What is Litecoin – Basic guide about one of the most demanded digital currencies in the market
Cryptocurrencies have been expanding in the last years as the market continued to grow and reach new highs – a few years ago. When we talk about virtual currencies we do not only talk about Bitcoin (BTC), the larges and also the first virtual currency in the world, but we are also making reference to many altcoins in the space, including Litecoin (LTC).
In this article, we will share with you, what is Litecoin and all the information you must know about it. Litecoin has clearly become one of the most demanded cryptocurrencies and it could continue growing in the coming years.
What is Litecoin?
Litecoin is one of the largest cryptocurrencies in the crypto space. At the moment, Litecoin is considered to be the 7th largest digital currency in the world with a market valuation of $2.85 billion. There are only six cryptocurrencies larger than Litecoin, including Bitcoin, Ethereum (ETH), Tether (USDT), XRP, Bitcoin Cash (BCH) and Bitcoin SV (BSV).
Litecoin’s main characteristic is related to the way in which this virtual currency can be transferred. Compared to Bitcoin, Litecoin is faster and cheaper. Indeed, it is even cheaper than Ethereum, which is also a great alternative to Bitcoin when fees are high. Litecoin helps the Bitcoin network to reduce its load.
LTC supporters consider that this virtual currency can be used as a way to make transfers compared to Bitcoin that is currently used as a store of value. Although this is not something that proves to be right in the real world, it can definitely become the case in which users decide to use Bitcoin to hold value and LTC to move money on a daily basis.
What does Litecoin Want to Achieve?
As we have mentioned before, Litecoin wants to make blockchain transfers more efficient and easy to be performed. The team behind the Litecoin Foundation and the entire Litecoin community are currently working in order to help LTC become a means of payment.
At the same time, Litecoin can certainly become a great way to reduce transaction fees while making purchases using virtual currencies.
There are community members that consider that Litecoin is also working as a Bitcoin testnet. It is possible for LTC to be working as a way to test the new implementations that could once be used on top of the Bitcoin network. For example, the Litecoin Foundation is now working in order to implement privacy features to LTC and its blockchain.
This could allow LTC and its community to perform transfers without having to release all the information about the funds they hold, the money they are transferring or between which wallets the funds are being moved.
LTC in the Cryptocurrency Market
LTC has been expanding over the last years as a cryptocurrency that was able to get up to the second position in the industry. Indeed, during several months, Litecoin was the second largest cryptocurrency after Bitcoin, something that couldn’t sustain over longer periods of time.
Despite that, Litecoin remains among the most demanded digital assets and virtual currencies, which makes of it a great virtual currency to hold in a diversified portfolio. Moreover, it has sometimes moved without following the general trend of the market, which allowed investors to have a virtual currency that moved higher during times in which the crypto space was moving lower or was operating stably.
The highest price reached by LTC was on December 19, 2017, when Bitcoin was also moving towards $20,000. Since then, Litecoin was traded below that level and it reached a low of $23.5 in December 2018, when BTC was also being traded at its lowest price in the last years.
Nowadays, LTC has a price of almost $44 dollars and a valuation of $2.86 billion. However, the price is very volatile, as in every single cryptocurrency. That means that in just a few hours it can move up or down. The price of cryptocurrencies tends to change on a regular basis compared to traditional fiat currencies that may have lower volatility on a daily basis.
Conclusion
Litecoin is certainly one of the most useful and demanded cryptocurrencies in the world. LTC became a very popular investment tool among traders that wanted to increase the profits they had.
In addition to it, Litecoin could continue expanding in the future with its use cases such as private transactions and other partnerships with companies and firms around the world. If the market starts a new bull run, Litecoin could certainly become a key player and it would definitely be among the most important digital assets in the top 10.
