Growth in the market cap happens when the price gains and investors usually monitor the fluctuations in the market cap. The fixed supply of Bitcoin at 21 million coins has been touted as one of the key factors driving its prices. However, Litecoin’s supply is much higher, and it has been attributed to LTC’s low price.

Last but not least, investing in LTC is a clever way to diversify your portfolio, which is a great technique to reduce financial risks by investing in different assets. That said, cryptos are highly volatile and investing in LTC can be risky, especially during times of turmoil. This bold move will allow many more people to trade Litecoin than ever before and may start a trend where traditional exchanges start to offer Litecoin in new ways. Despite the consolidation process that LTC has been facing lately – with prices nowhere near as impressive as during the crypto bubble hype a few years ago – a bullish trend is expected. Experts predict that Litecoin may reach new highs in the years to come. Meanwhile, there are approximately only 236,240 active Litecoin wallets, at the time of writing, according to BitInfoCharts.

That’s not uncommon for Bitcoin because it does tend to trade in a range for long periods of time and that’s been especially true over the last couple of years. With that being said, I do like the idea of buying dips, but I like the idea of accumulating for a longer term position, which is exactly what I have been doing. Remember, Bitcoin is all about risk appetite and really not about much more than that. Wall Street treats it like an ETF because quite frankly, Wall Street is pushing the ETF. The new administration’s position on cryptocurrency caused political turbulence that rocked the market. By the end of the day, futures bets saw a 14% decline in the 90-day change.

Trading Litecoin with CFDs

• This is similar to the broader cryptocurrency market that has been shrouded with a lot of negativity, given that it is yet to be regulated on a comprehensive scale.
• That’s exactly what happened during the 2018 crash; as prices fell, mining became unprofitable, forcing miners to shut down rigs and flood the market with BTC, making the sell-off even worse.
• If you choose to mine Litecoin, it’s best to join a mining pool, even if you can afford an ASIC compatible with Scrypt.
• In the short term, Bitcoin price drops as miners adjust, weaker players exit, and market liquidity shifts.
• Next, you need to decide how and when you wish to open your trade.

When there is favourable news in the market, the price of LTC tends to shoot, and when the news is negative, LTC tends to take a dip. The only way that Litecoin can match up to Bitcoin is if it is adopted by many businesses globally. If a major institution adopts Litecoin, the price could see a significant spike. Moreover, the Litecoin network does not seem to have an original roadmap. The network seems to choose features that are on the Bitcoin network. The failure of the network to grow and make its upgrades independently has made it lose a huge chunk of followers.

Bitcoin crash

Learn about Litecoin and what makes it different from other cryptocurrencies, and discover more about the price of LTC. Breakout trading is about making an investment when the Litecoin price goes beyond support (the minimum price) or resistance (the maximum price). For example, if LTC has been trading bull bear power between $50 and $60 for several weeks, a breakout situation occurs when the coin price goes below $50 or above $60.

Instead, you’re opening a position which will increase or decrease in value depending on litecoin’s price movement against the dollar. Miners must successfully solve hash functions in order to add new blocks of a cryptocurrency to the blockchain. Litecoin and bitcoin use different mining algorithms, with Scrypt being the hash function used for litecoin, and SHA-256 the hash function used for bitcoin.

PXBT Trading Ltd, is a licensed Securities Dealer in Seychelles under License No. SD162, having its registered office address at IMAD Complex, Office 3, Ile Du Port, Seychelles. These services are governed by the legal terms and conditions of PXBT. Trading commissions are charged for every trade that you make on the exchange.

Why Invest in Altcoins?

Litecoin has been proclaimed as the “digital silver”, reducing any chances the network has to surpass Bitcoin. Some networks in the market have been working to become the top cryptocurrencies. Bitcoin stands as the top and most popular cryptocurrency in the market. However, given that its price has skyrocketed to new highs, very few people can afford to buy one Bitcoin, and they look towards alternative coins such as Litecoin. One can trade Litecoin in many ways, but one of the most popular ways is in the spot market. Trading LTC in the spot market is easy for beginner traders, as you simply have to make your trade by betting on the price movement.

