Those new to cryptocurrency have a lot to learn in order to make some money in cryptocurrency. One of the most commonly used ways to go about it is holding or hoarding your coin, then flipping it once an opportunity presents itself. But if you’re on a tight budget in terms of your crypto trading, then it can definitely be a frustrating process and one that can take several months.
When you exchange litecoin to bitcoin, you can get a nice return if the price is right. But this requires you to closely following the market and be prepared for fluctuation. Basically, you need to have a plan in place and you need to be vigilant, informed, and prepared.
People turn to litecoin because it’s so stable, compared to the ever-fluctuating bitcoin. But once the price of litecoin is on the rise, they then convert it to bitcoin in order to collect more bitcoin.
How it’s Done
You can trade litecoin for bitcoin if you make good trades and have the discipline. It can even be more profitable than trading cryptocurrency for USD.
There are many perks here, but there are also many dangers.
First of all, you know what the value of USD or another type of fiat will be in just a few minutes. But in the cryptocurrency world, no one knows what the value will be for coin. So, when you trade in a coin to coin transaction, then you’ll have to consider the price for both assets instead of just one.
Let’s break it down for you.
If you have one hundred dollars’ worth of litecoin and one hundred dollars’ worth of bitcoin, then LTC goes down in price by a dollar and bitcoin goes up in price by a dollar, you can trade your bitcoin for litecoin and make a nice little profit.
Now add several zeros to those numbers and you’ll be able to see exactly how some money can be made.
Imaging having a ton of litecoin and bitcoin crashes. Now, you can move to bitcoin without having to go to USD. Then, when bitcoin recovers and there’s a dip in price for litecoin, now you’ll be able to move back and have more litecoin than you did before.
But there’s a lot that can go wrong in this type of situation, but theoretically, this type of move can work very well.
The major problem is, bitcoin will often go up relative to everything and at times, when this occurs, other coins can suffer. Because of this, there are only certain times that you can pull this off.
Another problem is, if you’re holding the cryptocurrency that goes down and another type of coin goes up, then you may end up missing out on getting back into another coin without taking some type of loss.
This can be a big pro for traders who want to hold and go long with a few different types of coins.
For some, nothing can hurt more than being deep in litecoin and then trading out to USD, only to miss a bull run. And it can be incredibly frustrating to miss a short window that you’ve been waiting for.
Just remember to play it safe and not put all of our funds in a single trade, instead, make sure you spread them out.
And remember, there’s a lot that can go wrong when you have to factor in moves for two types of currencies. While it can be great for some volatility trading when you’re trying to avoid going into USD, there’s still a lot of room for things to go wrong, so always avoid making big moves until you’re sure of what you’re doing.
Our LTC to BTC Exchange Tips
You can always use trading pairs in order to avoid using stops, however, this will only work if one cryptocurrency goes up or down relative to another. As an example, when you do this, set LTC to sell to BTC if there’s a drop or rise in price and LTC to BTC if LTC goes up or BTC goes down. This allows you to protect your coin without going to USD. This can work well for any trading pair, but it won’t work for USD or tether because it requires a couple of assets with volatility.
Before you start your successful trading career, consider holding onto a bit of each type of coin. If you do this, then when one cryptocurrency takes off, you’ll be able to trade the coin that took off for the coin that didn’t, thus increasing your supply of the coin that hasn’t taken off.
Tier your sells and buys. This will prevent you from betting on a certain price and encourages trade volatility in a short period of time.
When you buy litecoin with bitcoin it means you’re spending bitcoin to get litecoin. Selling litecoin is selling litecoin to get bitcoin. We suggest always aiming to get more coin with each trade instead of just chasing after the dollar value. Obviously, the dollar value is important, but it should be secondary. The goal should be more coins. The reasoning behind this is more coins equals more USD when you finally end up selling your stockpile to fiat at the price you want. There’s always time to get back into a particular cryptocurrency at a loss of total coins, but this shouldn’t become a habit. If you end up making that type of trade, then consider that you can always trade again and make up for it if there’s a continual price difference. As you can see, it can get pretty complex, but with a little patience and practice, you’ll soon get the hang of how and when to exchange litecoin to bitcoin in order to see some serious profit.
To learn more about the top cryptocurrency exchanges, take a look at our article on 1Broker.
If you’d like to learn more about how to make money with litecoin, take a look at our article on the litecoin mining pool.