Litecoin CFD trading and CFD products are a popular form of crypto trading.
In this article, we will focus on Litecoin CFD trading. Litecoin (LTC) is inspired by Bitcoin (BTC) and technically very similar to bitcoin.
Will not discuss the underlying technology but we will review the Litecoin trading platforms and Litecoin CFD trading specifically. We will cover the following subheadings:
- What is CFD trading?
- Litecoin CFD trading platforms
- Best Litecoin CFD trading platform
- Litecoin CFD trading UK
What is CFD Trading?
CFD stands for contract for difference. CFDs are popular instruments for derivative trading. CFD allows you to speculate in both upward pricing and falling prices in many different markets, including crypto markets and Litecoin specifically. You can trade many different cryptocurrencies as CFD contracts, including Bitcoin CFD trading.
What is Litecoin LTC?
Litecoin, LTC, is a decentralized cryptocurrency and open-source software project.
Litecoin was launched already in 2011, making it as one of the first altcoins to Bitcoin.
Regarding the technical details, Litecoin is very similar to Bitcoin apart from:
- The Litecoin Network aims to process a block every 2.5 minutes, rather than Bitcoin’s 10 minutes. This allows Litecoin to confirm transactions much faster than Bitcoin.
- Litecoin uses scrypt in its proof-of-work algorithm, a sequential memory-hard function requiring asymptotically more memory than an algorithm which is not memory-hard.
Litecoin CFD Trading Platforms
There are several good platforms that offer Litecoin CFD trading. There are many CFD platforms on the internet and many of them are not serious. We recommend that you choose one of the big well-established players who are regulated and have a serious marketing. In this article, we will focus on Plus500, Avatrade, eToro and Markets. The reason for choosing CFD trading platforms may be that they offer leverage trading. These platforms also have well-developed interfaces and trading features since they have existed for a long time compared to pure crypto trading platforms.
Read our full eToro review for more information about eToro.
Best Litecoin CFD Trading Platform
To determine which one is the best platform, we need to set up some parameters that we can compare. There is no platform is the best on all parameters you can compare. This is also why there are many different CFD trading platforms.
Litecoin CFD Trading eToro
eToro is the most famous online brokers. eToro is at the forefront of developing new products and listening to what customers demand for functions. eToro is best known for its developed platform for social trading. Etoro has a total of 11 different cryptocurrencies to trade and 65 crypto markets. Etoror offer markets in NZD, crypto-crypto, CAD, CHF, AUD, JPY, GBP and EUR. eToro is definitely the best platform for CFD cryptography, including Litecoin CFD trading.
Litecoin CFD trading leverage: 1: 2
Litecoin CFD trading markets: LTC / USD
Litecoin CFD trading spread: 1.90%
Litecoin CFD overnight fee buy: -0.018607%
Litecoin CFD overnight fee sell: -0.018607%
In the screenshot below you can see all 65 cryptomarkets at eToro.
CFD trading is popular in the UK and many CFD trading platforms have offices or departures from London or UK. While all CFD platforms are banned in the United States, all of these are regulated within the UK.
CFD Trading Pros and Cons
- Leverage (but most crypto markets only offer 1: 2 leverage for the moment)
- Trading long and short
- Low commission (Only spread)
- Good platforms
- Regulated platforms
- High risk (leverage products)
- Overnight fees (Because of the leverage)
- Not beginner-friendly
Conclusion - Litecoin CFD Trading
The reason for using a CFD platform is that they offer leverage products and have established platforms with developed products.
In this comparison between different Litecoin CFD trading platforms, we found that eToro is the best CFD trading platform for all crypto currencies. They have the best interface, best products, most products and competitive price spreads and overnight fees.