There is a lot going on about Litecoin. First there was the increase of value early this year. The price per Litecoin rose from $80 to $318 in just a matter of weeks. Then there was the major fall back which almost every cryptocurrency infected. Even the Bitcoin dropped from $16,000 to around $7,000 in January. So the question that came to our minds is: “Is Litecoin A Good Investment In 2019?”
We tend to solve that question for both ourselves and our readers. Let’s break the topic down to a few sub topics first:
- What is Litecoin actually?
- Litecoin vs Bitcoin and the rest
- Where does LTC stand now in the market? What people say about Litecoin.
- What will Litecoin bring this year?
- What do the experts say about Litecoin in general?
Let´s first kick off with what Litecoin actually is to suit the needs for readers who are not yet familiar with LTC as of yet.
Litecoin – What Is Litecoin?
Litecoin is a decentralized cryptocurrency created in October 2011. Litecoin can be used to purchase services such as website development or products like jewellery or tea. Litecoin is an east way to receive money.
Litecoin is a cryptocurrency – a digital coin – which is famous for its speed and low transaction costs. Every now and then someone smart calls Litecoin the little brother of Bitcoin. In the past – October 7, 2011 – Litecoin was forked from the Bitcoin project by the one and only Charlie Lee who was a former Google employee. A few things make the Litecoin project different from the Bitcoin project:
- Number of coins
- Market cap
The maximum supply for Litecoin is 84 million coins. You can either buy Litecoin on an exchange like Binance or Changelly or you can mine the coins yourself. This mining process means that you give up resources of your computer which can be used to calculate the next block. In addition of finding the next block, you are rewarded with a sort of dividend (like common stocks) in the form of Litecoin coins.
In the world of cryptocurrency we distinguish major coins from the alt coins. Making big money can most likely be done better with alt coins. In our Top 5 of crypto’s where Wall Street bankers might have invested their 2017-bonus in the alt coins are over represented. The major coins are Bitcoin, Litecoin and Ethereum. This has everything to do with their marketcap – a.k.a. market capitcalization – the total worth of all the coins that are available. This can be calculated as follows: Total available numer of coins * the current price per coin = marketcap.
Who is Charlie Lee?
Charlie (Charles) Lee was the founder of Litecoin project as we know it. He is not alone, Charlie claims to have a team with him of whom the most members wish to remain anonymous. It is even this anonymous that Charlie even communicates in private chat groups with them and does not know their real identity himself.
Charlie Lee from Litecoin is a prominent cryptocurrency person and almost a celebrity in the scene. Charlie Lee is also very active on Twitter. You can follow him or just check his latest messages on his time line here:
Tweets by SatoshiLite
Please note that succesful people with succesful projects can also be a victim of imposters. You can verify the right Twitter account with not only the varified account badge (blue caret), or the number of followers. You also need to hover down the timeline and see what the account has published. Especially Charlie Lee is a person who is suffering scammers alike.
Litecoin vs Bitcoin and the rest
Charlie forked the Litecoin from the Bitcoin core source code and made some adjustments that he felt were necessary. And these adjustments are the above mentioned 3 differences.
The biggest and still main advantage is the block transaction speed. When you make a payment or transaction otherwise, the Litecoin block is about 4 times faster than the Bitcoin block is. In other words: the Litecoin ledger can confirm the legitimacy of the transation a lot quicker as well als process a much higher number of them on the same time frame. Still, Litecoin is superior to the Bitcoin ledger speed but is slower than some alt coins are.
Number of Litecoin-coins
The maximum supply for Litecoin is higher than Bitcoin’s: 84 million LTC vs 21 million BTC. Compared to Ripple – present in our top 5 – 84 million is nothing. Ripple is not only centralized (i.e. regulated by a 3rd party) but also has an infinite supply which is expanded with 1 billion more coins on a monthly basis.
In order to give a coin or token an intrinsic value, the supply has to limited and the demand sky high.
The sum of all circulating coins is the marketcap. Currently, Litecoin has a marketcap of $12.017.497.919 – slightly over 12 billion US dollars.
The circulating supply is 55.378.133 LTC of the maximum of 84 million Litecoins.
Source for these data is Coinmarketcap.com, your number 2 source to go to for crypto related stuff. You know who the number 1 source is, right? 🙂
So, how about the rest of the cryptocurrencies? Well, Litecoin is the number 5 in the world compared to marketcap. The others are NEO, Ethereum, Ripple, Bitcoin Cash and a handful of other in the top 10.
When we compare Litecoin to the alt coins, a few things are identified as differences instantly:
- Anonimity – more and more coins aer focussing on making the transactions anonymous. Privacy is a harsh thing in some parts of the world and that makes a coin stand out from the rest. Litecoin is not yet fully privacy focussed.
