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Litecoin Halving: How to Trade LTC In 2023?

2023-07-27 03:26:13

For all crypto traders and investors, the Litecoin Halving is one of the events most looked forward to in 2023. Litecoin is drawing closer to the third halving event in its history. The two previous halvings occurred in 2015 and 2019.

The Litecoin Halving is expected to occur on Wednesday, Aug 02, 2023. Many market analysts think halving the Litecoin supply will significantly affect the price. 

In this article, we will learn what Litecoin Halving is, what to consider before trading it, and how you can easily trade it.

What Is Litecoin Halving?

Litecoin operates on the Proof-of-Work mechanism. It means that its decentralized system is guarded by a dispersed community of miners, computers that find hashes (by solving complex cryptography challenges) for Bitcoin blocks.

Litecoin

Miners of Bitcoin and Litecoin are rewarded in Bitcoin and Litecoin, respectively. These "reward" coins should be referred to as the only source of new coins in circulation because they are the only source of new coins. 

The creators of Bitcoin proposed a process known as "halving," which entails a periodic reduction of miner rewards by fifty percent. This was done to protect Proof-of-Work (PoW) cryptocurrencies from the threat of inflation.

All PoW networks have their prizes halved (and, as a result, their emissions), which happens once every four years.

Litecoin Halving Mechanism

The mining reward for Litecoin is halved approximately every 840,000 blocks, which takes about four years to accomplish.

When Litecoin was first introduced, the reward for each mined block was fifty Litecoins. The reward was decreased to 12.5 Litecoins following the most recent halving event, having previously been dropped to 12.5 Litecoins following the initial halving event. The reward for each block is currently set at 12.5 Litecoins; however, this amount will expectedly halve on August 2, 2023, and will be set at 6.25 Litecoins.

Check out the table for further details.

Litecoin Halving Mechanism

Will Litecoin Halving Increase Price?

The Litecoin Halving is not closely related to the cryptocurrency's price movements by default. On the other hand, the last two halvings of the Litecoin supply, which took place on August 25, 2015, and August 5, 2019, resulted in significant price increases for Litecoin.

The price of Litecoin reached its all-time high 28 months after the coin's supply was halved. During this cycle, the price of LTC rose from $3.98 to $314, representing an almost 79-fold increase. In the second cycle, "Digital Silver" hit its all-time high in just 23 months after it had been climbing steadily since the beginning of the cycle. 

The price of LTC skyrocketed from $95 to $354, which is equal to a 273% increase from its previous price. Litecoin has always experienced a rally after halvings, although the magnitude of these rallies has decreased as cryptocurrency markets have matured.

What to Consider Before Trading LTC?

Before trading, you need to consider that as a result of the halving, the quantity of Litecoin will be cut in half, which some analysts say will cause the price of LTC to increase because it will be in shorter supply. 

Others fear halving the block reward could result in a temporary drop in the price of Litecoin if miners were forced to liquidate their LTC holdings to pay for their operations.

How to Trade Litecoin (LTC) on CoinEx Step by Step?

CoinEx is a global cryptocurrency exchange, trusted by 5+ millions of users worldwide with 100% reserve. With its 700+ tokens supported, including LTC, users can now trade easily and seamlessly. To purchase LTC coins on CoinEx, follow the steps below.

How to make deposits?

  • First, register and log in to your CoinEx account.
  • Now go to the assets option and click deposit.
  • Select a coin and generate a deposit address.
  • By the same method, you can also set up the withdrawal option.
  • Ensure the selected crypto and network are the same as CoinEx and the withdrawal platform.
  • Once you deposit, you will see the balance in your spot account.
  • Check out the minimum deposit options before making any deposits.

How to buy LTC?

  • Log in to your CoinEx account and select the Fiat option.
  • Next, select the LTC coin to buy.
  • Check out Fiat payment options (USD, EURO, POUND, etc.) and choose the best deals from the service providers.
  • Click buy and confirm the amount.
  • Read the details on the pop-up, and you will be directed to the service provider’s website.
  • Fill in the details and put your order details and payment method.
  • You will receive your crypto. 

Spot Trading & Margin Trading

  • Before spot trading, ensure you have enough assets.
  • Once you have the assets, go to the CoinEx market and find your preferred pairs like LTC/USDT, LTC/USDC, and LTC/BTC.
  • Check out the prices, trading charts, market capitalization, and other important info if you want.
  • You will see 4 trading options; Limit, Market, Stop-limit, and Stop-market. Choose your preference. 
  • Once you choose your preferred pair and trading option, fill in the price and amount. 
  • Click buy. You can successfully buy your preferred crypto when the market price reaches the preset price.

Future Trading 

  • Log in to your account and go to the futures page. Read the disclaimer and open a futures account.
  • Here you can long/buy or short/sell.
  • Select the Futures trading market and the trading pair (LTCUSDT pairing example). If there is no available asset in your Futures account, you must first transfer some.
  • Set the margin mode and the leverage.
  • Select Buy or Sell, order type set the price and amount, and then you can submit the order.
  • After placing the order, you may check the position in the ‘Current Position’ option.
  • Finally, Note that CoinEx adopts the Mark Price to determine the position profit and loss and the Liquidation Price. A forced liquidation will be triggered when the Mark Price hits the Liquidation Price. You can increase the margin in advance to reduce the liquidation risk.

Litecoin Halving FAQs:

When Is the Litecoin Halving Date 2023?

The Litecoin halving countdown timer predicts that the next Litecoin halving date is expected to occur on Wednesday, Aug 02, 2023, at 03:12:51 PM GMT.

What Is Litecoin Worth?

Currently, a single Litecoin is worth $91.09. And the block reward is 12.5 LTC. After the halving, the reward will be halved. And the block reward will be 6.25 LTC.

How Will the Difficulty Halving Impact Miners of Litecoin?

Once the halving process has been initiated, the block subsidy distributed to the miners will be cut in half. This could be detrimental to the performance of smaller competitors. Every miner is impacted similarly and must find a way to adjust to this new reality. This can be accomplished by lowering their expenses or increasing their mining efficiency and hash power. However, it is more probable that miners will choose the latter of these two options.

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