How to Trade Litecoin Learn about Litecoin Trading 7b

how to trade litecoin

Rise and fall sequences have been taking place since then, through 2019 up until the current day. However, the price fell significantly at the end of the year due to the overall trend. In 2018, another huge fall occurred due to the overall tendency in the market. Unfortunately, the bull run was short-term – the price began to fall in December 2013. If Litecoin ends up inheriting this use case from Bitcoin, at such a cheap buy-in, its upside potential should be obvious. As Bitcoin is solidifying as a store of value, many see Litecoin as a possible candidate to pick up the slack and act as a buffer or transaction overflow for Bitcoin.

At a minimum, set up a stop-loss order as a safety net in case your trade goes awry. Your position will grow in value as Litecoin’s price increases and vice versa. Opening a trade when the value is increasing is taking a long position. On the other hand, selling as the price dips is taking a short position, and allows you to speculate on downward price moves. Trading Litecoin, or any other cryptocurrency, requires meticulous planning and preparation.

This allows you to take advantage of shifts in the market without ever owning a single Litecoin. You need to be wary of phishing scams, viruses, and other risks. You also need to keep very careful track of your wallet’s access codes. You can earn up to $100 in crypto as a reward for every eligible referral. You and your friend need to sign up, verify your identity, and buy at least $100 worth of crypto.

CFDs are highly popular among FX investors and commodities traders, allowing investors to trade an asset’s direction within a short trading window. The fee structure is the first thing you should look out for in a broker. You should check the deposit, withdrawal, hidden fees, and how much you must pay to convert your LItecoin to other digital assets.

With growing regulatory action, these figures may not be easily obtainable soon. You can increase your position with time when you feel more convinced about the project. Changelly does not require your personal information or any form of proof of address before you can buy crypto on the platform. CryptoRocket charges low deposits with a minimum deposit of only $10.

  • The network seems to choose features that are on the Bitcoin network.
  • Transfer times will be different depending on the payment method of your choice.
  • For instance, Litecoin can be stored in an online wallet, or alternatively in an offline electronic wallet, and it can even be stored physically in hardware.
  • Limit orders allow you to specify the price at which your trade is executed.
  • Instead, we source prices from multiple exchanges, and offer our own buy and sell prices.

Inversely, if they are mistaken, they have to pay this difference to the broker. Instead, we source prices from multiple exchanges, and offer our own buy and sell prices. It may be touted as a new currency, but investors buying and holding litecoin are the biggest reason for its rises in price. And those investors will pay attention to its market cap when deciding whether to buy more or sell. Many point to litecoin’s wider supply as a key reason for its lower price point than bitcoin.

Other Things To Consider When Trading Litecoin (LTC)

Ethereum builds an entirely different blockchain ecosystem and is the alpha blockchain network in decentralized finance (DeFi). Given this, it occupies the second position on the crypto chart with an 18.5% share of the crypto market. Ethereum is still expected to grow larger as the years go by. Even though the meme token does not have a generic value proposition besides being a joke cryptocurrency, Dogecoin is still among the top ten most valuable crypto.

Interoperability between Bitcoin and Litecoin will allow the users of the two networks to make payment transactions between each other. One can trade Litecoin in many ways, but one of the most popular ways is in the spot market. Trading LTC in the spot market is easy for beginner traders, as you simply have to make your trade by betting on the price movement. This comprehensive guide has everything you need to know about trading LTC.

The minimum price of Litecoin is expected to be $255, and the average trading price for 2025 is predicted at $264. Looking at the technical analysis of Litecoin’s future price, we notice that the coin is expected to be traded above $100 throughout 2023 with an average price of $125. You may have come across several opinions online on how much Litecoin will be valued in the future, and this is what is obtainable in the fast-paced crypto industry.

how to trade litecoin

If the price of a crypto drops to a favorable rate, the brokerage will automatically purchase the crypto. Here again, the order may not get filled in a fast-moving market. While he can trade almost anything, one of his go-tos is litecoin. Created in 2011, it was one of the earliest altcoins, designed for cheap and fast peer-to-peer payments. For instance, when you place a limit order to sell LTC, set a slightly higher Litecoin price, and the order will be executed when the conditions are met. At the same time, enter a stop-loss setting that closes your order if the market suddenly trends down and passes a key support level.

Bollinger Bands Litecoin Trading Strategy

Bitcoin stands as the top and most popular cryptocurrency in the market. However, given that its price has skyrocketed to new highs, very few people can afford to buy one Bitcoin, and they look towards alternative coins such as Litecoin. Litecoin trading is when one buys and sells Litecoin according to the price movement. The process of trading Litecoin is similar to that of trading any other asset in that the end goal is to make profits. Before you open your first position, you’ll want to make sure that you are up to date with all the latest litecoin developments.

  • This is a type of order that automatically adjusts to keep up with rising resistance levels as the market trends upwards.
  • However, it is one of the most used indicators for analyzing price movements.
  • But if depositing more than $2,250, or requesting a withdrawal – you will have to complete this step eventually anyway.
  • Some take a left-field approach and use modern technology to try to gain an edge.

