About/ Intro Litecoin
In the digital world, Litecoin is the third-largest cryptocurrency in use, based on market capitalization. It is similar in attributes to the 180 physical currencies in circulation in the world today and just like any other currency, its major use lies in transfer of currency or making of online payments – the only difference being that in case of the conventional currency that is issued by a central government, it is the fiat money and in case of Litecoin, it is the coins of Litecoin. Litecoin is not issued by any centralized authority – since it is a peer-to-peer cryptocurrency, the coins are created through an open-source protocol based on cryptographic procedures called mining. Litecoin was introduced on 7th October 2011 by Charlie Lee and went live on 13th October 2013. By May 2017, it was one of the top five cryptocurrencies to accept Segregated Witness and by December 2011, its value rose by 8200%.
Cover Litecoin Common issue
The cryptocurrency market is undoubtedly growing popular month-by-month. Litecoin is also proving to be a big player in this market. However, there are common generic issues plaguing the cryptocurrency industry – some of them have been mentioned here:-
1. The volatility of the market – a noticeable aspect of the cryptocurrency market is the volatile price fluctuation and that too within a short span of time. The volatile situation is created thanks to a few big holders of cryptocurrencies who are also technically called the whales. By manipulating the buy and sell walls they are able to let prices rise or fall without actually investing in coins.
2. Cybercriminals – this forms another potential threat to the likes of Litecoin and its competitors. Many such nefarious activities and scandals have come to the forefront that has resulted in the loss of millions of dollars to traders of cryptocurrencies. Hordes of such illegal activities that include smuggling, money laundering, weapons, and drug dealing have been discovered by authorities in many countries. Other than that the virtual wallet of an investor can be completely rummaged through by an online hacker or in case of a system crash the entire virtual money earned through cryptocurrency trading can be lost. Though processes and systems are being created by traders, exchanges and even the owning companies of cryptocurrencies, this has created certain technical hassles that tend to delay the transactions but having said that technology is evolving and all involved parties are trying their best to come to reliable solutions through the use of advanced technology.
3. No regulations from the government or central authorities apply to cryptocurrencies like Litecoin. Even though it serves many good purposes, the lack of government scrutiny or heavy regulations like that of fiat currency makes the system less reliable and less accepted by the masses.
Pros and Cons of Litecoin
There are plenty of advantages associated with Litecoin that gives it a clear edge over other popular cryptocurrencies present in the market. And of course, along with the good, there are few disadvantages too.
Pros of Litecoin
1. One of the best things about Litecoin is its speed. Compared to Bitcoin, one of its closest competitors, Litecoin takes about 2.5 minutes to process a group of transactions or blocks while Bitcoin takes about 10 minutes to do so. Litecoin is highly popular because of its lightness and lightning speed.
2. Litecoin is scalable, thanks to it being an open-source system. This means that any kind of software updates can be implemented in the system as per the requirement of the market. The SegWit technology where more transactions could be included per block and the Lightning Network systems that facilitate instant transactions were possible because of this feature.
3. Has the feature of Atomic Swap where two or more parties can exchange currency without the intervention from a third party, thereby making virtual fund transfer easy.
4. The transaction fees in Litecoin transactions are much lower than its closest cryptocurrencies and other modes of virtual payments.
5. Litecoin is securer than other cryptocurrencies because of its faster processing time that virtually leaves very little time with online hackers to attack transactions.
6. As compared to Bitcoin’s 21 million coins in circulation, Litecoin has 84 million coins thereby offering greater mining and investing opportunities.
Cons of Litecoin:
1. With many existing players in the cryptocurrency industry, its uniqueness is getting copied quite randomly and fast by other major players.
2. With the inventor of Litecoin, Charlie Lee selling off his stake in the owning company in 2017, some questions on the credibility of Litecoin came to the forte but the issues are being addressed by the company continually providing relief to investors.
How to Sell or Buy Litecoin?
For investors who are willing to invest and buy Litecoin, this is the way to go about it.
1. The first step in the process is to have a Litecoin wallet. Without this online wallet, you will not be able to store the coins. There are two basic types of wallets – hardware wallet and software wallet. While the former is a piece of hardware for storing coins offline, the latter is cheaper and is a free program meant for storing the coins on a smart device like your phone. Each wallet as a unique Litecoin address that starts with L, M or 3 and is essentially a long string of characters and numbers.
2. Chose a credible cryptocurrency exchange – with Litecoin becoming popular in the last few years, there are a number of such exchanges that sell Litecoin now. With the help of the exchange, you need to open an account and buy the crypto coins. Once the purchase process is done, you should withdraw the coins to your wallet.
Once you have an account with a cryptocurrency exchange you will be able to sell your Litecoin whenever required through the use of your account and transferring Litecoins from your wallet to the account. You would be required to select the fiat currency that you would want to sell the LTC for. The funds will be directly sent to your bank account –the details that you had provided during account creation. In most cases, the funds are transferred or the payout process takes about 48 hours.
Is It safe for Investment / or Legal approved
Litecoin is a safe investment, especially as a long-term investment. But investors need to understand that it is not stocked, it is an investment in coins – a currency. Investments of any kind are associated with risks and investing in cryptocurrency is no different. But the benefits are huge – so one needs to decide prudently before investing – you should invest only what you risk. Litecoin being one of the oldest cryptocurrencies is a solid coin. At the moment, the value of Litecoin is high and is performing quite steadily and strongly in the cryptocurrency market. The hash rate of this particular cryptocurrency blockchain network has also recorded an unprecedented high on 10th June 2019 at $128.07 – a 10% hike than the highest that was recorded on 23rd May 2018 at $126. (https://www.coindesk.com/above-125-litecoin-jumps-to-highest-price-in-over-a-year).
The safest and most legal method of buying Litecoin is to use a trusted cryptocurrency platform or exchange. It is important for investors to note here that while many Western countries like the US, Canada, and the European Union have legalized cryptocurrencies, many others like China, India, and Russia have banned dealing or holding cryptocurrencies. Investors should, therefore, research on their country-specific rules before proceeding to invest in Litecoins.