Litecoin is a cryptocurrency that was created in 2011 by Charlie Lee, a former Google engineer. It was designed to be a faster and cheaper alternative to Bitcoin, with lower transaction fees and faster confirmation times.
First, let’s start with the hard fact-based reasons to invest in Litecoin. Then, we’ll transition into some less discussed, but still important, reasons to invest as well.
1. Litecoin has Digital Scarcity and a Close Relationship to Bitcoin
Bitcoin is slowly becoming the most valuable digital currency in the world. It is currently valued at around $21,000 and some people are even starting to call it digital gold. Litecoin has a different approach to running free because it’s entirely open-source! While bitcoin is digital gold, crypto enthusiasts view this coin as digital silver.
Litecoin has a limited supply of coins, meaning. That only a set number of coins will ever be mined and remain in circulation. This characteristic is viewed by users as an advantage. It shows that the coin follows in its predecessor’s footsteps.
It utilizes the same block reward halving as bitcoin and is also dictated by proof of work consensus. Members on the blockchain must all agree before any new coin is minted hence its scarcity. Users and investors can rest easy knowing that there will be no more than the limit to flood the market.
2. Litecoin has a High Market Capitalization
Market capitalization is the value received. When a commodity’s current price is multiplied by the amount of it in circulation. In 2018, a digital coin’s market capitalization would be calculated as $5,062,873.
Litecoin, which is one of the 25 most famous cryptocurrencies, is highly liquid and has a market cap of $0.9 billion. This figure indicates that this coin has high liquidity and investors should invest in it for its profitability.
If you just want to buy and sell, you won’t have a hard time converting this coin into liquid cash or another valuable cryptocurrency. It is easy to trade it for bitcoin and Ethereum, among other high-performing digital coins. If you are considering investing in NEO, you can buy and keep the coins and wait for the price to go up or buy and sell multiple times as the price fluctuates.
3. Litecoin Has a Practical Use
The Litecoin halving is a process by which the number of Litecoin blocks is reduced from 50 to 25, resulting in a shorter average block generation time for Bitcoin. This creates both faster and cheaper transactions, as well as maintains the same value of LTC.
Litecoin has taken over the role of digital currency as a main means of the transaction right. Before Bitcoin was relegated to a means of storing value. Litecoin is continuing to grow in popularity.
It will be a safe, stable solution for the future. Want to make use of this cryptocurrency? You’ll be able to keep your assets growing in value by using them in everything from everyday transactions to long-term savings.
4. Litcoin has a Greater Reward to Risk Ratio
A big part of the cryptocurrency boom has been found in coins. That seems to be significantly volatile. Many new investors are wanting to get involved, but some seasoned investors may receive a bit skeptical. All-time highs were seen in 2021, and Bitcoin establish these levels. Investors and a few lucky individuals seemed to make a lot of money last year with the bullish charge these coins showed.
However, most are forgetting about the likes of Litecoin’s stability and gradual growth. Even if this coin is trading below its 2021 ATH level, it still stands as a viable investment option. Compared to the others, it has a greater reward-to-risk ratio that can turn around very quickly.
While cryptocurrencies have been rising dramatically in recent months, many investors are finding it hard to stay invested. As for Litecoin, the chance of huge losses is pretty low, but most people know not to risk too much at a time.
It is a good idea to sell your cryptocurrency when it is in its bullish momentum. A lot of traders are waiting to invest in coins that have already exhausted their bullish momentum. That’s why it is always wise to plan when choosing which coin is best for you.
5. Litecoin has Fast Transaction Times and Low Fees
Litecoin has a lot in common with Bitcoin, but its role is also different. When Litecoin can handle block time confirmation of 2.5 minutes, it becomes more scalable and can process a higher number of transactions.
Originally, Litecoin was supposed to be a faster network. It’s now clear the developers made a few mistakes along the way. They set out to take control of money from banks and governments but failed to consider transaction fees. Charlie Lee and his developers identified this as a disadvantage in bitcoin but made the cost of transacting on the Litecoin network significantly less expensive.
Litecoin fees are less than 1/1000. The cost of bitcoin is fixed regardless of the transaction size. This makes Litecoin a great choice for microtransactions.
Litecoin has attracted many users in recent years, which has increased its value exponentially. This is a result of the low transaction costs, as well as its appeal to crypto users.
6. Litecoin has a Dedicated team of Developers
The key developer in the case of Digitex is a former Google and Coinbase engineer. They have a team of other talented developers and this has led to them being one of the fastest-growing companies in the crypto economy. Charlie Lee, the creator of Litecoin, has continually worked on improving the performance of the Litecoin network.
Blockchains have been around for a while now. The latest technology comes in the form of Atomic Swamps and Lightning Network (blockchain technology to minimize transaction fees).
These developers have managed to ensure the coin’s stability, making it less volatile than bitcoin. Users can then rely on it more as a means of exchange.
They were the first to update their software to include Segregated Witness, which is a way of safer trading on the chain and kept them ahead of other teams. You would be well advised to invest with this team for their future-thinking focus.
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7. Large Corporations are already using Litecoin
UFC and Overstock.com are just a few among the many well-established institutions that have begun working with Litecoin. For a while now, they’ve been accepting this coin as payment.
The Litecoin Foundation and the UFC have formed a partnership. Where this coin is to be utilized as the institution’s official cryptocurrency. This means that any company or individual that handles dealings with the UFC can now find an efficient way of paying or receiving payment.
Blaine is jumping on the cryptocurrency bandwagon with a major partnership with LTC. That will not come without a price hike, but it’s well worth the benefits. Another partnership with Atari has been signed in 2020. Blockchain technology has the potential to revolutionize the gaming industry. Many industries are also rewarded by this revolutionary technology, including Litecoin.
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