Litecoin Day Trading 2024 – Tutorial and Brokers
Litecoin is one of the most popular cryptocurrencies used by day traders, as there is plenty of trade volume and price swings to profit from. Litecoin uses open source software to create a peer-to-peer cryptocurrency and has surged in trading popularity in recent years, gaining the nickname of Bitcoin’s little brother. This page will examine all elements of day trading Litecoin, including its history, current price predictions, important news, charts, mining, and wallets.
Top Litecoin Trading Brokers
#1 - AvaTrade
Why We Chose AvaTrade
AvaTrade is a leading forex and CFD broker, established in 2006 and regulated across 9 jurisdictions. Over 400,000 users have signed up with the broker which processes over 2 million trades each month. The firm offers multiple trading platforms, including MT4, MT5, and a proprietary WebTrader. 1250+ financial instruments are available for day trading, alongside a comprehensive education center and multilingual customer support.
"AvaTrade offers the full package for short-term traders. There is powerful charting software, reliable execution, transparent fees, and fast account opening with a low minimum deposit."
- DayTrading Review Team
- Instruments: CFDs, Forex, Stocks, Indices, Commodities, ETFs, Bonds, Crypto, Spread Betting
- Regulator: ASIC, CySEC, FSCA, ISA, CBol, FSA, FSRA, BVI, ADGM
- Platforms: WebTrader, AvaTradeGO, AvaOptions, MT4, MT5, AlgoTrader, TradingCentral, DupliTrade
- Minimum Trade: 0.01 Lots
- Leverage: 1:30 (Retail) 1:400 (Pro)
Pros
- There's a great range of fee-free deposit methods, including bank wire, credit cards and popular e-wallets like Skrill
- Day traders can access stable spreads and zero commissions with no hidden fees
- The broker’s unique risk management tool, AvaProtect, protects against losses up to $1 million and is easy to activate in the platform
Cons
- A high $2000 minimum investment is required to use DupliTrade, which will be out of reach for many beginners
- Traders from the US are not accepted
- It’s a shame that there are no rebate schemes for serious traders looking for additional perks - CMC Markets would be a better choice here
#2 - OANDA US
Why We Chose OANDA US
OANDA is a popular brand offering exceptional execution, low deposit requirements and advanced charting and trading platform features. The top-rated brand has over 25 years of experience and is regulated by trusted agencies, including the NFA/CFTC. Around the clock support is available for short-term traders, alongside flexible contract sizes and automated trade executions.
"OANDA remains an excellent broker for US day traders seeking a user-friendly platform with premium analysis tools and a straightforward joining process. OANDA is also heavily regulated with a very high trust score."
- DayTrading Review Team
- Instruments: Forex, Crypto
- Regulator: NFA, CFTC
- Platforms: OANDA Trade, MT4, TradingView, AutoChartist
- Minimum Deposit: $0
- Minimum Trade: 0.01 Lots
- Leverage: 1:50
Pros
- The broker's API facilitates access to 25 years of deep historical data and rates from 200+ currencies
- There's a strong selection of 68 currency pairs for dedicated short-term forex traders
- OANDA is a reliable, trustworthy and secure brand with authorization from tier-one regulators including the CFTC
Cons
- It's a shame that customer support is not available on weekends
- The range of day trading markets is limited to forex and cryptos only
- There's only a small range of payment methods available, with no e-wallets supported
#3 - Deriv.com
Why We Chose Deriv.com
Deriv.com is a low cost, multi-asset broker with over 2.5 million global clients. With just a $5 minimum deposit, the firm offers CFDs, multipliers and more recently accumulators, alongside proprietary synthetic products which can't be found elsewhere. Deriv provides both its own in-house charting software and the hugely popular MetaTrader 5.
