Whether you’re new to cryptocurrency or well-versed in digital currency, there might come a time when you want to add Litecoin (LTC) to your holdings. Litecoin is often called “the silver to Bitcoin’s gold,” although it’s a completely separate cryptocurrency. To start trading Litecoin you’ll need to find a reputable broker and open an account. It’s also advisable to research the fundamentals of cryptocurrency and the different ways you can trade Litecoin.
Traders typically use a combination of take-profit and stop-loss settings to close their position when they reach their desired profit or loss level. Once you are confident everything is right, click the ‘Buy/Sell’ button and start your trade. It’s a good idea to use a combination of both methodologies when making trade decisions, in order to account for all facets of the market. However, even if the platform undergoes a digital breach, hackers will not be able to escape with your tokens, as BYDFi stores no records of private keys. Transfer times will be different depending on the payment method of your choice. As for BYDFi’s part, the transaction is done within 2-10 minutes.
In this section, we will be examining the best platforms to buy Litecoin. When transactions occur on the Litecoin network, funds are transferred from one wallet to another. This takes about two and a half minutes to validate the transaction – not minding where both transacting parties are. When the pseudonymous Satoshi Nakamoto introduced the premier digital asset in a whitepaper, digital currencies were still a fantasy. There are pivotal differences between buying a cryptocurrency and trading a CFD in a crypto market. When buying cryptocurrency, it is stored in a wallet, but when trading CFDs the product is stored in your account, which is regulated by a financial authority.
You could end up losing 100% of your trading position if you’re not careful. Given the easy and fee-saving feature, many traders prefer using their debit cards for trading. You must consider a broker’s processing fee to buy Bitcoin with a debit card. Various crypto exchanges have different fee structures depending on their payment method. Some may require paying 4 to 5% on debit card transactions, while others may be substantially cheaper. EToro charges just 0.5% on debit transactions, giving you more purchasing power.
Investors have reaped the benefits of Litecoin’s broad popularity. There was no truth to this story, and Litecoin’s price fell as a result. In all instances, if you are new to trading, you may want to try selling litecoin using a demo account.
BYDFI securely stores crypto coins in cold wallets, specially designed offline devices. Still, if you feel more comfortable that way, you can handle security yourself and stash the funds with your own crypto wallet. Either way, try to make sure intruders have no access points to your crypto portfolio.
Step 4: Search for Litecoin
EToro has a CopyTrader feature that allows new traders to copy the trades of other professional traders on the platform automatically, with no hidden fees. The Bitcoin network will only ever mine 21 million coins, and this event is expected to occur in 2140. Litecoin, on the other hand, has four times that figure, and only 84 million LTCs will ever be mined.
To set an alert, log in to the platform, open litecoin’s deal ticket, and choose your parameters. It may not have been Charles Lee’s intention, but one way in which litecoin is similar to silver is in the price relationship it shares with its more illustrious cousin. Where gold goes, silver often follows; where bitcoin goes, litecoin often follows.
As much as it is possible to start trading Litecoin with $100, you need to ask yourself if a $100 investment is worth it. The first thing you need to do is disregard the notion that cryptocurrencies can make you rich overnight. Even with $100, the risks are still high, and you can make mistakes that will lead to you losing your money.
What Is Litecoin’s Ticker Symbol?
Here are some reasons some traders decide to trade this altcoin. We’ll help you navigate the crypto market smoothly and get access to all the popular coins like Bitcoin, Ethereum, Litecoin and many more. Negative headlines surrounding litecoin – or negative headlines surrounding cryptocurrencies in general – will tend to play out on its price in a big way. Firstly, it is mined much faster, with the average block being verified and added to the blockchain in just 2.5 minutes, compared to ten minutes for bitcoin. That makes transactions faster, and should make it cheaper to transfer LTC. Litecoin (LTC) is one of the oldest and most popular cryptos on the market.
You now hold a BYDFi account and are one step closer to buying Litecoin. Similar to Bitcoin, Litecoin is also open source and uses proof-of-work (PoW) to verify each transaction made within the blockchain. However, unlike Bitcoin, Litecoin’s supply is capped at 84 million coins. The best means of buying Litecoin with US dollars is through an exchange or a broker. The easiest way of making money with Litecoin is to buy low and sell high. You can also choose to mine it if you have the computing resources and electricity requirements.
