Litecoin is a vital cryptocurrency with a significant market capitalization. Litecoin may have an impressive performance history, but you may want to sell Litecoin for other cryptocurrencies for several reasons.
Some people may want to sell Litecoin due to a temporary downtrend in Litecoin prices and decreased confidence in the bullish turn of LTC. But, in this article, we’ll discuss selling Litecoin to diversify your portfolio to hedge against loss and create a well-balanced portfolio.
Let’s start at the most important point: why should you diversify your portfolio in the first place?
Crypto Portfolio Diversification Benefits
Diversifying your crypto portfolio means that you split your investment capital across various cryptocurrencies instead of putting everything in one. This is beneficial for many reasons, like:
1. Risk reduction: The crypto market is not the safest investment option, as it is highly volatile — fluctuating rapidly and unpredictably. But, if you spread your portfolio across cryptocurrencies with different risk profiles, you can manage the effect of volatility more effectively.
2. Improved chances of high returns: The crypto market may be an emerging field, but it is innovative, with unique coins offering unique use cases. This also impacts their prices as their performances may be affected according to the industry to which they belong. Due to this, you can increase your earnings from multiple sources.
3. Enhanced portfolio stability: This is particularly beneficial to long-term investors focused on steady growth over a long period. Investing in different cryptocurrencies can help stabilize your portfolio by reducing its volatility. This is because your crypto coins aren’t likely to experience the same sharp and vulnerable price movements.
4. More flexibility and control: When you allocate your investment across various coins, you can choose according to your risk appetite, investment goals, and market conditions. This provides you with more flexibility and allows you to manage the outcome of your portfolio effectively.
Strategies for Diversifying Your Crypto Portfolio
1. Invest across different crypto asset classes: Your portfolio should be a healthy mix of Bitcoin, Ethereum, stablecoins, and altcoins. With this allocation strategy, you’ll have spread risk across your portfolio instead of concentrating it on one crypto asset.
2. Invest according to market capitalization: Cryptocurrencies with high market capitalizations, like Bitcoin and Ethereum, always take the lead in most people’s portfolios, but you should also make space for coins with mid to low capitalizations that have high growth potential as these are likely to give you high returns.
3. Conduct thorough research: To succeed in crypto investment, you must do your due diligence by researching the cryptocurrency you want to invest in. You should check out the crypto fundamental analysis, use cases, and the development team behind the coin.
4. Regularly rebalance: After ascertaining your asset allocation, it’s important to rebalance and adjust to market conditions regularly.
Setting Up an Account on a Cryptocurrency Exchange
After deciding to sell your Litecoin for another crypto, you should choose an exchange that allows you to perform this swap seamlessly. An exchange with the most intuitive and user-friendly user interface is the Breet app. This platform is available to users in Nigeria and Ghana and offers the exchange of Litecoin for many other cryptocurrencies in minutes.
Setting up an account on Breet is a breeze. Here’s how to do it:
Step two: Sign up by filling out the bio-data registration form.
Your Breet account is all set!
How to Sell Litecoin for Other Cryptocurrencies on Breet
After ensuring that your Breet app is secure by turning on the two-factor authentication, completing your KYC, and setting your transaction pin, you can swap Litecoin for another crypto.
Breet app provides an extensive trading pair list of over 170 cryptocurrencies. To swap LTC for another coin, simply verify all the exchange pairs and details and perform the exchange within the transaction window provided.
You’ll get a one-time deposit address to transfer Litecoin into, and then all you need to do is wait a few minutes. You’ll receive the swapped crypto in the address you provided automatically.
Frequently Asked Questions (FAQs) About How to Sell Litecoin for Other Cryptocurrencies
How can I sell Litecoin in Nigeria?
The best way to sell Litecoin in Nigeria is via an over-the-counter (OTC) option like the Breet app. Breet is focused on creating a quick and easy trading experience for anyone in Nigeria or Ghana who wants to sell their Litecoin for cash or another crypto at the best rates in the market. With a user-friendly mobile and web app, Breet offers seamless and automatic trading.
How much is Litecoin selling today?
The price of Litecoin is unpredictable as the market is highly volatile. However, to know how much you can get for your Litecoin in Naira or Cedis, the Breet in-app rate calculator is the best bet for finding Litecoin’s real-time price.
How do I change my LTC to Bitcoin?
Changing from Litecoin to Bitcoin can be straightforward if you use platforms like the Breet app that offer quick over-the-counter trading services.
All you need to do is sign up on the Breet app (mobile or web). Then, cross-check that your exchange details are correct. Transfer Litecoin to a one-time deposit address, wait for a few minutes, and Bitcoin will be automatically sent to the address you provided.
Is Litecoin better than Bitcoin?
Litecoin is built on Bitcoin’s blueprint but is not better than Bitcoin. Both cryptocurrencies may share some similarities, but they are uniquely different. To choose between Litecoin and Bitcoin, you will need to look at factors like:
- Your investment/trading goals
- Market capitalizations
- Real-world use cases
- Growth potential
- Risk appetite
Can I make money with Litecoin?
Yes, you can make money with Litecoin. You can earn free Litecoin by performing simple tasks through microtask platforms or partake in day trading, crypto lending, yield farming, crypto mining, staking, etc.
Litecoin is a significant crypto in the Web3 ecosystem, but selling some Litecoin can be a beneficial step in reaching a more diversified and profitable portfolio. Selling Litecoin does not have to be a complex or challenging process.
With platforms like the Breet app available to traders in Nigeria and Ghana, seamlessly swap your Litecoin for any other crypto you desire and achieve a more balanced and lucrative crypto portfolio.
Wishing you all the best!