Margin Trading Using Lightcoin
Lightcoin is considered a “lightweight version” of Bitcoin because it is a direct fork of Bitcoin Core with some modifications that make it a faster and cheaper alternative blockchain for transactions. LightCoin was created by Charlie Lee, a computer scientist and graduate of the Massachusetts Institute of Technology. Lee worked for Google and the cryptocurrency exchange Coinbase as CTO in 2013, two years after LightCoin was created.
LightCoin has a larger issue than Bitcoin, with a total coin issue limited to 84 million, making it cheaper and easier to acquire and for transactions. In terms of speed, the Bitcoin network confirms transactions at a rate of nine minutes per transaction, while the Lightcoin network, which was created to provide faster transaction speed, confirms transactions within 2.5 minutes. Thus, LightCoin is at least 3 times faster than its predecessor. LightCoin uses fundamentally different cryptographic algorithms from Bitcoin. While Bitcoin uses the SHA-256 algorithm, LightCoin uses a newer algorithm called Scrypt.
The advantages of trading LightCoin
After Bitcoin, LightCoin is one of the earliest known cryptocurrencies with a market capitalization of over $11 billion. It consistently ranked among the top ten cryptocurrencies until new entrants such as Polkadot, Cardano, Tether and others came on the scene dominating the market.
One of the advantages of LightCoin is that it is an early cryptocurrency that is traded on almost any existing exchange. Its popularity has made it a top choice among major futures trading platforms. Overbit offers leveraged LTC trading, which allows traders to speculate on the price of LTC.
Take profits when LiteCoin goes up or down
Open long or short positions in a bull or bear market using the Overbit platform. Profit from trading on any price movement.
Leveraged LightCoin trading
Overbit allows you to trade LightCoin with leverage. This means that you can trade LightCoin to profit when the market goes up or down. With leverage, you get much more change in the LightCoin price than the amount you deposit.
Let’s look at an example. Let’s say the Lightcoin price is $200, and you expect it to rise to $230 within a few days. You want to buy 50 LTC with 20X leverage.
The margin required is 1/20 * $200 * 50 = $500.
When LightCoin rises to $230, you can close your position and make a profit of $30 * 50 = $1,500. The amount you would risk would be $500. Likewise, if LightCoin falls in value, you could lose all $500.
A similar example can be applied if you expect LightCoin to fall in value. If LightCoin is trading at $200 and you expect it to fall to $170, you can open a short (sell).
With 20X leverage, the margin required is 1/20 * $200 * 50 = $500.
If the LightCoin price reaches $170 and you close the position, your profit will be $30 * 50 = $1,500. However, if LightCoin just goes up by $10, you will lose all of your $500 you risked in that trade.
You can get a more accurate calculation of your margin requirements and your liquidation price (the price at which the trade will be liquidated if the position is against you) in the trade ticket window.
How Leverage LightCoin Works
With Lightcoin trading, you can get up to 20 times the capital you deposit.
Why trade LightCoin with Overbit
Overbit is a world-class exchange with an extensive and liquid order book from our many global liquidity partners. Traders love our fair market rate from the top global crypto exchanges, free from price manipulation. This means that no trader can manipulate Overbit’s quotes with large positions. At Overbit, you can trade cryptocurrency and forex using Bitcoin or USDT without actually buying assets.
We provide a wide range of features when trading with leverage. At Overbit, you can trade and leverage up to 100X on crypto assets and up to 500X leverage on forex pairs. However, to limit your exposure, we apply advanced risk management measures. At Overbit, you can open positions with the leverage you want to set yourself (Isolated Margin or Cross Margin).
Overbit recognizes and rewards community efforts by running one of the best affiliate programs on any cryptocurrency exchange. Get paid in BTS or USDT for referring friends to Overbit. By far the most generous referral program in the world. To encourage further usage of our exchange, we implement a tiered rewards program. Traders are rewarded with Bonus Points (BB) for trading. Once you accumulate 1000 BBs, you can exchange them to VTS or USDT.
You will never have to worry about the safety of your funds on our exchange, as we use a military-grade security system to ensure that client funds are always safe. We segregate user funds to keep them secure and stored in cold wallets with multiple signatures. If you ever need support, we offer all users 24/7 chat support.