Litecoin (LTC) is still one of the top Five cryptocurrencies. It is no longer the “silver” to Bitcoin’s “gold” but it still trades very well and still has lots of development around it. Many say Litecoin is worth investing and it is a good long-term cryptocurrency investment. Should you buy Litecoin? Very first, you need to know what is Litecoin and how to buy it. Read to find out.
Disclaimer: The content below should not be taken and viewed spil investment advice, but only information and opinions. This article is for information and illustrative purposes only.
Litecoin is one of the very first altcoins te existence after Bitcoin. It wasgoed introduced 2011 (BTC te 2009) and it is almost identical to Bitcoin. So any trust and adoption rate of Bitcoin should bleed overheen to Litecoin.
Litecoin has a solid team with Charlie Lee (head of engineering at Coinbase) spil a founder of the project, who still works on it.
Litecoin is A peer-to-peer network similar to bitcoin’s treats Litecoin’s transactions, balances, and issuance through Scrypt algorithm, the proof-of-work scheme (Litecoins are issued when a puny enough hash value is found, at which point a block is created, the process of finding thesis hashes and creating blocks is called mining).
The Scrypt algorithm used by Litecoin wasgoed intended to be ASIC (Application Specific Integrated Circuit) resistant, but ASICs are being developed for it now, eliminating the one quality that differentiated Scrypt from SHA256.
Litecoin is very similar to Bitcoin, but through tweaking to the settings, it is technically a superior algorithm. Albeit both Litecoin and Bitcoin are fairly similar, there are some differences that differentiate both of them.
Litecoin wasgoed introduced after miners began using GPUs (graphics cards) to mine Bitcoin. The purpose wasgoed to create a coin for CPU mining because GPU mining wasgoed seen spil a problem by some.
Ventilatoren of Litecoin like to call it spil “Silver to Bitcoin’s Gold,” spil one of the best advantages of Litecoin overheen Bitcoin is the swift speed of block creation which makes transactions efficient and quicker. The miners foresee far more Litecoins will be mined and its blocks are generated 4x quicker, making it lighter and swifter for day-to-day transactions.
Difference Inbetween Litecoin and Bitcoin
One of the main differences inbetween Bitcoin and Litecoin concerns the total number of coins which each cryptocurrency can produce. The Bitcoin network can never exceed 21 million coins, whereas Litecoin can accommodate up to 84 million coins.
Litecoin’s greater number of maximum coins might suggest a psychological advantage overheen Bitcoin.
Albeit technically transactions occur instantaneously on both the Bitcoin and Litecoin networks, time is required ter order for those transactions to be confirmed by other network participants.
Bitcoin makes use of the longstanding SHA-256 algorithm, whereas Litecoin makes use of a comparatively fresh algorithm known spil Scrypt. SHA-256 is generally considered to be a more ingewikkeld algorithm than Scrypt, while at the same time permitting a greater degree of parallel processing.
Scrypt, by tegenstelling, wasgoed deliberately designed to be less susceptible to the kinds of custom-made hardware solutions employed te ASIC-based mining. This has led many commentators to view Scrypt-based cryptocurrencies, such spil Litecoin spil being more accessible for users who also wish to participate ter the network spil miners.
Many fresh improvements are made to Litecoin. Recently Segwit wasgoed activated, which makes transactions even quicker. A lightning network is going to be implemented. It seems Litecoin plays a nice guinea pig to improvements about to be made to Bitcoin.
Why Has Litecoin Price Bot Plane for Awhile?
Ter 2015, Litecoin wasgoed up 8 times within a month through a Chinese LTC Ponzi scheme that told its investors to buy Litecoin, send to their address and receive “mining returns” through their high yield investment program.
Overheen $76 million worth of Litecoin has bot sent to their Litecoin address. $68 million worth of Litecoin has bot spent from the address.
