Trading Crypto Assets: Litecoin vs. Bitcoin

Besides Bitcoin, Litecoin is one of the oldest cryptocurrencies and is one of the most popular. Currently, Litecoin is ranked at position #5 by total crypto market capitalization and Bitcoin, of course, is ranked at #1. Interestingly, trading and investing in Litecoin vs Bitcoin presents some distinct similarities and differences.

Litecoin vs Bitcoin Blockchain

Due to the fact that Litecoin was forked from the Bitcoin blockchain, the Litecoin network is very similar to Bitcoin. Most notably, Litecoin’s transaction speeds are 4x faster than Bitcoin, due to the reduced mining time of Litecoin which comes as a result of a higher total amount of Litecoin that can be created.

So why is Bitcoin worth so much more than Litecoin?

Litecoin Price vs Bitcoin Price

The Bitcoin network will never create more than 21 million Bitcoins (BTC), whereas Litecoin is programmed to create up to 84 million Litecoins (LTC). In theory, this sounds like a significant advantage in favor of Litecoin. However, in reality, the greater number of total coins is only beneficial from a psychological standpoint, as the price of Litecoin is less per coin and therefore purchasing an item appears to be less. Nonetheless, no matter how high the price of an individual BTC or LTC becomes, each can be divided by a diminutive amount.

As of today, the Litecoin price sits at approximately $55 per LTC, whereas the Bitcoin price sits miles ahead of any other crypto-asset, at $8,200 per BTC. Although, both have taken a massive hit over the last week with the entire crypto market crashing by more than 5%, totaling a $51 billion reduction in total market capitalization.

Trading & Investing in Litecoin vs. Bitcoin

Due to the fact that Litecoin’s code is is based upon Bitcoin, it is directly affected by the strength and events that contribute to the value of Bitcoin and tends to closely mimic its trajectory. When it comes to day trading Litecoin, this can be very useful in predicting future price actions. In contrast, long term investors are not as attracted to Litecoin, as it’s ineptly distinguishable enough from the original Bitcoin.

Where to Day-Trade Litecoin & Bitcoin?

The best platforms for day-trading Litecoin and Bitcoin are typically ones that feature margin trading as they allow traders to take advantage of small but predictable price actions with leverage. Most notably, PrimeXBT features both LTCUSD and BTCUSD, as well as LTCBTC and 7 other major crypto-asset pairs with the possibility to access up to 100x leverage. Additionally, PrimeXBT offers the crypto industry’s lowest trading fees and one of the most favorable environments for active traders.

Where to Invest in Litecoin & Bitcoin to ‘HODL’?

Coinbase is widely recognized as the easiest exchange to directly buy Litecoin, Bitcoin, and other major cryptos with fiat to simply hold over a long period of time. Also, it is one of the most trusted crypto exchanges with respect to its security, providing its users with insurance of their cash balances of up to $250,000 per individual. Irrespectively, it is recommended to keep the majority of your crypto in an offline hardware wallet as an added measure of security.

Final Thought

When it comes down to the crunch, the advantage of trading or investing in Litecoin vs Bitcoin is completely dependant on an individual's personal preference and the time they dedicate to learning about the given cryptocurrency. If you can understand either on a deep enough level to effectively predict it’s trajectory, there is money to be made no matter avenue you take, even if it means betting against it by shorting the crypto asset when it’s expected to crash.