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 - Forex.com
Why We Chose Forex.com
Forex.com boasts a global reputation with multiple awards and 20+ years experience. Regulated in the US, EU, UK and Canada they provide a huge range of day trading markets, not just forex, and offer competitive fees on a cutting-edge platform. The brand also provides a suite of additional tools, from performance analytics and SMART Signals to advanced charts and strategy builders.
"Forex.com remains a best-in-class brokerage for active forex traders of all experience levels, with over 80 currency pairs, tight spreads from 0.0 pips and low commissions. The powerful charting platforms collectively offer over 100 technical indicators, as well as extensive research tools."- DayTrading Review Team
- Instruments: Forex, Spot Metals
- Regulator: NFA, CFTC
- Platforms: MT4, MT5, TradingView, eSignal, AutoChartist, TradingCentral
- Min. Deposit: $100
- Min. Trade: 0.01 Lots
- Leverage: 1:50
- Excellent trading tools including the Trading Central research dashboard and the SMART Signals price pattern scanner
- The $100 minimum deposit requirement makes the broker accessible for beginners
- The free demo account allows you to practice day trading strategies in a risk-free environment
- The investment offering varies between countries
- The $15 monthly inactivity fee is higher than some competitors, including XM which only charges $5
- It's a shame that there's no copy trading platform for beginners or signal providers
#2 - Interactive Brokers
Why We Chose Interactive Brokers
Interactive Brokers (IBKR) is a premier brokerage for experienced traders, providing access to 150 markets in 33 countries, along with a suite of comprehensive investment services. With over 40 years of experience, this Nasdaq-listed firm adheres to stringent regulations by the SEC, FCA, CIRO, and SFC, amongst others, and is one of the most trusted brokers for trading around the globe.
"Interactive Brokers is one of the best brokers for advanced day traders, providing powerful charting platforms, real-time data, and customizable layouts. Its superb pricing and advanced order options also make it highly attractive for day traders, while its diverse range of equities is still among the best in the industry."- DayTrading Review Team
- Instruments: Stocks, Options, Futures, Forex, Funds, Bonds, ETFs, Mutual Funds, CFDs, Cryptocurrencies
- Regulator: FCA, SEC, FINRA, CBI, CIRO, SFC, MAS, MNB
- Platforms: Trader Workstation (TWS), Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, eSignal, TradingCentral
- Min. Deposit: $0
- Min. Trade: $100
- Leverage: 1:50
- With low commissions, tight spreads and a transparent fee structure, IBKR delivers a cost-effective environment for short-term traders.
- The TWS platform has clearly been built for intermediate and advanced traders and comes with over 100 order types and a reliable real-time market data feed that rarely goes offline.
- There's a vast library of free or paid third-party research subscriptions catering to all types of traders.; plus, you can enjoy commission reimbursements from IBKR if you subscribe to Toggle AI.
- IBKR provides a wide range of research tools, but their distribution across trading platforms and the web-based 'Account Management' page lacks consistency, leading to a confusing user experience.
- Support can be slow and frustrating based on tests, so you might find it challenging to reach customer service representatives promptly or encounter delays in resolving issues.
- You can only have one active session per account, so you can’t have your desktop program and mobile app running simultaneously, making for a sometimes frustrating trading experience.
#3 - NinjaTrader
Why We Chose NinjaTrader
NinjaTrader is a US-headquartered and regulated brokerage that specializes in futures trading. There are three pricing plans to suit different needs and budgets, as well as ultra-low margins on popular contracts. The brand's award-winning charting software and trading platform also offers a high-degree of customization and superb technical analysis features.
"NinjaTrader continues to meet the demands of active futures traders looking for low fees and premium analysis tools. The platform hosts top-rate charting features including hundreds of indicators and 10+ chart types."- DayTrading Review Team
- Instruments: Forex, Stocks, Options, Commodities, Futures, Crypto
- Regulator: NFA, CFTC
- Platforms: NinjaTrader Desktop, Web & Mobile, eSignal
- Min. Deposit: $0
- Min. Trade: 0.01 Lots
- Leverage: 1:50
- Low fees are offered, with $50 day trading margins & commissions from $.09 per micro contract
- NinjaTrader is a widely respected and award-winning futures broker and is heavily authorized by the NFA and CFTC
- You can get thousands of add-ons and applications from developers in 150+ countries
- Non forex and futures trading requires signing up with partner brokers
- There is a withdrawal fee on some funding methods
- The premium platform tools come with an extra charge
#4 - eToro USA
Why We Chose eToro USA
eToro is a social investing platform that offers short-term and long-term trading on stocks, ETFs, options and crypto. The broker is well-known for its user-friendly community-centred platform and competitive fees. With FINRA and SIPC oversight and millions of users across the world, eToro is still one of the most respected brands in the industry. eToro securities trading is offered by eToro USA Securities, Inc.
"eToro remains a top pick for traders looking for leading social investing and copy trading services. With a low deposit, zero commissions and an intuitive platform, the broker will meet the needs of newer day traders."- DayTrading Review Team
- Instruments: Stocks, Options, ETFs, Crypto
- Regulator: SEC, FINRA
- Platforms: eToro Trading Platform & CopyTrader
- Min. Deposit: $10
- Min. Trade: $10
- The $10 minimum deposit and straightforward account opening process means beginners can get started quickly
- The online broker offers an intuitive social investment network with straightforward copy trading on cryptos
- Investors can access Smart Portfolios for a more hands-off approach, covering a range of sectors and markets such as renewable energy and artificial intelligence
- Average fees may cut into the profit margins of day traders
- The proprietary terminal doesn't support trading bots and there are no additional stock market analysis tools
- There's a narrower range of day trading instruments available compared to competitors, with only stocks, ETFs and cryptos
#5 - 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
- Min. Deposit: $0
- Min. Trade: 0.01 Lots
- Leverage: 1:50
- OANDA is a reliable, trustworthy and secure brand with authorization from tier-one regulators including the CFTC
- Day traders can enjoy fast and reliable order execution
- The proprietary OANDA web platform continues to deliver a highly competitive charting environment, including 65+ technical indicators powered by TradingView
- There's only a small range of payment methods available, with no e-wallets supported
- The range of day trading markets is limited to forex and cryptos only
- It's a shame that customer support is not available on weekends
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.
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.
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.
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.
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:
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:
- Ledger Nano S
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 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.
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.