Have you considered trading Litecoin? What do you like to know about what might happen if you trade $100 in Litecoin today?
One of the questions that new traders ask themselves is how much is needed to start investing in cryptocurrencies. Given the high prices of popular cryptocurrencies, a $100 investment in the crypto sector could look small, but it is possible. Hence, it is possible to start trading Litecoin from as low as $100.
Litecoin is among the popular cryptocurrencies in the market. In terms of functionality, Litecoin is known for its use as a means of payment on various platforms. The Litecoin network makes payments faster and cheaper, which has enabled Litecoin to become a popular name in this space because of growing adoption.
The recent market rebound has triggered new traders' interest in the crypto sector, and Litecoin is among the coins making major gains. The coin is trading at around $214 at the time of writing. To leverage the current bullish sentiment, new traders are exploring cryptocurrencies to diversify their investment portfolios.
If you are wondering whether it is possible to trade $100 in Litecoin and how you can go about it, this guide is for you.
Why Should I Invest $100 in Litecoin?
Crypto trading has been around for several years now. However, the sector is still affected by misconceptions, which normally makes new traders shy away from the market. The decentralized nature of cryptocurrencies and blockchain technology has become one of the greatest innovations in the financial sector, expected to transform the future.
Litecoin, like most cryptocurrencies, is based on blockchain technology, which makes transactions faster, cheaper and more efficient. This superior nature of cryptocurrencies has led to their growing adoption as a means of payment, and Litecoin has been one of the preferred assets in this category.
One of the main factors that shed light on the growing adoption of crypto is that the pandemic did not inhibit crypto trading. Major gains across the crypto market were recorded in 2020 due to increased market volatility. Cryptocurrencies such as Litecoin have become a major way that people can diversify their investment portfolios.
One of the best things about Litecoin, or other coins, is that it is possible to start trading at as low as $100. This eases the entry of new traders, as they can invest with a small amount of money before making larger traders after learning the basics of this sector.
Can I Start Trading Litecoin Cryptocurrency with $100?
It is possible to start trading Litecoin with as little as $100. Most of the exchange platforms in the market set $100 as the bare minimum needed to open an account. Hence, by just depositing $100 into your exchange account, you will be on the way to becoming one of the ambitious traders who are making good returns from crypto investments.
As a new trader, the most popular way you know of earning from the crypto sector is through trading. However, other ways of earning in this sector also exist, with the most common being crypto gaming, mining and blockchain development. Crypto trading is more popular and readily available compared to the other methods.
Before trading in Litecoin, you need to determine whether you want to be a day trader or invest for the long term. As a day trader, you will be making trades regularly as prices change. This can be complex and tiresome to a new trader. On the other hand, if you invest for the long term, you have to buy Litecoin, buy a crypto wallet and store your coins until a future date when you will sell them.
Should I Trade Litecoin with $100?
As much as it is possible to start trading Litecoin with $100, you need to ask yourself if a $100 investment is worth it. The first thing you need to do is disregard the notion that cryptocurrencies can make you rich overnight. Even with $100, the risks are still high, and you can make mistakes that will lead to you losing your money.
Before investing in Litecoin, you also need to understand that cryptocurrencies are highly volatile. Without the right trading strategies, you could find yourself making losses after every trade.
You also need to note that with $100, you will be earning small profits in case Litecoin prices increase. This could trigger greed and dissatisfaction from a new trader who could add more funds into their account. However, before adding t your investment, ensure you have grasped all the trading concepts and understand the volatile nature of cryptocurrencies.
Don't miss: Why Is Litecoin So Cheap?
How to Trade Litecoin with $100
If you want to trade Litecoin, you can do so from a cryptocurrency exchange that supports the coin. Alternatives to acquire Litecoin include getting involved in mining operations or through a crypto broker.
When buying Litecoin from a cryptocurrency exchange, you can start by creating an account. Later, you can link your bank account to the exchange, where you can deposit $100 from your account to the exchange. After a successful purchase, you can start trading Litecoin (LTC).
Should I Trade in Litecoin?
After knowing that it is possible to invest $100 in Litecoin, the other factor to consider is whether Litecoin is a worthy investment. For starters, Litecoin is a very popular cryptocurrency, and it is also one of the oldest. This makes it a safer option in the crypto space compared to the upcoming cryptocurrencies. This also makes it easy for a trader to assess the historical price performance before making any trades.
Secondly, Litecoin has gained adoption as a cryptocurrency used for payment. This gives it utility, which also has a positive effect on prices. If Litecoin continues to gain adoption from different sectors, we could see a major price rally in the coming months and years.
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Virtual currencies are highly volatile. Your capital is at risk.