- These products may not be suitable for everyone, and it is crucial that you fully comprehend the risks involved.
- You can only deposit with wire transfers, Bitcoin, and cards.
- The big payouts are a draw for many people, and this causes them to invest large chunks of capital.
- 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.
However, with every investment decision, make sure you only invest what you can afford to lose. Another thing you can do is look at Litecoin’s roadmap and find out the upcoming changes or updates that can affect the coin’s value. One of the latest updates for Litecoin took place in May 2022 and was about its privacy-focused Mimblewimble Extension Blocks (MWEB) upgrade. Similar upgrades can attract public attention and increase the demand for the coin.
How Does Litecoin Work?
To assess its profit potential, read our brief Litecoin guide explaining how this asset works and what its value stands on. Rahim said that by using the power of compounding in a proactive way, he’d been able to increase his litecoin position many times over. The final step before you place your order is to review the details one last time. Check to see you have chosen the correct order type and entered the right order amount, limits, leverage, and other factors. Every platform has a unique trading interface, but they all share some common features, such as trading graphs, available trade options, order books, and so on. Litecoin trading may sound simple on paper, but it requires a series of steps.
You can instantly buy or sell digital currency by paying using a debit card, credit card, or bank account transfer. The exchange also offers leveraged trading and access to crypto futures, thereby allowing traders to buy cryptos bigger than their wallet balances. Cryptocurrency broker platforms offer traders derivative products. 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.
- 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.
- Alternatively, they can trade a contract for difference (CFD) on a particular cryptocurrency, and speculate on the price difference.
- Firstly, eToro offers super low commissions so that you can buy Litecoin without hefty fees.
- Before investing in Litecoin, you also need to understand that cryptocurrencies are highly volatile.
Stay tuned in and monitor your trade regularly to be up-to-date with the price direction. You may also keep an eye on charts and read updates and news articles from reliable sources. If you have limited experience with trading, here are some basic steps you can take to make your first deal a successful one. OBV, or On Balance https://bigbostrade.com/ Volume, is a trading indicator whose predictions are based on the volume flow. Ichimoku Kinko Hyo (or Ichimoku Cloud) is a day trading indicator created through years of research made by a Japanese journalist Goichi Hosoda. The indicator contains plenty of tools to make an accurate prognosis about the price direction.
Why Buy Litecoin? Litecoin Analysis
The infamous case of the Mt Gox Bitcoin exchange highlights this. Historically, Mt Gox was the largest global exchange for Bitcoin, until it declared bankruptcy in 2014 after its security had been compromised. Mt Gox had 850,000 Bitcoins, valued at $450 million in February 2014, before their exchange was emptied by market makers forex hackers. It is believed that the private keys of Mt Gox’s digital wallet were stolen from as earlier as 2011. These risks are avoided when trading Litecoin CFDs because you do not need a wallet. In November 2013, the value of Litecoin experienced a surge in growth, which included a 100% gain in value over 24 hours.
Where can I trade Litecoin?
Safety comes next, and you should only buy Litecoin from an exchange with strong security protocols. A crypto exchange that does not take security seriously could lead to losing funds and leaking your details. Also, you should move your funds from the platform to cold digital storage. All digital currencies use blockchain technology, and the underlying framework of this solution rides on transparency, meaning all transactions are open to public scrutiny. So your Litecoin transactions will be shared and traceable by everyone worldwide. So if you are uncomfortable with this, you should reconsider buying Litecoin.
Tips for trading litecoin?
One major selling point of litecoin is that transactions fees are low. Trading LTC is usually a short-term investment strategy where you buy low with the intention of selling it when the price of LTC goes up in value. This way, you do not have to deal with cryptocurrency wallets or private keys, but you can gain benefits from the price swings of the LTC coin. We want to clarify that IG International does not have an official Line account at this time. We have not established any official presence on Line messaging platform.
In fact, you will find that many brokers and exchanges offer cryptocurrency trading along with forex, CFDs, and stocks all via the same trading platform. Several benefits come from using an online broker to trade Litecoin. One of these is that these platforms are good for beginner traders.