In the meantime, various online exchanges offer digital silver, along with other cryptocurrencies. There are competing altcoins that provide similar, if not the same, advantages and benefits as Litecoin. Litecoin was on the scene early on and became one of the first altcoins to build on the network of Bitcoin and create its strong reputation. It is difficult to determine how investors, traders, cryptocurrency fans, governments, and the general public will treat Litecoin in the future. Cryptocurrency is being scrutinized by governments, more cryptocurrencies are being created every day, and the markets are volatile. Several exchanges can conduct transactions within the United States; many more are outside the U.S.
- However, Litecoin’s supply is much higher, and it has been attributed to LTC’s low price.
- When deciding to invest in Litecoin, it might be necessary to have a plan.
- Most importantly, ensure that the platform you want to use is regulated in your country.
Litecoin’s mining also keeps transaction fees relatively low due to the inherently higher total supply. There can only be 21 million Bitcoins in existence, whereas there can be up to 84 million Litecoins. This matters because it makes mining less competitive, and the more competitive mining gets, the higher the transaction fees. Transaction confirmation speeds play a huge role in how quickly a currency gets adopted.
What is a Litecoin?
However, they are still susceptible to hacks and malware contamination, which is a problem with any application that is installed on a computer that is always connected to the internet. Some good software wallets that support LTC are Litecoin Core, Atomic Wallet and Electrum-LTC. The Litecoin Core developers created the Litecoin wallet known as Electrum-LTC, which can be downloaded on desktop. If you are really invested in the Litecoin community, you could also download the Litecoin Core wallet, and support the blockchain by acting as a full node client. Litecoin, in order to keep up with the DeFi times, has made it possible to build Litecoin smart contracts since the fall of 2021.
This kind of trading is done with a much shorter turnaround than with HODLing – successful cryptocurrency traders will often make numerous transactions in a single day. When trading in this way, you never actually own the underlying asset. Instead, how to buy telcoin you speculate on price movements via contracts for difference (CFDs). The blockchain is a shared digital ledger which holds a record of all litecoin transactions. Recent cryptocurrency transactions are grouped together into ‘blocks’ by miners.
- According to Ofir Beigel 99Bitcoins, probably the best way to get hold of Litecoin anonymously would be to first buy Bitcoin anonymously then trade that Bitcoin for Litecoin via an exchange.
- For example, in August 2020, the Litecoin reached $70, and in just a few days, it was reduced to $45.
- The Litecoin team likely wants to remain cheap so they can continue being a transactional cryptocurrency.
- With a smaller supply of Litecoin, the price may increase (if there is still a demand for Litecoin).
However, miners quickly adapted their specialized machines and continued to grow their mining capacity. Go to the website of your chosen trading platform and elect to open an account. The first thing to consider when opening a position is whether you think the price of Litecoin is going to go up or down. If you think the exchange rate will increase, then you open a buy order.
What is the blockchain?
The fact that many cryptos today, such as Bitcoin and Litecoin, have regained their losses post-Covid collapse, indicates the virtue of persistence. According to Digitalcoin, the price of Litecoin could go as high as $172.73 by the end of 2022 and up to $247.4 in 2025. It was never made to go head to head with Bitcoin but its technological advantages do pose somewhat of a threat. While it might be theoretically “better” than Bitcoin, Bitcoin has already run off with the network effect of rapid onboarding a much larger and active user base. It’s important to look at the differences in how both Bitcoin and Litecoin came about.
However, it’s important to ensure you use a regulated broker or exchange service, like eToro. Look for licensing from trusted authorities such as FCA, ASIC, and CySEC. Aside from the costs involved in trading Litecoin, brokers may also charge additional fees. These include payment processing fees – charged for withdrawing and/or depositing funds to your brokerage account.
Step 1: Open an account
Both aim to be transactional cryptocurrencies but at times struggle to remain relevant in an ever-changing cryptocurrency market. However, BCH and LTC are two of the most accepted cryptos by merchants today. Aside from market cap and a few other small features, Litecoin’s primary difference from Bitcoin and Bitcoin Cash is its hashing algorithm ‘Scrypt. This popular coin can be found on nearly every exchange and be used for investing, trading, purchasing goods, and everyday transactions. As Bitcoin’s prominence in the crypto landscape remains uncontested, it holds its top rank on CoinMarketCap and boasts a market capitalization of approximately $529.36 billion. Both bitcoin and litecoin have a finite number of coins in circulation.
To ensure that you stick with your profit goals, it is important to have a trading plan. This is similar to the broader cryptocurrency market that has been shrouded with a lot of negativity, given that it is yet to be regulated on a comprehensive scale. 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.
Last but not least, LTC investment is also a great asset for those who just want to diversify their portfolio to reduce risk and diversify returns. Some promise traders that they will not part with any fees when making their trades on the platform. However, it is important to know that such exchanges will have a wide spread. 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.
Conclusion – Trade Litecoin Crypto
Moreover, most brokerage firms that want to play in the global field are highly regulated, giving traders a high sense of security. 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 mean reversion trading strategy only way that Litecoin can match up to Bitcoin is if it is adopted by many businesses globally. If a major institution adopts Litecoin, the price could see a significant spike. The Bitcoin and Litecoin networks are some of the oldest in the crypto space, and they share several similarities.
Last but not least, investing in LTC is a clever way to diversify your portfolio, which is a great technique to reduce financial risks by investing in different assets. Because of the potential of LTC as an investment in 2023, more and more beginners and experienced investors are willing to add Litecoin to their portfolios. Litecoin certainly does have a future as people continue to find new ways to use and trade the coin. And with upgrades around the corner, we will likely see a lot more of Litecoin in the coming years. It should also be noted that some price forecasters actually expect Litecoin to decline in price or stay more or less the same.
Cryptocurrencies are still relatively new for most people and can be extremely volatile. We want our clients to have access to in-depth educational materials to support their trading. In contrast, 2020 will be a more dramatic year for investors and economies around the world. On March 12, 2020, LTC fell to $30.93, also known as Black Thursday.
The 2.5 minutes compared to Bitcoin’s ten minutes allows Litecoin to process transactions at a much faster rate. There is also a larger cap on the maximum amount of Litecoin produced. Bitcoin has a cap at 21 million, whereas Litecoin’s cap is almost quadrupled at 84 million. dr alexander elder trading for a living Litecoin all began in October 2011 when former MIT graduate and Google employee Charlie Lee designed the digital coin based on Bitcoin’s foundation and protocol. Since its beginning, Litecoin has been part of the top ten capitalizations in the cryptocurrency market.
Some investors believe that Litecoin could pick up from Bitcoin and become an affordable network to conduct transactions. If Litecoin gains the same level as Bitcoin in the future, LTC could make a strong uptrend. There is much potential for the Litecoin network and for the price of LTC to make notable gains. The Bitcoin network has seen increased adoption over the years, resulting in growing transaction fees. This comprehensive guide has everything you need to know about trading LTC.