Cryptocurrency lovers are already familiar with Litecoin, but Is Litecoin a good investment in 2021? This is an interesting question because all cryptocurrency investors want to get profit from investing or trading Litecoin.
Analyzing the change in Litecoin price, within a week the moving average is up to 12% with a daily volume of more than 2 billion USD. These statistics show that Litecoin is one of the cryptocurrencies with good prospects.
The Litecoin price at the time of writing is $ 180.49, although it is lower than the Litecoin price as of March 20, 2021. However, price movements still allow prices to rise again.
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About Litecoin cryptocurrency
Litecoin was the brainchild of a man named Charlie Lee, who was a former Google employee. It gives a touch by modifying the existing Bitcoin code. Of course, it aims to make it better. As a result, transactions on Litecoin can be faster than Bitcoin. One Litecoin transaction only takes 2.5 minutes, while Bitcoin is 10 minutes.
In addition to faster transaction speeds than Bitcoin, Litecoin also offers cheaper transfer fees. In contrast to Bitcoin which is limited to only 21 million blocks, the maximum supply of Litecoin reaches 84 million blocks.
This difference is quite advantageous for small-scale cryptocurrency miners. Making it easier to mine Litecoin than Bitcoin. So Is litecoin a good investment in 2021?
Difference between Litecoin and bitcoin
Litecoin is a Lite version of Bitcoin which has similarities, it both works using proof of work and is a decentralized currency.
The mining process is similar, where the process in one transaction requires validation from the miner which will then be added to the blockchain.
However, the development of Litecoin offers better rules, so there are differences between the two. These differences include the following:
- In one Litecoin transaction, it only takes 2.5 minutes, while Bitcoin takes 10 minutes. This means that Litecoin is a faster transaction process than Bitcoin.
- The second difference is that Litecoin has a maximum supply of 84 million LTC, while Bitcoin has a maximum supply of 21 million BTC. This means that the amount of Litecoin is greater than Bitcoin.
- The third difference is in the algorithm used, Litecoin uses the Scrypt algorithm, while Bitcoin uses an algorithm called SHA-256.
- The fourth difference is that the Litecoin mining process is easier than Bitcoin, this cannot be separated from the algorithm used. The Scrypt algorithm is not so complicated that the transaction solving is simpler. While Bitcoin mining is very complex. It is difficult for individual miners to earn rewards unless they join the mining pool.
- In terms of daily volume, Litecoin averages up to 2 billion USD, while Bitcoin reaches 45 billion USD. In addition, Litecoin’s market capitalization has only reached 12 billion USD, while Bitcoin has reached 1 trillion USD. From this point of view, Bitcoin is superior to Litecoin.
- Litecoin circulating supply at the time of writing has reached 79%, with 66,743,590 LTC total supply. Meanwhile, the Bitcoin circulating supply has reached 89% with the total supply reaching 18,665,937 BTC. With only one-tenth of the remaining BTC yet to be mined, the miners’ level of competition is getting stronger.
- As for prices, Litecoin price is currently $ 182.10, up 0.83%, while Bitcoin price of $ 55,148.28 is up 3%. Bitcoin is more volatile than Litecoin due to its higher daily volume.
- Most recently, Litecoin was launched in 2011, while Bitcoin was launched in 2009.
Difference between Litecoin and Ethereum
You cryptocurrency lovers must already know the Litecoin and Ethereum grace period. Both are cryptocurrencies and can be used to transfer funds. But the basic thing that distinguishes the two is the purpose of their creation.
Litecoin is more intended as a digital currency without any particular authority controlling it. Known as the people’s bank. Whereas Ethereum’s goal is to become a platform that smart contracts and decentralized applications can use.
When compared to Bitcoin, both Litecoin and Ethereum have faster transaction speeds than Bitcoin. Litecoin needs time 2.5 minutes, meanwhile, Ethereum needs only 15 seconds.
