As much as 1500 altcoins or more have entered the crypto world in a span of few years. While some enthusiasts might be privy to the long list of altcoins, however most average joes are not aware of the emerging coins that can earn them a good profit. In fact, very few coins have performed well enough to get mainstream attention. One of them is the Litecoin. If you are reading this, then the question that ‘should you invest in Litecoin’ must be on your mind. Let’s clear out the confusion with this article.
Created by Charlie Lee in the year 2011, Litecoin is considered to be one of the biggest competitors of the world’s largest cryptocurrency by market cap, Bitcoin. While the cons and pros of Litecoin against Bitcoin can be weighed easily, it is true that the technology of Litecoin makes it more suitable for purposes where the Bitcoin network seems to lack.
Why invest in Litecoin?
To get comprehensive knowledge on Litecoin, read our article ‘A Beginner’s Guide to Litecoin’. Litecoin is like Bitcoin in a lot of ways, however its faster transaction speed as well as the low fees make it a better choice as compared to Bitcoin. Despite its advantages to the Bitcoin Network, the creator of Litecoin, Charlie Lee, sees a future where the world’s first cryptocurrency and the world’s first altcoin will work in tandem.
Investing in Litecoin is a good idea because the altcoin has witnessed staggering growth over the past year. During the time of writing this article, Litecoin’s price hovered around USD 50.45 with the market capitalization of USD $2,981,250,654.
Factors affecting the price of Litecoin
Price of Bitcoin
The price of Bitcoin in fact decides the price of every other altcoin in the market. When Bitcoin does well, then the prices of other cryptos also appreciate in a similar manner. While Bitcoin’s ups and downs definitely have an impact on the price of Litecoin, ultimately news by different sources also have an impact on the altcoin.
As the masses gain awareness about Bitcoin and join in the craze for cryptocurrencies, then they will consequently become aware of the advantages of Litecoin as compared to Bitcoin. Hence, its wide availability and awareness amongst the common public will also make Litecoin more easily adapted by the potential investors.
Regulations around cryptos are a definite factor in affecting the price of Bitcoin or any other altcoin such as the Litecoin. Banning or the development of a congenial ecosystem for the trading of cryptocurrencies will likewise have a parallel impact on the price of a coin like the Litecoin.
Supply and Demand
The price of Litecoin is also affected by the forces of supply and demand. As the number of Litecoin available for mining decreases, the price of the same will increase as a result.
Litecoin is destined to have a bright future, if you need any more proof, here are 5 Reasons To Invest In Litecoin!