It can be a headache to pick which cryptocurrency to invest in, particularly when the markets shift so quickly. One of the most popular coins of 2017 was Litecoin, which is just 12 months increased its value by more than 5,000 percent.
Litecoin was created in 2011 after forking a modified Bitcoin client version. That’s why it’s called Bitcoin-Lite sometimes! Don’t worry, everything’s going to be explained!
We’ll tell you everything you need to know about Litecoin in this complete guide. This begins with some background details on what Litecoin is and whether we think it is good or bad. We will also show you how to buy Litecoin and in which wallet you can store it.
So your question at the end of this guide is, “Should I buy Litecoin?”It’s going to be a little easier to answer. Okay… what do you expect?! Let’s dive in! Let’s dive in!
What Is Litecoin?
In 2011, Charlie Lee developed Litecoin, also known as the LTC currency code. Lee wanted the Bitcoin blockchain to be “lighter,” so that transactions could be processed faster and cheaper. To do so, the Bitcoin blockchain was forked.
Would you know what a fork is?
Ok, a fork is when a new blockchain takes the original code from an earlier blockchain but changes technology to boost it. That’s what Litecoin did. It used the original Bitcoin but made it easier and cheaper to use!
Forks occur in the field of cryptocurrencies all the time. Other coins like Bitcoin Classic, Bitcoin Unlimited, and Bitcoin Cash are all Bitcoin forks. Ethereum was an Ethereum Classic fork too! Here are some updates from the Bitcoin blockchain created by Litecoin.
Bitcoin mining is really hard for people with no costly equipment now. If people use Bitcoin to help validate network transactions and obtain additional Bitcoin.
Although you never know what’s happening, this extra power fixes mathematical problems. Such problems are so complex that they can not be overcome by anyone, so we use supercomputers. This is what secures and decentralizes blockchain technology.
Nonetheless, the network is rising with increasing numbers of people using Bitcoin. More machines seek to mine Bitcoin and generate more competition. The hardware needed to be a good miner is expensive and requires more strength.
Litecoin addressed this by modifying how the blockchain calculates transactions. It uses GPUs (Graphics Processing Units), rather than expensive ASICS (Integrated Circuit application-specific). GPUs are much less costly and have less money, allowing everyone to use Litecoin!
If you don’t know what jargon means — Asics and GPUs are both distinct computer hardware types.
Transaction Speeds and Fees
It takes about 10 minutes for a Bitcoin transaction to be verified. This is very slow in the real world. Because Litecoin is a lighter Bitcoin version, it can average transaction speed of about 2 1⁄2 minutes!
This speeds up the network for all users by encouraging people to use GPUs. Faster transaction costs are not the only advantage of Litecoin over Bitcoin. The average transaction cost for Litecoin is $0.23, while the average cost for a Bitcoin transaction is $2.83.
And there’s quite a gap, as you can see, right?
No Threats of a Flood Attack
In 2015, the Bitcoin consumer encountered a flood attack that sent hundreds of thousands of spam transactions to the network! The target of a flood attack is like a virus — bad people are trying to destroy a network.
Imagine someone sending you 200,000 emails simultaneously. The network could not handle that many transactions (emails), and the server will crash!
Charlie Lee saw reports of flood attacks in 2011 when he developed Litecoin and made sure that his blockchain didn’t happen! Litecoin seeks to address the scalability issues that Bitcoin has — so that more transactions will happen on the network at one time.
So, now you know some background details about Litecoin, let’s check if Litecoin is a great or bad investment in the short term.
As a Short Term Investment, Should I Buy Litecoin?
When people invest money in cryptocurrencies, they will determine whether they want their coins to be kept for the short or long term. When we describe a short term investment, we typically mean between 1 and 12 months. But more experienced merchants could see a short-term investment of days, hours or even minutes!
This could be because investors expect an occurrence that raises the value of the coin but instead expects the price to fall. For instance, you would have gained over 600 percent if you made a short-term investment in Unikoin Gold (UKG) between November 2017 and February 2018. It is an example of successful investment in the short term.
If you held on for much longer, however, the value will be reduced to its original price! Now that you are aware of what a short-term investment is, let us look at some of the short-term investment advantages and disadvantages in Litecoin.
- The large volume of trading: Litecoin traded since 2011 and is a top 10 coin. So it’s a common option for investors. If a cryptocurrency has a significant amount of trade, it means that you can find buyers to sell. If there are small levels of trade, you will hardly find a buyer!
