Over the past few years, the public has grown in interest in cryptocurrencies. The popularity has increased dramatically. The primary focus has been on Bitcoin, but several other cryptocurrencies are popping up as well. One of the main cryptocurrencies has been that of Litecoin, which is one of the top five cryptocurrencies in the world. Litecoin has been labeled as the silver to Bitcoin’s gold.
Why Trade Litecoin Vs. Bitcoin?
When looking at the two cryptocurrencies start to finish, there is a lot of similarities. On the most basic level they're both cryptocurrencies, this is obvious. Unlike fiat or traditional money such as the USD, both cryptocurrencies are valued depending on their ability to provide safety and privacy to the users. Basically, the better a cryptocurrency holds its cryptographic integrity on the network, the more desirable it is to use. And even though Bitcoin and Litecoin are similar, they're not the same by any means. Read on to learn the significant differences, some of which are straightforward and some of which are a little less obvious because of their complexity.
What Makes Litecoin Unique Vs. Other Coins?
The first of the differences is the total amount of coins that can ever be produced. Bitcoin, for example, will never exceed 21 million coins. Litecoin, on the other hand, can provide as many as 84 million coins. And even though this sounds like there is a massive advantage to Litecoin because of this number, it really doesn't matter as much as you think when applied in the real world. The reason is that both cryptocurrencies can be divided into tiny fractions at nearly infinite scale. To put it into terms that are more easily understood, Bitcoin can be transferred in a portion as small as one hundredth million of a total coin or 0.00000001 Bitcoins. People using the cryptocurrencies can easily purchase low-priced goods or services. It doesn't matter therefore how much the market price is of either Bitcoin or Litecoin.
Even so, Litecoin’s larger number helps offer it some psychological superiority to Bitcoin. And that is because the price of a single coin is much lower than that of Bitcoin. This is important because a lot of users would prefer to trade a whole coin that they can afford versus trading a partial coin like that of Bitcoin.
This is just one of the advantages of Litecoin. Another would be the transaction speed time. Bitcoin can take as long as 9-10 minutes for a single transaction whereas Litecoin can be traded in a matter of minutes. Bitcoin has even been known to take longer, sometimes as long as 20 minutes. Typically, Bitcoin transfers take about four times as long to trade as Litecoin would for the same amount of currency. Even though many merchants have a policy of not waiting for confirmation at all, there is a higher risk of a security issue with Bitcoin vs. Litecoin. The instant transaction speeds of Litecoin make it much more attractive in most regards.
While Litecoin may be the silver to Bitcoin's gold, things can change fast. When it comes to cryptocurrencies, they can skyrocket in price in just a few months. Like we've seen with Bitcoin, Litecoin will likely stay as one of the best cryptocurrencies on the market for years to come.
Live Litecoin Price Chart
What Are the Best Litecoin Trading Strategies?
One of the best ways to trade LTC is through the use of indicators. You can split them into two groups, price indicators, and momentum indicators. If a person is looking to exit the market they can wait for a majority of their indicators to fire off in the same direction; it's vice versa for entering the trade. For many people, a success rate of 65% is a decent percentage as long as the other 35% remains as no gains a majority of the time with a small fraction being allowed for low losses.
How to Profit from % Coin Trading
For many people, buying whole coins isn't financially feasible. So, the question comes is it safe to trade % of coins? And can you even profit when doing so? With a more significant coin like Bitcoin it makes more sense, but with a smaller valued coin like Litecoin, it can be more difficult. Even so, many people still profit when trading just fractions of a cryptocurrency. But, to make money with this trading method, you have to know what you're doing. Like anything else, knowledge is critical and people who want to make money trading fractions of Litecoin must know what they’re doing.