Then how it works upon Litecoin and Ethereum the same uses proof of work at first. But the algorithm used by Ethereum is Ethash, while Litecoin is with Scrypt. The mining methods both require computing power to solve complex cryptographic puzzles in a transaction.
The basic difference between Litecoin and Ethereum
- Litecoin is a fork of Bitcoin, functioning as a means of payment, transferring funds in the Litecoin blockchain network, while Ethereum functions as a platform with a smart contract that allows Defi developers to use the Ethereum platform.
- Litecoin uses LTC tokens for funds transfer on the blockchain network, while Ethereum uses ETH tokens for transactions on the Ethereum network.
- To transfer funds, Litecoin users pay with LTC, while Ethereum users pay what is called gas to complete transactions.
- The time it takes Ethereum for a transaction is only 15 seconds, while Litecoin takes 2.5 minutes.
- Litecoin is limited to 84 million LTC maximum supply, while Ethereum has no limit on the number of tokens.
- The price of ETH tokens at the time of writing was $ 1,725.39 while LTC was around $ 182.
- Ethereum’s daily volume reaches 18 billion USD while Litecoin is only 2 billion USD.
- Litecoin’s market capitalization is up to 12 billion USD, while Ethereum is over 198 billion USD.
Difference between Litecoin and Dogecoin
When you read about Dogecoin, many people say, it started as a joke. Dogecoin meme is a dog that is popular among the internet community. Both Litecoin and Dogecoin have similarities in using the decentralized network on the Bitcoin blockchain network.
Both are secure peer-to-peer transactions globally because they use encryption. And both use the mining model with the Scrypt algorithm with miners getting low prices.
Basic difference Litecoin vs Dogecoin
- The basic thing that distinguishes Litecoin and Dogecoin is the maximum supply, Litecoin is made only 84 million LTC, while Dogecoin is the same as Ethereum without a maximum supply limit. So when Litecoin is mined, there will be no new Litecoin, while Dogecoin will continue to create new blocks.
- Litecoin has support from users according to its function as a means of payment, while Dogecoin has more support from the internet community.
- Litecoin’s transaction speed is slower than Dogecoin, where Litecoin is 2.5 minutes while Dogecoin is only 1 minute.
- The daily volume of Litecoin was up to 2 billion USD while Dogecoin was only 755 million USD. With Litecoin’s market capitalization reaching 12 billion USD, while Dogecoin has only reached 7 billion USD.
- Litecoin was designed to be a better alternative to Bitcoin, whereas Dogecoin was designed as a joke.
- At the time of writing, Litecoin was priced at $ 182, while Dogecoin was a new price of $ 0.05.
Is Litecoin a good investment in 2021? Litecoin as an investment
Is Litecoin a good investment in 2021? Diversification is a great way to grow a portfolio. With a market capitalization of over 12 billion USD, Litecoin is worth considering in the future.
However, if you look at the current circulating supply which has reached more than 79%, it means that the remaining 21% has not been mined. This will depend on market demand.
If you look at the last chart, Litecoin tends to go up in price. In fact, it was quite drastic in this early 2021 increase.
This means that the interest of Litecoin investors or traders has increased. This is good for the future.
However, the obstacle is that many countries have developed digital currencies through the Central Bank Digital Currency. The government will prohibit the use of cryptocurrency as an official means of payment because the only flat currency is legally the national currency.
It would probably be appropriate for Litecoin to be a short-term investment, with high daily volume traders can make faster profits if they can predict the Litecoin price with high accuracy.
If you look at the LTCUSD chart above, it shows a dominating bullish trend, at least until 2021.
Litecoin as a long term investment
For long-term investment, you must be prepared with all possibilities, if the government strictly prohibits cryptocurrency and those who violate will be penalized, it will lead to a decrease in the use of cryptocurrency.
However, if the ban was merely a means of payment, Litecoin could still grow through the trading market. And now many people have started to find out how to work from home because of social restrictions due to covid 19.
This can increase the trading volume of crypto in general and Litecoin in particular.
