Bitcoin is still considered the backing of digital gold. But Litecoin has been set up as the silver. It was created by an ex-Google computer scientist name Charlie Lee and was launched on October 13th, 2011. The crypto was so successful that it has one of the longest streaks as a top 10 cryptocurrency by market cap and was at one time the third-largest digital currency.
Poor management, shrinking usage, and fast competition have all contributed to Litecoin’s downfall. First of all, their founder, Charlie Lee, left in 2017, abandoning the ship. The second is that they’re slower and more expensive than Bitcoin.
Third, new altcoins are coming out for different purposes. Which makes Litecoin’s market potential smaller and smaller. It has also lost its position among the top 10 cryptocurrencies and is currently ranked 24th by CoinMarketCap. With a live market capitalization of $9 Billion.
There is still a lot of optimism over the future of Litecoin, and this is mainly thanks to Charlie Lee returning to head up the Litecoin Foundation. However, as with any other crypto investor or trader, you should be asking if this will have enough impact.
So, what are the reasons behind the recent climb in LTC and other cryptocurrencies? And how can you best safeguard your LTC investment in order to avoid market volatility?
What to Think About Before Investing in Litecoin (LTC)
The stability of Litecoin is one of the main reasons. Why it has remained standing, in comparison to other alt-coins? That has been created and abandoned by their creators.
While Litecoin’s reputation is a bit marred and investors’ confidence has been diminished. It still remains among the top 20 cryptocurrencies. Most crypto experts are investing in the idea of resilience, and there are many other reasons to invest in the Long-Term. They think that it will rebound eventually.
Based on analysis from both technical and fundamental points of view, most crypto experts are confident that Litecoin’s value will continue to rise in the foreseeable future. They conclude that this is because of the relevance of its blockchain technology. As such, it is a bit safer to invest in than meme currencies such as Dogecoin or Shiba Inu.
Needless to say, the cryptocurrency industry is constantly evolving and Litecoin has faced criticism. Some experts have pointed out flaws in its blockchain, which they feel won’t be able to keep up with the fast-paced environment. Newer networks have more use cases (from defining to NFTs) and are on the verge of interoperability.
What Are The Consequences Of Purchasing Litecoin? (LTC)
Litecoin’s biggest strength is also its major weakness. The coin originally developed a bad reputation after its founder, Charlie Lee, sold all his LTC to invest in ETH during the peak prices of LTC in 2017 and abandoned the project almost immediately after.
A series of blunders, including the recent (now deleted) tweet about Litecoin’s partnership with Walmart. which Walmart termed fake news, has also sparked a debate about possible mismanagement of the Litecoin Foundation. If this continues and LTC isn’t managed better. You can expect the coin’s value to drop further as more traders lose interest in it.
On top of that, Litecoin is not immune to bad actors going after investor wallets and crypto exchanges – last year’s attack on the Tokyo-based Coincheck exchange caused significant losses for customers. It’s not uncommon to see Litecoin prices jump by 10% or more in a short period. This volatility, while hard on traders, is good for investors and often leads to significant gains.
Other Scams to Look out for
Kaspersky Lab listed fake websites as the most common form of loss, followed by fake mining hardware and fake crypto wallets. Criminals are tricking crypto investors into revealing their wallets and exchanges’ login credentials by using them to steal the tokens. The antivirus company commented on the fact that most of these fake websites have a higher level of detail attached to them with the intent to make them as convincing as possible.
Online scams like Ponzi/pyramid schemes
On the one hand, the Federal Trade Commission (FTC) found an increase in crypto scams, but on the other, they also found that these scams have tripled in size over the last three years. For example, from October 2020 to May 2021, American crypto investors lost more than $80 million to scammers. During that time, the average investor lost about $1900 – that’s a 1000% increase in median loss per round.
How to Safeguard Your Litecoins (LTC)
Not everything will be lost. You can take measures to keep your Litecoin safe, for instance by investing in a hardware wallet. The peace of mind this gives you is so worth it! Additionally, you should use strong and unique passwords for your crypto exchange(s) and wallets. This will help discourage any hackers from successfully accessing your platform.
It’s important to avoid scammer offers that only appear to be free cryptocurrency giveaways. Make sure all the URLs are whitelisted. If you see a suspicious link, just leave it alone and move on. Digital literacy is an important life skill. Be sure to learn how to spot fake websites and use WHOIS to view the site’s ownership details. You should also invest in antivirus software for all your devices because so many things can go wrong online these days!
Security vs. Privacy in Litecoin (LTC)
Cryptocurrencies are created to be secure. But these two digital assets differ in the ways they go about this security. For example, Litecoin uses a different approach to ensure your information remains private.
In this post, we have been discussing crypto security and how that can help you make sure that your Litecoin cryptocurrency private key is secure. Interestingly, the safety of your Lit coins is threatened by any kind of risk. It’s also important to keep up-to-date with industry news and events, so you can spot the latest scams and hacks used by fraudsters. This way, you can protect your crypto investments to the highest level.
Litecoin has different privacy features than Bitcoin. Litecoin focuses on how personal data is protected, including the level of anonymity. Litecoin’s key is secure and contains your information. Which ensures that it isn’t hacked.
Just like the Bitcoin blockchain, experts say that any of your personal data collected and stored within the Litecoin network is anonymous. Litecoin transactions are transparent. Because they are recorded in the public ledger, known as the blockchain. Anyone with basic cryptography skills can observe transactions taking place and discern both parties involved as well as individual transaction amounts.
Litecoin is no silver bullet. Galen Moore, the director of data and Indexes at CoinDesk, reminds us that “you’re really not anonymous (when interacting with the Litecoin network), more like pseudonymous”. In order to protect your personal information, you must take appropriate steps to ensure that only limited amounts are available.
Is It Safe To Invest In Litecoin (LTC)?
Litecoin’s had a lot of success and has all the right features to be a good investment. It’s brought this cryptocurrency into the mainstream and given investors an average return of 4100%. This is a digital currency, and as such, it is going to be subject to the same risks that all other digital currencies face. Most of them are too unpredictable for any real investment in them because you are at the whim of so many different factors. This only worsens Litecoin’s investment risks.