- Maximum supply – you have read it before. A limited supply can increase the value per coin when the demand for the coin rises. 84 million is a great number to go with. Ripple has no limits, Ethereum has probably a max of 97,8 million.
- Partnerships – Charlie Lee is publishing partnerships on almost a bi-weekly basis. For a coin to succeed partnerships with high rollers are essential. We have a different section in this article about the latest anouncements made by Charlie.
Where does Litecoin stand in the market?
The price of one Litecoin is very fluctuating nowadays as do the rest of the coins. This is a real time widget displaying the price of Litecoin:
Today the Litecoin price went up with around 20%. Main reason to believe to have caused the price surge is the launch of LitePay about which we will explain further on in this article about Litecoin.
Being in the top 5 of cryptocurrencies worldwide is something to keep in mind when determining where Litecoin stands in the market. Due to its limited supply and the similarities with Bitcoin the Litecoin project has a lot of credibility in the crypto scene.
But, how long will Litecoin remain one of the best known crypto’s after Bitcoin? There has to be more to come to stay in the top 5 marketcap. What dows the future of Litecoin hold?
What does the future of Litecoin hold?
Charlie Lee and the team have made progress in creating new partnerships. This is a list of the latest additions:
Maybe this is the main competitor for PayPal as we speak..
Accept Litecoin, store and spend Litecoin securely, or turn Litecoin into dollars with the LitePay Card.
PayPal is an online payment servive processor with which you can connect your bank account or a credit card to make payments on the web. But, PayPal does not yet support crypto currencies. But then LitePay comes in to play.
What is Litepay? LitePay is a collaboration with Litecoin and Visa Card. This basically means the following:
- Every store accepting a Visa card, is able to process the LitePay card as well.
- Convert Litecoin in to dollars. No need for hassle, just convert to and from the fiat dollar money.
- Availability – in some parts of the world, Litecoin is easier and faster to buy than dollars or Thai Bath. This means that one can buy Litecoin, send it to the LitePay wallet and start spending anywhere in the world.
This means that there are hundreds of thousands of point of sales ready to accept the Litecoin credit card. This is basically what a crypto coin needs to go mainstream!
More than one billion contactless transactions worth in excess of €12.6bn have been made by Visa cardholders across Europe in the past 12 months, research from Visa Europe has found, with its customers spending €1.6bn using their contactless cards in March 2015 alone — a three-fold increase compared to the same month in 2014. Source: nfcworld.com
The above statement only mentions the ‘contactless’ payments in Europe. Now, think of an estimate in both ‘contact’ and ‘contactless’ payments worldwide!!
We believe that is LitePay is addopted and used on a big scale, the price of Litecoin will rise exponentially.
Litecoin Cash Fork
True Litecoin fans were not so happy with Litecoin Cash to use the Litecoin name when forking. The Litecoin team distanced themselves from the fork claiming they are a scam. Until the fork happened, the Coinissimo Team wasn’t really sure about its credibility as well. We have sent our Litecoins in the Binance wallet to a desktop wallet a day before the fork. When the form has passed – i.e. a particular block was mined – we transferred the Litecoins back to the Binance wallet before using the private key to claim the free Litecoin Cash. After all, we received the promised LCC and the fork was no scam at all.
So, what has this to do with the price of the Litecoin? Well, in advance of the form the price of a Litecoin surged around 20% in advance.
Second, the whole world spoke about the Litecoin Cash fork meaning the name “Litecoin” was all over the media – worldwide. This is very good for the branding of the coin. In addition, Charlie Lee was mentioned in almost every news article about distancing him and the team from the fork.
Since on the topic of scams, any fork of Litecoin, calling itself Litecoin something or other, is a scam IMO. Litecoin Cash, Litecoin Plus, Litecoin *… all scams trying to confuse users into thinking they are Litecoin.
This also applies to all Bitcoin forks trying to confuse.
— Charlie Lee [LTC] (@SatoshiLite) January 30, 2018
How to buy Litecoin?
It is not difficult to buy Litecoin as an investment or to fund your LitePay card. This is an easy to follow step-by-step:
- Open an account at an exchange
- Go to you wallet and make a deposit in USD, EUR or buy BTC (Bitcoin)
- Buy Litecoin (LTC) with the deposited currency.
- Enjoy you posession.
Open an account at an exchange
In order to buy and trade, you need to have an account at an exchange or a broker. A lot of forex brokers also offer trading in crypto currencies, but you never have the crypto’s themselves. i.e. You are not the owner of the crypto.