For long-term investment, what needs to be considered is the amount of investment that falls into the risk category. So that it doesn’t burden your entire finances if a Litecoin crash occurs
Is Litecoin a good investment in 2021? Litecoin at the end of 2021
The thing you need to pay attention to from a prediction is that it will not absolutely come true. The prediction only uses historical price statistics using indicators for analysis tools of the possible LItecoin price at the end of 2021.
Overall, the LTCUSD trend is bullish, but the last crossing of the MA indicates a reversal pattern to a downtrend.
The immediate support area is at $ 150, which if the volume of demand continues to decline may reach this prediction. However, institutional support for crypto can cause the crypto average to go up, such as Tesla which supports Bitcoin and Dogecoin.
However it is not a thorough analysis, other large investors may not be interested in crypto so the crypto market has its own base.
Litecoin price prediction 2021
Meanwhile, capital.com has a more complete prediction, that Litecoin by the end of 2021 could hit $ 306.
Is Litecoin a good investment in 2021? Litecoin price predictions vary on forecasting sites, such as on digitalcoinprice.com at the end of 2021 the price of Litecoin is predicted to reach $ 293.
The difference in predictions is because they use different statistical and analytical approaches. So that as a Litecoin investor, you should have your own understanding regarding what affects the price of Litecoin.
Litecoin after halving
Halving is a process wherein the miner’s reward will be halved. In Litecoin the halving is done every 840 thousand blocks, in contrast to the Bitcoin halving is done every 21 thousand blocks. This refers to a maximum supply of 84 million blocks of Litecoin.
Historically, the halving can affect the LTC price, usually, the price will increase significantly, so you know when the Litecoin halving falls on the date.
Currently, the LTC reward is 12.5, and if it reaches the halving in 2023, the miner’s reward drops to 6.25 LTC. The implication is that before every 2.5 minutes there would be 12.5 new Litecoin on the blockchain, after going down 6.25 it decreases the amount of LTC which causes scarcity. Halving can push prices higher.
Litecoin as payment
The purpose of Litecoin is basically as a payment gateway, which allows users to pay to merchants. Through better transaction speeds than Bitcoin should Litecoin be a reliable payment alternative.
On the positive side, it is good enough to be real, but on the downside, the public is concerned about crimes using Litecoin or other cryptocurrencies. That is the reason the official authorities prioritize, regarding user safety.
So while this is a good idea, it will face obstacles regarding the public’s trust in crypto legality. However, some merchants have dared to adopt Litecoin as a payment gateway.
Who accepts Litecoin as payment?
Litecoin aims to be a peer-to-peer currency with a global reach. According to Yahoo finance, there are already thousands of businesses accepting Litecoin. Most businesses that accept cryptocurrency will accept Litecoin as well.
According to the roadmap from Crypwerk, merchants that accept Litecoin have spread globally, especially in Europe and America.
Some of the companies that officially accept Litecoin are based on sources from the Litecoin foundation, Travala.com, Travelbybit.com, Aliant Payments, Coingate and BlockFi.
Apart from these sources, the blog nowpayment.io mentions other companies that accept Litecoin, including e-gifter, which is a gift card platform.
There is also a London-based RE / MAX which is a real estate company. Then Coaex, which is an online platform for buying gold bullion.
Unlockbase also accepts Litecoin, which is a web that serves to unlock a stuck/locked iPhone device. Snell is another website that serves domains, web hosting, cloud hosting, and more.
Meanwhile, in the gaming industry, there are Cryptogames that accept Litecoin on their platform.
Is Litecoin a good investment in 2021? The most relevant answer is that Litecoin, with the ticker symbol LTC, is still one of the most traded cryptos. Whether it’s on crypto exchanges or at forex brokers, one of them is at TenkoFX as our sponsor.
Profitable or unprofitable, if Litecoin is traded on leverage, the key is in the accuracy of your analysis. The higher the accuracy, the higher the potential profit.
But investing in crypto is also similar to forex trading, it carries the risk of loss, this article is not investment advice, all the risks of an investment are the responsibility of each investor.
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