Welcome to the thrilling world of cryptocurrency trading! We recognize that you have taken your first step through investing in Litecoin (LTC), and now you may additionally be thinking what’s next.
In this article, we will information you via the critical steps to take after you have started out your crypto exchange with LTC.
Secure Your Investment
The first and most necessary step is to make sure that your funding is secure.
With the growing recognition of cryptocurrencies, it is integral to take desirable measures to defend your assets. We suggest that you switch your LTC to a tightly closed pockets that solely you have get entry to to.
There are many sorts of wallets handy in the market, such as hardware wallets, software program wallets, and paper wallets. Each has its blessings and disadvantages, and you ought to select the one that fits your needs.
Monitor the Market
Cryptocurrency markets are distinctly volatile, and the rate of LTC can exchange rapidly. It is critical to hold song of market traits and fluctuations to make knowledgeable choices about when to purchase or sell.
Several web sites and purposes can assist you display the crypto market in real-time. These consist of CoinMarketCap, CryptoCompare, and TradingView. We advise that you often take a look at these systems to remain up to date with market trends.
Develop a Trading Strategy
Developing a buying and selling approach is quintessential to your success as a crypto trader. It is imperative to have a layout in vicinity and stick to it, instead than making impulsive selections based totally on emotions.
There are a number of buying and selling techniques to consider, such as day trading, swing trading, and long-term holding. Each approach has its benefits and disadvantages, and you have to select the one that aligns with your funding desires and chance tolerance.
Diversify Your Portfolio
Diversification is an quintessential precept of investing, and it is equally necessary in the world of cryptocurrencies. We advise that you unfold your investments throughout more than one cryptocurrencies, instead than focusing totally on LTC.
Diversifying your portfolio can assist mitigate hazard and extend your probabilities of reaching long-term success. You can think about investing in different top-performing cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), or Ripple (XRP).
Staying knowledgeable is necessary to your success as a crypto trader. The crypto market is continuously evolving, and new traits can have a considerable influence on the charge of LTC and different cryptocurrencies.
We propose that you often study crypto information and continue to be up to date with enterprise developments. This will help you make knowledgeable choices about when to purchase or sell, and preserve you beforehand of the curve.
Seek Professional Advice
Cryptocurrency buying and selling can be complicated and overwhelming, specifically for new traders. If you are not sure about any component of your funding or buying and selling strategy, we endorse searching for expert advice.
Several crypto buying and selling specialists and economic advisors specialize in cryptocurrency investments and can supply precious insights and guidance. They can assist you navigate the market and make knowledgeable choices that align with your funding goals.
Why is Litecoin important to traders?
Litecoin (LTC) is cryptocurrency that is an off-spring of Bitcoin created by Charlie Lee in 2011. Litecoin was designed to allow peer-to-peer payments that are instant and very low-cost. It’s one of the top 5 biggest cryptocurrencies in terms of market capitalisation.
The creation and transfer of Litecoin is based on an open-source cryptographic protocol, and is not managed by any central authority. Litecoin is not a hard fork (a substantial change to the blockchain of a cryptocurrency) of Bitcoin, as it uses a different blockchain, but it is considered a fork of the network that underlies Bitcoin – differed by decreased block generation time, increased maximum supply of coins and slightly different functional algorithms.
Litecoin was conceived as a complementing, rather than competing, cryptocurrency to Bitcoin. It is sometimes referred to as the silver to Bitcoin’s gold. This is because Litecoin was designed to be faster, cheaper and to handle a greater volume of transactions, and the relative loss of security due to shorter block length is offset by the relatively smaller value of the transactions for which it is responsible.
Litecoin is best at quick, instant, relatively low value exchanges, whereas, Bitcoin is better at more secure exchanges for high values that do not need to be exchanged as quickly. This is why they are complements.
How to trade Litecoin CFDs
An individual has two options when trading in the cryptocurrency market. Firstly, they can buy actual cryptocurrency on exchanges, such as buying Litecoin on an exchange like Bitfinex, so they own the Litecoin themselves.
This is considered a long-term investment, as the individual is waiting for the price to rise significantly, so they can sell their crypto coins on an exchange.
Alternatively, they can trade a contract for difference (CFD) on a particular cryptocurrency, and speculate on the price difference.
A CFD is a financial instrument, which is a contract, typically between a broker and an investor, where one party agrees to pay the other the difference in the value of a security, between the opening and closing of the trade.
You can either hold a long position (speculating that the price will rise) or a short position (speculating that the price will fall).
This is considered a short-term investment as CFDs are used within shorter timeframes. For instance, to trade Litecoin CFDs, you can speculate on the LTC/USD pairing.
Litecoin price history
Charlie Lee, an employee at Google at the time, released Litecoin in October 2011 designed to be a quicker, lower transactional cost cryptocurrency, intended to make relatively low value transactions.
In November 2013, the value of Litecoin experienced a surge in growth, which included a 100% gain in value over 24 hours. By the end of that month, Litecoin reached a market capitalisation of $1 billion.
In December 2017, Lee announced that he had sold almost all of his Litecoin holdings because of a perceived conflict of interest.
He had been criticised for tweeting whilst holding Litecoin, accused of attempting to make personal gain because this had a possible price effect on Litecoin.
Is It Finally Time to Give Up on Litecoin?
After a brief surge in early 2023, Litecoin (LTC -1.57%) is once again trading sideways, with seemingly little or no upward momentum. It’s currently valued at $85.03, down nearly 80% from the all-time high of $412.96 it set in May 2021.
What’s especially troubling is that two catalysts that were supposed to propel Litecoin higher don’t seem to be having any influence on the price. While Litecoin is up 20% for the year, it’s underperforming against other major cryptocurrencies such as Bitcoin (BTC -2.00%), which is up 32.48% for the year. So is it finally time to give up on Litecoin?
On March 5, Litecoin announced that its highly anticipated halving event is just 150 days away. In a halving, the rewards miners receive for processing transactions on a blockchain — i.e., mining — are cut by half.
This increases the scarcity of a proof-of-work crypto and the cost of mining it, and also makes the crypto more deflationary over time. Both outcomes should be favorable for those who hold the tokens.
Litecoin’s halving events occur only once every four years, which is why they are so highly anticipated.
Previous Litecoin halvings occurred in August 2015 and August 2019, and both were associated with upward spikes in its price. Theoretically, then, the halving coming in August should also be preceded by a price spike.
However, nobody really seems interested this time around. There was a brief surge of interest at the end of 2022, when investors piled into Litecoin. And, yes, it had a brief rally in the first month of 2023. But things appear to have stalled. Litecoin is down 12% over the past 30 days.
Catalysts that aren’t catalyzing
Then there’s the second potential positive catalyst. On March 2, Litecoin announced a new update to its blockchain network that should have cheered investors. The update added a security patch to Litecoin and increased the ease of mining the tokens. But over the past week, Litecoin has actually declined by 12.92%.
It’s easy to discount the impact of the blockchain update because, in the grand scheme of things, it wasn’t a huge technological upgrade — in contrast to The Merge that Ethereum (ETH -4.40%) enacted last year.
But it’s noteworthy that the upcoming halving is not generating more positive attention. Shouldn’t Litecoin be soaring right now?
In conclusion, beginning your crypto exchange with LTC is just the opening of your ride as a crypto trader.
By following these crucial steps, you can tightly closed your investment, advance a buying and selling strategy, diversify your portfolio, and remain knowledgeable about market developments and developments.
Remember to remain disciplined, patient, and usually are looking for expert recommendation when in doubt.