads price structure. Litecoin uses a more improved proof-of-work algorithm called Scrypt that gives it higher block time finality than Bitcoin. You can now buy Litecoin by entering the size of your stake into the ‘Amount’ box ($25 minimum). Finally, click on the ‘Open Trade’ button to complete your investment.

To buy Litecoin, you’ll need a reliable cryptocurrency exchange. The right Litecoin exchange is not only trustworthy, but they’re also easy to use in terms of onboarding, payment, and trading. In this section, we would be examining the best platforms to buy Litecoin. Litecoin has been around for quite some time as one of the most popular cryptocurrencies ever. However, LTC is still one of the major cryptocurrencies in market capitalization and trading volume. Because of this, Litecoin is regarded as a very liquid asset, and a fraction of the 4,000 cryptocurrencies on the market are capable of claiming this.

Trade

We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. As with all cryptocurrencies, Litecoin can be a highly volatile asset. Experts suggest limiting your investment to a small fraction of your net worth in cryptocurrencies, including Litecoin. Note the terminology of “trading pairs,” which comes up quite often on crypto exchanges. In the case of LTC/USDT, bitcoins can be converted into Tether, a stablecoin whose value is pegged to the U.S. dollar.

• Before the advent of Bitcoin and digital currencies, investors bought gold bars, stocks, and exchange-traded funds to preserve their wealth and hedge against inflation.
• This guide on How to Trade Litecoin LTC will break everything down in Layman’s terms so that you do not trade blindly.
• The technical indicators predict that Litecoin can hit $300 in 2025 and be traded at $303 for its maximum price.

These risks are avoided when trading Litecoin CFDs because you do not need a wallet. 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. It teachs you the techniques traders use to make price predictions using market indicators. Like any form of short-term investment, crypto trading requires you to constantly monitor the market for changes.

You can place by choosing an order type on the exchange or online brokerage platform. The size of position you take on your trade will determine the profits or losses that you might make. Cryptocurrency exchanges have largely evolved from those that simply offer spot trading to those that provide derivatives trading. Some of the largest cryptocurrency exchanges offer derivatives trading options such as contracts for difference , futures and options. This comprehensive guide has everything you need to know about trading LTC. Litecoin is one of the oldest cryptocurrencies in the market that is usually nicknamed the “digital silver.” , and it makes for one of the best investments that one can make.