When Litecoin was launched in 2011, the crypto space was not this crowded with cryptocurrencies. Back in time, people had limited coins to choose from, and Litecoin was one of them. It is said if Bitcoin is the gold of the cryptocurrency market, Litecoin is silver. This digital currency has enjoyed an excellent position in the market since its launch and has always attracted investors’ attention. But with the launch of so many different cryptocurrencies, is Litecoin still worth investing?
While some investors chose to convert their purchased Litecoin to INR and enjoy a profitable exit, some preferred to hold on to this cryptocurrency. But if you don’t belong to any of the two categories and are still in a fix on whether to purchase and hold on to Litecoin or move ahead with other crypto coins, this article is here to help you. We have listed below all the essential information related to Litecoin that every investor should know before making an investment decision. So let’s check all the points shared below.
What is Litecoin?
If your understanding of Litecoin is limited, it is essential to get some clarity about the basics of this coin. The better you understand a cryptocurrency, the better you’ll be able to make an investment decision around it. For the uninitiated, Litecoin is a decentralized, blockchain-based cryptocurrency. It was created as a viable alternative to Bitcoin because it covered most of Bitcoin’s shortcomings.
People can use Litecoin to make payments around the globe in a secure, faster, and affordable manner. Litecoin has a blazing fast block generation rate than Bitcoin and can confirm a transaction every 2.5 minutes compared to the long 10 minutes taken by Bitcoin. It runs on the Scrypt algorithm and uses Proof-of-Work (POW) consensus method to validate transactions.
Due to Litecoin’s transaction speed and costs, many merchants are considering accepting it as a mode to accept payments. The algorithm Litecoin uses makes it ASIC-resistant, meaning Litecoin mining will be easily accessible to more people. Now that you’ve gained a clear understanding of what Litecoin is and its uses, let’s head to some crucial points you should know before investing in this digital currency.
Government Digital Coins May be on the Horizon
Gov Coins or government coins pose a significant threat to cryptocurrencies operating in the space, and Litecoin is no different. At present, over 60 countries, including China, Bahamas, Cambodia, etc., are considering launching a digital government currency to take on the rapidly growing decentralized cryptocurrencies.
The gov coins are expected to be launched, harnessing blockchain technology’s power and aiming to make digital payments faster, secure, reliable, and affordable. But if govcoins are launched, and stricter government measures are announced for the widely unregulated cryptocurrencies, the market can witness a steep dip within the blink of an eye.
So if you’re considering investing in Litecoin, be sure to take the safer route and don’t put all your eggs in one basket. In regards to govcoins, a safe route should be taken for other cryptocurrencies too. If, besides Litecoin, you own Ethereum, for example, you might want to convert some Eth in INR and cash out instead of sitting and watching the prices dip suddenly because of the launch of govcoins.
Litecoin is Much Faster & Lighter than Bitcoin
The world’s most popular cryptocurrency, Bitcoin, was created to help people make online payments to anyone and anywhere around the world without involving a third-party financial institution to facilitate or process the transaction. Despite having a robust use case, Bitcoin does come with its shortcomings. Bitcoin is relatively slow and energy-intensive, which makes it less scalable.
Litecoin was launched as a viable alternative to Bitcoin, which is faster and requires less energy to mint coins and validate transactions. Even though Litecoin is also created using blockchain technology, it can process transactions four times faster than Bitcoin. Litecoin’s speed has attracted many retailers and is a prime reason behind the coin’s growing popularity and acceptance.
Another aspect that makes Litecoin more desirable to retailers is its total number of coins. While the market can only have 21 million Bitcoins, it can have approximately 84 million Litecoins. The more digital currencies the market has, the better for retailers or merchants.
Litecoin is Easily Available on Major Crypto Exchange Platforms
Over the recent years, many new coins were launched but could not stand the competition. Litecoin is one such cryptocurrency that has weathered the storm for far too long. This cryptocurrency has been around for almost a decade, and it still shows no signs of decline.
Litecoin is listed on many exchange platforms as a supported cryptocurrency due to its incredible performance. Litecoin did not give returns like Bitcoin, but its early investors have received excellent returns. It means buying and selling Litecoin is easy and requires no extra effort.
In today’s world, the demand for improved, innovative, and valuable cryptocurrencies is rising. The digital coins that will constantly innovate and fill the gaps offered by other crypto coins will take the lead. It is one reason why even today Litecoin is as relevant and in-demand as it was during its initial years of launch. If you want to add a cryptocurrency in your portfolio that is fast, secure, and provides real-life utility, you can consider investing in Litecoin. However, keep in mind that Litecoin is also subject to risk and volatility, similar to other cryptocurrencies. Always do your own thorough and reliable research before making any investment.