In a nutshell, Litecoin trading involves speculating on the price of the token – trying to predict whether its value will increase or decrease over a given period. There are a few ways in which you can go about this, which we will detail later in the article, but for now all you need to know is that you can potentially make a profit whether the price of the cryptocurrency goes up or down.
How much profit you can generate will depend on a few key factors. These include how much the price of Litecoin moves, how much your original stake is, and what leverage you employ, if any. In this sense, trading Litecoin works in exactly the same way as trading forex or stocks. A simplified Litecoin trading process might look something like this:
- You believe that Litecoin will go up in value against the US dollar
- The price is listed as $70 for 1 LTC
- You stake $500 on a buy order
- The price increases by 10% during your trade window
- You close the trade, making $50 profit
There are of course other factors to consider, but armed with the right information, trading Litecoin can be just as lucrative as trading any other asset class.