To take full advantage of crypto trading pairs, you need to understand base currencies. A base currency is a way to denote an agreed-upon value of different assets. Base currencies are a common tool for comparing exchange rates across fiat currencies in different countries. In this case, the USD serves as the base currency. The same principles apply to crypto assets. In most cases, the most popular cryptocurrencies BTC, ETH serve as base currencies, but accepted base currencies will vary for each exchange.
Before diving into trading pairs, investors should confirm which base currencies are accepted at their exchange of choice as well as which trading pairs the exchange offers. In addition, many exchanges offer stablecoin trading pairs, usually pegged to USD. Choosing cryptocurrency pairs to implement an arbitrage trading strategy can be complicated. Some cryptocurrencies are more correlated with one another across exchanges than others, and arbitrage opportunities arise when correlation is low.
BTC is the most widely traded digital asset and the most integrated into the cryptocurrency market. This creates illiquidity in the market, which in turn creates an opportunity for arbitrage. In general, arbitraging cryptocurrency trading pairs is an advanced trading strategy and not recommended for novice cryptocurrency traders. Cryptopedia does not guarantee the reliability of the Site content and shall not be held liable for any errors, omissions, or inaccuracies.
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A qualified professional should be consulted prior to making financial decisions. The sale of the Litecoin stake by its founder of the network also undermined the faith of investors. Critics suspected that he was manipulating prices, but he explained the reason being a conflict of interests with his designation. The way a cryptocurrency performed in the past can help make important financial decisions.
The coin reached its all-time high during the crypto bubble in December However, when the crypto market crashed in , Litecoin was deeply affected as well. Of course, we know the crypto market is volatile; thus, Litecoin is no exception. At the beginning of , Litecoin started to bloom in the bull market. Could it go on to test its all-time high? Only time will tell. The risks associated with investing in Litecoin are very similar to Bitcoin, usually related to its price fluctuations. With every new bull run, it reaches new heights, making the risks of investing in LTC lower than any other altcoin thanks to its stable presence in the market.
Still, investing in LTC possessess certain risks. Once you have Litecoin, you can decide to buy and hold it in a wallet as an investment asset. If the volatility is extreme, those who already own this digital cryptocurrency can benefit from price swings. Otherwise, you can choose to trade Litecoin using either spot trading or derivatives trading that can long or short a market position. Holding LTC for an extended period may also pay off nicely as its price reaches new heights whenever Bitcoin soars.
The potential of cryptocurrency makes it a luring asset for different types of investors. Day traders can use it to earn profit from swings that occur within a day. It can be used as a long-term investment to protect your holdings from inflation and benefit in the long run. Some crypto enthusiasts buy it to support the asset or its mining algorithm. As far as technicalities are concerned, Litecoin cannot offer anything new but improve its existing framework.
However, it is a vital asset and suits investors who are keen to diversify their investment portfolio. The number one rule for all crypto investment is not to invest more than you can afford to lose. Also, diversification is a well-known practice. When applied to trading, the main rule is straightforward. If you stick to this rule, your funds will be protected in a much better way. You can buy LTC on most cryptocurrency exchanges to hold for an extended period.
However, you can also trade perpetual contracts to speculate the price with a predetermined price at a specified time in the future. All you need is to fund some tethers to your verified account or convert other cryptocurrencies to USDT. All in all, Litecoin is valuable because of its correlation to Bitcoin. The other factor that adds value to it is the scarcity of the currency. Not many altcoins can boast of similar achievements.
Ewogboka Emerald Member. Wisdom01 Ruby Member. Wisdom01 said:. Niftyicon said:. I hope it doesn't dip further though. It was surprising for me too because I remembered being paid in LTC from picoworkers and by the next day before I could even exchange it had gone so low, I didn't even know what do. Josemendez Ruby Member. I think bitcoin and Bitcoin trends together perhaps because they are built on the same block chain. Ethereum needs to work on the high gas fee in order to attract more user that will make the price rise.
Yeah I don't think there is something Ethereum ,could do about since they can't control the network load , since that's what determines the transaction fee. One thing about ethereum is the fact that it seems that the network is always very busy because fee never comes down. At least it should be like bitcoin that there are times the transaction fee would be okay. Josemendez said:. I thought the ethereum 2. Quiet unfortunate that it didn't go well.
Come to think of this, when there is high network transaction the fee always skyrocket, how then does this high fee reduce the congestion? Or is to scare people away and thus allow low transactions? The high fee can't be brought down by anyone , people would just have to accept it or better still use another crypto to earn. De-rector Ruby Member.
The increase or decrease depends on the market waves , if more huge Investors comes in very likely more increase in it value but if otherwise it could crash. Post reply. The entry period for this raffle ends in.. Who's online? Total: members: 54, guests: Forums Crypto Forum Crypto Currencies. Custom Links 1 Gambling Forum. Advertise We can offer banners, stickies and custom advertising packages on the forum. Forum Advertising.
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