7 Reasons Why Investing in Litecoin Will Be a Smart Choice in 2021
After Bitcoin, other altcoins appeared later to expand on or improve what the first-ever crypto-monetary was to do. Others supplement Bitcoin, which is similar to silver next to gold beside the top digital asset. Often called digital silver, Litecoin is referred to as digital gold for Bitcoin. With Bitcoin it has many similar traits and remains one of the earliest cryptocurrencies in the industry among the top ten altcoins available. This alone provides Litecoin a big promise as an investment and a huge resilience in the fast-moving crypto market.
Litecoin is a token trading cryptocurrency under the LTC ticker sign. Since its first launch in 2011, it's a very promising altcoin. It was invented by the former Google and Coinbase engineer Charlie "Satoshi Lite" Lee. The Litecoin Foundation works for cryptocurrency development and adoption. In a recent cooperation, the Foundation has for example become the UFC's official cryptocurrency, the Ultimate Fighting Championship.
7 Reasons Why you should invest in Litecoin in 2021?
These 7 factors explain why investing in Litecoin is an intelligent option and why it is worth investing in Litecoin when you look at its long-term potential for growth.
1. Litecoin is digitally scarce and has a close relationship with Bitcoin.
Gold is precious and highly scarce since it is precious. This is also true for bitcoin, now known as digital gold. Litecoin is likewise a peer-to-peer digital, open-source currency that works more or less as bitcoin. While Bitcoin is digital gold, it is called digital silver by crypto fans. Only this characteristic is a key value driver as consumers consider the coin to be following in the footsteps of its predecessor. Litecoin simply has a finite quantity of coins, therefore only a few coins will be created and circulated. The LTC volume is tightly limited at 84 million.
2. Litecoin Has a Useful Application
The Litecoin halving mechanism limits the number of coins that may be mined in a given amount of time. The developers reduced the time it takes to generate a block from ten to two and a half minutes in an effort to improve bitcoin. Because of this, transactions on the Litecoin network are now faster than those on the bitcoin price network.
The majority of users currently prefer to utilize this coin for transactions such as payments and trading between exchanges. While bitcoin has been relegated to the position as a way of holding value, Litecoin has taken over as a digital currency or a primary means of exchange. It's similar to using paper money for day-to-day transactions while hoarding gold as a store of value. The continued use of Litecoin in this manner ensures that its price remains stable even as its worth rises. You can make a lot of money if you invest in such a coin.
3. Litecoin features Fast Processing Times and Minimal Charges
Litecoin is similar to Bitcoin in many ways, yet it serves a more practical purpose. When the developers of Litecoin shortened the block time confirmation to 2.5 minutes, they made the coin more scalable, allowing it to execute a greater number of transactions for a cheaper fee than bitcoin.
Litecoin's network is currently four times quicker than bitcoin's. The primary goal of bitcoin's creators was to seize control of money from banks and governments, but they overlooked transaction fees. This was found as a flaw in bitcoin by Charlie Lee and his developers, who reduced the cost of transacting on the Litecoin network significantly.
At this time the cost levied by the Litecoin network for a transaction is around 1/50th Bitcoin's price. What's good is that a transaction that is processed costs 1/1000 of an LTC. The cost is the same regardless of the size of your transaction.
4. Litecoin has its own development team
Every digital currency has a staff of developers whose labor keeps it running and up to date with technological changes. There is a team of professional and experienced developers who have worked tirelessly to improve the performance of the Litecoin network. Atomic Swaps, or the exchange of one cryptocurrency for another across blockchains, are now possible on this network. It also includes the Lightning Network, a second-layer technology channel that enables for faster and more efficient transactions.
They were also the first to add a Segregated Witness update, demonstrating this team's desire to stay ahead of technological advancements. You would be better off investing with a forward-thinking team like this one.
5. It is simple to buy and sell Litecoin
The majority of people have not yet invested in cryptocurrency for two basic reasons. They either don't understand how this market or sector operates, or they are hesitant to invest, or both. You must first select if you want to make a long-term or short-term investment.
All you need to do for a long-term investment is open an account with one of the big exchanges, such as Binance. You then deposit the desired amount and purchase the coins. You can then invest in a cryptocurrency wallet, preferably a cold wallet, and keep your money there. The money can then be withdrawn to your bank account or other relevant payment systems.
6. Litecoin includes a variety of secure storage options
If you are concerned about having your money stolen after investing in Litecoin, following information can assist alleviate your concerns. Litecoin is a well-established cryptocurrency that is compatible with a wide range of trustworthy wallets. Keeping your funds safe from hackers is a critical component of investing in any cryptocurrency. Investing in a cold storage wallet is the greatest method to keep your funds safe.
Most cryptocurrencies are incompatible with well-known wallets like Exodus and Infinito. These are two internet-connected soft wallets.
7. Financial Institutions are Using Litecoin
Several coins are now utilized as a form of payment by various groups, but only a few have gained recognition from financial institutions such as banks. Remember that financial organizations see digital currencies as a danger to the fiat currency that they have dominated for a long time. Litecoin, like Bitcoin, is currently being integrated into the systems of many financial organizations.
These organizations have recognized Litecoin's potential as a payment method. With a technology like SegWit, which attempts to separate transactions into two different sectors to enhance efficiency, you can expect more and more financial institutions to adopt this coin into their systems, thus strengthening and increasing the value of this currency.
About the Author
Trisha Renolds is an Accounting and Finance graduate at the University of New South Wales specializing in Blockchain and Cryptocurrencies. She believes that cryptocurrency is the future, and so the digital economy. Trisha wants to educate people about the functionality and implementation of blockchain technology. Aside from working on my own digital business, I share my deep knowledge about Blockchain and Cryptocurrencies through our website The Top Coins.
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