At first glance, digital currencies are no longer what they used to be. They are visibly sophisticated as developers add feature or bulwark the network. At the same time, there has been an increase in competition. Evidently, there are similar networks which are efficient and scalable alternatives. However, Litecoin is one of those digital currencies that stand out, and for good reasons. Of the many exchanges that offer support, OkEx is taking it a notch higher, recently announcing Litecoin and Ethereum Classic perpetual swaps.

Perpetual Swaps

To fully understand this, you’ll need to know what a perpetual swap is and why it is crucial. A perpetual swap is a peer-to-peer virtual derivative. It is flexible, convenient and because of leverage trading, it is different that similar products. As such, they give users the opportunity to speculate on price while being perpetual.

With perpetual swap, a buyer doesn’t necessarily need to buy assets nor, do sellers need to sell. As a result, there is an almost always a state of constant virtual exchange where leverage trading is allowed. Because of leverage, traders have a chance to mitigate losses and in general manage risk. This is especially vital as the Litecoin community prepares for a hard-coded halving event scheduled in Q3 2019.

Litecoin Halving

Halving is an event that takes place at regular intervals allowing Litecoin investors a chance to make the most of their holdings. The next Litecoin halving is set to take place on early August. On that day; Litecoin rewards per block will reduce by half from 25 LTC to 12.5 LTC per block in the process effectively reducing daily emission and ushering in a period of scarcity that analysts believe will lift Litecoin prices as supply-demand dynamics kick in re-pricing LTC.

The last halving took place roughly four years ago. A few months before the halving, Litecoin prices were pumped and if history repeats itself then this is what we are currently observing as Litecoin is literally on a roll, breaking key resistance levels and trading above $115 for the first time this year. In his analysis, Litecoin founder Charlie Lee is of the view that prices could soar to $1,000. Although it may take years, this halving could set the foundation and if that is the case, the option of trading Litecoin perpetual swaps via OkEx could be a grand opportunity for savvy traders aiming for $180 or 2017 peaks.