Why to Buy Litecoin in 2017

Why to Buy Litecoin in 2017

Why should you buy Litecoin?

Litecoin is a digital currency that was founded by former Google employee Charlie Lee in 2011. The currency is the fourth best performing crypto currency, with prices reaching $42 in 2017 compared to $3 in October 2016, and a market cap of $2 Billion. Cryptocurrency trading on Litecoin can be quite profitable due to the high volatility of the coin. The currency has shot up since January 2017 and is trading for around $40 as of mid-July.

Litecoin is interesting since it’s sort of an advancement to Bitcoin. The currency has a much higher eventual supply which solves the issue of scarcity that Bitcoin may have in the future. Thus, it’s a great option to trade since it most probably will increase in value over time.

The average block time is also 2.5 minutes compared to Bitcoin’s 10 minutes. That means that transactions can happen much faster than Bitcoin. That’s an added advantage which I think can affect the price of Litecoin in the future. Check out our guide for the best trading strategies!

What to do after you buy Litecoin?

Litecoin is an interesting cryptocurrency to trade since it’s very volatile. Before January, it was worth about $3 per coin. This dramatic increase in value is easy to justify why Litecoin is great for cryptocurrency trading. If you buy Litecoin and then trade, it can be very profitable in the short run.

The best thing to do is to buy Litecoin from a platform like Plus500, and then trade them throughout the day. Essentially, the term is called CFD trading. On Plus500, you can trade CFDs of Litecoin.

A CFD is a contract for difference. It’s a speculation which dictates that you believe that the market will rise or not. If you buy Litecoin CFDs, you expect them to increase in value over time, after which you sell them for a profit. Whilst this can be done exactly similarly in stock markets, the LTC CFDs can be traded to make profit in a falling market as well. When you “short” CFDs, you sell some representative CFDs and purchase the Litecoin CFDs later on. If your speculation was right, you make a proportional profit.

Best Platform for Trading Litecoin

Plus500 is the world’s leading trading CFD platform for financial instruments like commodities, stock and market indices.

The simplicity of the platform allows for all users to trade CFDs. Because unlike most websites for CFD training, Plus500 does not have a strong sales team who influence your trades. The users have full freedom.

The Plus500 website has a demo account which can be used for traders who want to experience the world of CFD trading without making any commitments. What’s better is that this demo account can be used indefinitely, unlike other trading platforms which require “pro” accounts with deposits.

Plus500 has many risk-management tools such as guaranteed stop loss, guaranteed limit order, price alerts. These help you organise your investments and keeps you safe whilst trading Litecoin.

This risk management tool benefits the seasoned broker as well as the beginner trader, it helps to mitigate and minimize the losses that you could incur in real trading. Therefore, with an increased safety and ease of use, the Plus500 platform is one of the best in the market. Check out our guide for how to invest in crypto using Plus500

If you already own some Litecoins, don’t forget to protect them with a hardware wallet. Read our Ledger Blue Review or our Ledger Nano S review in order to find the wallet that fits your needs.

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About Article Author

Michael Serrano
Michael Serrano

Michael is an engineer and a bitcoin evangelist. He has been involved in cryptocurrencies since 2013. His biggest wish? 1 billion users of bitcoin, ether and litecoin by 2020. In the last 10 years he has worked for various early-stage start-up as a back-end developer.

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