After Bitcoin, several cryptocurrencies emerged to improve the digital cryptocurrency space. Like silver follows gold, Litecoin complements Bitcoin as an important digital asset. Often called digital silver, while Bitcoin has been dubbed digital gold, Bitcoin ranks among the top and oldest cryptocurrencies based on market capitalization and shares similarities with Bitcoin. Let’s find out below, why investors consider investing in Litecoin.
Currently adopted by top institutions
At its inception, Litecoin was only adopted by tech-savvy people. However, since then, it has become more adopted by mainstream institutions. Litecoin is now accepted by merchants such as Travala, BitPay, and a host of others. As of 2021, about 3,070 merchants utilized Litecoin as a means of payment.
This number is huge and therefore makes Litecoin rank among the top cryptocurrency investments that have real-world applications. Litecoin Foundation also declared that Visa would allow holders to utilize Litecoin through their visa cards. With several adoptions by major companies, Litecoin stands as a top cryptocurrency for investment.
Digitally scarce and closely related to Bitcoin
Gold is valuable since it is scarce and precious. This also applies to Bitcoin. Litecoin as a peer-to-peer and open source digital currency operates in a similar manner as Bitcoin. Bitcoin is often called digital gold while Litecoin is referred to as digital silver.
This drives the value of Litecoin as individuals view the coin from the point of Bitcoin’s success. Litecoin like Bitcoin also has a limited supply of coins that will be mined and remain in circulation. This amount is capped at 84 million coins. Litecoin also uses the same block reward halving that Bitcoin uses and proof of work consensus. Blockchain members must agree before new coins are minted, therefore its scarcity. This makes investors and users rest easy since they know that the limit will not be exceeded.
A robust team and thriving community
Litecoin has a strong team and community that work together to ensure the coins remain successful. They keep developing new methods and ways to ensure Litecoin becomes more successful and better. This makes Litecoin’s team and community a big part of the coin’s strength.
Large market capitalization
A market capitalization is the value obtained when the current commodity price is multiplied by the commodity total number that is in supply. In digital coins, this number is the total amount of coins available in circulation at that specific time. By market capitalization, Litecoin ranks as the 13th cryptocurrency.
Litecoin to USD stands at $65.24, with a market capitalization of $4.85 billion. This number shows that litecoin is very liquid and therefore a good investment option. For individuals looking to buy and sell Bitcoin, you won’t have issues converting the coin to liquid cash or any other valuable cryptocurrency.
It can easily be traded for Bitcoin or Ethereum and other top digital coins. With this, you can also consider buying and keeping the coin, then wait for its price to spike or buy and sell multiple times during price fluctuations.
Endnote
Cryptocurrency investment is fraught with risk, so when you decide to invest, you must prepare for potential losses after taking calculated risks, even if you think you made the right decision. Litecoin shows promise and has a lot of potential. However, you must remember that the price of Litecoin is very volatile, so invest only what you can comfortably lose.
Liteocins widespread institutional adoption and its strong community make the coin a viable option for long-term investment. If you wish to invest in Bitcoin, you must research, and ensure you understand and are comfortable with the risk before investing.
