A beginners guide to Litecoin Should you invest in it

When it comes to investing in cryptocurrencies, there are two types to choose from. While Bitcoin is popular as the top choice, there are other viable options that fall under altcoins. A great option in the altcoin sector is Litecoin (LTC).

It is one of the very first coins to have been adopted by businesses and online platforms as a viable payment option. Besides this, it is considered to be a popular alternative to Bitcoin as it has similar attributes to it. 

This guide from Gamdom will answer the question: Is Litecoin a good investment option in 2023? Read below to learn more about this altcoin and its different advantages.

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How did Litecoin come about

First released back in October 2011, Litecoin is considered to be one of the first altcoins in existence. LTC is considered to be the silver to Bitcoin’s gold at its peak as it was considered to be the 3rd largest crypto based on market capitalisation.

Charlie Lee, a former Google employee, modified the source code fork of Bitcoin to create the technology behind LTC. Lee removed the potential risks that come with Bitcoin’s technology and further improved upon it.

Within just a few years, the value of the coin soared high thanks to the exchange availability and liquidity in 2014. A merge mining feature between LTC and Dogecoin was also established within the same year which allowed miners to acquire both coins at the same time.

By 2017, LTC was recognised to be one of the first coins to adopt soft fork changes in the transaction format of Bitcoin. From there, LTC only continued to improve and grow further as it was included in one of the most popular online payment systems, Paypal, in its list of cryptos that can be purchased through its platform.

The LTC network had a soft fork in May 2022 that enabled users to send private transactions using crypto. Only the sender and receiver can view the amount of LTC transmitted under the Mimblewimble Extension Blocks (MWEB) soft fork. PayPal started allowing LTC and other featured currencies to be transferred from the site to other wallets and exchanges in June 2022.

How is Litecoin minted?

Coins are produced through a process called minting. There are two types which are Proof Stake (PoS) and Proof of Work (PoW). In the case of Litecoin, it works on the PoW method where a pool of miners compete with each other to solve a complex mathematical equation from a block which has been verified by them.

The first miner to figure out the equation will get LTC plus any associated transaction fees. The pool of miners will validate each new block uploaded to the network before bidding again for the LTC reward.

What are the advantages of using Litecoin?

Given the fact that Litecoin was one of the first crypto coins to have been created, it is not surprising to see that investors continue to flock and invest in it. With this, here are some benefits that have convinced investors to use LTC:

1. You can expect smaller fees when transacting with LTC thanks to its fast transaction speeds. On average, the coin has a block time of just 2.5 minutes. In comparison, Bitcoin takes over 10 minutes to confirm.
2. Compared to other coins that are significantly influenced by the volatility of the crypto market, Litecoin is relatively stable. Despite not being at its peak anymore, it has continued to be one of the largest peer-to-peer (P2P) cryptocurrencies by market capitalisation. In general, a coin tends to become stable once a critical amount of users become confident and comfortable with it.
3. Investors don’t need to worry about hackers or viruses thanks to the Litecoin Network which allows for transparency and security. This is thanks to the network of miners and the coin’s decentralised nature. Everyone can participate in the validation process which helps LTC stay strong against malicious attacks.
4. Litecoin is accepted as a mode of payment by more than 3000 businesses worldwide due to its high liquidity. The fact that LTC is supported by prominent e-wallets only makes it even more accessible to investors.
    

Where can Litecoin be used?

Litecoin was designed to be as convenient as fiat currencies. Charlie Lee has been continuously at work with businesses to have the coin adopted as a viable payment option and mode of exchange. Here are some platforms where you can use your Litecoin investment on:

• Any LTC-accepting crypto wallet
• VISA
• Amazon
• UberEats
• PlayStation
• Airbnb
• American Red Cross (donations)
• Carolina Hurricanes (donations)
   

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Crypto exchanges that support Litecoin

Many investors buy Litecoins because it is less affected by the volatility of the crypto market. If you want to buy your first LTC and start investing, there are hundreds of different exchanges that support the coin. Here are some of them:

Binance

Known as one of the biggest crypto trading platforms in the world, Binance supports the top coin in the market. This includes LTC. Changpeng Zhao launched the platform in 2017, and it is officially registered in the Cayman Islands. With support for more than 600 cryptocurrencies, Binance focuses mostly on altcoin trading.

Kraken

Kraken is a popular crypto exchange platform based in the United States. Jesse Powell and Thanh Luu, the co-founders, came up with the idea in 2011. The platform, which assists with both small and major trading platforms, was among the first cryptocurrency exchanges to be acknowledged in the country. 

Coinbase

Created by former Airbnb programmer and Goldman Sachs trader, Brian Armstrong and Fred Ehrsam, Coinbase was launched back in 2012 and has continued to be a reliable platform since then. Here, you can exchange over 100 different crypto coins. Many users have made the site their go-to as it is known for being simple and straightforward which is ideal for newer investors. 

KuCoin

Founded in 2017, KuCoin is a crypto exchange with a network that accepts more than 600 cryptocurrencies and permits the lending of digital assets so that users may increase their coin earnings. To help consumers in selecting which crypto to invest in, KuCoin also features a trading bot. It is a program designed to do trades on behalf of a person.

Should you invest in Litecoin?

Although Bitcoin is still the most sought out coin in the market, Litecoin is a great alternative. According to Litecoin investment predictions, the coin is expected to continuously rise from its current price of $87.32. 

Despite this not being at its peak price,  having some LTC can help your portfolio if you're just starting in the realm of cryptocurrencies. Holding onto alternative currencies might still be a lifeline for you even though market instability is constant.

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Words by: Raphael Latorre