"Deriv.com will suit day traders looking to make fast-paced trades using CFDs and multipliers with high leverage up to 1:1000. The broker is also the industry leader in synthetic indices, which simulate real market movements and are available around the clock. "
- DayTrading Review Team
- Instruments: CFDs, Multipliers, Forex, Stocks, Indices, Commodities
- Regulator: MFSA, LFSA, VFSC, BFSC
- Platforms: Deriv Trader, MT5
- Minimum Deposit: $5
- Minimum Trade: 0.01 Lots
- Leverage: 1:1000
Pros
- Beginners and experienced day traders can access a good range of 20+ technical indicators in Deriv Trader vs 30+ in MT5
- Deriv continues to offer fast and reliable 24/7 support and the WhatsApp service is particularly convenient
- There's a good range of fast deposit and withdrawal methods with zero payment fees and low minimum deposits
Cons
- There's no loyalty program or rebate scheme for high volume traders
- The range of 100+ assets trails some competitors such as Quotex which offers 400+
- There are limited copy trading tools and analysis features compared to alternatives like IQ Cent
#4 - Pepperstone
Why We Chose Pepperstone
Established in Australia in 2010, Pepperstone is a top-rated forex and CFD broker with over 400,000 clients worldwide. It offers access to 1,300+ instruments on leading platforms MT4, MT5, cTrader and TradingView, maintaining low, transparent fees. Pepperstone is also regulated by trusted authorities like the FCA, ASIC, and CySEC, ensuring a secure environment for day traders at all levels.
"Pepperstone stands out as a top choice for day trading, offering razor-sharp spreads, ultra-fast execution, and advanced charting platforms for experienced traders. New traders are also welcomed with no minimum deposit, extensive educational resources, and exceptional 24/7 support."
- DayTrading Review Team
- Instruments: CFDs, Forex, Currency Indices, Stocks, Indices, Commodities, ETFs, Crypto, Spread Betting
- Regulator: FCA, ASIC, CySEC, DFSA, CMA, BaFin, SCB
- Platforms: MT4, MT5, cTrader, TradingView, AutoChartist, DupliTrade
- Minimum Deposit: $0
- Minimum Trade: 0.01 Lots
- Leverage: 1:30 (Retail), 1:500 (Pro)
Pros
- Now offering spread betting through TradingView, Pepperstone provides a seamless, tax-efficient trading experience with advanced analysis tools.
- There’s support for a range of industry-leading charting platforms including MT4, MT5, TradingView, and cTrader, catering to various short-term trading styles, including algo trading.
- Pepperstone emerges as a low-cost broker, especially for serious day traders with spreads from 0.0 in the Razor account and rebates of 25%+ through the Active Trader program.
Cons
- There’s no simplified proprietary trading platform, nor are there any social trading features, which could be a disadvantage if you are new to day trading.
- Despite enhancements to its range of markets, crypto offerings are relatively limited compared to other brokers such as eToro, with no option to invest in real coins.
- Pepperstone does not support cTrader Copy, a popular copy trading feature built into the excellent cTrader platform and available at alternatives like IC Markets.
#5 - XM
Why We Chose XM
XM is a globally recognized forex and CFD broker with 10+ million clients in 190+ countries. Since 2009, this trusted broker has been known for its low fees on 1000+ instruments. XM is regulated by multiple financial bodies, including the ASIC and CySEC.
"XM is one of the best forex and CFD brokers we have tested. The flexible account types will suit a variety of short-term trading styles while the $5 minimum deposit and smooth sign-up process make it easy to start trading."
- DayTrading Review Team
- Instruments: Forex, Stock CFDs, Turbo Stocks, Indices, Commodities, Precious Metals, Energies, Shares, Crypto, Futures
- Regulator: ASIC, CySEC, DFSA, FSC, FSCA
- Platforms: MT4, MT5
- Minimum Deposit: $5
- Minimum Trade: 0.01 Lots
Pros
- Accessible trading accounts with a $5 minimum deposit and fast account opening
- Powerful MT4 and MT5 platforms are available with 60+ and 80+ technical charting tools
- XM continues to deliver diverse and multilingual educational materials and offers a useful live education schedule for its webinars and insights
Cons
- PayPal deposits are not supported
- There is weak regulatory oversight through the global entity
- There's $5 inactivity fee after only 3 months, though this won't affect active traders
What Is Litecoin?
The straightforward definition is that Litecoin (LTC) is a digital currency that allows instant, low-cost payments to anybody in the world. The global payment network does not rely on any central authorities, such as a bank. Instead, complex maths creates a secure network that ensures rapid transaction times and impressive storage efficiency.
Its value has been tied to the increasing popularity that blockchain technology has enjoyed in recent years. It has also secured significant industry support while enjoying substantial trade volume and liquidity.
History
Litecoin day trading through exchanges is accepted as normal today. However, it was only released via an open-source client on GitHub on October 7th, 2011. The founder was a former Google employee by the name of Charlie Lee. His network went live on October 13th and was a hard fork of the Bitcoin More client.
