Litecoin Review Part 2
Where to buy and store Litecoin
It would seem that the popularity of cryptocurrency was supposed to provide it with an even distribution of trade turnover, which would indicate a reduction in risks and equal interest of investors from around the world. However, the greatest turnover accounted for OKEx ( okex . Com ) – about 27-30%. You can buy a token here only for USDT or BTC, alas, ETN or fiat are not provided. Despite the fact that this exchange is one of the largest, it is surprising why the Huobi or Bitfinex turnover is much lower. It is appropriate to recall the accusations against Charlie Lee, the essence of which was the artificial manipulation of the price of LTC when he was one of the developers on the Coinbase exchange.
Litecoin has added more than 300 cryptocurrency exchanges to their instruments, but only a few dozen of them trade coins. Second place after OKEx in exchange Binance ( binance . Com ) with a turnover of 10-12%, but even here the coin is traded only for the USDT or BTC. From 5% to 9% of trade accounts for GDAX ( daydax . Com ), Binance, Huobi ( huobi . Pro / ru – ru / ), Bitfinex ( bitfinex . Com ), Z-Bit ( bit – z . Com) Only a few exchanges provide the opportunity to buy cryptocurrency for a South Korean won, EUR or ETH.
In terms of the share of turnover for each specific exchange, Litecoin is inferior to its main competitors – BTC, ETH, XRP, EOS, BCH. Binance has TRON and Loom Network in front of LTC, Cortex for Huobi, TRON for Bit-Z, and True Chain for OKEx. Due to frequent hacks of cryptocurrency exchanges, storing coins on their accounts is undesirable. An alternative could be wallets, a list of which is given on the site. These include online, cold and hardware wallets for different types of media. To avoid problems and loss of cryptocurrency, it is recommended to use only them.
Another alternative for intraday trading is Forex. Benefits of this option:
- the possibility of opening not only long but also a short position. The use of any strategies that cannot be implemented on exchanges due to technical specifics, the ability to use trading advisers;
- account security (protection against hacking and unauthorized withdrawal of money). The ability to recover the password in case of loss (the password from the wallet is not restored);
- instant transaction speed.
For those who were interested in such an opportunity, LiteForex prepared a pleasant surprise: recently, cryptocurrency pairs have been added to the number of instruments that allow you to earn on courses not only in relation to the US dollar but also in relation to each other. You can familiarize yourself with the terms here at this link.
Since the Litecoin cryptocurrency appeared relatively early and the mining problem did not exist at that time, the developers copied the coin mining scheme, which now turned out to be ineffective. Theoretically, coin mining is possible using a processor or video card, but for a long time these types of mining have not paid off. The only effective way to extract coins remains ASIC, but the initial investment in equipment is from 10 thousand dollars. The USA. Because the LTC cryptocurrency is interesting only to miners with industrial farms, private miners prefer BCH and other simpler coins.
Litecoin cryptocurrency prospects for investors
Litecoin is called “silver after gold”, implying that it is the second most important cryptocurrency after Bitcoin. True, the once-in-3 cryptocurrency even got out of the TOP-5, taking a rather shaky 6th place. In terms of capitalization, just a little is missing Cardano to lower Litecoin another line down. And there, Stellar, which is rapidly gaining momentum, will catch up with her. This can be explained by the following factors:
- The emergence of new payment systems, partially “pulling a blanket over themselves.” First of all, we are talking about the numerous forks of Bitcoin and a new direction in cryptocurrencies – the symbiosis of blockchains (for example, Bitcoin and ZClassic). If Bitcoin is supported by tremendous trust and recognition of countries, then it is more difficult for other payment systems to break into the TOP.
- Competition from decentralized networks. Any startup should be useful from a practical point of view. And if most of the payment systems are only in the state of the model, then based on decentralized networks, application development is already in full swing. Because Litecoin lost ground to Ethereum and EOS.
The prospects for Litecoin cryptocurrency are more than optimistic, but the chances of getting even into the TOP-5 (not to mention the TOP-3) are slim. The payment system is being improved and developed, actively promoting itself in forums and in the media. But competitors also do not stand still and the closest of them, Bitcoin Cash, is out of reach.
The Litecoin cryptocurrency rate graph clearly shows that making money on the BTC / LTC pair is much more efficient than making on the USD / LTC pair. If until 2018 the exchange rate in the US dollar was stable for the coin (that is, the coin was not interesting to speculators), then in the MTC the exchange rate was constantly changing. And this was connected not so much with Litecoin as with the dynamics of the exchange rate of the PTS itself. The 2018 chart indicates that investors woke up to Litecoin interest. Please note that in January, when the entire cryptocurrency market dipped 3-3.5 times, the Litecoin rate fell only by half, which indicates the stability of the coin to various kinds of cardinal shocks.
One of the decisive factors determining investors’ interest in cryptocurrency is the news background. In the early 20s of February 2018, developers announced the launch of LitePay, a technology that would allow retailers to instantly make and record payments anywhere in the world. According to information on the project’s website, this technology would protect itself from volatility by instantly exchanging LTC for traditional currency units, thereby competing with exchanges. With a fee of about 3% for payment cards, LitePay technology would reduce costs to 1% (which is even lower than that of the BTC). The planned release of the technology did not take place and so far its further fate is not known.
In the future, it is the news that will mostly determine the rate of Litecoin. By the way, the founder of startup Charlie Lee in December 2017 completely got rid of his share by selling coins at the time of the peak of quotes. After the price of LTC on December 19 reached a historic high of $ 359. The United States, he sold his entire share, arguing that now he will not be accused of influencing quotes for his own benefit. Within a few weeks after this, the coin doubled in price.
Nevertheless, the forecast for the Litecoin cryptocurrency rate is positive. Gradually, various platforms support the startup, and now the success of the project will depend solely on the developers. Cryptocurrency can pay for goods in some online stores, but so far their number is limited.
Inspired by the experience of the PTS, in February 2018, network participants decided to hold their first hard fork. As a result of the branch, the Litecoin Cash cryptocurrency appeared (by analogy with the BCH), but the first pancake came out lumpy. After the start, the value of the coin soared above $ 6. The USA, but then collapsed to 0.2-0.5 dollars. The United States never rose again. Despite the 158th place in terms of capitalization, the fork is not of interest to investors.
The Litecoin cryptocurrency is a good second-tier coin, inferior due to development errors only to the BTC and BCH payment systems (Ripple and decentralized networks are not taken into account since they have a different essence). There is no need to talk about the stable growth of the exchange rate, but on the other hand, this is an opportunity to earn on Forex from fluctuations in quotes in both directions. To forecast the course, we follow the news and do not forget about portfolio diversification. Good luck with your trading!