What is Litecoin?

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Litecoin – the first cryptographic currency of the first generation of peer-to-peer type enabling very fast and cheap transactions since 2011. Inspired and technically very similar to Bitcoin, yet on an established position in the market for many years. So what makes a Bitcoin clone so special?

Who runs the crypto?

The creator of Litecoin is Charlie Lee, a former Google employee. The creation specifically dates back to October 7, about three years after the extraction of the first Bitcoin. Litecoin’s team consists of 14 developers and 425 Githube-registered helpers (for comparison, Bitcoin Core has 452). Legal regulations are regulated by a non-profit organization – Litecoin Foundation.

What makes Litecoin unique?

As we mentioned before, Litecoin has only slightly changed the Bitcoin code. Hence, many metaphors have been created in relation to these cryptocurrencies. Litecoin is often called younger brother or crypto-silver, while Bitcoin represents crypto-gold. However, let us explain the three functions that distinguish this crypto-silver from the pattern:

  •  Transaction confirmations are obtained 4x faster than Bitcoin.
    The blocking time is about 2.5 minutes (block size is 1 MB like Bitcoin)
  •  Litecoin’s money supply is about 84 million. This is also 4 times the value of Bitcoin.
  •  Both Litecoin and Bitcoin use proof-of-work, but the algorithm is programmed slightly differently. Litecoin Mining (Script) requires more memory than Bitcoin Mininng (SHA-256)

Apart from these differences, Litecoin’s development is also faster and less political than that of Bitcoin. For example, the Segwit was activated in Litecoin already in May 2017. Many advanced Segwit-related technologies, such as Lightning Network, can now be tested on Litecoin before being introduced on Bitcoin.

How to trade Litecoin?

As always, the most important thing is the pre-analysis and preparation. It is based mainly on three pillars: trading strategy, trading psychology and risk management. All three are essential for a successful transaction. A trading strategy can be compared to a business plan. Here you will find all the tools, indicators and days and hours that will apply to all transactions. The trading psychology, on the other hand, is all about control and caution during trading. IQ and emotional intelligence are equally important traits of a good broker these days. To these two issues we should add also managing a risk. A reasonable disposition of capital will allow you to minimise losses and achieve greater profit.

In order to make profitable transactions when trading Litecoin (LTC) with the US dollar (USD) most people follow a technical approach. Chart analysis or Elliott wave analysis allows traders to create strategies based on Japanese candles or advanced technical indicators available on MetaTrader 4. You can also use different time intervals.

 

  •  Larger time frames give a better view of the market. For this purpose, you usually use 4 times the interval that you decide to enter a trade.
  •  At a high interval, e.g. an hourly interval, we look for support or resistances that announce a reversal of the trend or we look for the main trend.
  •  At a low interval, e.g. 15 minutes, we look for the moment of entry. This allows us to increase our potential profit and reduce our stop loss.

 

By trading LTCUSD you can achieve a really high rate of return. Good traders make good use of the significant variability that exists in this market. They can choose the right system and decide on the duration of the trade themselves. You can trade LTC/USD CFDs all day long 5 days a week.

What is the vision of Litecoin’s development?

Although today’s multitude of cryptocurrency does not surprise anyone, some time ago the usefulness of more than one existing cryptocurrency and the development of the new ones was questioned. And yet many other resources were created and thanks to their distinctiveness, they were positively received by users. Especially exciting is the development of the Lightning Network, which will provide a solution to the problem of scaling crypto currencies. In addition, various projects are being developed to improve Litecoin’s functionality.

Why is it worth investing?

Litecoin is a very specific currency. It has as many supporters but also strong opponents. Although Litecoin is considered to be just a supporter of Bitcoin, it is quite constant. It can be used for everyday transactions, which are a gap in Bitcoin’s business. In this niche there are also other second generation Kryptonian currencies such as Dash.
Finding oneself in such niches and developing in them will determine to what extent and direction Litecoin will develop further.

In our opinion, in its role as an everyday, common way of payment, it has a chance for a long-term existence in business. More and more users are beginning to appreciate cryptocurrencies as a way to invest and in many cases they are not limited to one. Of course, due to the dynamics of change in this area, another analysis of Litecoin’s situation will be necessary in a few years’ time. We will undoubtedly inform you about everything on our website.

 

 

 

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