There are a few exchanges that classify our needs and demands: Binance and Coinexchange.io.
|Pro:||· Massive amount of small cap altcoins offered
· Anonymous trading
· Exchange platform is decent
|· Very low Fees
· A myriad of coins to exchange with
· No lags experienced with website
· No background information about the company
· Fiat currency is not supported
|· Does not accept bank payment methods
· Customer support lacks phone
· Website is not for beginners
|Company Location:||Not mentioned||Japan|
|Customer Support:||Ticket system||Email, Social Media|
|Tradeable Coins:||BTC, DOGE, ETH, ETC, LTC, and a lot more!||Bitcoin, Ether, Ethereum Classic, Zcash, Ripple, BNB, ARK, AST, BNT, BQX, BTG, CTR, DASH, DNT, ENG, ENJ, EOS, Monero,Litecoin, IOST, TRX and more|
|Trading Fees:||0.15%||0.05% to 0.1%|
|Withdrawal Fees:||BTC 0.0015||None|
When you are a customer of the above mentioned exchanges, you are the owner of the coins you purchase and keep them in a wallet on the exchange.
There is also a solution where you are not the owner of the coins. You are speculating on the rise and fall of the price of a currency when you are trading Crypto Currency CFD’s or Crypto Currency Binary Options.
CFD’s – or contract for difference – are a leveraged way of trading the market of commodities, forex, ETF or crypto currencies. The two biggest CFD brokers are Plus500 and Markets.com – both sponsors on our website.
According to our partnersite CFDoptions.com, this is the definition of contract for difference:
CFD trading is a method of trading the forex that allows the trader to not just profit from the end price of a given currency, but from the changes in the price of a currency.
Typical online CFDs trading might go something like this: A trader enters into a contract to purchase euros in a standard lot of 10,000 at a value of $1.50 (USD) each. The trading period ends with the price at $1.55. The profit is $0.05 each, which totals $500 for the lot, minus the pip spread that the broker charges.
Let me share 2 links with you of the most used companies for trading CFD’s on crypto currencies and more. Click one of the folloing links to go directly to their informative website (no sign ups or credit card needed):
Crypto currency binar options – are a way of options trading where the outcome is either up or down. There is a 50% chance of getting it right. If you are a well skilled Technical Analyst and a real expert on predicting short term moves of the price, then this might be something for you.
CFDoptions.com has the following explanation for binary options trading:
Binary option trading is a financial opportunity that offers investors a fixed price and a fixed return. Binary options are also known as Fixed or Digital options and are traded only on the internet. Trading binary options is a three steps system and quite easy to learn. There is however a thin line between trading binary options and gambling. There are gurus who think this is a game. But if you would like to be a professional trader this binary options trading might be your chance to learn the financial market in a fast way.
Almost every broker offers a binary options trading simulator with no minimum deposit. Meaning you can open an account for free, thus without making a deposit. Learning to read the charts and following the news to try to predict trends in the rates of the underlying asset is best without taking the risk of losing the investment. Investing (=trading) starts at $5, though.
You can trade crypto currency binary options with a lot of different brokers, but most of them are not here to last. The best and currently most secured binary options broker (no guarantee!) is 24Option.com. They have been around the block for quite some time now and still stand strong. This is the link to their website:
TRADING CONTRACT FOR DIFFERENCES AND BINARY OPTIONS IS VERY RISKY
YOU CAN LOSE ALL YOUR MONEY
Litecoin – Summary
Litecoin LTC – provides faster transaction confirmations (2.5 minutes on average) and uses a memory-hard, scrypt-based mining proof-of-work algorithm to target the regular computers and GPUs most people already have – which are its main differentials to Bitcoin. The Litecoin network is scheduled to produce 84 million currency units with a halving in reward every four years just like bitcoin. The coin was created by a Google employee, Charles Lee. Litecoin is in second spot to Bitcoin and has spawned numerous clones – however it has a solid base of support and dedicated development team.
The Litecoin project is currently maintained by a core group of 6 software developers, led by Charles Lee, with a large community that is growing in support.
In May 2017, Litecoin became the first of the Top 5 (By Market Cap) cryptocurrencies to implement the SegWit scaling solution. Later in May of the same year, the first Lightning Network transaction was completed through litecoin, transferring 0.00000001 LTC from Zurich to San Francisco in under one second.
Litecoin is an open source software project released under the MIT/X11 license which gives you the power to run, modify, and copy the software and to distribute, at your option, modified copies of the software. The software is released in a transparent process that allows for independent verification of binaries and their corresponding source code.
Miners are currently awarded with 25 new litecoins per block, an amount which gets halved roughly every 4 years (every 840,000 blocks). The Litecoin network is therefore scheduled to produce 84 million litecoins, which is 4 times as many currency units as Bitcoin.
The Litecoin blockchain is capable of handling higher transaction volume than its counterpart – Bitcoin. Due to more frequent block generation, the network supports more transactions without a need to modify the software in the future. As a result, merchants get faster confirmation times, while still having ability to wait for more confirmations when selling bigger ticket items.
- Faster transaction confirmations (2.5 minutes on average)
- Scrypt-based mining proof-of-work algorithm
- 84 million litecoins
- Higher transaction volume than Bitcoin
- MIT/X11 license