If you’ve heard about Bitcoin then there’s a chance that you’ve heard about Litecoin as well. With cryptocurrencies taking the spotlight, it’s high time that we learn what this alternative currency is all about and how you can trade on this product via CFDs.
What is Litecoin?
Litecoin is a peer-to-peer cryptocurrency that works almost the same as Bitcoin. In fact, it has been based on the same system that is used by Bitcoin. Currently is the third largest cryptocurrency by market capitalization with Ripple sitting in second place.
Litecoin was created by its founders with the following objectives:
• To develop a more efficient digital currency
• To attain faster confirmation times
• To support more transactions sans the need for software modifications
Back in 2013, the value of a single Litecoin has dramatically risen from just around $0.01 to over $20 as it has reached a market capitalization of $1 billion. As of this July 2017, a single Litcoin has a value of more than $50 with a market capitalization of over $2.6 billion. Analysts are predicting this digital currency to follow Bitcoin’s lead. At the moment, 25 new Litecoins are awarded per block and is scheduled to produce 84 million Litecoins, 4 times as many currency units as Bitcoin.
How to buy Litecoin and why CFDs make sense
• Less complicated
Buying digital currencies directly can be complicated. With CFDs trading it’s as easy as selecting Litecoin from a menu and clicking to sell or buy. It’s so simple that some brokerages even allow trading on your smartphones and tablets.
• No need to own the currency
Since CFDs are a derivative product, you won’t have to worry about the Litecoins being stolen or hacked. The potential profits from your trade are still dependent on the movement of the cryptocurrency’s price but there’s no need for you to buy or own any currency.
• Trade on leverage
CFDs are a financial derivative and because of this, you can trade Litecoins on leverage. This gives you the liberty to open larger positions with the objective getting better returns. Do take note though that leverage carries a high level of risk.
• Variety of products to explore
When you trade with a CFD brokerage, you can also explore other products and depending on the broker, it’s possible to trade Litecoin and other products on a single platform.
If you are in search of a trusted CFD service provider then we highly recommend a licensed and regulated company like AvaTrade. Currently, they are one of the world’s leading brokerages and here are some of the advantages of trading Litecoin with them:
• Trade with a leverage of up to 1:10
• Can be traded on the AvaTradeAct and MetaTrader 4 platforms
• Trade wherever you are with a free tablet and mobile apps
• Live multi-lingual support whenever the markets are open
• Advanced analytical tools and live market updates
• Litecoin market is available for trading anytime of the day
• Practice trades with their free demo account which comes with $100,000 virtual money
Interested in trading Litcoin CFD’s with this AvaTrade, you may click here to know more.