Litecoin is an important part of the cryptocurrency market place as it’s intention is to function like a pure digital cash. This coin is often called the silver to Bitcoin’s gold and is known to be fast and cheap to use for transactions.
Despite being more like a currency than other crypto-assets, Litecoin still plays an important role for cryptocurrency traders. Those trading on PrimeXBT can utilize a number of advanced trading tools and strategies to make successful trades with Litecoin.
PrimeXBT is a cutting-edge online trading platform offering traders all the tools necessary to buy, sell and trade Litecoin in the cryptocurrency market. PrimeXBT features a third-party service called CEX.io that allows the exchange of other crypto-assets, fiat currencies, and more for Bitcoin.
In addition, users can purchase Bitcoin with a credit or debit card to fund their trading accounts and get started trading Litecoin immediately. Alternatively, users may deposit their own Bitcoin to the PrimeXBT wallet BTC address.
Margin trading means that a trader has decided that they want to make a trade that is bigger than the capital they have, and look to the platform to borrow these funds in order to make a bigger Litecoin position
Margin trading means you do not have to deposit the full amount of the position you want open and rather you borrow these funds to leverage the position. If the trade is successful, the profits are also magnified, but if your trade on the Litecoin goes the wrong way, your losses can also be greater.
For example, If a trader takes a short position of 100 LTC on 10x leverage, and the price of Litecoin falls 3% the trader will earn a profit of 30 LTC. A similar spot trade without leverage would result in only 3 LTC earned.
Disclaimer: Margin trading also comes with inherent risks if the position moves against the trade. You should never utilize 100% leverage and never invest more than you can afford to lose.