Litecoin… sounds familiar, doesn’t it? Well, that’s because it is! It was made as a competition to bitcoin and therefore, the name sounds similar. It is a cryptocurrency but it is not new. It entered the market to be a staunch rival to bitcoin but it did not witness growth as exponential as bitcoin did. It trailed behind and often lost its footing as more and more cryptocurrencies entered the market. Slowly, however, Litecoin began gaining traction and it came into the limelight and began to shine. It still has a lot of potential in the market.
How Litecoin works – If you are looking to buy Litecoin, it would be potent to understand how it works. It is a cryptocurrency that is a native token on decentralized networks. Like any other crypto, this means that it is not overseen by any bank or authoritarian body. It also differs from any other regular currency as it is tracked by the blockchain technology it uses. Each transaction is recorded live and for everyone to see. The permanent records of these transactions cannot be deleted and are free from hackers and scamsters. It also allows for transparency as the user can see where their money is going and they have complete autonomy towards it.
Why invest in Litecoin – As a potential investor, you are bound to have questions about the authenticity and future of the asset you have your eyes set on. This becomes especially true for volatile assets like cryptocurrencies as one can never accurately predict the trends and patterns this asset could demonstrate. Litecoin was one of the top 15 cryptocurrencies in the global market and even the value of LTC to INR increased recently as investors are looking more and more into this particular crypto.
- Faster than bitcoin – While it did not reach as high as its competitor monetarily, Litecoin is appealing in the aspect of its speed. One of the primary reasons why this coin is making its way into the market is because it can transfer money at a low-cost and expedited way. The faster the network operates, and the lower the costs, the better it is in terms of the utility for the end user. In case a person is required to send a significant amount of money to other people, even globally, the Litecoin network can be used as it is genuine and can complete the task 4 times faster than bitcoin.
- Digital scarcity – Bitcoin is termed digital gold while Litecoin can be known as digital silver. It works on an open-source peer-to-peer marketing system that operates like bitcoin. The fact that it is following the footsteps of its predecessor and has a limited supply of coins, it is making Litecoin more appealing. The hard limit to Litecoin’s cap is 84 million coins. Additionally, it uses the same block reward halving method that bitcoin uses and is also operating on the proof-of-work consensus. Before any new coin is minted, the members on the blockchain must agree.
- High market cap – This aspect can be most appealing as people, novice and experts, look at the market cap value of any asset before making their purchase. The market capitalization value is essentially what you get when you multiply the current price of any asset or commodity by the total number of that particular asset/commodity in supply. In the case of cryptocurrencies, that number would be the total number of coins in circulation at that particular time. Litecoin stands among the top few of all the cryptos in terms of market cap. The overall market cap for this coin stands around 9 billion dollars. The figure is a strong indicator of how liquid the coin is.
- Practical use – Litecoin halving can show the users the number of coins that can be mined within a particular time. To become better than bitcoin, the developers lowered the time of the block generation. This helped the transactions become faster than that of bitcoin. Therefore, many users now prefer to use this coin to carry out transactions and payments from one exchange to another. It has taken over the role of digital currency from its competitor.
There are several other advantages that Litecoin seems to have over other cryptocurrencies and not just bitcoin. It has a great reward-to-risk ratio which means that some investors that have their timing and luck right have been able to gain great rewards from investing in this coin. The fast transactions, the low fees, the dedicated team behind the coin that is constantly looking to upgrade it, the backing by larger corporations, and its overall constant expansion is leading more and more investors towards it. Investing in Litecoin is a good option this year as it is set to break its own records with the upgrades in the market.
Also Read Interesting Articles At: Amaze Feeds.
