When you first begin your journey into the world of cryptocurrency, it can feel overwhelming: there are so many different coins that picking which one to invest in seems like a dizzying task. However, once you get past the initial unfamiliarity of all these new currencies, you’ll start to see patterns emerging.
Some stand out because they solve specific problems in new and interesting ways. Those types of coins are known as altcoins — alternative versions of Bitcoin. Litecoin is one such altcoin, and this article will explain why that makes it a great opportunity for investors looking to take advantage of the booming cryptocurrency market.
1. Litecoin is easy to understand for beginners
One of the first things to consider when investing in any new financial product is whether you understand how it works. This is especially true if it’s your first time buying and trading cryptocurrencies, and you’re new to the whole scene. The last thing you want to do is purchase Litecoin on Changelly and don’t understand your investment. While you may end up making money in the short term, you also run the risk of losing everything if the market suddenly turns around. Litecoin, on the other hand, is one of the easiest cryptocurrencies to understand.
2. Litecoin has great brand recognition and an active development team
You want to be sure that the product you’re investing in has the potential to become a household name. Litecoin has some of the best brand recognition of any altcoin on the market. It is one of the few altcoins that has its own distinct brand, separate from Bitcoin.
Seek for projects where the developers are actively seeking to improve and expand their product. When it comes to Litecoin, there are two things you should know about the team behind it:
- It has been around for much longer than other altcoins. This gives it a leg up on many of its competitors since it has already established a strong presence in the market.
- They are actively seeking to improve the coin. Litecoin’s developers have stated that they want to improve on some issues facing Bitcoin. They also have plans to expand the brand, increasing awareness and adoption among consumers and investors alike.
This means that you can expect Litecoin to grow and expand in the future.
3. Litecoin has shown strong performance in the past
One of the best ways to predict the future performance of a given altcoin is to look at its past performance. If a coin has shown strong performance in the recent past, there is a good chance that it will perform similarly in the future. For the most part, Litecoin has shown steady growth over the last seven years, though it has experienced several major spikes along the way.
Litecoin has experienced a rapid expansion in recent months. This is likely because investors are finally paying attention to it, as well as the fact that several major companies have started to adopt Litecoin as a payment method.
4. Litecoin is mostly regulated
This is both a blessing and a curse for cryptocurrency. On the one hand, it means that people can get involved without worrying about the kinds of regulations that are in place for traditional investments. On the other hand, it also means that people can do whatever they want with little to no oversight. Litecoin is more heavily regulated than Bitcoin, meaning that it is less likely to be used for nefarious purposes.
5. Litecoin is much faster than Bitcoin
While Bitcoin was once a quick way to send money between two different countries, now it takes much longer than a standard bank transfer. This is because the number of people using Bitcoin has greatly outgrown the Bitcoin network’s ability to process all those transactions.
Litecoin solves this problem by being much faster than Bitcoin, with the ability to process transactions much more quickly than Bitcoin. Even though Litecoin has the same core technology as Bitcoin, it does not share many of the same issues. This way it is an attractive option for people looking for an alternative to Bitcoin.
6. Litecoin has very low-friction and low-cost transaction fees
Another problem with Bitcoin is the high transaction fees that accompany using the network. This is, again, a result of the network being unable to keep up with demand. Because the transaction fees are so high, businesses often choose to use other methods of transferring money. Litecoin has fixed this issue by having very low-friction and low-cost transaction fees, becoming an attractive option for businesses that regularly transfer money internationally.
7. Litecoin has significant room for growth
As more people get involved in cryptocurrencies, their investments will grow in value. This will create a cycle of increasing investment and increasing demand. At the same time, those who have already invested will likely increase the amount they have invested. Investors who see their portfolios growing want to expand those investments further. This means that there will be a constant cycle of investment and reinvestment that will drastically increase the overall value of cryptocurrency.