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Litecoin Trading 2019
Litecoin is a decentralised payment network that is very similar to bitcoin; in fact, Litecoin was actually forked from the Bitcoin Core client. The currency is becoming a popular first time investment for traders entering the crypto markets.
What is Litecoin?
Litecoin was launched by former Google employee Charlie Lee in October 2011. The peer to peer cryptocurrency network was virtually identical to Bitcoin; The major difference in the two is that the Litecoin network aims to process a block every 2.5 minutes - 4 times less than Bitcoin. On top of that it also offered an increased maximum number of coins.
In November 2013, the value of Litecoin jumped exponentially, growing by 100% in just 24 hours - this was followed by a market capitalisation of $1 billion in the same month.
How to Trade Litecoin
There are several ways to purchase a Litecoin; one of the easiest ways is by purchasing the currency from an exchange. The problem with this is that a coin can fall in value and you will have to pay an exchange fee. An alternative way is to mine the currency using the power of your home computer. In theory, this sounds fantastic that you can just use your computer to mine high value coins. However, the upfront investment and continued maintenance costs can really eat into your capital.
Litecoin Trading is one of the most popular ways to profit from this currency and it holds several important advantages over the other two methods:
You don’t need to own a Litecoin: If you trade with one of our brokers, you won’t need a Litecoin to get started; you can start profiting instantly from the moment you sign up. This also protects you from any falls in the currencies value, as you will also be able to go…
Long or short! Speculate on value: Investing cryptocurrency at an exchange is sometimes slow torture, as you have to watch the currency fall or rise in value over a long period of time. If you choose to trade Litecoin, you can adjust to market conditions and take positions appropriately, letting you benefit from rises or falls in the currency.
Trade on leverage for max profits: Leverage can be a valuable tool in the hands of an experienced trader. But leverage without proper risk management can result in significant losses.
Litecoin Trading Strategies
Like any other financial instrument, trading strategies can be extremely effective for maximising your investments. Here are some strategies to think about if you’re considering trading Litecoin.
Day Trading: Want to react to market news and events with the option of closing the position at the end of the day? Then this is the perfect style for you. You could also consider scalping, which stipulates opening multiple frequent positions to take advantage of micro fluctuations in price.
Swing Trading: As evidenced by the massive value jump of Bitcoin in 2017, huge value increases are not uncommon. If you see a trend that an asset is going to continue to rise in value, then ride the wave - once you see it starting to dip, it’s time to close the position!