How to trade litecoin

Considering its many similarities to bitcoin, it shouldn’t come as a surprise that the factors affecting litecoin’s price are fairly similar to those for the world’s first cryptocurrency.

However, there are some unique things to watch out for as well:

Litecoin supply

Many point to litecoin’s wider supply as a key reason for its lower price point than bitcoin. Despite launching two years later, there are far more litecoins available on the market – and faster transactions ensure that supply remains fluid.

Bad press

Negative headlines surrounding litecoin – or negative headlines surrounding cryptocurrencies in general – will tend to play out on its price in a big way. 

LTC’s value is entirely down to its public perception, which makes it even more dependent on favourable news.

Industry adoption

People may claim that litecoin has many benefits over bitcoin as a payment solution, but until it is accepted by businesses across the globe, this will remain an unsubstantiated claim. So a major company adopting the cryptocurrency could see its price spike.

LTC market cap

It may be touted as a new currency, but investors buying and holding litecoin are the biggest reason for its rises in price. And those investors will pay attention to its market cap when deciding whether to buy more or sell.

Bitcoin’s price

It may not have been Charles Lee’s intention, but one way in which litecoin is similar to silver is in the price relationship it shares with its more illustrious cousin. Where gold goes, silver often follows; where bitcoin goes, litecoin often follows.