Like Bitcoin, the creation of Litecoin tokens involves a process called mining. For participating in the act of mining, miners are rewarded with Litecoin. A Litecoin halving refers to an instance of halving the amount of Litecoin rewards that miners are given for each block. Litecoin bitit review ranked in the top 15 largest cryptocurrencies in terms of market capitalization (though remaining far below that of Bitcoin). As of October 2023, it had more than 73 million coins in circulation. To start trading Litecoin you’ll need to find a reputable broker and open an account.
- Several years later, Litecoin has a market cap of around $8.5 billion as of March 27, 2022.
- Whilst bank account deposits are also accepted, you should note this is the slower option.
- Take-profit orders are a similar idea, except they instruct your broker to close the trade when a specific price is reached.
- PrimeXBT has a wide range of features that make it ideal for every trader, despite their level of experience.
- This demonstrates that it is still a popular cryptocurrency but doesn’t have the investor interest that Bitcoin and some newer coins have.
- This slow transaction speed frustrates merchants who want to accept Bitcoin as payment.
While Bitcoin is capped at a maximum supply of 21 million coins, Litecoin is capped at 84 million coins. “Litecoin is the second-oldest cryptocurrency, forked from the Bitcoin protocol in 2011,” says Jay Blaskey, digital currency specialist at BitIRA. “It was engineered to be used for fast, secure and low-cost payments.” Think of it as a Bitcoin spinoff. Another distinction between Litecoin and Bitcoin lies in the protocols to mine coins. As mentioned earlier, Bitcoin uses SHA-256 and Litecoin relies on a modified version of Scrypt to generate coins.
How to Buy 1inch Exchange Token Coin in Canada 2022
It’s also advisable to research the fundamentals of cryptocurrency and the different ways you can trade Litecoin. Our guide should furnish you with enough information to start exploring your options. It should be remembered that cryptocurrency is still a relatively new kind of asset class and the market behaves somewhat differently when compared with traditional trading options.
On Balance Volume Litecoin Trading Strategies
Bitcoin is known as the “digital gold”, while Litecoin is known as the “digital silver.” Litecoin has been in existence since 2011, and over the years, it has garnered a strong community support system. Therefore, its network shares the same benefits as Bitcoin in being the pioneers of the sector. To help support our reporting work, and to continue our ability to provide this content for free to our readers, we receive payment from the companies that advertise on the Forbes Advisor site. IThe comments, opinions, and analyses expressed on Investopedia are for informational purposes online. As of the date this article was written, the author does not own Litecoins.
Litecoin Price Chart (LTC)
However, trading Litecoin is definitely worth the effort as cryptocurrency is one of the fastest-growing and most popular asset classes globally, presenting a fantastic opportunity for savvy investors. Litecoin is also significantly smaller than Bitcoin, both in market cap and coin price. Litecoin, by comparison, commands under 1% of the cryptocurrency market cap. Lee managed to get the crypto trading platform (that he worked in) to list Litecoin in the spring of 2017. He managed to sell his holdings in December of that year, right as Bitcoin hit highs of $20,000 and before it came crashing down months later.
What is Litecoin Trading?
The process of trading Litecoin is similar to that of trading any other asset in that the end goal is to make profits. Before you invest in Litecoin, learn how to buy Litecoin and read up on cryptocurrency wallets and how to buy in crypto in Canada. Speak with a financial planner about how much you could realistically invest in cryptocurrency based on your unique financial goals. Before you invest in Litecoin, learn how to buy Litecoin and read up on cryptocurrency wallets.
Of course, you can open as many trading accounts as you like, but it is often more convenient to use one platform for all your trading needs. As we have touched upon, the overall process of trading Litecoin is very similar to any other asset. In fact, you will find that many brokers and exchanges oanda review offer cryptocurrency trading along with forex, CFDs, and stocks all via the same trading platform. Whilst Litecoin inevitably bears many similarities to its predecessor, there are a few key differences that have made LTC stand out as a trading asset with serious potential for growth.
He currently writes about cryptocurrencies for Wealthsimple as well as having written for Analytics Insight and Crypto Briefing. Zaid has a Bachelor’s coinmama review degree in Computer Science from Comsats University, Pakistan. Trading commissions are charged for every trade that you make on the exchange.