how to trade litecoin

Meanwhile, you must invest through a cryptocurrency broker supporting fractional investment ownership. This is why eToro is a clear favorite among its 20 million users. The social trading platform allows you to invest in Litecoin for as little as $25.

A crypto broker with expensive fees would affect your profits. Borrowing from Bitcoin’s hard-cap limit of 21 million coins supply, Litecoin also has a hard-cap limit. The development team behind the project says that only 84 million LTCs will ever be mined, and so far, 79% are in circulation. Digital assets with a hard-capped limit are known to retain their value over time. Before Bitcoin and digital currencies advent, investors bought gold bars, stocks, and exchange-traded funds (ETFs) to preserve their wealth and hedge against inflation.

If you have decided to invest in LTC, now is the time, since the cost has fallen, and as you know, after a sharp decline, rapid growth often occurs. What really makes the price of LTC go up and down is supply and demand, no matter how corny it sounds. Litecoin can be traded to fiat currencies and as a cryptocurrency pair with BTC, ETH, DASH, and other altcoins. The first big date in the history of Litecoin is October 2011. A former Google engineer, Charlie Lee, founded a new cryptocurrency, complimenting Bitcoin. By 2012, the cryptocurrency had gained popularity and gathered quite a loyal fan club.

STEP 3: Select the order type

But before throwing money at a trade, Rahim recommends studying litecoin’s chart over a span of days and hours. Another option is to take advantage of paper trading before trying the real thing. The goal is to take note of the support and resistance lines, because those will inform your entry and exit points. 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.

  • Therefore, ensure that you know the requirements needed on the platform you want to use Litecoin.
  • This allows you to take advantage of shifts in the market without ever owning a single Litecoin.
  • The founder of Litecoin Charles Lee aimed to create a ‘Light version of Bitcoin’.
  • Litecoin is a cryptocurrency that was created to improve the technical characteristics of Bitcoin.

However, some brokers offer support for e-wallet solutions like PayPal and Skrill. Trading Litecoin may interest you if you are an experienced investor and understand how the financial market operates and how volatile the crypto market is. You can easily detect breakout movements beforehand and enter into positions to profit when the price moves. An alternative to PayPal is to use your credit card on eToro to purchase Litecoin. This is a huge advantage, as not all crypto brokers support credit card payments.

Where can I trade Litecoin?

Besides, Litecoin has a maximum supply of 84 million coins, and the number of coins that can be mined each year is halved, similar to Bitcoin. Though its supply is higher than that of Bitcoin, Litecoin still has a limited supply, so once the coin’s demand increases, its value will increase due to scarcity. The May crypto market crash was a case in point, which wiped off 50% of the crypto market valuation in one week. This was due to a regulatory clampdown by Chinese authorities on crypto mining in its Inner Mongolia regions. Bitcoin and Litecoin plummeted in value, slumping to $113.16 on July 19.

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. The information on this website is prepared without considering your objectives, financial situation or needs. Consequently, you should consider the information in light of your objectives, financial situation and needs.

There is minimum slippage risk, but your order sometimes may not be filled. With hundreds of popular cryptocurrencies, it’s hard to keep track of the specifics of each one. Keep in mind that, unlike trading quotes psychology if you were to buy and sell litecoin, you won’t need an account with an exchange. This is because you trade on the prices offered, which we derive from multiple exchanges on your behalf.

How to buy Litecoin with a credit card?

Cryptocurrencies are risky, and we recommend starting with little capital and building from there. This helps you to familiarize yourself with the industry, especially if you are new. Also, you can use an ASIC machine to increase the efficiency of your block rewards. You need to ask yourself how long you want to hold your Litecoin.

how to trade litecoin

Despite launching two years later, there are far more litecoins available on the market – and faster transactions ensure that supply remains fluid. There is also a cap of 84 million litecoins that can ever be mined. Also, its network is more scalable meaning that it is capable of processing more transactions per second. While BTC is better for storing/moving big amounts of money, LTC is a light-duty coin that is better suited for buying a cup of coffee. Yet, you should keep in mind that few merchants accept LTC as payment, so the coin’s utility is still limited.

Technical analysis indicators show bullish signals, but the Fear & Greed Index indicates extreme fear among investors. Over the past 30 days, Litecoin has grown by 24.02%, suggesting a potential recovery. The price prediction indicates a remarkable surge of 113% by the end of July, reaching around $205.14. Coinbase Pro has advanced charting functions, allowing users to make crypto-to-crypto transactions and place market, limit, and stop orders.

eToro – Best Platform To Trade Litecoin

It is also possible to trade Litecoin against other cryptocurrencies. However, a novice investor is most likely going to want to focus on LTC/USD. In order to buy Litecoin, you’ll first need to set yourself up with a cryptocurrency wallet to store the currency. These come in various forms, including both hardware and software variants, but are not so dissimilar from a traditional cash wallet in how they work. Once you have a wallet, you can use a brokerage service like eToro to buy and sell Litecoin, if and when you decide to.

While altcoins are high-risk investments, Rahim believes litecoin is less risky than some of its peers because it has been widely accepted. It’s the 18th largest by market cap and its users have kept it around for 10 years even though more than 2,300 tokens have failed, according to Coinopsy. Cryptocurrencies can fluctuate widely in prices and are, therefore, not appropriate for all investors.

At Changelly, you get a flat rate for crypto-to-crypto trades on Changelly, which stands at 0.25 percent. The platform has no specific deposit fees, but you must factor in transaction fees when exchanging. It also provides trading through its Changelly Pro arm, where you can put your money to work. Although Revolut focuses on simple transactions, the platform also provides cryptocurrency services. Users can convert crypto to fiat currency in only a matter of seconds.

Investing in Litecoin may be the best strategy if you are just starting and know how the financial markets work. You can sell or liquidate your position when you have made enough return on investment (ROI). Litecoin – like all the other cryptocurrencies – is highly volatile. So, their price will constantly increase throughout a given day. This is basically because a single entity does not govern cryptocurrencies. As they are based on decentralized blockchain technology, their value is driven by demand and supply market forces.

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