Even if things are turning around, trading Litecoin is the better option, as traders can profit whichever way Litecoin turns and make money both directions. The first step is to create an account on the platform where you want to trade Litecoin, whether it is on a spot or futures basis. The cryptocurrency market is still new, and therefore the prices are very volatile. The prices of Litecoin can fluctuate very fast and by large margins. Yes, US-based investors can begin trading on BTCC and access the thriving crypto asset secondary market to buy, sell, and trade cryptocurrencies. To buy or sell Litecoin at a specified future date and price is to enter into a Litecoin Futures contract.

Can I deposit and withdraw Bitcoin, Ethereum, Litecoin, Bitcoin Cash?

You can also sell or short your Litecoin position if you determine that the asset may drop in a few hours. As cool as this may sound, trading Litecoin requires a good grasp of the market and analyzing an asset’s price action. This will help you determine whether to buy (long) or sell (short) a particular asset in a given trading session. Trading Litecoin may be a good choice if you have the time to spare or are a full-time trader.

The process of trading Litecoin can be easy, but the volatility can make it hard for a beginner trader to know the best time to take profits. To ensure that you stick with your profit goals, it is important to have a trading plan. One of the platforms where you can trade Litecoin is through an online brokerage firm such as that of PrimeXBT. A brokerage firm allows you to buy and sell Litecoin on the platform, and you have to part with some trading fee for the transaction to be facilitated on your behalf. The financial markets are driven by the forces of demand and supply. The prices of coins in the cryptocurrency market can also be driven by supply, and this factor has been affecting LTC’s uptrend over the years.

Most cryptocurrency exchanges allow trading Litecoin, and you can get it with the help of a third-party cryptocurrency exchange. Litecoin may be faster and less energy-intensive, but it is still an infant compared to Bitcoin. Bitcoin commands more than 50% of the $2 trillion crypto market. It’s the first digital asset and most recognized of the bunch.

“You can be on vacation with your wife and have your laptop. Heck, nowadays you can do it from your phone.” Rick Rahim is an active day trader of stocks, crypto, and derivatives including options. Assuming you have all your ducks in a row, there is no reason why your order shouldn’t turn a profit. Depending on how you set up your order, you can either close your position manually or automatically.

It should be noted that, if Litecoin does not reach the specified price, your order will expire without being executed. For example, if you made a buy order and the exchange price of Litecoin increases, then you issue a sell order to close the trade and take your profit. Once you’re set up with a trading account and have deposited funds, then it’s time to start trading Litecoin.

STEP 6. Set take profit and stop loss targets

However, Litecoin’s supply is much higher, and it has been attributed to LTC’s low price. For more orders information, you can click on the futures trading report at the top right of the page to view. Market orders, limit orders and stop orders can used to set stop-profit and stop-loss price targets. INX provides quick and effective international money transfers. Anyone with a bitcoin address may get funds from you if you send them to their Bitcoin address. The security and low costs of Litecoin are leveraged in OmniLite, a multi-layered system.

Through the whole month, traders were left with no certainty about their money. Because of these events, the value of Bitcoin decreased by 36% in just one month. The negative market sentiment pulled the price of Litecoin to the all-time low of $1.11 on January 14th, 2015.

The recent market rebound has triggered new traders’ interest in the crypto sector, and Litecoin is among the coins making major gains. To leverage the current bullish sentiment, new traders are exploring cryptocurrencies to diversify their investment portfolios. The INX app makes buying and selling Litecoin straightforward for seasoned investors and crypto newcomers. With brokers who operate CFD trading, it’s possible to sell-short as well as buy long. If you trade the names individually, then the position in LTC vs BTC can also we weighted. Going long $10k in bitcoin and short $5k in litecoin would play the spread but also generate a greater return if crypto as a whole rose in value.

His trading strategy

For starters, Litecoin is a very popular cryptocurrency, and it is also one of the oldest. This makes it a safer option in the crypto space compared to the upcoming cryptocurrencies. This also makes it easy for a trader to assess the historical price performance before making any trades. Before trading in Litecoin, you need to determine whether you want to be a day trader or invest for the long term.

The approach of using a shared ledger means there is a degree of transparency not typical of traditional accounts. There is a heightened interest in terms of the price potential of the LTC token. Here are some of the main ways to get started with Litecoin (LTC) investing today. At the end of 2013, Litecoin experienced its first significant bull run – the price surged by over 1,700% and moved from $2 to $40 within a few days. Litecoin adopted SegWit before it was enacted on the Bitcoin network.

The traders who did the right thing at the right time made multiple profits. In 2021, the price swings are still big, and are very inviting for those who want to take advantage of them. “The main reason I trade litecoin is because I’m not mentally committed to buy and hold it the way I am with bitcoin and ethereum,” Rahim said.

It is a standard procedure and is available for every payment method on the platform. For traders who opt to register using an email, provide your email address and click [Send] to initiate the verification process. Once done, BYDFi will email you a six-digit verification code, which you should copy and paste into the field. To make an instant purchase, you will need to open an account with a regulated broker. Once you complete the registration process, you will buy Litecoin in seconds.

We recommend placing take profit and stop loss orders, so you won’t have to check the price constantly. One option is to not directly buy Litecoin at all, and to instead trade derivatives like Contracts for Difference (CFDs), forex, or options using a regulated broker. We follow the rigorous security standards to prevent unauthorized mt4 spread access to your account. We require your valid identity documents to verify your account and keep your funds safe. Login to your account, go to Receive, then select a cryptocurrency to deposit, and click Deposit. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result.

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