Why is Everyone Talking About Litecoin?
Cryptocurrency has come a long way since Bitcoin burst on to the toneel all the way back te 2009. Today there are many different cryptocurrencies to choose from, all with their own specific designs and niches.
Litecoin wasgoed designed to be the silver to Bitcoin’s gold. It’s also one of the most popular cryptocurrencies available.
Five Interesting Litecoin Facts You Might Not Know
- Litecoin wasgoed the brainchild of a former Google employee Charlie Lee
- The cryptocurrency went live on October 13th 2013 and incorporated some of Bitcoin’s code
- There wasgoed no pre-mine and the launch wasgoed intended to be spil fair to the community spil possible
- Ter 2013 Litecoin experienced fairly explosive growth and achieved a market cap of $1 billion
- Ter 2018 Litecoin adopted SegWit and wasgoed the very first cryptocurrency to make a transfer using the Lightning Network
Gegevens from U.S. Equity Research estimates the cryptocurrency market is expected to grow at a 32% rate by 2023.
“Growth is propelled by the benefits of compliance-free peer-to-peer transaction, cross-border remittance transfer, increase te use cases, volatility te the stock market, fluctuating monetary regulations te different countries, transparency, and immutability of the distributed ledger technology and benefits such spil swifter transaction and reduction ter total ownership cost.
Thomas Glucksmann – Gatecoin via Bloomberg
Litecoin is one of the currencies at the forefront of the crypto-charge. Thomas Glucksmann, head of marketing at cryptocurrency exchange Gatecoin, told CNBC by email.
“Litecoin is one of the major alternative cryptocurrencies, or altcoins, that competes with bitcoin on transaction efficiency so naturally, it is a strong choice for diversification. Litecoin has always bot one of the most underrated cryptocurrencies given its advantages overheen bitcoin.”
“Litecoin is a worthy option to consider spil a third currency after Bitcoin and Ethereum. A puny slice of litecoin, say half of 1% of your portfolio, is worth considering with the slice of profits you may be taking on your bitcoin right now.”
Litecoin creator and former Google employee, Charlie Lee tweeted an pic of gegevens from Coinmarketcap.com on December 12th displaying Litecoin volumes for the past 24 hours:
Charlie Lee via Twitter
Charlie then tweeted the following warning to his followers:
“Sorry to spoil the party, but I need to reign ter the excitement a bit…,” he wrote. “Buying LTC is utterly risky. I expect us to have a multi-year bear market like the one wij just had where LTC dropped 90% ter value ($48 to $Four). So if you can’t treat LTC pulling down to $20, don’t buy!”
Business Insider reported, the popular exchange, Coinbase, wasgoed coerced to temporarily halt trading of litecoin and ether on Tuesday 11th December when high traffic volume, disrupted their service. Ether klapper $600 a token, while litecoin gained more than 40% to $312.
LTC – USD source: Markets Insider
What is Litecoin?
Litecoin (LTC) is a decentralized, open-source payment network, or cryptocurrency. It permits you receive, store, and send money to other people. It’s one of the three largest cryptocurrencies, together with Bitcoin (BTC) and Ethereum (ETC). Litecoin wasgoed designed to improve on many of the perceived failings of Bitcoin and to be the silver to Bitcoin’s gold.
To this end Litecoin has a cap of 84 million tokens, this is ter comparison to the 21 million cap used by Bitcoin. It also has a block generation time of Two.Five minutes compared to Bitcoin’s Ten. The aim wasgoed to make Litecoin lighter to obtain and trade than Bitcoin.
Litecoin wasgoed also created with an aim to reduce the centralization of mining. The cryptocurrency wasgoed designed to use a code called Scrypt. This wasgoed designed to be more CPU friendly to encourage more users to mine and prevent ASIC miners predominant the network. The hope is that Scrypt can make mining more dynamic and prevent wealthy miners from controlling the direction of the currency.
Litecoin vs Bitcoin
Peter Theil (Venture capitalist)
Christine Lagarde (IMF)
Marc Andreessen (Early internet Pioneer)
How are Litecoins Made?
