Litecoin has often been described as the “silver to Bitcoin’s gold”. It has similar traits and is related to this leading math-based cryptocurrency; however, with faster confirmation times and lower transaction fees.
Trading and investing in cryptocurrencies involves risk, including the possible loss of principal. They should only be undertaken by investors with adequate knowledge and experience.
What is Litecoin?
Litecoin is a digital currency designed to facilitate instant peer-to-peer transactions at cost-effective rates, using blockchain technology and decentralisation for decentralised transactions. Created in 2011 by Charlie Lee – an MATech graduate and former Google employee who wanted a “lighter” alternative to Bitcoin that could process transactions quicker while moving funds more inexpensively – Litecoin quickly gained acceptance among users, soon surpassing Bitcoin as one of the premier cryptocurrencies available today.
Litecoin differs from traditional currencies in that it does not rely on central authorities to issue new coins; instead it relies on an elaborate cryptographic process known as mining to create them. Being one of the oldest cryptocurrencies available today, its supply has been strictly limited – currently at 84 million coins which is four times that of Bitcoin! With speedy transaction processing times and low fees it makes Litecoin ideal for everyday use as well as investments; wallets can even generate and store your private keys securely offline.
How to Trade Litecoin
Many traders look to sell cryptocurrencies such as Litecoin in exchange for USD in order to generate additional income and pay bills, purchase something they need or simply maintain their pension plan. Whatever their motivation may be, selling cryptocurrency for fiat can be an enormously significant decision that requires extensive research and careful thought before being executed on.
Traders should use an advanced platform equipped with tools that will minimize losses and maximise profits. A suitable trading plan can prevent traders from making emotional decisions that could cause financial loss.
Other important factors when trading Litecoin include regulatory changes, actions against cryptocurrency by governments or institutions and general market trends. It is wise to follow reputable news platforms closely and read up on any information that could impact Litecoin prices; in doing so, traders can make more informed decisions based on market fluctuations.
Trading Hours
Like other cryptocurrencies, Litecoin’s price is determined by market dynamics, investor sentiment and adoption. Compared with Bitcoin’s 21 million coins maximum supply, 84 million Litecoin tokens exist with real time price fluctuations depending on supply and demand for this digital asset.
Traders can purchase and sell actual Litecoin crypto coins on exchanges, or trade CFDs – which allow traders to gain exposure to an asset’s price without actually owning it – via CFDs. Positions can either be opened long or short and profits or losses accrued based on whether its price rises or falls.
There are various Litecoin technical analysis indicators that traders can utilize to help make more informed trading decisions. For instance, the Moving Average indicator can be used to identify possible price trends and entry points while MACD can detect overbought and oversold conditions.
Margin Requirements
Binance makes Litecoin trading with leverage easy by opening a margin account and using crypto assets as collateral. Leverage allows you to multiply your position size, magnifying both potential profit and losses. Margin trading Litecoin Futures contracts and/or Perpetual Contracts on this platform offers up to 1:100 leverage ratio.
As soon as you place a margin buy order, any USDT used as collateral will be sent directly into your Margin Wallet and begin earning interest hourly. Should the price of Litecoin decline below the minimum level threshold set for margin calls, an alert may notify you that your crypto assets may be at risk and may need liquidating immediately.
To prevent yourself from liquidation, you need to raise your Margin Level either through depositing more USDT or decreasing loan size by repaying USDT that has been borrowed – either of these steps can be accomplished using the “Repayment” page in your Margin Wallet and once completed will cause an instantaneous adjustment in Margin Level.
