There are a few factors most experienced investors keep in mind when choosing crypto; however, one should remember that investing in a range of crypto is preferable to improve risk-adjusted returns. But the real question is; how one picks the best investment that’s fit to be in a holding.
Amongst many essential factors to consider before investing in a particular crypto include: stability, what kind of utility the crypto provides, and how efficient it is. If so, Litecoin is a great crypto investment opportunity and might be your next great investment opportunity. And it should be in your holding – buying and storing it in any best Litecoin wallets.
Based on market capitalization, Litecoin is the fifth largest crypto, and it has become popular over time.
What Litecoin Is
Litecoin was created by Charlie “Satoshi Lite” Lee, a former staff at Google and Coinbase, and has been the top-performing crypto since 2011.
The Litecoin Foundation develops Litecoin and is responsible for making businesses adopt the coin, forming partnerships, and looking for investment opportunities. The UFC or Ultimate Fighting Championship agreed with the Litecoin foundation to become the official crypto of the UFC.
Reasons Why You Should Buy Litecoin
Litecoin is four times faster than Bitcoin.
Since its inception, one primary reason for the invention of crypto has been to enable swift money transfer in the cheapest way possible. More so, the faster a crypto network can process transactions at a lower cost, the greater the utility for crypto users.
Litecoin is an excellent option for users looking to transfer a significant amount of money; the Litecoin network can process transactions faster than bitcoin, precisely four times faster than bitcoin. The block generation time on the Litecoin network is 2.5 minutes, while on the Bitcoin network, it’s 10 minutes.
Increase in Usage Prompts Increase in Market Cap
The increase in the usage of particular crypto leads to an increasing market cap; as of August 2021, over 3000 merchants accept Litecoin as a form of payment; this crypto adoption has led to an increase in real-world use. And this is among the many reasons crypto investors want to invest in it.
It’s for a fact that Litecoin is one of the fastest growing crypto and most widely accepted by merchants. As the increase in the usage of Litecoin grows continually, it continues to grow in popularity, and it’s a significant reason why you should buy and own it.
Reasons Why You Should Invest in Litecoin
- Litecoin is Digitally Scarce, Which Makes It Valuable
- One primary reason why gold is valuable is that it’s precious and scarce, and so is Bitcoin, which many now call digital gold; in turn, Litecoin is digital silver; it’s closely similar to Bitcoin.
- Litecoin has a limited supply, meaning a set number of coins will be available for mining and remain in circulation. Only 84 million Litecoin is open for mining.
- Members of the Litecoin blockchain must all agree before any new coin is minted; hence it’s scarce; users of the currency and investors can rest, keeping in mind that there won’t be an excess of Litecoin in the market.
Litecoin has a High Market Capitalization
Market cap is the value one gets when the current price of a commodity is multiplied by the total number of items in supply, but the market cap of a digital coin is determined by the number of that given coin in circulation; Litecoin has a high market cap, Which is a good reason you should invest in it.
Litecoin is Liquid
When choosing to buy a coin, its liquidity is what one should consider when purchasing it; liquidity involves how an owner of crypto can easily convert it to liquid cash. Investing in a coin that you can sell is essential, especially when you need liquid money or traditional currency.
Even more, for those looking to trade Litecoin short term and want to make quick profits, liquidity is an essential factor to keep in mind when prices change.
Litecoin, just like some other coins, it’s one of the most liquid coins in the digital market. To determine the liquidity of a coin, you can check its 24-hour volume, which is the number of coin investors has sold or bought in the last 24 hours. Litecoin has a large book; on average, 7.8 million coins worth more than $1.1 billion are up for sale within 24 hours.
Conclusion
There’s no denying that Litecoin is amongst the preferred choice of coins for most investors; However, Bitcoin is the leading coin investors have in their holdings, but investing in another crypto with growing popularity and utility is a good investment tactic.
But it’s essential to know that investing in crypto has its risks, not just that investing has risks; it’s necessary to research about particular crypto and follow up on updates about it before and after you invest in it.
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