How To Trade Litecoin LTC In 2023

what is litecoin trading at

Reading guides like ours, and doing your homework is a great way to prepare yourself for the potential risks and rewards of trading Litecoin. Take-profit orders are a similar idea, except they instruct your broker to close the trade when a specific price is reached. Limit orders allow you to specify the price at which your trade is executed. This is an incredibly useful feature as it allows you to enter the market at the most favourable point. For example, you may be expecting the price of Litecoin to drop before it starts to increase, in which case you can activate your trade from a better position, with more potential for gain.

  1. Erika Rasure is globally-recognized as a leading consumer economics subject matter expert, researcher, and educator.
  2. An individual has two options when trading in the cryptocurrency market.
  3. Created by former Google engineer Charlie Lee, Litecoin was one of the first “altcoins”—a name given to cryptocurrencies other than Bitcoin (and sometimes other than Ethereum).
  4. Litecoin was adapted from Bitcoin’s open-source code but with several modifications.
  5. It is also possible to trade Litecoin against other cryptocurrencies.

It should be noted that, if Litecoin does not reach the specified price, your order will expire without being executed. In most cases, Litecoin trading is done by pairs, much in the same way that foreign currency is traded. Anyone serious about trading or investing will want to know about Litecoin.

How Can I Trade Litecoin?

This could indefinitely increase the supply of Litecoin if it weren’t for halving. While Bitcoin is capped at a maximum supply of 21 million coins, Litecoin is capped at 84 million coins. Another distinction between Litecoin and Bitcoin lies in the protocols to mine coins. As mentioned earlier, Bitcoin uses SHA-256 and Litecoin relies on a modified version of Scrypt to generate coins. The difference in protocols has implications on transaction processing times for both coins.

what is litecoin trading at

The Lightning Network is a second-layer technology for Bitcoin that uses micropayment channels to scale its blockchain’s capability to conduct transactions. Segregated Witness (Segwit) was first proposed for Bitcoin in 2015. It works by “segregating” the digital signal data (the “witness”) outside the base block in the blockchain. SegWit was developed to address Bitcoin’s scalability issue, but the proposal created deep controversy within the Bitcoin community. EToro accepts credit and debit cards, and also e-wallets like PayPal, Skrill, and Neteller. Whilst bank account deposits are also accepted, you should note this is the slower option.

Litecoin Halving

For example, some may only offer crypto and forex, whilst others will offer a whole complement of trading markets, including stocks, indices, and commodities. Of course, you can open as many trading accounts as you like, but it is often more convenient to use one platform for all your trading needs. Some investors might choose to buy Litecoin via a broker and store it in a private crypto wallet.

what is litecoin trading at

In this case, the investor owns the underlying Litecoin and can do with it as they wish. Often, people will buy an amount of cryptocurrency with the hope that it will increase in value over the medium/long term. Buying crypto in this way is referred to as HODLing – effectively an industry term for holding onto cryptocurrency until it appreciates in value, rather than making short term trades.

Why trade Litecoin CFDs with

LTC is available on most crypto exchanges (e.g., Binance, Coinbase, Gemini) against other cryptos like BTC or ETH and national currencies like dollars and euros. On this date, the mining reward was reduced from 12.5 Litecoins per block to 6.25 Litecoins per block. MimbleWimble is a privacy protocol that builds on confidential transactions that encrypt or obscure information like transaction amounts.

Both are open-source projects that use proof of work to verify transactions. IThe comments, opinions, and analyses expressed on Investopedia are for informational purposes online. As of the date this article was written, the author does not own Litecoins.

The broader differences between the two cryptocurrencies are listed in the table below. The appeal of cryptocurrency as an asset is just how secure it is – it’s the very nature of blockchain technology. 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. Another thing to consider when choosing a broker is what level of trader you are.

According to Lee, “In October of 2011, I was playing around with the Bitcoin codebase, and I guess the short of it was that I was just trying to create…a fork of Bitcoin. It was mainly a fun side project.” On October 2023, 1 LTC was worth around $61, making it the 15th-largest crypto with a market cap of just over $4.5 billion. If, on the other hand, you expect the price to drop, then you open with a sell order. This guide on How to Trade Litecoin LTC will break everything down in Layman’s terms so that you do not trade blindly. But, if you don’t quite have the time to read it all of the way through, this is what you need to do to trade Litecoin now. At the time of this writing, Bitcoin transaction fees were significantly higher, at around 3.92% on average, compared with Litecoin’s transaction fees of roughly 0.06%.

You have probably realised by now that there is much more you can learn about each step in the process – learning which takes time. However, trading Litecoin is definitely worth the effort as cryptocurrency is one of the fastest-growing and most popular asset classes globally, presenting a fantastic opportunity for savvy investors. Any news relating directly or indirectly to cryptocurrency will affect prices. For example, if there are rumours that suggest a change in regulation for digital currencies, the prices will react accordingly.

Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. We believe everyone should be able to make financial decisions with confidence. The value of shares and ETFs bought through a share dealing account can fall as well as rise, which could mean getting back less than you originally put in. Litecoin was developed by Charlie Lee, a graduate of the Massachusetts Institute of Technology (MIT) and a former Google engineer who became interested in Bitcoin in 2011.

In 2017, Litecoin adopted SegWit, and because of Litecoin’s similarity to Bitcoin, it worked as a testing ground or testnet for SegWit’s viability on the larger Bitcoin network. Some opponents of the SegWit adoption who advocated for larger Bitcoin block sizes created a Bitcoin hard fork that resulted in Bitcoin Cash. You will of course pay fees for brokerage services to trade Litecoin. The fees and commissions will vary between providers and are charged in different ways. If you’re serious about learning how to trade Litecoin, then there are a few things you will need to be aware of when making trades. The following are important considerations for entering the world of crypto-trading.

With that in mind, if you live in the U.S., your choices are limited to exchanges within the U.S. A cryptocurrency is a digital asset conceived for use as a medium of exchange, which uses cryptography to secure transactions, control the supply of additional units, and corroborate transfers. Cryptocurrency is stored in a ‘wallet’, which can take various forms. 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. There are pivotal differences between buying a cryptocurrency and trading a CFD in a crypto market.

The value in most cryptocurrencies is derived from their potential; how they could be used to advance society in the future. Without institutional acceptance however, the potential value, will remain merely potential, but whether this implies that cryptocurrencies are overvalued is another question. Litecoin has implemented several features since its launch intended to improve its transaction speed without compromising the security and integrity of the network.