Litecoin

Top 3 Reasons To Invest in Litecoin

Learn why Litecoin is one of the most demanded digital assets

Litecoin (LTC) is one of the most popular cryptocurrencies in the market. It was launched back in 2011 a few years after Bitcoin (BTC). Since that moment, the virtual currency has always been among the top 10 and it was able to attract a large number of investors. 

Nowadays, Litecoin remains among the most traded, accepted and recognized virtual currencies around the world. There are many features such as low-cost transfers and fast transactions that make of it a creat cryptocurrency to use. 

This guide aims at sharing with the community some of the main reasons to invest in Litecoin and have this virtual currency to diversify our portfolios. 

Disclaimer: this article shouldn’t be considered investment advice. This is for educational purposes only. Never invest more than what you are able to lose. Always request information from your personal financial advisor.

Fast and Cheap Transactions

Litecoin offers fast and cheap transactions. These are two of the main features of this virtual currency we should take into consideration when we will place our funds in it. While Bitcoin and Ethereum (ETH) have been used to process transfers, Litecoin has an advantage over both of them. 

The Average Transaction fee has been the lowest among decentralized and Proof-of-Work-powered digital assets. While a LTC transaction can cost as low as $0.01, BTC transactions could be as high as $6 while ETH can easily surpass $1 per transaction. 

This shows that if you want to use Litecoin as a way to move funds, transfer small amounts of money (also large amounts of LTC) and pay for goods and services, it can be a much more advanced and better solution than the aforementioned digital assets. 

Furthermore, Litecoin is prepared to perform transfers in just a few minutes compared to Ethereum and Bitcoin. While the Litecoin network works with 2.5 minutes blocks, BTC and ETH require longer periods of time in order for a simple transfer to be finally processed. 

This also provides Litecoin with a massive advantage for companies and users that want to use LTC on a daily basis without waiting for the network confirmation. Litecoin is also a very secure cryptocurrency due to the fact is a leader in the hashing algorithm it has and also because it has a large hash rate compared to other coins. 

Read More: What is BitMex?

Testnet for Bitcoin

Litecoin is also considered to be a Bitcoin testnet. This is due to the fact that many of the implementations that could be applied to Bitcoin are tested beforehand on the Litecoin network. Litecoin shares many common things with Bitcoin in terms of programming architecture. This makes it possible for Litecoin to apply changes to its network and later apply them to Bitcoin. 

This allows LTC to be at the forefront of market implementations. Litecoin has already tested and implemented atomic swap with several currencies in the market. This was very important because it allowed the digital currency to offer solutions no other coin was able to offer in the past. 

Furthermore, Litecoin implemented SegWit (Segregated Witness) and is also working with the Lightning Network. When such improvements take place in a cryptocurrency, the community tends to get excited and speculate with the price of this virtual currency. This is why this can be a good thing if we want to increase our profits while investing in cryptocurrencies. 

At the moment, Litecoin developers are working on privacy solutions that would make LTC coins fungible. While Bitcoin and the current Litecoin network work with pseudonymous, the goal is to make LTC as private and secure to use as normal cash. In the coming years, we can also expect similar solutions being implemented on the Bitcoin network if they prosper on Litecoin. 

Lower Risk Compared To Small Altcoins

As we have mentioned before, Litecoin is a cryptocurrency that has never fallen below the 10th position in the market and that has been traded with large trading volumes for years. Even larger digital assets such as XRP or Bitcoin Cash (BCH) do not have the trading volume that Litecoin has. 

Considering Litecoin has been in the market since 2011 and it already experienced many ups and downs throughout its history, we can be certainly sure this virtual currency has a lower risk than other smaller virtual currencies in the space with a lower market cap. 

Although there is still a risk related to Litecoin, the digital currency is showing it has been tested by the community with very good results and a growing interest from users throughout the years since 2011. 

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