The way that Litecoin is made is not all that different from Bitcoin. Whereas banks and governments are centralized governments that can physically print currency, Litecoin is a decentralized currency that is created digitally by its community.
The technology behind Litecoin is called a blockchain. This acts spil a general ledger, recording every transaction everzwijn made. Thesis transactions are processed by “miners” who create fresh blocks to add to the chain. Thesis miners are then rewarded with some Litecoin. This acts an incentive for users to process fresh blocks and regulates the creation of fresh tokens. This process is called proof of work where users are rewarded for using their own computing power to create fresh blocks.
Where Litecoin differs is te how it calculates the proof of work function. Bitcoin uses SHA-256. The problem with this is that miners can take advantage of ASICs. An ASIC is a specialized chunk of hardware designed for a specific task, ter this case, mining cryptocurrency. The creators of Litecoin were worried that this could lead to ASIC using miner’s predominant the network.
Their solution wasgoed to use Scrypt. This rendered existing ASIC mining equipments futile and theoretically permitted the blockchain to be more democratic. Albeit there are presently ASIC equipments available for scrypt and AMD graphics cards are capable of mining the scrypt algorithm.
A typical Gridseed Five chip Scrypt ASIC Miner setup
Gridseed mining setup via Youtube
What is the Price of Litecoin?
What Drives the Price of Litecoin?
Like many other cryptocurrencies, Litecoin’s value is largely linked to that of Bitcoin. If Bitcoin starts to rise or fall te value then you should expect Litecoin to go after suit shortly afterward. Cryptocurrency is a volatile commodity so you should expect to see thesis dramatic fluctuations ter value on a regular onderstel.
Litecoin is very similar to Bitcoin and it will generally be able to rail on Bitcoin’s coattails. The main thing traders should look out for is market adoption. If merchants determine that they want to accept Bitcoin spil a payment method then Litecoin’s similarities mean that it will find it lighter to become accepted.
While Litecoin does tend to go after Bitcoin there is also the possibility of hedging taking place. Investors are looking to shift some of their assets spil Bitcoin crests ter order to limit any losses from a potential crash. This sort of behavior wasgoed observed just prior to the Bitcoin fork ter 2018. When traders do this it has the potential to increase the value of Litecoin.
Miners’ sentiments may also have some influence. The Litecoin mining algorithm is less dependant on electrical play than that of Bitcoin and this can lead to lower costs for miners. If miners determine that litecoin is providing them more stable comebacks then they may switch to Litecoin. This increases the supply and encourages traders to buy Litecoin.
What is the Price Outlook for Litecoin, and What Do Experts Say on Prices?
Like Bitcoin, the short-term price outlook for Litecoin is fairly volatile. You should expect to see slew of ups and downs spil speculators engage te profit-taking.
Te the medium, to long term, it is likely that Litecoin, Bitcoin, and other currencies will generally proceed on an upward trajectory, even if it is a rocky road.
If Litecoin becomes adopted spil a common payment method then you should expect to see speculation decline spil the cryptocurrency embarks to stabilize.
It is difficult to fully predict the future of Litecoin and any traders should brace themselves for slew of ups and downs and keep a well-hedged portfolio.
Experts are generally fairly positive upon the future of LTC, albeit not all believe that it is through Litecoin’s own merit.
Charlie Lee on CNBC 16th Dec 2018
Litecoin’s creator Charlie Lee told CNBC:
“I don’t like to speculate on prices because I’m always wrong.”
A entire swathe of experts from Tim Henneking to Charles Hayter have all stated some variation of the opinion that when Litecoin rises te value it is largely due to the success of Bitcoin.
“Litecoin is just cruising ter Bitcoin’s wake”, said Tim Enneking, managing director of Crypto Asset Management.
There is some backing to their view, Coindesk has found a strong correlation inbetween BTC and LTC prices albeit they did note that they did not always rise ter tandem.
