Litecoin cryptocurrency
Cryptocurrencies are the next step in the evolution of electronic money. No one is surprised anymore by various
electronic payment systems like WebMoney, Yandex Money, and others.
However, all of them are under the control of the authorities, and their financial transactions can be stopped at any time at the regulator's discretion.
It's worth noting that all payment systems, except cryptocurrencies, have their own owners, offices, and full access to regulating the flow of funds.
Therefore, the very recent scandal with the Liberty Reserve payment system and its subsequent closure raises questions about the reliability of such payment systems.
Where does Litecoin come from?
Litecoin is the second-largest cryptocurrency by volume after the well-known Bitcoin . All cryptocurrencies are digital and are mined directly through computations using the computing power of a processor and graphics card.
It sounds a bit crazy to the average person, but cryptocurrencies, including Litecoin, are a product of your computer. However, if you look into it more closely, there's a grain of truth to this process. After all, everyone knows that gold is extracted from mines, and the richer the mine, the more gold can be mined.
Thus, your own PC is nothing more than a "mine" where you can mine your own gold. This is why cryptocurrencies are independent money, as their market value is directly dependent on supply and demand.
The inability of states to regulate this payment system allows for financial transactions to be conducted completely anonymously, without providing a passport or other documents, as is the case when registering with other payment systems or banks.
Litecoin backing
Many Litecoin critics unanimously cry out that this digital currency is not backed by anything. Unlike real cash, which has long been unbacked by gold, Litecoin is backed by the very hardware that produces it.
For some reason, no one questions gold production, as everyone knows how difficult it is to mine and that its reserves are limited in certain regions. Although cryptocurrency can be mined independently, our hardware is the limiting factor, as it's simply incapable of producing large quantities. Mining itself directly depends on the power of our processor or graphics card.
Where to buy cryptocurrency.
Litecoin and other cryptocurrencies can be purchased on various exchanges, where you can easily exchange them for Bitcoin, dollars, and other currencies of your choice. This exchange option allows you to profit from exchange rate fluctuations and actively trade a given currency with the expectation of its future appreciation or decline.
You can also mine Litecoin yourself, but if you have an average computer by today's standards, you'll only be able to recoup your electricity costs at best.
Litecoin and Forex earnings
It's no secret that many forex brokers allow active trading of Litecoin and Bitcoin through the MT4 trading platform. Of course, you can buy real Litecoin on exchanges and wait for a significant price change to profit.
However, it's easier and faster to profit from exchange rate fluctuations through a Forex broker, as you can use leverage, which can significantly increase your trading volume. For example, if your capital is only $100, then with 1:100 leverage, your trading volume would be $10,000.
One such broker that offers this opportunity is ForexClub - www.fxclub.org . To make Litecoin appear in the MT4 instrument list, go to Symbols and click on Litecoin. It will then automatically appear in the list of currency pairs.
In general, trading Litecoin in MT4 is virtually no different from trading other currency pairs. The only thing that influences Litecoin's exchange rate is supply and demand, so graphical and technical analysis work well with this instrument.
The entry of large mining companies into the market, as well as the collapse of existing ones, is one of the fundamental factors that is worth paying attention to when trading.
