Litecoin is a digital currency for internet users that is censorship-free and is open to anybody in the world. The distribution of Litecoin is successfully done by wallet encryption which secures the proper safety of the coins and allows an individual to view and monitor their transactions.
It is the third most popular and digital currency with Bitcoin and Etheurum being the first and second. It is among the most recognized cryptocurrencies that have immensely gained a large following in social media, the field of academics and even the finance industry.
Let’s analyze now all the aspects of this cryptocurrency.
What is Litecoin?
Litecoin (LTC) was created by Charles Lee in 2011 with significant support from the Bitcoin community. However, over the years it has been identified as a leading rival of Bitcoin because of its fast ability to improve its features which has attracted a very large and diverse following from almost all business sectors around the world.
Just like Bitcoin, it is built upon blockchain technology and has quickly established itself as one of the leading cryptocurrencies in the world today. Significantly, the currency is entirely based on cryptographic proof that offers many advantages over traditional methods of payment such as the use of master-cards and visa. It provides lower transaction costs and a high form of liquidity and anonymity.
Furthermore, Litecoin has three major features which completely differ with Bitcoin as it uses scripts as its proof of work algorithm that prevents malicious individuals to customize computers with an aim of illegally mining the currency. It also has one of the fastest transaction speed than other digital currencies using 2.5 minutes as compared to 10 minutes of Bitcoin.
This has successfully ensured that there is fast confirmation of transactions in a few minutes as compared to its rival counterpart, Bitcoin. Consequently, Litecoin is the most popular currency for many investors because it is the cheapest of all three major cryptocurrencies. In June 2017, Bitcoin traded at over $2,500 with Etheurum trading at over $300 whereas Litecoin traded at around $40. Litecoin as a cryptocurrency, rely on complicated algorithms and blockchain technology in order to effectively create a system which allows its users to store, pay and get immense benefits and values from this currency.
How to Invest in Litecoin
Before an individual starts investing in Litecoin, having a digital wallet is crucial and just like any other business, there are lots of risks when it comes to invest in Litecoin but with huge rewards in the end.
However, there are major factors to understand and consider before investing in Litecoin such as deciding on the number of coins to invest, the type of investment and Litecoin market statistics.
Deciding on the amount of Litecoins to invest is an important decision to make. One ought to decide whether to hold their coins for a short-term period or a long-term.
Short term investment in Litecoin refers to holding coins for 1 to 12 months. Long-term investment, on the other hand, refers to holding Litecoins for a very long time more than 12 months and the value of the Litecoin may even go down to its original price.
Types of investment
If an individual wants to invest with Litecoin, it is important to create a plan since this will gradually affect the amount of money to place in Litecoin. If one’s plan is to trade regularly, having a good understanding of the Litecoin trend in the market, the mentality of the investors towards Litecoin and the culture driving Litecoin market is very crucial. It is advisable to study Litecoin market indicators together with its technical analyses in order to fully decide on the type of investment to engage in with Litecoin.
Crypto market statistics of Litecoin critically gauging the market behavior on different time periods of the year is quite important before investing in Litecoin. Although this exercise might be demanding and confusing, it is crucial to follow up closely on the market dynamics of Litecoin especially if an individual plan on trading for short term.
This is significant as it will allow one to identify the most favorable time to invest and get rewarding benefits out of it.
Deductively, investing in Litecoin is immensely rewarding being an established top ten coin with more than seven years of trading and investing. Currently, it is the seventh largest cryptocurrency when it comes to market capitalization.
It is, therefore, a popular choice for many investors all over the globe. It has a high trading volume and finding buyers to sell to is not a big problem and has therefore been listed on Coinbase to be among the top cryptocurrencies that process more transactions. With Litecoin, an individual can easily buy or sell his coins making it possible to deposit and withdraw into real-world money.
Choosing on how to invest in Litecoin is the best because of its efficiency in terms of energy consumption during the mining process as ordinary home computers can easily do the mining.
To have more information about other cryptocurrencies, please visit our Cryptocurrency Trading page.