Why buy Litecoin: the right investment in Litecoin
Litecoin is a cryptocurrency that appeared two years after Bitcoin in 2011. In the role of the developer was someone Charles Lee. The name of the new money translates as “lite” coin. What are the features of virtual currency? Is it worth buying Litecoin today? What cryptocurrency experts give rate forecasts? We will consider these and other questions in detail.
Is it worth investing in Litecoin?
Litecoin developer claims that by 2020 miners will get only two-thirds of the total number of coins, which allows you to invest in Litecoin and expect a future increase in the value of the cryptocurrency. Sudden changes in the exchange rate almost do not affect the popularity of Litecoin, which has been held in the TOP-5 electronic currencies according to BTC-E for several years. Analyzing the current chart of the exchange rate, the conclusion suggests itself that no sharp reduction in the value of cryptocurrency is planned, so asset holders are in no hurry to sell virtual coins.
In 2017, Litecoin showed rapid growth. By the beginning of 2017, the coins jumped 1300% in price, and in the period from May to October, the cost of one LTC increased from 42 to 58 dollars for one LTC. From November to mid-December, the rate made another jump, as a result of which the price rose to $ 321 on December 20, after which it slipped to $ 271. Despite the growth trend, recent leaps have pushed investors who are afraid of strong market volatility. However, the overall trend looks positive.
What are the disadvantages of investing in Litecoin?
Many experts note that investing in Litecoin is still dangerous. In the growth in the value of cryptocurrency, they saw the “soap bubble” factor, which in 2011-2013 also affected Bitcoin. At that time, cryptocurrency also soared in price, and then fell sharply to a minimum level.
The sharp changes in the value of virtual coins negatively affect the investment area of activity.
In addition, the Litecoin cryptocurrency has a number of disadvantages:
1. It will not work to refund the money in the event of the theft of the wallet.
2. A small currency volume (when compared with the Bitcoin market).
3. There is a risk of double costs (the reason is the high speed of the formation of new blocks).
Against this background, investments in Litecoin are a risky undertaking. This also applies to trading. The cost of cryptocurrency is not controlled by anyone, and many external and internal factors affect the level of supply and demand. There is a risk that Litecoin will lose in value due to a decrease in the interest of miners in cryptocurrency mining or in the event of a software error. In addition, the detection of a failure in the Bitcoin code can lead to a collapse in the price of its forks.
Is it worth it to mine Litecoin?
The sharp increase in the cost of cryptocurrency made users think about the question of whether it is worth mining Litecoin. Despite the increased complexity, it is easier to mine this cryptocurrency, which allows you to count on a quick payback. The first step to start earning is to purchase equipment. Moreover, the success of the work largely depends on the capabilities of the video card. For mining Litecoin, it is recommended to use the ATI manufacturer’s models. Using a CPU for mining does not produce results.
The algorithm for mining Litecoin is as follows:
Setting a wallet. The Cryptonator service can be used here, which is completely in Russian and is suitable for novice users. The advantage of the storage is that it can be used for various cryptocurrencies – Litecoin, Zcash, Monero and others.
Download and install cryptocurrency mining software. After installation is complete, you need to configure the video card.
Registration in one of the pools for mining. The best options are Litecoinpool, Coinotron and others.
Cryptocurrency mining. After starting work, it is worth checking that the income goes to the wallet.
The best program for mining Litecoin is considered the GUI Miner Scrypt. Its advantage lies in the ease of configuration, which makes it accessible even to beginners. To increase efficiency, you can install drivers for the video card to avoid errors in cryptocurrency mining. After setting up the software, you need to connect to the pool and specify the wallet address. Daily earnings according to the statement of miners – 15-20 dollars per day.
Is it worth buying Litecoin, because you can choose mining? The advantages of cryptocurrency mining are efficiency, reliability and availability for each network member. The downside is that with the growth of the exchange rate, the number of miners increases, the complexity of production increases, and income decreases. In addition, in recent years, the profit from mining is divided between large companies, and the usual participants are “crumbs”. That is why for the effectiveness of mining it is worth collecting a powerful farm and connecting to pools.
Where to buy Litecoin cryptocurrency for investment?
To invest in Litecoin, it is worth figuring out where to get the cryptocurrency. There are several ways:
Purchase through exchange offices. The most convenient way to receive virtual coins is considered to be using special exchange services that work around the clock and exchange various types of virtual coins. To purchase Litecoin, you need to select an exchange office, indicate the currency pair of interest (for example, USD – LTC) and conduct the transaction, following the prompts of the service. Before the operation, it is worth registering (the information must be true). The operation takes several minutes.
Purchase through an exchange. The network has many cryptocurrency exchange platforms. One of them is LiveCoin. The Litecoin purchase algorithm has two points – you have to trade on the exchange, so there is a risk of being left without money. With sufficient capital and knowledge, exchange trading can increase profits. To receive Lightcoins, you need to go to the exchange, open a trading account (register) and go to the trading section. After depositing money into the account, you can start bidding.
Is it worth buying Litecoin – what do the experts say?
As noted above, Litecoin is a lite version of Bitcoin with slightly changed characteristics. But this does not mean that cryptocurrency will always be in the shadow of the “big brother”. This fork has its own capitalization and rate, which also depends on supply and demand. Today, Litecoin stands out among other cryptocurrencies, thanks to a sharp increase in the exchange rate from October to December 2017. The difference between Litecoin is in relatively small drawdowns, not exceeding 20–25%. For example, the same Ripple rose in price at the start of 2017, but after it fell by 60 percent.
The increase in the value of Litecoin is due to the news about the return of the creator of the cryptocurrency, Charles Lee, to work. The developer noted that in the future he plans to engage in improving the cryptocurrency and increasing its popularity. In addition, Charles’s brother (Bobby) is the head of one of the largest Bitcoin exchange sites. The presence of a leader gives confidence to other network participants (Bitcoin itself cannot boast of this).
Today it can be argued that the next 4-6 years, cryptocurrency will develop and grow in value. The reasons for this factor are the advantages and features of the system, which were mentioned above. Problems with Bitcoin in 2013 became the occasion for talk about its possible replacement with Litecoin. Despite this, Bitcoin steadily went up, and Litecoin showed significant growth only at the end of 2017.
The appreciation of Litecoin is explained by the rapid increase in the price of Bitcoin, which in December reached $ 19 thousand, and as of 22 the number fell to 13.9 thousand (in just 5 days the rate fell by a quarter). Simultaneously with Bitcoin, Litecoin also dipped. Despite this, investments in Litecoin look very rosy, which allows investors to use virtual coins to save and increase capital.