Choosing which cryptocurrency to invest in can be a bit of a headache, as the markets are so volatile. One of the most successful coins of 2017 was Litecoin. Which increased by 5000% in just 12 months. Litecoin was initially created in 2011 as an update to the Bitcoin client. Our new Litecoin tutorials should answer any questions you may still have about what it all means!
In this guide, we’ll tell you what you need to know about Litecoin. We’ll provide an introduction to the concept of cryptocurrencies, explain why Litecoin was created, and whether it’s a good investment.
Should I Invest in Litecoin: What Is It?
Litecoin is a cryptocurrency with its own blockchain created by Charlie Lee in 2011. Like Bitcoin, Litecoin was designed to process transactions quickly and cheaply. It exists as an alternative solution to Bitcoin’s scalability problem. With the potential to process transactions more quickly and inexpensively than Bitcoin due to its improved architecture.
A fork is when a new blockchain reuses the technology of an old blockchain and makes changes to it. For example, Bitcoin has a few forks that use its codebase and make alterations to it. Litecoin is an example of this – litecoin began as bitcoin’s “fork” and became an independent chain from the original.
Bitcoin Classic and Ethereum were both forks of their respective predecessors. Both had strong influences from the original chain that spawned them. Bitcoin Unlimited, Bitcoin Cash, and Ethereum Classic all came from the original bitcoin blockchain, with each coin having its own set of improvements.
Mining Bitcoin has become more difficult in recent years due to the introduction of expensive hardware. By mining, you can use your computing power to help verify transactions on the network and receive a bonus Bitcoin as a reward for your contribution.
Even though you don’t know what actually happens to solve problems, this hidden power behind it allows for complex mathematical problems to be solved easily. These are so complex and impossible for the human mind to solve that we use supercomputers. This is what makes blockchain technology so effective.
Some people are against Bitcoin, claiming that its instability is one of the reasons why it cannot work. One issue with this is there are a finite number of Bitcoin in existence, and every day more people want these coins for themselves. This leads to hashing power staying within a small number of miners, and the hardware needed to mine becomes increasingly expensive as a result.
Invest in Litecoin for the Short Term?
If you’re looking for a short-term investment, it’s important to decide whether you’re looking for a long-term investment or something to hold for a shorter period. If it’s the latter, we usually mean between 1- 12 months. However, if you are an experienced trader and time is of the essence, buy now! That way, you could be making huge profits in just a few days.
Some investors may be expecting a certain event to happen that would raise the value of a coin, but then they also expect the price to be lower after. For example, if you made an investment in Unikoin Gold (UKG) from November 2017 to January 2018. You would have made over 600% profit! That’s an example of a good short-term investment.
However, if you held onto it for much longer, the value would have gone down to its original price! So, now that you know what a short-term investment is, let’s look at some advantages and disadvantages of short-term investing in Litecoin.
Litecoin as a Long-Term Investment?
When people buy cryptocurrencies, they usually do so long term and this generally means that they expect their value to increase slowly. This is almost always the case, and cryptocurrency is a low-risk investment. If you’re a new trader and can’t handle major price changes, long-term investing might be the answer for you. Generally, it’s for one year or more.
A good example of a long-term investment is Bitcoin. If you had purchased 1 Bitcoin in 2011 it would have cost you about 30 cents. If maintained properly, that 1 Bitcoin would currently be worth more than $10,000!
Full-time leadership: Charlie Lee, the creator of Litecoin, is able to devote his full-time efforts to the project. He is also supported by a team of blockchain experts.
Established: Litecoin has been around since 2011 and is one of the most stable cryptocurrencies in the market. It is also the first altcoin ever created, which makes LTC less risky than newer coins in the market.
Small Investments: To make a long-term LTC investment, it’s best to set up a monthly investment plan where you invest small amounts on a regular basis. This will allow you to protect yourself from short-term market fluctuations.
Blockchain scalability: Blockchain projects are striving to overcome scalability problems because they will prevent the blockchain from slowing down as more people use it. Litecoin is currently capable of processing about 56 transactions per second per second. It is good to see that Nano is making progress in this field, especially compared to its competitor Bitcoin, which only manages 7 transactions per second. It will be imperative for it to make strong advances over the coming years so as not to be left behind.
Best way to invest in Litecoin?
One of the benefits of acquiring Litecoin is that it’s easy to do so using cash, such as US dollars, Euros, and pounds. This means you can use your debit or credit card, and even bank transfer (even PayPal is accepted on Coinbase).
Unlike many other cryptocurrencies, Litecoin cannot be bought with Ether or Bitcoin. You can only purchase it from brokers.
One of the best options to buy Litecoin is through Coinbase, which is the most trusted brokerage exchange. They have a good customer support service and their step-by-step guide with images illustrates the process in detail.
Create a Coinbase account
You will first need to visit the Coinbase website. This can be done by following this link.
You will need to provide your first name, last name, and email address. Please keep these safe!
Next, you’ll need to verify your mobile number by receiving an SMS. Once you’ve received that text message with the code, just take it to Coinbase and enter it in
Coinbase has a variety of account types and levels of verification, so be sure to take a look at the information below. You’ll want to register as a new user or an existing user, mobile app, or browser.
Verify Your Identity Before Buying Litecoin at Coinbase
-At the top of the screen, select Buy/Sell
-You will now be prompted to provide a payment method. Select Add Payment Method from the drop-down menu.
-If you want to upload a bank statement or a debit/credit card, you’ll be prompted. We’ll use a debit/credit card in this example because it’s the easiest way to deposit.
-Security is a top priority for Coinbase, as it is one of the safest exchanges to buy from. You’ll need to confirm your identity immediately. Select Upload ID from the menu.
-Either a passport, a driver’s license, or a government-issued ID card can be uploaded. Select the file you wish to upload by clicking on it.
-You’ll then be asked how you’d want to upload your ID. You have the option of using a webcam, a smartphone camera, or uploading a file.
-After you’ve uploaded your ID, you’ll get the confirmation below. If the photo quality isn’t good enough, you’ll be asked to re-upload it.
-Now you’ll need to enter your debit/credit card’s billing address. Make sure it’s the same as your home address, as you may be requested to verify it later.
Where Should You Store Litecoin to Keep It Safe?
When you buy cryptos like Litecoin or Bitcoin from a broker exchange like Coinbase, it means that you will have to go through a third-party service. This means that the coin is not owned by you, but rather stored and controlled by the exchange (Coinbase). Some people think that Coinbase might be secure, but if it were hacked, your coins could be gone forever!
It isn’t rare for third-party exchanges to be hacked. For example, Bitfloor, an exchange, was hacked in 2012. The hackers stole 24,000 Bitcoins, which are now worth 2 million dollars. A similar attack happened. They had 12 of their bitcoins stolen.
There have been many good arguments in favor of using a cold wallet, so you should really consider it. For example, when you buy Litecoin on Coinbase, transfer it to your secure wallet as soon as possible.