Litecoin (LTC) is one of the five biggest cryptocurrencies by market capitalisation and remains volatile, experiencing inconsistent price performances.
Litecoin, an offshoot of Bitcoin, has been described as the “silver to Bitcoin’s gold.” Litecoin’s design complements that of Bitcoin by offering faster and cheaper transactions for microtransactions and point-of-sale payments.
What is Litecoin?
Litecoin is a cryptocurrency similar to Bitcoin but with faster transaction speeds and reduced fees. Often used for microtransactions and point of sale payments, Litecoin’s maximum supply of 84 million tokens makes it more stable than its rival.
Litecoin stands out from traditional currencies in that it does not rely on any central authority; instead, its transactions are verified and recorded by a network of computers known as miners who verify and record transactions and receive rewards in form of new Litecoins for their efforts. These powerful computers allow miners to mine at a competitive rate as opposed to more traditional mining techniques.
Litecoin can be stored easily and conveniently online wallets. Unfortunately, though, they don’t provide as much security compared to hardware wallets – which store your private keys offline to prevent theft by hackers and are recommended for people holding significant amounts of cryptocurrency or who prioritize security.
What is the LTC/USD pair?
LTC/USD pairs the world’s strongest fiat currency, the US Dollar, with one of the earliest and most beloved cryptocurrencies: Litecoin. This pairing illustrates how many USD are needed to purchase one unit of LTC (the base currency).
Like Bitcoin, Litecoin is a decentralized digital currency designed for online transactions. However, unlike its counterpart, Litecoin was intended as an adjunct rather than an alternative currency; with faster transaction times and lower fees. Furthermore, Litecoin was the first high market cap cryptocurrency to implement Segregated Witness and Lightning Network technologies.
Price movements among Litecoin’s competitors as well as macroeconomic variables like interest rates, inflation and central bank policy decisions can have an effect on its markets, including those for LTC/USD. Increases in inflation can cause investors to seek alternative cryptocurrencies as protection against devaluing national currencies; inflation figures could trigger greater demand for LTC/USD in particular.
How to trade the LTC/USD pair
EXMO provides reliable and fast-performing trading of Litecoin (LTC)/Dollar CFDs on their cryptocurrency platform, featuring world-class funds and data security as well as record-breaking technical support which responds within 15 minutes 24/7 to any request from traders.
LTC (Litecoin) was introduced as an alternate currency to Bitcoin’s core client in 2011, thus prompting some to describe it as the silver counterpart to its gold-based rival. Mining LTC requires complex mathematical computations performed on special computers known as mining rigs to mine LTC coins.
Due to its high level of volatility, Forex trading can be both a rewarding and potentially disastrous investment. Therefore it’s crucial that traders set and adhere to an investment plan; otherwise fear or greed might prompt impulsive decisions which result in substantial losses. It is also wise to diversify your portfolio with only money you can afford to lose; all trading involves risk and past performance is no guarantee for future results.
What are the risks of trading the LTC/USD pair
Traders must remain mindful of regulatory changes or actions by authorities that could directly or indirectly alter the price of cryptocurrencies, including changes by authorities that affect cryptocurrency prices directly or indirectly. Another risk associated with digital wallets exposed and funds stolen includes hacking. In 2014, Mt Gox’s Bitcoin exchange was compromised and lost 850,000 Bitcoins valued at $450 Million through hacking.
Before engaging in cryptocurrency trading, please be fully informed about all associated risks. Specifically for trading LTC/USD pairs. It is wise to fully understand all associated risks before initiating trading transactions.
Litecoin was launched as a fork of Bitcoin in 2011. Although they share many similarities, Litecoin differs significantly in terms of maximum supply and network security through proof-of-work consensus. Some investors view Litecoin as an alternative investment vehicle to Bitcoin while others use it more as an accompaniment currency to Ethereum (CCC:ETH-USD). Before beginning crypto trading themselves, investors should consult with an advisor regarding whether crypto trading suits them best.
