Litecoin (LTC) has the potential to make you rich in 2022
Investing in cryptocurrency is slowly gaining ground in the modern world. Although still a relatively new venture, cryptocurrency investments have turned a few savvy investors into millionaires. It is always wise to diversify your portfolio to spread your risk when it comes to crypto investments.
There are so many digital currencies out there now other than Bitcoin and Ethereum. Most investors are unaware of the many altcoins or alternative coins that they can add to their packages. Litecoin is one of those coins that you can consider adding to your investment. Since it’s not as common as bitcoin and ether, you might not know it either. However, if you are looking for a coin to diversify your wallet, here are a few reasons why you should buy a few Litecoins.
Litecoin is faster than Bitcoin
If you’re already into cryptocurrencies, you probably know how blockchain transactions work. Peer-to-peer money transfer is the main reason most digital coins exist. This means that people can send money to each other without needing a third party or intermediaries like a bank or money transfer agency. Bitcoin has facilitated such transfers hence its popularity, but transactions on its platform are slow and expensive. Developers saw the need to create alternative coins to counter bitcoin’s slow transaction rates. Litecoin is one of the many coins of this type that has managed to increase the speed of transactions, thereby attracting many users. Users can process transactions on its platform four times faster than on bitcoin blockchain. Litecoin might not be the fastest right now, but it has some promising technological developments, making it a worthwhile investment. A project that continues to innovate and evolve is a good investment.
Litecoin has a large market capitalization
Market capitalization is the total value of a particular commodity at any given time. In the case of digital currencies, you calculate this value by multiplying the total number of coins in circulation by its current price. Litecoin is currently trading at around $ 147 at the time of writing, with a mintage of over 69.3 million coins. Thus, its market cap is around $ 10.1 billion, which places it 20th among cryptocurrency circles. A high market cap indicates that a coin is stable enough to withstand sudden market shocks. High market capitalization provides the currency with a cushion that protects it when it becomes very volatile. It also means that a few whaling investors cannot price on their whim. You can consider having some of these coins for the long haul, knowing that their price will remain relatively stable.
Litecoin is very liquid
The liquidity of a digital coin is an essential factor that you cannot overlook when choosing a coin to buy. Liquidity is the ease with which you can convert an asset or commodity into cash. It is essential to invest in a coin that you can sell easily when you need cash. This is especially important if you are going into a short term trade and want to make quick profits with price changes. Litecoin is one of the most liquid coins in the digital coin market. If you want to determine the liquidity of a coin, you can check its volume over 24 hours. This volume is the number of coins that investors bought or sold in the last 24 hours. In the case of Litecoin, that volume stood at over 7.8 million coins, valued at over $ 1.1 billion. This shows that you could have moved up to 100,000 units in just 24 hours.
Litecoin has a strong team of developers
There are so many digital currencies out there right now. Research shows there could now be over 10,000 pieces in the industry today. Most of these parts are temporary pump and dump projects that you should avoid. A good development team means the part is a serious project with prospects for the future. It also means that it is well adaptable to technological advancements to maintain its presence in the market.
That said, Litecoin is among the serious projects in this industry. It has a team of experienced and competent developers to ensure its sustainability. The main developer was an engineer at Google and Coinbase. It is backed by a team that has seen litecoin outperform bitcoin in terms of speed and efficiency. The team was the first to use the Updating cookies and also featured Lightning Network. Developments like this make a coin worth investing in knowing that it could be something big and valuable in the future.
Big companies use Bitcoin
When large companies agree to use a digital coin, they have identified some useful characteristics of that coin. These companies instill confidence in investors and increase the value of the coin as its demand increases. Litecoin now works with UFC (Ultimate Fighting Champion), gaming giant Atari and Overstock.com. These companies allow their customers to pay for goods and services using Litecoins. Having such acceptance has catalyzed the growth of this digital currency. It has boosted its demand, growing its value in recent years. Blockchain technology is slowly changing the gaming industry, and Litecoin is an integral part of this growth. It would therefore be wise to invest in such a future.