What Is A Litecoin? How To Invest In Litecoin Cryptocurrency ,There is a revolution with the purchase of Bitcoin since it is considered the “Gold” of cryptocurrencies. However, there are also other interesting alternatives to consider, such as investing in Litecoin (LTC).
Litecoin was one of the first cryptocurrencies to hit the market, it is the equivalent of “Silver”.
What Is Litecoin Used For And How Was It Created?
Litecoin is a cryptocurrency that was launched on October 7, 2011, by Charlie Lee, a former Google employee.
Litecoin is an online network that people can use to send revenues from one person to another. Litecoin is a peer-to-peer and decentralized system, which means that it is not controlled by any entity or government.
The payment system does not handle physical currencies, such as the dollar or the euro. Instead, it uses its own unit of account, which is also called Litecoin (symbol: Ł or LTC).
This is why you will often see Litecoin categorized as a virtual or digital currency. Litecoins can be bought and sold with traditional money.
Bitcoin vs. Litecoin: An Overview
In recent years, public interest in cryptocurrencies has fluctuated greatly. It is attracting the attention of investors who are becoming more interested in cryptocurrencies as they age. The focus of this interest has turned to Bitcoin, which has become synonymous with creating crypto millionaires and increasing people’s digital wealth.
Since the birth of Bitcoin, hundreds of other cryptocurrencies have forked or been created. Litecoin (LTC), a fork of Bitcoin, is one of these altcoins, a term for cryptocurrencies other than Bitcoin. Litecoin is built on the same underlying blockchain and verification methods as Bitcoin, but there are some key differences that can help you decide which one is right for your interests and goals.
- Litecoin supply growth is decentralized and guided by the Litecoin protocol, which assigns the creation of new coins to Litecoin participants.
It operates independently of any central bank, unlike other well-known currencies, for example, the US dollar and the euro.
Ways To Invest In Litecoin
Apart from using it as a currency, you can also invest in Litecoin in two ways:
Buy Litecoin, store it in a wallet, and sell it when the price rises.
Trading Litecoin CFDs as Litecoin is paired with other cryptocurrencies and even currencies such as the US dollar ( LTC/USD ).
Differences Between Litecoin And Bitcoin
The main differences between Litecoin and Bitcoin are Listed below
Litecoin offers faster confirmation:
The Litecoin Network aims to process a block every 2.5 minutes, instead of Bitcoin’s 10 minutes.
Litecoin uses a different hashtag algorithm:
It uses a script in its proof-of-work algorithm, a sequential memory function.
The Litecoin Network will create more coins:
Litecoin will produce 84 million Litecoins, or four times more currency units than will be issued by the Bitcoin network.
Litecoin can process and handle a larger number of transactions, which reduces potential bottlenecks, unlike Bitcoin.
How To Invest In Litecoin?
To invest in Litecoin you need to download the MetaTrader 5 trading platform, as not all cryptocurrencies are available in MetaTrader 4.
This will allow you to access the market and see the price of Litecoin in real-time, to make the decision to invest or not.
The download process is very fast and free.
Once the platform is downloaded, to trade with Litecoin follow these steps :
- Open a trading account
Enter your username and password in MT5
Search Litecoin in “Market Observation”
Add the instrument to the chart
Hit the “New Order” button and click “Buy” or “Sell”
Where To Buy Litecoin?
Most cryptocurrencies can be purchased on cryptocurrency exchanges. Some exchanges allow trading within the United States. Many more are outside the United States. It is important to note that stock exchanges within the United States are overseen and regulated by the Securities and Exchange Commission to ensure that the best interests of investors and traders are protected. So if you live in the US, your options are limited to US domestic exchanges.
Is It Safe To Trade Litecoin?
Suppose you want to invest in Litecoin, buying it or trading CFDs. In that case, it is very important to find a reliable and regulated company in order not to have any problems when withdrawing profits.
However, you have to be aware of the risks associated with trading Litecoin :
Changes in international capital controls could reduce the demand for cryptocurrencies.
It is not regulated, therefore some may consider it a high risk. However, this is subjective. After all, it’s just a coin.
It is subject to market fluctuations such as supply and demand.
How to Day Trade Litecoin
If you want to day trade Litecoin (LTC) vs the US Dollar (USD), it is good practice to use technical analysis on multiple frames.
One particular technique that traders often use is to mix one high timeframe with two lower timeframes to get a balanced view of the markets. It would be as follows:
Higher time frame, such as a daily chart – This is useful for spotting key support and resistance levels, and understanding the overall structure of the market.
Average time frame, such as a 1-hour chart – This shows the immediate trend, momentum, and key patterns, and is used to choose the best direction to trade.
Lower timeframe, such as a 15-minute chart – Once the two upper timeframes go ‘green’, traders can look for trading opportunities on lower timeframes, providing a detailed view of how traders could start operating.
The best option is to practice all the strategies first in a demo trading account, without risk. Download it now for free!
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My conclusion: Bitcoin is not the money of the future, nor is it the “money of the world” of the future. If it survives, it could be a risky asset class. So, while it could be significantly more valuable in the future, it could just as easily go in the opposite direction and become worthless. Buyers beware.
Frequently Asked Questions about Litecoin
What is the maximum number of Litecoin?
The maximum number of Litecoins is limited to 84 million in total, but not all the coins have been created yet. Currently (June 2022), there are approximately 70.45 million coins in circulation, which is about 83.87% of the total.
When is the next Litecoin halving?
At first, 50 bitcoins per block were given as a reward to miners. Afterward, this reward is halved every 840,000 blocks mined (approximately every 4 years). The next Litecoin halving is scheduled to take place on August 6, 2023, and the reward will be 6.25 coins per block.
How much did Litecoin cost when it came out?
Litecoin was created in 2011 and was worth approximately 30 cents on the dollar. Ten years later, Litecoin reached over $285.
How to buy Litecoin in Spain?
In Spain, you can buy Litecoin through a wallet or speculate on its price by pairing it with other cryptocurrencies or currencies. This not only applies to Spain but also to most countries.