Litecoin is no doubt one of the most popular and top cryptos to invest in in 2021. Since it made its debut in 2011, it has been a choice for crypto traders and investors.
Litecoin was created by Charlie Lee to solve the shortcomings of the earlier introduced Bitcoin. This has made it stand among the top 15 cryptocurrencies in the world.
Despite the buzz surrounding cryptocurrencies, it is still risky to put your savings into them. If you must do at all, you need to know what you are investing in. If your choice is Litecoin, you need more information before you invest.
Things To Know Before You Invest In Litecoin
If you are considering investing in Litecoin, here are some things you should know;
- Litecoin is lighter and faster than Bitcoin – Although Litecoin promotes itself as silver to Bitcoin’s gold, it is very much lighter and faster. It was originally designed to solve the shortcomings of Bitcoin. LTC processes transactions four times faster, which makes it the choice for crypto traders and investors. LTC’s supply is also four times more than BTC. Litecoin has a supply of 84million to Bitcoin’s 21million which some has argued to be better for small transactions.
- Litecoin is widely available – Litecoin’s availability for a decade has made it to be considered as one of the more established cryptos. As such, you can get from most major cryptocurrency exchanges/platforms. LTC hasn’t seen the dramatic price jumps of BTC or ETH over the years. It is however a volatile asset like other cryptos. As there is a promise of potential big profit, there is also uncertainty.
- You should be aware of the development of Govcoins– Anyone considering buying digital currencies needs to be aware of the so-called ”Govcoins”. These are proposed government-run digital currencies e.g Nigeria recently launched its E-Naira, a digital currency backed by the central bank. Cryptos such as Litecoin are not centralized, over 60 countries are therefore considering launching their own government-run digital currencies (centralized). Govcoins are to solve the problem of value fluctuation in cryptos just like stablecoin (cryptos that are pegged to something like the dollar or price of gold). The growth of both Govcoins and Stablecoins could have a huge impact on cryptos like Litecoin. These may include sending decentralized coins out of the market, especially if governments introduce stricter crypto regulations at the same time.
Also Read: Is Litecoin a Good Investment in 2021
Prestmit is the best platform for you if you need to buy and sell Litecoin in Nigeria and Ghana. If you ever find yourself in a position to buy and sell cryptos, Visit Prestmit, it’s the best platform for you.