As it has remained in the top five largest cryptocurrencies by market capitalization since its foundation in 2011, more and more people think to invest in Litecoin. Identical to Bitcoin’s functionalities but faster, it’s in fact the much better option to potential investors.
Often referred to as “Bitcoin Lite” and the silver to Bitcoin’s gold, Litecoin is valuable because of its speed in transactions. It uses Segregated Witness (SegWit) technology, a process making transactions four times faster than Bitcoin.
Through this, more transactions can be processed in the network with virtually no payment cost. Also, a significant difference to Bitcoin is having a founder, Charlie Lee, involved in the company and the crypto community. Lee left his day job in Google and worked full time on Litecoin with a goal to bring it to the mainstream.
More in Circulation
Litecoin’s maximum circulating supply is 84 million compared to Bitcoin’s 21 million. Because the number of digital currencies are finite, having more coins than Bitcoin, the world’ most popular coin, may work to Litecoin’s favor. It will have more coins circulating the market in the future.
Litecoin has experienced more stable price movements compared to the more popular coins over the years which makes it an excellent diversifier and booster of potential returns. It also has a strong presence in the crypto community. Though it maintained a low profile, its speed and liquidity made it valuable and appealing to investors thus earning a position on Coinbase.
Coinbase is one of the easiest to use digital currency trading platforms where one can buy Litecoin and other big name digital currency. You can open an account with Coinbase to buy Litecoin and the other altcoins. Set up your user name and password, link your debit or credit card or bank account and start buying.
Volatile but Valuable
Given its high volatility, it’s crucial to acknowledge the risks of investing in digital currencies. Although some countries have adopted cryptocurrency as a payment, many are still hesitant to accept this new technology. It’s a possibility that a regulating committee will be established in the next few years as the popularity of cryptocurrencies continue to rise.
Read more: Bitcoin vs Litecoin vs Ethereum 2018