Litecoin (LTC) is a cryptocurrency founded by Charlie Lee in 2011 as a descendant of Bitcoin. It was created to enable quick and low-cost peer-to-peer payments. In terms of market capitalization, it is one of the top five cryptocurrencies.
Litecoin is created and transferred via an open-source cryptographic technology that is not controlled by a central body. Litecoin is not a hard fork (a significant change to a cryptocurrency's blockchain) of Bitcoin because it uses a different blockchain, but it is a fork of the network that underpins Bitcoin. It differs from Bitcoin in that it has a faster block generation time, a larger maximum supply of coins, and slightly different transaction fees.
Litecoin was designed to be a complementary cryptocurrency to Bitcoin, rather than a competitor. It's been dubbed "the silver to Bitcoin's gold" on occasion. This is because Litecoin was created to be faster, cheaper, and capable of handling a higher volume of transactions, and the loss of security caused by the shorter block length is mitigated by the lower value of the transactions it is responsible for.
Litecoin excels at rapid, low-value transactions, whereas Bitcoin excels at more secure exchanges of higher-value items that do not need to be swapped as quickly. It's for this reason that they're complementary.
How to trade Litecoin?
When it comes to trading in the bitcoin market, a person has two possibilities. To begin, they can purchase genuine cryptocurrency on exchanges, like as Litecoin on Bitfinex, and therefore hold the cryptocurrency. This is a long-term investment because the individual is waiting for the price of crypto coins to climb sufficiently before selling them on an exchange.
Alternatively, they might speculate on the price difference by trading a contract for difference (CFD) on a specific cryptocurrency. A CFD is a financial instrument that is a contract between a broker and an investor in which one party agrees to pay the other the difference in the value of a security between the trade's opening and closure. You can either hold a long position (predicting that the price will rise) or a short one (predicting that the price will fall) (speculating that the price will fall). CFDs are employed in shorter timeframes, hence this is considered a short-term investment. For example, you can speculate on the LTC/USD pair to trade Litecoin CFDs.
There are significant variations between purchasing a cryptocurrency and trading a cryptocurrency CFD. When you buy cryptocurrencies, it's kept in a wallet, but when you trade CFDs, it's kept in an account that's regulated by a financial body. You have more liquidity when you buy CFDs since you aren't buying the asset; instead, you're buying the underlying contract. Furthermore, CFDs are a more well-known and regulated financial product.
Bit-QT.app offers CFDs on Litecoin. Sign up for an account to use our desktop platform, or download our mobile app to trade on the world's most popular markets from anywhere at any time.
The Bottom Line
Traders can use elegant technical indicators to construct their own market analyses and projections on the browser-based platform. On desktop, iOS, and Android, Bit-QT provides live market updates and a variety of chart layouts.