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Litecoin CFD Trading

What is Litecoin?

‘The silver to Bitcoin’s gold’, Litecoin is a popular online network that is used to transfer payments. Invented in 2011 by former Google engineer Charlie Lee, Litecoin is one of the most popular digital currencies in the world.

Litecoin is decentralised and peer-to-peer, meaning that it isn’t controlled by a government or any other entity. Similar to other cryptocurrencies, the payment system doesn’t represent any physical embodiment, such as EUR or USD. Instead, it has its own accounting unit called Litecoin (symbol: Ł or LTC).

Just like its ‘big brother’ Bitcoin, Litecoin enjoys one of the largest market capitalisations. As of December 2017, it reached about $15,784,359,000. The currency also has a supply limit – 84 million, with approximately 54,272,300 coins already in circulation.

The major goal behind Litecoin was to make it easier to obtain and trade than Bitcoin. The two major differences between the two popular digital currencies are Litecoin’s faster block generation time (2.5 minutes compared to Bitcoin’s 10) and their differing hashing algorithms.

The technology behind Litecoin is known as Blockchain. Acting as a shared ledger, it records every transaction made by ‘miners’. Miners, who verify transactions and add them to the chain, solve complicated computational challenges and break cryptographic codes. Once they add the block, they receive ‘a block reward’ in the form of 25 newly mined Litecoins.

All in all, Litecoin is one of the most popular cryptocurrencies to invest in.

Litecoin vs Bitcoin

“Litecoin is just cruising in Bitcoin’s wake”

Tim Enneking, managing director of Crypto Asset Management

Litecoin

84 million

Bitcoin

21 million

Litecoin

Scrypt

Bitcoin

SHA-256

Litecoin

2.5 minutes

Bitcoin

10 minutes

Litecoin

56

Bitcoin

3–7

Litecoin

Halved every 840,000 blocks

Bitcoin

Halved every 210,000 blocks.

Litecoin

$15,784,359,000

Bitcoin

$287,349,268,000

How to trade Litecoin?

You can always acquire LTC using a cryptocurrency exchange. There are several exchanges, but Coinbase will probably suit the majority of traders. It has a competitive fee rate and comes with a large number of currency pairs. You can even buy Litecoin with your credit card.

However, instead of searching where to trade Litecoin itself, facing the need for wallet and the danger of hacking, consider trading Litecoin CFDs using regulated broker services. Trading CFDs you just speculate on the price difference, which can be easier, cheaper and faster.

Trade CFDs on Litecoin with Capital.com

  • Trade without owningWe provide Litecoin CFDs, instead of the coins themselves. CFDs allow you to make profit on the price difference of Litecoin’s future market movements, without physically owning the coins.
  • Go long or go short and catch a win-win positionWhether LTC goes down or skyrockets, you can benefit from Litecoin CFD trading in either case by speculating on the price movement.
  • Trade on marginWe give the opportunity to trade on margin, providing an attractive leverage of up to 1:5 for cryptocurrency CFDs.
  • Never get late with timely updatesWith Capital.com you will receive real-time market updates and timely push notifications about Litecoin rates and will be able to invest in Litecoin CFDs smart.
  • Personalised data and funds safetyCapital.com offers enhanced security settings for your funds, including personal data and negative balance protection. Moreover, the SmartFeed will provide you with personalised content and detect biased behaviour.

How to trade CFDs on Litecoin?

To start trading Litecoin CFDs follow this simple action plan.

  • Start with research.Follow Litecoin charts and find out more about the cryptocurrency by going deeper into technical and fundamental analysis.
  • Make up your mind whether to go short or long.Now when you’re ready to trade, decide which market direction Litecoin will take. You can go long, buying a CFD if you think Litecoin will grow in value, or vice versa, go short, if you expect a decrease in value.
  • Open the position.CFD implies a short-time investment, so it’s high time to set the amount of your contracts according to your risk tolerance.
  • Don’t forget about the stop loss.Regardless of your forecasts, the market could move very fast against you. In order to protect your funds, you can place the stop loss.
  • Explore real-time price movements.Capital.com provides you with the most up-to-date information about the price movements and real-time quotes.
  • Close the position.Time to learn, whether your predictions were right. If the price of Litecoin or any other instrument moves your way, you will profit. Otherwise, you may suffer losses.

Example

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