Litecoin is a cryptocurrency that appeared two years after Bitcoin, in 2011. The developer was a certain Charles Lee. The name of the new money is translated as “lite” coin (coin).
Is Litecoin a Good Investment?
What are the features of virtual currency? Should you buy Litecoin today? What course forecasts do experts give in relation to cryptocurrency? We will consider these and other questions in detail.
Should you invest in Litecoin?
The Litecoin developer claims that by 2020 miners will have mined only two-thirds of the total number of coins, which allows them to invest in Litecoin and count on the future increase in the value of the cryptocurrency.
Sharp changes in the exchange rate have almost no effect on the popularity of Litecoin, which has been 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 a sharp decline in the value of the cryptocurrency is not planned yet, so asset holders are in no hurry to sell virtual coins.
Despite the upward trend, the recent spikes have put off investors who fear strong market volatility. However, the overall trend looks positive.
What are the disadvantages of investing in Litecoin?
Many experts point out that it is still dangerous to invest in Litecoin. In the growth of the value of the cryptocurrency, they saw the factor of the “soap bubble”, which in 2011-2013 also affected Bitcoin.
During that period, the cryptocurrency also skyrocketed in price, and then plummeted to a minimum level.
Sharp fluctuations in the value of virtual coins negatively affect the investment direction of activity.
In addition, the Litecoin cryptocurrency has a number of disadvantages:
- It will not be possible to return the money in case of theft of the “wallet”.
- Small currency volume (when compared with the Bitcoin market).
- There is a risk of double costs (the reason is the high rate of formation of new blocks).
Against this background, investing in Litecoin is a risky undertaking. This also applies to trading. The cost of a cryptocurrency is not controlled by anyone, and the level of supply and demand is influenced by many external and internal factors.
There remains a risk that Litecoin will lose value due to a decrease in miners’ interest in cryptocurrency mining or in the event of a software error. In addition, the detection of a glitch in the Bitcoin code can lead to a collapse in the price of its forks.
Where to buy Litecoin cryptocurrency for investment?
To invest in Litecoin, you need to figure out where to get cryptocurrency. Let’s highlight several ways:
- Purchase through exchange offices. The most convenient way to get virtual coins is to contact special exchange services that work around the clock and exchange different types of virtual coins. To buy Litecoin, you need to select an exchange office, indicate the currency pair of interest (for example, USD – LTC) and carry out the transaction following the prompts of the service. Before carrying out the operation, it is worth registering (the information must be truthful). The operation takes a few minutes.
- Purchase through the exchange. There are many cryptocurrency exchange platforms operating on the Web. One of them is LiveCoin. The algorithm for buying Litecoin differs in two points – you will 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 Litecoins, you can convert ltc to btc and 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 trading.