It may be time to buy some LTC again. Here’s why. The golden rules for altcoin trading.

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Litecoin price in BTC on the btc-e exchange, for as long as bitcoinwisdom.com can remember. We are at about all time lows.

This blog post is a glorified (with some images and minor changes) copy pasta of my post on /r/cryptomarkets.

LTC – how low can it go? It might be time to take a shot with LTC for a potential bitcoin profit.

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Past performance is no indication of future…oh whatever. Let’s get some LTC. 1) it’s old 2) its inflation rate is very slow 3) it’s not bitcoin 4) historically speaking, this is an OK price.  5) LTC enjoys special status in the cryptocurrency world as a secondary market, and should always be watched out of the corner of one’s greedy eye.

I have done this with LTC a few times – the best of which was last November. Priced in BTC, it is now near parity with DRK and below .01 … which isn’t far from the price I think I paid for a bunch of LTC right before the boom in November, when I started writing about trading in /r/cryptomarkets with “the golden rules for alt trading.”

One thing that makes LTC different from other scrypt alts is its very slow ditribution – it’s just as slow as bitcoin. To me, that makes it still attractive as a swing trade, because big investors are probably thinking about it. What do y’all think?

BTW, just looked. I decided to buy lots off LTC last year at .008, and it’s not far from this mark. I wrote the golden rules to this sub from a 5-star hotel (I don’t stay in those) thanks to that trade. Good times…

Bitcoin Trade Advice (novice friendly) – 25 November, 2013

Image

I am not very eager to buy bitcoins at the moment.   Though that may change quickly, the reason I am not buying right this moment can be explained by the above picture, which I am going to share with you. This is a screen cap of the “Mt. Gox Live” chart – this type of diagram is sometimes referred to loosely as an “order book.”

The blue line at $900 is known as an “ask wall.”  By reading off the large dollar value at the top – right of the blue line, we can learn that nearly $8.8 million would need to change hands in order for the price of bitcoin to go above $900.  This wall is keeping me from buying any bitcoins right now.

The reason I am choosing not to buy bitcoins while the wall is up at $900 can be understood by comparing the two possibilities below.

1) The price will slowly work its way up to $900, in the near future.

– In the worst case scenario, by not buying, I miss out on the profits for a gain of around ~7% from the current price up to $900

2) The bitcoin price falls today

– In this case I will be happy I did not buy.

While I wait to see where this wall goes, I am actually hoping for the price to fall, so I can use the liquid USD I have available to obtain more bitcoins than I would if I were to buy at the current price.

Donations:

BTC:  17NA1jYg5u6ejboArdM7HW4MwSa6cWfnEd

LTC: LQ1XbTGMiNfL4tQoqA3doVKwUDEuddSpRx

XPM: AejVQ34ntJAwUhebe7GMtC8aQ2oPg4bHDf

PPC: PQzT1tFMB5ECbQPhp41R5cTc7jpbgGUDfb