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Litecoin CFD Trading in South Africa
Litecoin has established itself as the leading competitor to Bitcoin, and now you can trade this exciting digital currency with AvaTrade . When you trade Litecoin CFDs with AvaTrade ZA you can trade long or short (buy or sell) instantly, so you can act on your analysis whether you’re optimistic or cynical about the future of digital currencies. AvaTrade is an industry-leading broker with some of the best crypto trading conditions available, including the lowest crypto spreads on the market.
- Trade Litecoin with leverage Up to
- Trade on the powerful MetaTrader 4 platform
- Trade wherever you are with our free tablet and mobile apps
- Enjoy the security of trading with a regulated broker
- Get live support in your language whenever the markets are open
- The Litecoin market is available to traders 24/7, for maximum convenience
- Both manual and automated trading platforms available, like the Metatrader
AvaTrade ZA is an industry-leading broker with some of the best crypto trading conditions available, including the lowest crypto spreads on the market.
What is Litecoin?
An open source internet currency that allows for instant, near zero cost peer-to-peer payments across the world. The Litecoin blockchain is capable of handling higher transaction volumes unlike its forefather the Bitcoin. This would be fairly due to it’s a more frequent block generation where the network supports more transaction without a need to modify any future software. As a result, merchants gain faster payment confirmations.
The Science of Litecoin
Electronic mining of Litecoins currently allocates miners 50 new Litecoins per block, of which this amount is halved every 4 years or approximately every 840,000 blocks. The network for the Litecoin is set to produce 84 million Litecoins which sums up to 4 times the amount of bitcoin units. The distribution of Litecoins is done by wallet encryption, that secures the safety of the coins as well as allows you to view your transactions.
Why Trade Crypto CFDs With AvaTrade?
- Uncompromised Safety –
With six regulatory authorities and segregated accounts, your money is protected at all times.
- Many Cryptos to Choose From –
Trade on the wide variety of cryptos available on our trading platforms.
- Crypto Never Goes to Sleep –
AvaTrade is one of the few brokers offer around-the-clock service and support in 14 languages.
- Generous Leverage –
Increase your initial capital with generous leverage and get far more exposure to trade than your account balance. Up to 2:1 (for EU residents) 25:1 (for non-EU residents).
- Limit Your Risk –
You can preset profit and loss levels by using stop losses or take profit limits when you trade. Determine the maximum amount you are prepared to risk when speculating on the price, or set a price at which you want to take profits. Future orders like Buy Stops and Buy Limits are also available.
- Trade Cryptos Against Fiat Currencies –
Unlike many exchanges out there, who are restricting their clients to trade only Crypto to Crypto, our clients can trade Cryptos against Fiat currencies (USD, EUR, JPY etc.), as well.
✅ Why CFDs make sense for Trading Litecoin?
As CFDs allow you to speculate on the price of Litecoin future market movements, without physically owning the coin. Traders whether buying or selling are able to agree to pay on the difference on the price even if it rises or falls. In addition, they can to tap into the benefits and risks without actually owning the coin and benefit from:
- Security –
You don’t have to worry about your Litecoins being stolen. CFDs are a derivative product. Your potential profits are based on the movement of the Litecoin price but no Litecoins are bought or sold in your name.
- Simplicity –
Buying cryptocurrencies directly can be complicated. With AvaTrade ZA CFD trading it’s as easy as selecting Litecoin from a menu and clicking to sell or buy. It’s so simple you can do it on your mobile or tablet too.
- Get leverage of up to –
As a financial derivative you can trade CFDs on leverage, meaning you can open a larger position in the market.
- Diversify –
As one of the world’s leading CFD brokers AvaTrade ZA offers a wide range of CFD products and Forex trading pairs for you to trade, all from a single platform.
Litecoin – Silver to Bitcoin’s Gold
Litecoin is a peer-to-peer, decentralised digital currency (also known as a cryptocurrency) based on the Bitcoin system. The creators of Litecoin sought to adapt the Bitcoin model to develop a more stable and efficient currency. There are several key differences between Bitcoin trading and Litecoin, including the way coins are “mined”, security procedures, and the total number of coins destined to be produced. In 2013 Litecoin’s value rocketed from less than $0.01 to more than $20. Could Litecoin follow Bitcoin’s lead and keep on rising in value? With AvaTrade ZA you can enter and exit the markets, with our speedy execution and leveraged positions. Practice on our 21-day demo trading account and feel your way through trading Litecoins and getting to know your way around our platforms. When trading with AvaTrade ZA you are trading on the price changes of the digital coin, and not physically purchasing it.
The maximum accumulated position size for Litecoin is $200,000 notional value, details in our Trading Conditions.
Litecoin Trading FAQ
- Is it a good idea to trade Litecoin?
Litecoin has remained a very popular cryptocurrency over time, holding in the top ten largest by market cap for the past several years. Along with that the price action of Litecoin remains extremely volatile and active, making this one of the better cryptocurrencies for trading purposes. In 2019 and 2020 Litecoin has seen several peaks and valley, with its price doubling in some cases within months, or being cut in half in the same short period of time. While this volatility does increase the risk or trading Litecoin, it also dramatically increases the potential rewards.
- Where can I go to trade Litecoin?
Litecoin is a digital asset and as such there are no centralized exchanges for trading Litecoin. In fact, as a peer-to-peer technology you could trade Litecoin with a group of friends if you wanted to do so. Of course, that wouldn’t be very profitable either. Because Litecoin does require an understanding of how these new cryptocurrency exchanges work, as well as the workings of wallets and private keys, we recommend traders avoid buying actual Litecoin and simply trade CFDs to profit from the price action of the cryptocurrency.
- What’s the best trading strategy for Litecoin?
Given the extreme price changes seen in the coin we prefer to use technical analysis for trading Litecoin. A strategy that uses breakouts, support and resistance, and oscillators to identify overbought and oversold levels should work quite well. Also, unless you are planning on holding Litecoin as an investment we recommend you avoid the actual purchase of the cryptocurrency and instead use CFDs to focus solely on the price action and potential profits to be made by trading Litecoin. You can do that easily here at AvaTrade, where we’ve made CFD trading on Litecoin simple and easy.