Are Bitcoin’s problems leading traders to other alternative digital currencies?
Ireland-based retail forex broker AvaTrade has recently launched Litecoin trading for its clients, alongside Bitcoin trading.
Despite the (somewhat) negative press digital currencies have received as of late, mainly around the bankruptcy of Bitcoin exchange Mt Gox and the disapearance of hundreds of millions of dollars worth of Bitcoin with it, AvaTrade and other brokers have seen an uptick in digital currency trading. And as such, with more liquidity in the system, brokers are slowly raising the amount of leverage traders can use in Bitcoin trading.
AvaTrade, for example, offers 20:1 leverage on Bitcoin and 10:1 on Litecoin trading. Plus500 offeres 17:1 leverage on both, up from 10:1 last month.
What is Litecoin? Litecoin is the second-largest cryptocurrency by market cap, with outstanding Litecoins worth about $400 million, versus about $8 billion at current market prices for Bitcoin. Litecoin’s creation was inspired by Bitcoin, and it is technically nearly identical to Bitcoin, with minor improvements.
For more on the global Forex industry see the LeapRate-Dow Jones Forex Industry Report.