The name that resounds on every investor’s/trader’s lip is Bitcoin! Its popularity has never waned over the years. The only difference is that it must share the stage with so many other cryptocurrencies now, including Litecoin, visit website.
Advantages of Litecoin
The enhancement in its pricing over the years, has shown that Litecoin is has several aspects in its favor.
With the idea of bettering Bitcoin in performance, Litecoin improved its transaction time. With Bitcoin, the user must wait almost 10 minutes for a monetary activity to go through. With Litecoin, the verification occurs within 2.5 minutes. Thus, its scalability is only likely to increase in future.
Then again, the transaction fees are generally in cents. Bitcoin’s fees go intodollars.
One of the top 10 valuable cryptocurrencies, Litecoin’s market capping touches billions of U.S. dollars. Its day-to-day trading volume goes beyond two million coins. Thus, Litecoin displays tremendous liquidity and visibility.
It is no wonder, therefore, that Litecoin has managed to survive in the significantly volatile crypto marketplace!
It is easy to trust a crypto that is almost as ancient as Bitcoin! Litecoin(LTC) is amongst the oldest of digital currencies.
Then again, it came into existence as a fork in the Bitcoin blockchain. Therefore, it is decentralized. It is an open-source blockchain too.
The creator of Litecoin is Charlie Lee, a computer scientist. He modeled it like Bitcoin, for he wanted Litecoin to be the complementary silver to Bitcoin gold.
Numerous digital currencies are floating around in the cryptocurrency marketplace. However, the majority are of the temporary, pump and dump variety. Investors/traders must stay away from them.
Obviously, the developers of these temporary projects gave importance only to the present. They never thought about the future. Litecoin’s developers, however, are highly skilled and knowledgeable.
They ensured that Litecoin could adapt to technological advancements comfortably. This would help it to sustain for decades. They even awarded it with efficiency and excellent speed, prompting smooth functioning on the blockchain network.
Disadvantages of Litecoin
Maintaining the Brand
Till date, Bitcoin continues to dominate the cryptocurrency landscape. It is Big Boss! Investors/traders view it as such. Therefore, it is hard for them to accept a fork of the Bitcoin blockchain as an alternative to Bitcoin. In other words, Litecoin’s reputation has taken a beating because of its origin.
Crypto enthusiasts label Bitcoin as ‘gold’ and Ethereum as ‘silver’. Therefore, Litecoin gains a place only among the remaining eight cryptos that form the top 10.
Loss in Market Share
Way back in 2017, Litecoin had a ranking of five amongst the top ten. Currently, its ranking has come down to 10.
It means that Litecoin is losing its market share. Its pricing has not increased much, in comparison to Bitcoin and Ethereum.
Loss of Faith
When Litecoin was at its peak in 2017, its creator decided to sell his entire stock of Litecoins. His excuse was that he did not want people to accuse him of manipulating the markets. He knew his voice was influential on social media.
Whatever be the reason, if the creator himself sells his stock, others lose faith. Thereafter, Litecoin’s success began to decline.
True, Litecoin is confronting a period of uncertainty. Nonetheless, there are several attractive features that should help it to regain its lost popularity. Therefore, investments might still work well.
The best way to purchase Litecoin is via a cryptocurrency exchange. The exchanges that list Litecoin, offer two modes of purchase.
One is to group it with other cryptocurrencies, such as Bitcoin, Ethereum, etc. The other is to buy it with a fiat currency, such as EURO, USD, etc.
Obtaining a Digital Wallet
When the formalities regarding registration are complete, the concerned exchange offers the option of downloading a Litecoin wallet.
It is also possible to go to the official website, litecoin.org, for downloading and saving a digital wallet.
Exchanges that Permit Fiat and Digital Currencies
Many crypto exchanges permit the purchase of Litecoins via fiat currencies or cryptocurrencies. Examples are Binance, Esmo, etc.
The purchase of a digital wallet and the opening of a crypto account, suffices to begin trading Litecoin. All the purchased coins must go into the wallet, for storage.