Charles Hayter has also made the point that “a rising tide lifts all the boats.” When the cryptocurrency market is doing well then Litecoin will rise along with it.
Gavin Yeung, founder and CEO of digital asset management rock hard Cryptomover, said:
“Investors may be using Litecoin spil a hedge te case Bitcoin suffers a correction”.
Litecoin Market Sentiment
We’ve gathered gegevens from leading exchanges to determine the general feeling te the Litecoin market. Its calculation is elementary, using gegevens from the exchanges listed below, wij gather buy and sell volumes for a given time period and weight this against the total transaction volumes.
List of Litecoin exchanges
Trio Reasons to Invest ter Litecoin
- Network Effects
- High Upside
- Potential Inoperability with Bitcoin
Invariably, when people very first get familiar with Bitcoin and begin taking hold of cryptocurrency concepts, at some point, they embark looking to see what other coins predominate the space. Litecoin has grown a reputation for being the ‘silver’ to Bitcoin’s ‘gold’. By virtue of being around since 2011, it is a longstanding altcoin that has built up a solid community and for this reason, shares some of Bitcoin’s very first mover advantage.
Spil Bitcoin’s blockspace is becoming a zonderling and expensive resource, spil witnessed by its rising transaction fees, Litecoin stands to build up by picking up some of the slack. Spil Bitcoin is solidifying spil a store of value, many see Litecoin spil a possible candidate to pick up the slack and act spil a buffer or transaction overflow for Bitcoin. If Litecoin completes up inheriting this use case from Bitcoin, at such a cheap buy-in, its upside potential should be evident.
Potential Interoperability with Bitcoin
Litecoin adopted SegWit before it wasgoed enacted on the Bitcoin network. The two networks share many key features and both of them have Lightning Network and Atomic Interchanges on their roadmaps. If both technologies come through, it means that the Bitcoin and Litecoin networks will become compatible for low toverfee inter-blockchain transactions which means that users of both networks could send payments across chains to each other.
Two Reasons Not to Invest ter Litecoin
- Follower not a leader
- The stigma of silver
Follower Not a Leader
Albeit Litecoin is more agile than Bitcoin when it comes to deploying fresh technologies and ideas, such spil implementing SegWit months ahead of Bitcoin, once Bitcoin eventually deploys thesis upgrades, they quickly become a schijf point on Litecoin spil all the rente moves back overheen to Bitcoin. Litecoin seems to only choose features that are ter Bitcoin’s pipeline and uncommonly innovates any of its own.
The Stigma of Silver
The negative side of being perceived spil the ‘silver’ to Bitcoin’s ‘gold’ is that it can become a self-fulfilling prophecy that Litecoin will always play 2nd fiddle to Bitcoin.
How to Buy Litecoin
So you’ve determined that you want to buy LTC. The next step is figuring out how to get Litecoin.
The best way to acquire LTC is through a cryptocurrency exchange. You use thesis exchanges to trade fiat currency for Litecoin. Unluckily, using exchanges can be risky. You need to take care to protect your investment. If you have any problems you are pretty much on your own.
There are two main ways to buy Litecoin. Which one you determine to use will largely depend upon your priorities.
If you want to exchange your fiat currency for Litecoin then one possible choice is an exchange called Coinbase. There are several exchanges but Coinbase will suit the majority of traders. It comes with a large number of currency pairs and you even have the option to buy Litecoin with your credit card. Coinbase has a competitive toverfee rate. Purchasing LTC will typically result ter a Three.99% toverfee if using a credit or debit card and a 1.49% toverfee for most kinds of canap transfer.
Coinbase requires you to provide your ID and address when registering. This sort of ID verification is a standard proces used by many exchanges. It is designed to prevent the exchange from being used for money laundering and other criminal activities. This ID vetting should discourage traders who are interested ter cryptocurrency precisely because it provides anonymity. Privacy-conscious traders will choose to take another route.
