What is Litecoin?
Litecoin a cryptocurrency that has gained so much popularity in the recent past.
Cryptocurrencies are virtual coins based on the blockchain technology. They have exchange values in terms of the traditional fiat currencies like the USD, JPY, EUR, and INR, among others.
Litecoin exchange values keep fluctuating from time to time, just like those of other cryptocurrencies.
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Wherever exchange rates keep changing, there is an opportunity.
This is buying at low exchange rates and selling when exchange rates skyrocket to make a profit.
Actually, there are people who open Litecoin wallets for the purpose of buying the cryptocurrency at low exchange rates.
They then store them and wait till the exchange rates of Litecoin shoot and begin selling them at such high rates. This is, however, the traditional way of trading Litecoin, where you have to handle Litecoin in wallets.
Nowadays, Litecoin, together with other cryptocurrencies, have been listed on the asset market.
Summarily, they are listed against their exchange values and trading charts show how those rates change from time to time.
This means that you can predict future exchange rate changes and earn money if your predictions are correct.
The latter manner of trading Litecoin is of course our focal point for this post.
In this post, I will show you how to make money trading Litecoin in India. Read to the end to understand every detail.
Education and Research.
The first thing before you venture into trading any asset is to get educated about it.
You also need to research more about that very asset to understand deep insights about it which may be hidden from you, just because you didn’t research.
Have I not always mentioned that all assets do not react to the same market conditions?
I definitely have.
Find out what moves the price of Litecoin and factor that in as you draft your trading strategy of the asset.
Litecoin is a blockchain technology-based cryptocurrency.
Don’t you think it is also very essential to learn a thing or two about the blockchain technology?
I think you should.
This knowledge might be of the essence in unearthing what actually makes Litecoin prices move.
Don’t you also need to keep abreast of what is current in the world of Litecoin cryptocurrency?
News about the asset is a key pillar to fundamental analysis.
Knowing which news are relevant and which ones are not is part of your homework in research.
You will get useful resources on the internet – Litecoin related sites and blog posts.
Find a broker that offers Litecoin.
You have known one or two things about Litecoin.
You now need access to the markets to be able to make use of your just acquired knowledge on Litecoin.
What should you look for in a broker?
Ensure the broker you choose offers Litecoin as one of its assets. Also, check if they are reputable, reliable, and regulated in your country.
You can also apply other checks to find a broker suitable for your Litecoin trading.
Whatever checks you employ, you will find out that Olymp Trade India is the right broker for Litecoin Trading.
Register on Olymp Trade India here.
Desktop versions of the Olymp Trade platform are available for both Windows and macOS as well, and you can also opt for the Olymp Trade Web Browser.
Once you sign up with a suitable broker such as Olymp Trade India, you are on the right train towards making money trading Litecoin in India.
Find the Best Litecoin Trading Strategy.
A captain sailing aimlessly on the sea without a compass direction is equated to a Litecoin trader without a trading strategy.
They both have very thin chances of reaching their destinations.
Your destination as a Litecoin trader is consistent profits. These profit levels will not be reached without a proper, and best trading strategy for trading Litecoin.
Which then is the best trading strategy for trading Litecoin in India?
I will tell you shortly, but before then, let us first understand a few facts about Litecoin:
- Litecoin is not as liquid as most other cryptocurrencies.
- Litecoin, just like other cryptocurrencies, has an uncertain future – one may not easily project long term growth or decline.
That said, the only strategy that can handle an asset of such nature is the breakout strategy.
It is based on determining ranges that may as well function as support and resistance zones and trading.
How do you trade the breakout strategy?
You allow the price to trade within a certain range until it breaks such a range. You do not enter immediately after breakout though.
Allow the price to retest such new support or resistance level severally then enter the trade.
Your target profit is at least the height of the price range before a breakout.
Remember to also apply sound money management strategies.
This is regardless of whether you are trading on Fixed Time or Forex Mode.
The good thing is that Olymp Trade gives you a free demo account worth $10,000 to try out any strategies before going live.
Deposit Money in your Live Account.
Once you have tried out the strategy and are confident enough, you can now start making money.
Deposit enough money for your trading and money management strategies into your live account.
Trade Litecoin and make money.
Employ the trading and money management strategy you developed on your demo account.
You will make real money while trading Litecoin in your live account.
Remember to plan every trade in terms of entry and exit.
Also, plan how much your risk appetite you will go into the crypto market with.