If you have been in the crypto space for a few years, you will remember when holding Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC) was an unspoken rule in the crypto community. Charlie Lee, Litecoin director, announced a push for privacy on Litecoin on Twitter at the beginning of 2019. Lee describes privacy as the “next battleground” in cryptocurrency, and privacy has been his focus in almost every interview since.

• Regulatory crackdowns, interest rate hikes, institutional exits, exchange failures, and security breaches are all risks that could drive a significant Bitcoin price drop in the future.
• Being in control of your decision making process can help you avoid investing in assets that are beyond your risk appetite.
• Anyone serious about trading or investing will want to know about Litecoin.
• They seem to be favoring IntelMarkets instead which offers a more innovative platform and higher yields.

Why trade Litecoin with PrimeXBT?

“It was engineered to be used for fast, secure and low-cost payments.” Think of it as a Bitcoin spinoff. Created by former Google engineer Charlie Lee, Litecoin was one of the first “altcoins”—a name given to cryptocurrencies other than Bitcoin (and sometimes other than Ethereum). Even over time, when you become a more experienced trader, it is worth remembering the unpredictability of the crypto market, especially as it grows.

While these moves are strategic, they still fuel volatility and shake up the market. Well, if interest rates stay high, traditional investors will likely choose safer assets over crypto, leading to less demand for BTC. But if central banks start cutting aggressively, it could reignite the crypto bull market. With Bitcoin fees rising, 3 sustainable water stocks for your portfolio more users could turn to the LTC token for daily transactions as the network is widely adopted.

What Is Litecoin (LTC)? How It Works, History, Trends, and Future

Litecoin operates on a decentralized, peer-to-peer (P2P) network that facilitates the transfer of value without the need for intermediaries like banks or payment processors. The network accomplishes this by addressing perceived shortcomings and offering a more efficient alternative for everyday transactions. Lee’s vision was to create a crypto that was the “silver to Bitcoin’s gold,” emphasizing speed and cost-effectiveness.

When a user initiates a transaction, it is broadcast to the network, where nodes verify its validity. Verified transactions are grouped into blocks by miners and added to the blockchain, ensuring a transparent and irreversible record. The contents of this page are intended for general informational purposes and do not constitute financial, investment, or any other form of advice. Investing in or trading crypto assets carries the risk of financial loss.

What moves the price of Litecoin?

The broader differences between the two cryptocurrencies are listed in the table below. Litecoin was designed to be used for cheaper transactions, and to be more efficient for everyday use. In comparison, bitcoin was being used more as a store of value for long-term purposes. The coin limit market cap is much higher on litecoin than bitcoin, and the mining process far quicker. This means transactions are faster and cheaper, although generally smaller in size.

Investors buy utility tokens because they believe in a project’s potential. Their value is often linked to the adoption and success of an underlying blockchain ecosystem. You don’t necessarily want to buy on the break of a resistance level just because you see a breakout on a daily. You can enter safely if you have a pattern to back up your position.

This allows everyone to track transactions without the need for central record keeping. There are thousands of brokers offering cryptocurrency trading and choosing the right one will depend on a few factors – including your trading goals and existing experience. Fortunately, many brokers will allow you to open a demo account before committing any funds. When browsing the different platforms, make sure any ones you consider are fully regulated by a reputable financial authority.

For example, if you’re selling your Litecoin double top reversal on an exchange like Kraken, you’ll need to send your LTC to your Kraken address. From there, the exchange facilitates the sales of your Litecoin. • Securely store, manage, and transfer your digital assets with Bitget’s integrated wallet. • Engage in spot trading, leverage your positions with margin trading, and access various futures contracts with different leverage options to capitalize on market movements. • Trade leveraged tokens to gain exposure to cryptocurrency price movements without the complexities of margin trading.