Rather than buying LTC directly you can very first buy Bitcoin through a peer to peer Bitcoin Exchange that does not require an ID. One of the best options is LocalBitcoins which permits users to buy Bitcoin with almost any currency. Once you have the Bitcoins you will then be able to trade thesis for Litecoins at another exchange.
If you choose to use LocalBitcoins make sure that you vettig other users meticulously. There is a review function and you should make sure you use it. Some unscrupulous users have bot known to scam fresh traders. If you get a bad feeling or see poor reviews it is generally best not to make the trade.
Keep te mind that you will need to be serious about your security when using an exchange. Always enable two-factor authorization and attempt to avoid keeping all your coins ter a single wallet. Also, recall that you should never leave coins ter your exchange wallet unless you are programma to trade them. The best way to secure your cryptocurrency is te a hardware wallet or by putting them te cold storage. This involves keeping your cryptocurrency te an offline wallet that only you have access to. Reminisce, you are entirely responsible for your own security. If you don’t own your wallet, you don’t own your tokens.
You also need to make sure that you keep your wallet secured and password protected. You will also need to protect your pc, email, and phone with unique secure passwords. Any breach could result ter your coins finding their way into the wallet of a hacker.
Managing your own Litecoin is not effortless. Not only do you have to negotiate the exchanges but you also need to take reserve care to keep your pc secure. You need to be wary of phishing scams, viruses, and other risks. You also need to keep very careful track of your wallet’s access codes. If you lose those your Litecoin investment could end up trapped ter a wallet that you can’t access.
On top of this added stress are the risks you can’t control. When you use an exchange you are relying on them to protect you and your Litecoin. The problem is that they sometimes fail to do this decently. The most well known example is the MtGox incident.
Back te 2013, MtGox wasgoed by far the thickest Bitcoin exchange. It managed overheen 70% of the market. The cracks began to vertoning ter May of 2013 when FinCEN seized their accounts. This led to users losing their capability withdraw USD from the exchange. Then to make matters worse MtGox wasgoed hacked. The attackers got away with around $500 million and MtGox wasgoed coerced to verkeersopstopping for bankruptcy.
Sadly thesis problems are not a thing of the past. Ter August 2018 Bitfinex wasgoed klapper by a similar hack. The attackers emptied random wallets and stole around $72 million worth of cryptocurrency. Ter order to prevent individual users from losing everything, Bitfinex determined to spread the losses, reducing everyone’s account balance by 37%.
Bitfinex wasgoed able to do this because they are not governed by any regulations. Its users are essentially at the grace of the exchange should something go awry. Gratefully there is a better way to buy Litecoin.
What’s the Best Way to Buy Litecoin?
Our preferred option is to not buy Litecoin at all and instead to trade Contracts for Difference (CFDs) using a regulated broker.
A CFD is a contract inbetween a buyer and a broker. Instead of directly buying Litecoin you would buy a CFD and take a brief or buy position. You would then win or lose money depending on what direction the market moves ter. This permits you to take advantage of shifts ter the market without everzwijn possessing a single Litecoin.
There’s an eye-watering number of brokers out there and it’s very difficult to sort out the good from the bad. The very first rule is to always make sure that your broker is a regulated broker. Regulated brokers have to obey with stringent standards designed to protect your money. You should also look at any commissions, overnight fees, and toegevoegd risk management implements. Brokers usually opoffering free demo accounts on their online platforms, permitting you to test the software before committing to any one verhoging.
This can involve a loterijlot of research but fortunately for you, we’ve determined to save you some time by doing it for you. After going through all the options wij have determined that our best pick for trading ter Litecoin CFDs is Plus500.
Plus500 – Our Top recommendation for trading te Litecoin CFDs
Plus500 is a excellent way to trade Litecoin CFDs. Plus500 subsidiaries are individually regulated by the following agencies, Financial Conduct Authority (FCA), Cyprus Securities Exchange (CySEC), Australian Securities and Investments Commission (ASIC). Plus500 is also authorized by the Financial Services Provider Ter South Africa under FSP 47546.
See the table below for exactly which regulator covers you ter your country and what protection is suggested.