The number of tradable assets on the crypto market can be overwhelming. And while Bitcoin is popular, it might be too pricey for most traders. That’s why Litecoin, the silver of cryptocurrency, is a fantastic alternative. If you are reading this, you are familiar with Litecoin. But what about trading it?
Trading Litecoin is like trading any cryptocurrency; you can bag massive profits with the right strategies. And here are the five best trading Litecoin strategies you should consider.
- Use Scalping and Dollar-Cost Averaging
- Keep a close eye on market trends and news
- Secure your investment by trading on a regulated broker
- Use indicators to spot entry and exit points
- Put the stop loss below the most critical support level
By following these steps, you make informed decisions and maximise your trading success. Here, we show the top strategies to send your profits to the moon! Keep reading to uncover how to make the best of your Litecoin investments.
Five Trading Litecoin Strategies You Need to Know
1. Use Scalping and Dollar-Cost Averaging
Two of the many standard techniques of LTC trading are Scalping, and Dollar-Cost Averaging, and their applications are entirely different. First, scalping leans toward short-term trades, while DCA is more long-term.
Scalping is very simple, even for beginners. This technique works by noticing little price changes in the market and feeding off it. There is no waiting in the market to watch the trend. Once you are profitable, leave the trade. Typically, the more volatile the market, the better your stand with scalping.
On the other hand, we have Dollar Cost Averaging. If you have decided to HODL your Litecoin, this technique is probably the best. DCA is dividing your investment into smaller bits and buying a set amount of LTC at regular intervals, i.e., weekly, biweekly, or monthly. This method helps alleviate the strain of volatility and get the best bargain off your Litecoin investment.
2. Keep a close eye on market trends and news
The crypto market is highly volatile, and how quickly you catch on with trends and news can determine whether your trade is profitable.
For instance, the news states a whale is opting out of their Litecoin investment. More often than not, this might lead to a dip in the price due to the market sentiment.
Keeping a close eye on the news means you get timely insights on whether you should enter or leave a Litecoin trade. Trends can change, and knowing the trend when entering a trade goes a long way. You always want to bet according to the trend. Litecoin is one of the few cryptocurrencies expected to boom this year.
3. Secure your investment by trading on a regulated trading platform.
Trading LTC at unregulated brokers has a lot of downsides. Your funds can be mismanaged, and you might be caught in fraudulent activities. Hence, opting for licensed and regulated trading platforms like crypto exchanges (i.e., Coinbase, ByBit, and Kucoin) or forex brokers with crypto trading pairs is crucial.
You are guaranteed secure and seamless transactions with the Breet App when you want to cash in on your LTC profit. This platform has the best offering on the market and lightning-fast payout directly to your bank account.
4. Use indicators to know when to enter and leave the trade.
Litecoin’s volatility often gives beginners a hard time making profits. However, indicators help bridge the gap. While not a panacea, indicators are valuable tools when deciding what to make of the market.
Indicators such as Bollinger Bands, On Balance Volume, and MACD can help determine when to go long (buy) or short (sell) on Litecoin. Also, you can use them to tell the proper entry and exit points. But it is advised that these indicators aren’t used alone. You can also opt for candlestick patterns and market trends to make more precise assumptions.
5. Put the stop loss below the most critical support level
You don’t joke with your stop-loss if you are a risk-averse trader. However, there are many instances where placing the wrong stop-loss caused players to lose profits. The best way to place stop-loss is below the most critical support level of the trade you are entering.
But what is a support level? The support level is the price level that an asset doesn’t fall under for a while. The asset’s price often bounces off this level when it reaches it.
More so, you want to put your stop-loss just below that. You should refer to the support level for the 4-hour chart if you wish to day-trade with your Litecoin.
Frequently Asked Questions about Trading Litecoin Strategies
What affects Litecoin’s price?
Like every cryptocurrency, Litecoin’s price is affected by supply and demand. When the buying pressure surpasses the selling pressure, the price moves up. Factors like scarcity and market sentiment also affect the cost of Litecoin. Plus, the move of Litecoin might be affected by how Bitcoin does on the market.
How Can I Sell My Litecoin?
I have you covered if you want to sell your Litecoin for cash. With the Breet App, you can swap your Litecoin seamlessly for money anywhere in Nigeria or Ghana.
What are Litecoin trading hours?
You can trade Litecoin all day long. Ensure you do so on a tested and trusted platform as well.
Will Litecoin reach $100 by the end of 2023?
It is hard to make speculations about cryptocurrency prices as they are set mainly by supply and demand. So Litecoin might reach $100, and it might not. Using fundamental and technical analysis to draw your own conclusions is best.
Is it a good idea to trade Litecoin?
Depends! If you are well-equipped with back-tested strategies, you can opt for it. You can use the coin’s volatility for your gain and sell your Litecoin for cash at Breet.
Mastering the Litecoin trading strategies goes a long way in ensuring that you reap massive profits while trading. However, when it is time to enjoy the spoils of successful battles, you need a reliable crypto-exchange platform to convert your Litecoin for cash. Luckily, you have the Breet App! As you make significant strides on the market, get the best trading experience at Breet!