As banks struggle and centralized exchanges become less attractive, safe and decentralized cryptocurrencies like Litecoin are emerging as viable investments.
Technical indicators, including moving averages, Stochastic Oscillator and Relative Strength Index (RSI) show mixed sentiment in the short term. If resistance level at $92 is breached however, a rally toward $100 could occur.
What is Litecoin?
Litecoin is a peer-to-peer cryptocurrency designed for instantaneous, near-zero cost payments. Based on the Bitcoin Blockchain but designed to facilitate faster transaction times and lower transaction fees.
Charlie Lee of Massachusetts Institute of Technology and former Google engineer fame developed Litecoin in 2011, with the intent to provide an alternative cryptocurrency that addresses Bitcoin’s speed, transaction fees, and decentralized supply constraints while still remaining decentralized and limited in supply.
LTC stands out as a faster-acting cryptocurrency than Bitcoin while still possessing its security features, which traders frequently purchase as part of their cryptocurrency portfolios due to its reliability and utility.
To purchase cryptocurrencies such as Litecoin, investors need to open accounts on crypto exchanges. These platforms will verify your identity before providing an easy way for traders to trade one type of cryptocurrency for another (or sometimes against fiat currency like dollars). It is recommended that any crypto investments be stored securely using hardware wallets such as Ledger Nano S or Trezor for optimal protection of investments.
What is Litecoin’s Purpose?
Initial, Litecoin was intended to serve as a complementary currency to Bitcoin rather than to directly compete against it; hence it was often described as the “silver to Bitcoin’s gold.” Since then, however, a number of new crypto competitors have emerged; forcing Litecoin to adapt in order to remain among the top 10 coins.
Cryptocurrencies are predominantly utilized as an investment and trading tool, with their value depending on market sentiment. Furthermore, cryptocurrency payment processors like PayPal offer low transaction fees to make using it an accessible means of paying for goods and services.
Investors can purchase cryptocurrency through exchanges, which offer a platform to buy and sell digital assets using either fiat money (like dollars) or cryptocurrency exchanges; prices on exchanges are determined by supply and demand with larger volumes pushing prices upward. Spread betting and CFDs allow traders to speculate without owning any actual Litecoins themselves.
What is Litecoin’s Technical Analysis?
Litecoin’s price movement depends on multiple factors. Like all cryptocurrency markets, its fluctuations are unpredictable and subject to events like regulatory decisions and security breaches on crypto exchanges; fundamental events like block reward halvings or hard forks; as well as factors like market capitalization, mining costs and adoption by businesses and governments influencing it further.
However, Litecoin shows signs of being well positioned for its future. With low inflation rates that appeal to investors in an environment of zero interest rates and massive money printing by central banks, and being forked from Bitcoin so as to gain from its global monetary development as an asset class; furthermore halving has historically been bullish for Bitcoin but could prove beneficial for LTC too; plus being faster and cheaper alternatives to fiat currency makes LTC attractive in developing nations that do not have access to banks.
What is Litecoin’s Future?
Litecoin has long been considered the digital silver to Bitcoin’s “digital gold.” As an alternative, Litecoin offers an alternate mining algorithm and faster transaction settlement times, while providing an arena to test out more ambitious innovations that might one day find their way to the original digital coin.
Litecoin’s community has been actively working on second-layer applications such as Segregated Witness and Lightning Network, among others, which has lead to its rising value and is seen as an investment asset with long-term potential growth potential.
However, it’s important to keep in mind that crypto prices are highly unpredictable, meaning many factors could sway Litecoin’s price performance such as market conditions or investor sentiment – making its future difficult to predict. At present, however, its bearish trend has reached critical resistance levels and may continue to slide to $100.