They managed to accumulate at least 20% (nine million Litecoin) of the entire supply. It is evident now how the price slok up from $1 to $8 te a month. Spil investors felt “richer” because their “invested” Litecoin wasgoed skyrocketing te value, they invested more sums into the scheme.
What happened next wasgoed most of that supply wasgoed instantly dumped and the LTC/BTC markets have bot on a long bear trend since. That is partly why the price of Litecoin has bot stable overheen the year of 2016 and took a relatively long time to go through the consolidation phase, Litecoin lost its correlation to Bitcoin after the summer pump and wasgoed left behind during most of the year long BTC bull trend.
Why Litecoin Price Went Up Recently?
Litecoin enhanced by +500% since the embark of the year, this wasgoed down to a few factors.
#1 More Trading with Litecoin ter China
Due to the latest crackdown by the People’s Bankgebouw of China on major crypto exchanges, all margin trading has bot stopped and zero fees specimen has bot eliminated. That simply means the only way to make a profit on the spot markets is to buy low and sell high. Traders can no longer brief by selling coins they don’t have. If they want to be a participant ter the crypto markets they need to own some coins.
Chinese whales will have to devise entirely fresh trading strategies revolved around the spot markets. Without margin, traders ter China can no longer borrow Bitcoin to sell coins they don’t have. This means that the only way to profit off of bull runs is to actually buy and own Bitcoin.
The larger bitcoin bull trend is still intact but likely due for several months of consolidation. Given the choice inbetween Bitcoin and Litecoin, the percentage gains for moving a smaller cap market like LTC can be much higher. Since then, Litecoin has bot traded more volume te fiat than again Bitcoin.
#Two Implementation of Segwit
The implementation of Segwit made Litecoin the digital currency with the best technology (te the proof of workspace). It enables much quicker and secured transactions.
Most advocates are excited about the fresh technologies that can now be built on top of a network with SegWit. For example, the Lightning Network, which could boost Litecoin transactions by spil much spil a million times, can now hypothetically be used to budge real money.
Litecoin is the very first major currency to do so. Ter this regard, the silver to Bitcoin’s gold has a competitive edge overheen its big brother.
Spil a result of this successful activation, it has reignited excitement altcoins, especially Litecoin. That is why wij observed the price embarked to grow exponentially. Many people feel this “pump” should not have taken place, spil wij all knew SegWit wasgoed going to activate within a specific timeframe.
#Trio Availability to Buy Litecoin
LTC wasgoed just onboard on many major exchanges such spil Coinbase, and other exchanges ter Japan &, Korea.
With Litecoin (LTC) rente perking back up violating out of its long-time consolidation slumber, Japanese Exchange Bitbank has officially announced the listing of the digital currency ter late April.
Other than that, Bitstamp has just announced that Litecoin ventilatoren can now also buy Litecoin on their exchange. The launch wasgoed partly the reason why the price went up and got overheen the resistance levels on all exchanges.
Should I Buy Litecoin?
Litecoin is still one of the top Five cryptocurrencies I recommend everyone to look at it. It is no longer the “silver” to Bitcoin’s “gold” but it still trades very well and still has lots of development around it.
The acceptance of cryptocurrencies has bot extended to governments. Let’s take Japan for example, a market very accepting of innovative technologies, recognized Bitcoin on April 1st, 2018. It is also set to standardize blockchain technology.
There is a clear uptrend for the four largest cryptocurrencies (Bitcoin, Litecoin, Ethereum, Ripple) around the time of recognition. Russia is also attempting to legitimize, spil it would help the government crack down on money laundering.
The greatest barrier to widespread adoption is acceptance. If you can’t use it to buy a coffee at your local shop or a train toegangsbewijs at the station, no one will use it. However, Litecoin is going to (being) be adopted by large companies.
Since Litecoin is relatively cheaper than Ethereum and Bitcoin, why not buy “low” now and hold on to it?
There is one golden rule of investing that you should always go after: Never invest money you cannot afford to lose. Investing is not saving. Your very first purpose is to avoid major losses. Don’t get greedy. Be patient.