- Coinbase listed: Coinbase handles more transactions of cryptocurrencies than any other exchange, even though only four coins are mentioned. Litecoin is one of these, so you can buy and sell your coins quickly. You can deposit and withdraw real money even better! Litecoin has a major advantage over other coins.
Volatility: in cryptocurrency markets volatility is a major concern. Volatility means that the coin price rises or falls very quickly. It can lead to a high risk of short-term investment in Litecoin. For instance, if you bought Litecoin at the end of December 2017, its price fell more than 50% a month later!
As a Long Term Investment, Should I Buy Litecoin?
When people invest long-term in a cryptocurrency, their value is expected to rise slowly. Generally speaking, they do not expect much market volatility and the currency is low risk. A long-term investment is more fitting for less-experienced traders who can’t manage big price swings! Normally a long-term investment is for 1 year or longer.
Bitcoin is a clear example of a long-term investment. If you bought 1 Bitcoin in 2011, it would have cost you approximately 30 cents. If you had the confidence to keep it until 2018, that 1 Bitcoin will cost more than $10,000!
Now that you know what a long-term investment is, look at some of Litecoin’s long-term benefits and drawbacks!
- Full-time leadership: Charlie Lee, the Litecoin founder, is now working entirely on the project. Lee has also a team of highly qualified blockchain experts who help the business expand.
- Founded: Litecoin is one of the most well-known cryptocurrencies of more than 7 years. Finally, it was the first alt-coin ever! This ensures that Litecoin spends less risk than some of the newer coins.
- Tiny Investments: If you want to make a long-term investment in Litecoin, you should regularly invest small amounts. This helps you to defend yourself from short-term market fluctuations.
Scalability Blockchain: Scalability problems are what most blockchain projects are aimed at addressing. Solving scalability issues will not slow down the blockchain because more people use it. Litecoin can currently process approximately 56 transactions per second. This is fine compared to the 7 transactions per second of Bitcoin. It must, therefore, be done quickly to make it usable in the future.
How do I Buy In Litecoin?
One of Litecoin’s key benefits is that you can buy it with fiat money like USD, EUR, and GBP! You can use your debit or credit card and also transfers to a bank
The best way to buy Litecoin is to buy it on Binance.
- Go to Binance ( Click on this link, you will receive back 20% trading fee )
- Sign up for an account.
- Use your credit card or you can buy EOS with a bank transfer.
Why you should buy on Binance?
Where to Store Your Litecoin and Keep It Safe?
You use a third-party service to purchase crypto from a broker exchange such as Binance. This means that although you own Litecoin (on paper), it is saved by Binance and regulated. Even if Binance is a safe exchange, you would never lose all your coins if they were hacked!
It is not unusual to hack third-party exchanges. For example, in 2012, the Bitfloor exchange had its servers hacked, with the hackers stealing over 24,000 Bitcoins. That’s worth over 200 million dollars now! A similar attack occurred on the famous Poloniex exchange, where 12% of their bitcoins were stolen.
These are only two examples, but many others. This is why it is incredibly important to use a wallet where you manage your cryptograph. And you can transfer Litecoin to a safe wallet as soon as you have purchased it on Binance.
Choosing a Wallet for a Long Term Litecoin Investment
If you want to keep your Litecoin long-term, it’s best to use a hardware wallet. This is the safest option; however, if you need quick access to your money, it is not as convenient as a desktop or mobile wallet.
The Ledger Nano X is the most common hardware wallet, but it comes with a price tag!
The reason a hardware wallet is so safe is that your private keys are saved on a hardware computer (like a USB card). You do have numerous recovery options to keep your cryptocurrency additionally secure!
A hardware wallet looks like a big safe, but it is much better because if the hardware is stolen, you can always get your cryptocurrency back.
6 Reason Why Should use Ledger Nano X Hardware Wallet To Secure Your Crypto: Click Here
If you read this guide from beginning to end, you should now understand how Litecoin works. So you don’t have to ask the question “Will I buy Litecoin anymore?”.
Before investing in any cryptocurrency, the most important thing is to do tons of study! As we explained in our guide, markets are extremely unpredictable and dangerous. Therefore, you can invest just what you can afford to lose! No assurances are available.
If you want to purchase Litecoin, this guide tells you everything you need to learn to do so. Don’t forget that it’s necessary to store in a secure wallet too.
So, what are your Litecoin thoughts? Would you think the investment is positive or bad? Please let us know your thoughts!