At that time it offered a reduced block generation time of 2.5 minutes, a seriously increased total maximum number of coins, plus a different hashing algorithm, known as Scrypt.
The timeline below should paint a clearer picture of Litecoin’s rise:
- In November 2013, the value of this cryptocurrency grew as much as 100% in single 24 hour periods.
- April 2017 saw it became the first of the top five cryptocurrencies to adopt Segregated Witness.
- In May of 2017, the first Lightning Network transaction took place using Litecoin. 0.00000001 LTC was transferred from Zürich to San Francisco in less than a second.
- Litecoin reached its all-time highest price of $360.93 on December 18th, 2017. Compare that to its value of $4.40 a year beforehand and you realise the magnitude of the 8200% rise.
- February 2018 saw Alza, a key player on the EU online retail scene accept Litecoin as a legitimate payment method.
Benefits
It is perhaps unsurprising to see the staggering price history of this cryptocurrency when you consider its numerous benefits, including:
- Speed – Part of its potential comes as a result of the advanced open-source technology it uses. LTC generates blocks four times faster than BTC, while also confirming the legitimacy of transactions much faster.
- The number of coins – The limited supply of cryptocurrency is part of the allure. Litecoin can reach the 84 million level, while some competitors can reach just half. This means there are plenty of Litecoins for aspiring day traders to play around with.
- Market capitalisation – Whilst its long-term outlook may be uncertain, the current huge market capitalisation it boasts ensures liquidity and profit potential for investors and traders. In fact, Litecoin so far has consistently remained in the top five rankings.
- Atomic swaps – Atomic swaps enable the cross-chain exchange of coins without using a third party. For example, if Jack wanted to swap 1 Ethereum for 4 Litecoins, he’d usually go to an exchange, incurring fees. However, atomic swaps allow him to swap his 1 Ethereum with Olivia, who was looking to swap her 4 Litecoins anyway, without either having to pay anything.
- Accessibility – A lot of Litecoin’s initial expected growth was born from its straightforward accessibility. You can buy and store these cryptocurrencies, whether you are from India and Japan or the UK and US. You also have a number of investment vehicles to choose from, including ETFs and futures trading.
Drawbacks
Unfortunately, however, the outlook for this cryptocurrency has been hindered by several factors, including:
- Strength – Some digital currencies suffer a setback and swiftly recover. Litecoin, on the other hand, ends up on life support with prices dropping whenever negative discussions surface.
- Competition – There are a huge number of other altcoins available. This makes distinguishing itself amongst so many competitors extremely challenging. Not to mention, some argue Litecoin hasn’t adequately explained what is so unique that they offer.
- Liquidity – It simply isn’t as liquid as Ripple, for example. It hasn’t been adopted by as many businesses. This can all result in negative projections that lead to a fall in rates.
- Uncertain future – It is hard to say with certainty whether Litecoin is worth investing in. Forecasts today do not necessarily reflect its future value. Nobody is even sure whether cryptocurrency as a concept will survive in the long run or whether it’s just a bubble. This all makes it impossible to find an accurate long-term profit calculator.
Mining Litecoin
Head over to forums and blogs and you quickly realise not everyone is interested in day trading Litecoin. Some are concerned with setting up a GPU mining rig instead.
Essentially, each time a transaction is made, it is grouped with other transactions that have been submitted within one of the recently submitted cryptographically-protected blocks. Computers (miners) then use GPU and/or CPU cycles to solve complex mathematical problems. This process passes data within a block of algorithm until their collective power finds a solution. It is at this point that the transactions within that block are stamped as verified.
Mining hardware and software offers another significant benefit. Each time a block is solved, a certain number of coins is distributed among those who helped solve the problem. Naturally, those in the mining pool that contributed the most will get the majority share.
Of course, you can encounter mining difficulty. For example, the algorithm used is known as Scrypt, which is extremely memory-intensive. As a result, you need to ensure you have the right hardware to meet the specifications for producing Litecoin. In addition, it is worth bearing in mind the cost of electricity. GPU miners, for example, require a tremendous amount of electricity to power their rigs.
Due to increasing popularity, you can now find information on mining calculators and apps from a range of online resources. A quick internet search will also bring up a list of cloud mining explorers.
How To Buy & Store Litecoin
Before you can start conducting price analysis and decide whether to buy or sell, you will need to find a place where you can store your Litecoins.
