What is Litecoin?

Litecoin is an open-source internet currency that allows for instant, near-zero cost peer-to-peer payments across the world. The Litecoin blockchain is capable of handling higher transaction volumes, unlike its forefather the Bitcoin. This is mostly due to it’s more frequently generated blocks, where the network supports more transactions without the need to modify any future versions of the software. As a result, merchants gain faster payment confirmations.

The Science of Litecoin

Electronic mining of Litecoins started by allocating miners 50 new Litecoins per block. This amount was halved every four years or approximately every 840,000 blocks. Currently, miners get 12.5 Litecoins reward per block. This will go down to 0 by approximately 2042. The network for the Litecoin is set to produce 84 million Litecoins, which equals up to 4 times the amount of Bitcoin units. The distribution of Litecoins is done by wallet encryption that secures the safety of the coins as well as allows you to view your transactions.

Litecoin – Silver to Bitcoin’s Gold

Litecoin is a peer-to-peer, decentralised digital currency (also known as a cryptocurrency) based on the Bitcoin system. The creators of Litecoin sought to adapt the Bitcoin model to develop a more stable and efficient currency. There are several key differences between bitcoin (and its spin-offs Bitcoin Cash and Bitcoin Gold) and Litecoin, including the way coins are “mined”, security procedures, and the total number of coins destined to be produced.

In 2013 Litecoin’s value rocketed from less than $0.01 to more than $20. Could Litecoin follow Bitcoin’s lead and keep on rising in value?

Litecoin Trading FAQ

Is it a good idea to trade Litecoin?
Litecoin has remained a very popular cryptocurrency over time, holding in the top ten largest by market cap for the past several years. Along with that the price action of Litecoin remains extremely volatile and active, making this one of the better cryptocurrencies for trading purposes. In 2019 and 2020 Litecoin has seen several peaks and valley, with its price doubling in some cases within months, or being cut in half in the same short period of time. While this volatility does increase the risk or trading Litecoin, it also dramatically increases the potential rewards.
Where can I go to trade Litecoin?
Litecoin is a digital asset and as such there are no centralized exchanges for trading Litecoin. In fact, as a peer-to-peer technology you could trade Litecoin with a group of friends if you wanted to do so. Of course, that wouldn’t be very profitable either. Because Litecoin does require an understanding of how these new cryptocurrency exchanges work, as well as the workings of wallets and private keys, we recommend traders avoid buying actual Litecoin and simply trade CFDs to profit from the price action of the cryptocurrency.
What’s the best trading strategy for Litecoin?
Given the extreme price changes seen in the coin we prefer to use technical analysis for trading Litecoin. A strategy that uses breakouts, support and resistance, and oscillators to identify overbought and oversold levels should work quite well. Also, unless you are planning on holding Litecoin as an investment we recommend you avoid the actual purchase of the cryptocurrency and instead use CFDs to focus solely on the price action and potential profits to be made by trading Litecoin.