One of the many ways you can make some serious money with cryptocurrencies is to hold onto good coins for a while and then flip them once you spot good returns in the USD-BTC, but this type of flipping can be very time consuming and it also takes a lot of patience.
People often do some flipping once bitcoin isn’t fluctuating too much. In fact, they often turn to more stable coins such as litecoins if they haven’t pumped. Once litecoins start to pump they can then exchange litecoin to bitcoin in order to effectively collect more bitcoins.
The Exchanging Game
Exchanging LTC to BTC is easy to do and you can do it as well and aim for a twenty-five to forty percent increase in your initial bitcoin investment. However, in order to do this, you’ll need to have a solid understanding of the conversion process.
So, we’ve included some easy steps you can follow in order to exchange these pairs efficiently and effectively.
Litecoin is an established cryptocurrency that you can use to test the cryptocurrency waters and get the hang of exchanging coins. It’s also offered at a relatively accessible price and it’s very liquid. It’s also said to be more affordable and less volatile compared to bitcoin.
But what if you end up needing bitcoin for various reasons from participating in an ICO that doesn’t take litecoin or for shopping purposes? Additionally, miners with a large stockpile of litecoins may also prefer bitcoins for one reason or another.
Litecoins and bitcoins are the two dominant pairs that are often traded across a wide variety of platforms. Because of this, you won’t have any liquidity issues when you’re making the conversion unless you’re not using the best altcoin exchange to get the job done.
This is a cryptocurrency exchange that doesn’t require users to create an account. Shapeshift is also an integrated feature for some digital wallets. This is a great service that swaps between assets, and all without taking pay cuts, instead, it only takes the miner’s fee. However, they do have limitations in regard to the max amount of litecoins that you can exchange in a single transaction.
In order to use this service, you’ll need two wallets; one for bitcoin and one for litecoin. You’ll need to first generate a receiving address for litecoin. A refund address is also needed. This address is where you’ll receive a refund if the transaction doesn’t go through or ends up outside the limits allowed. Next, you must send the amount of litecoin to the address provided to you by the system. For the next step, you must provide a receiving address for bitcoins. And that’s it. As you can see, this is a fairly straightforward process and one thats simple enough for a beginner to do.
Changelly is another account-free service that will allow you to exchange currencies. With this site, in order to swap, first decide on the amount of LTC you want to send and follow the pop up prompts to provide a receiving address. Next, you’ll generate a new address via your preferred digital wallet, and you’re ready to go.
You can also use an exchange to check out prices for your holdings. One of the most active trading platforms for litecoins to bitcoin exchanges is Poloniex, however, to use this service you must create an account.
Do Your Research
While LTC follows the BTC price, it doesn’t do so perfectly. If you want to change your holdings, determine which rate would be more satisfactory. The litecoins to bitcoins rate doesn’t follow the USD price for litecoin immediately, and there are many times when you can end up selling at a larger or smaller loss.
Trading can be an option for moving large amounts of litecoins, especially if the account you have offers the right verification.
Use a Versatile Digital Wallet
You should also look into using a multi-currency friendly digital wallet. Most digital wallets feature a built-in exchange function and will also display current exchange rates.
Exodus is a popular multi-currency digital wallet, but if you’re not an Exodus user, you can easily download the wallet for exchanging purposes only, even if you don’t use it as your main LTC wallet. There’s a small fee for moving funds between wallets. After you have completed a transaction, you can choose to transfer any of your holdings to a bigger wallet or keep them stored in your Exodus wallet.
You can send your LTC to the Exodus wallet, then change it into BTC using the built-in mechanism. 0.40 is the minimum exchange rate for litecoin, and the developers behind Exodus promise to complete an exchange in as little as half an hour or less. Since this wallet uses Shapeshift, max limits can apply.
There are several smaller services you can use to exchange your cryptocurrencies. Rates tend to vary by a few dollars, so you may want to take the time to compare services before you begin exchanging. When you move between currencies, make sure you return your holdings into safe wallets. Allows try to avoid keeping your funds sitting in exchange wallets. Instead, move them to a wallet that requires the use of a private key.
For LTC, the above methods can easily be used to transform holdings into other types of altcoins such as Ethereum or dash.