Litecoin is one of the first open-source altcoins based on the original Bitcoin code. It was initially a strong competitor to the first cryptocurrency. However, as the cryptocurrency market expanded, Litecoin’s popularity gradually declined.
How to start trading on the stock exchange?
How to start trading on the cryptocurrency exchange correctly so as not to be disappointed and lay a good foundation for a successful start on this market? Follow the instructions below.
Learn the Basics
Before you start trading on a cryptocurrency exchange, you need to gain theoretical knowledge on this issue – to study cryptocurrencies and the features of trading them, to understand how the cryptocurrency market functions and what laws it obeys, to understand the mechanism of the exchanges. And only after that you can start making transactions.
Choose a reliable exchange
There are many cryptocurrency exchanges (domestic and foreign). We recommend choosing a well-known and reputable exchange with a good reputation, where many traders trade. Then you will be provided with high liquidity, there will be no problems with the exchange of funds, and there will be more opportunities to play on the difference in rates.
When choosing an exchange, pay attention to reviews about it and the conditions for withdrawing funds. When working on foreign sites, difficulties may arise with payment systems, so find out in advance if the exchange works with the payment services that you use.
Create an account and fund your account
Only a full-fledged participant has the right to conduct transactions on the exchange. To do this, you need to register. Some sites only ask for an email address. But serious resources will require more information (up to passport data).
Select currency pair
Most domestic traders choose the RUB-BTC pair for trading, but there are many others besides the bitcoin cryptocurrency (ethereum, dash, litecoin, etc.). If you are not well versed in new cryptocurrencies, then it is better to refrain from transactions with them. Trade instruments that you are familiar with.
Buy cryptocurrency
Before opening a deal, it is necessary to analyze the movement of the currency pair, make a forecast of price changes. Experienced traders buy an instrument only if they see serious reasons to increase its value.
Beginners often act based only on intuition and fully trust the advice on the forums. This is an unprofessional approach to trading and will not bring good results.
To buy cryptocurrency on the exchange, you need to fill out a special order. Do not spend all your money on a purchase at once, especially if you have little money.
Conduct market analysis and sell cryptocurrency
After buying a cryptocurrency, you need to monitor how its price changes on the market. When the rate rises to a level that will cover the withdrawal fee and give you a net profit, you can sell.
When trading on the cryptocurrency exchange, do not make hasty and rash decisions. All transactions should be carried out only after a thorough study of the market situation and making forecasts.
Trading at random is the way to lose all funds. And transactions based on market assessment and deep knowledge of cryptocurrencies have a high chance of success.
See also: How exchanges can legally exchange cryptocurrency in Ukraine