Unsurprisingly, since its introduction to Coinbase, Litecoin has seen a substantial rise in value. However, you can also buy Litecoins from other exchanges, including:
- BTC-e
- Kraken
- Cryptsy
Hardware Wallets
Once you have purchased your Litecoins, you will also need to store them somewhere, such as a hardware wallet. These straightforward physical devices come in several forms. However, the USB stick style is preferred by many.
Yet even these wallets come with risks. There is the danger that the provider has logged all the private keys and could raid wallets at a later date. Alternatively, lapses in security could open you up to the risk of having your cryptocurrency coins hacked. One useful tip for remaining secure is to avoid using a pre-owned wallet altogether.
A couple of hardware wallets that come with positive user reviews are:
- Trezor
- Ledger Nano S
Desktop Wallets
A desktop wallet is a type of hot wallet. You can download and install one on a single computer, which is then only accessible from that device. Arguably it is more secure than an online wallet. However, they can prove inconvenient because you can only access your capital if you are on that specific device.
One of the top choices for desktop wallets is now Exodus. They support multiple cryptocurrencies, including Litecoin.
Mobile Wallets
Mobile wallets are another type of hot wallets where you can store your cryptocurrency while you make your 2024 forecasts and speculation. You simply need to download an app to your phone and then you can access your crypto capital with ease. Mobile wallets can be a good choice for those who like to trade while on the move.
Paper Wallets
The final option for storing your Litecoin is a paper wallet. This is an offline cold storage technique for storing your cryptocurrency. You print your public and private keys onto paper which you then store in a safe place. The keys are stored in QR codes, which you can scan for future transactions.
For those concerned with security and control, a paper wallet is a sensible choice. Your information is away from the reach of hackers and you have total control over that paper.
Video – What Is Litecoin?
Litecoin Day Trading Tips
Below you will find a number of useful tips you can use to help you assert a competitive edge when trading Litecoin.
1. Daily Chart Consolidation
Price charts and volume graphs are fantastic tools you need to harness. Historical prices can show you why Litecoin may have started falling in the past, so you can better predict when they will again in the future.
Cryptocurrencies often spike during periods of consolidation where, Litecoin, for example, will trade within a relatively tight price range. With this type of environment, Litecoin will normally have attractive follow through after a range is broken. So, to get the best entries, try to align patterns on your daily candlestick charts with your intraday time frame.
2. Be Patient
Once you have confirmed a breakout on the daily, you must find a safe entry in a shorter time frame. 15-minute charts are often recommended.
You don’t necessarily want to buy on the break of a resistance level just because you see a breakout on a daily. You can enter safely if you have a pattern to back up your position. So you may want to wait for a pullback after that first push. This may give you a better risk-reward ratio, as well as lower prices.
You will often find it is easier play the pullback following a big move, rather than attempting to anticipate a breakout. Cryptocurrencies, including Litecoin, do not usually head straight up without first taking a break.
3. Have a Strong Exit Plan
You need to ensure you have an effective exit plan once you have identified a good entry. Try to base your exits around daily and intraday resistance levels. With Litecoin, it helps to scale out into strength because it is so volatile that an unrealised gain can swiftly transition into a loss if you’re not careful.
An exit strategy where you sell your whole position when your target is hit could be worth considering. Alternatively, you might want to scale out in sections into the spikes, while retaining a quarter of your stocks for the larger move.
Scaling out can be great for beginners, in particular, as it prevents emotions persuading you to hold onto a position too long.
4. Get Educated
There are a whole host of resources available to aspiring Litecoin day traders. Informative websites can help you get to grips with blockchain technology. Most brokers also provide a range of research materials, as well as displaying prices live and Litecoin to dollar (USD) exchange rates.
In addition, check the latest news for expected prices for today and longer-term expectations. Websites such as Yahoo Finance often provide market updates and local analysis too. Training videos, webinars, tutorials and books are also easily accessible and can help with your Litecoin trading development.
You can also see our strategies page for guidance on how to capitalise on market opportunities.
Final Word on Litecoin
If you’re looking to become a cryptocurrency millionaire and feature on that rich list you’ll need to decide which digital currency you’re going to start day trading in. Litecoin appeals for a number of reasons, including speed, volume and market capitalisation.
However, volatility and news announcements can send the price of these coins plummeting and could lead to a crash. Therefore, caution must be taken when day trading with Litecoin or any other cryptocurrency.
For more information, other crypto options and forecasts for 2024, see our cryptocurrency page.