While Bitcoin and Ethereum have had a bit of a hammering over the past month, Litecoin has been a bright spot. And the months ahead could be even worse for Bitcoin. It is in the midst of a community split, which has traders worried about potential volatility. So those looking for something that could offer a bit more stability over the coming months, then litecoin could be for you.
The biggest selling point of Litecoin right now is the transaction speed. Confirmations happen in around 4 minutes. Bitcoin has been really slow recently, which has made it harder for it to compete with more traditional payment methods. Litecoin was built to be faster.
Open to improvement
The founder of Litecoin recently resigned from his position at Coinbase to focus his efforts on Litecoin. One big difference between the litecoin and bitcoin platforms is that Litecoin has been more open to developing the platform and improving it. Whereas Bitcoin often gets bogged down in ideological discussions.
Segwit, a technology that frees up space on the blockchain, so more transactions can be processed has been implemented on Litecoin. Bitcoin is looking to do something similar but this is still up in the air. Litecoin will also support smart contracts (like Ethereum) in the future.
When a cryptocurrency gets added to a mainstream/traditional trading platform like eToro, its a good sign for the market. This is because it puts it in front of many more potential investors and its a sign the the coin is maturing. Although litecoin can't yet be traded on eToro, it is part of the company's Crypto CopyPortfolio – which is essentially a type of hedge fund. That means money is being poured into the currency and it's coming from larger investors.
The easiest way to buy Litecoin
Litecoin was added to Coinbase a few months ago. And this gave the currency a big boost. Coinbase makes it really easy to buy Litecoin. I was able to purchase some using my credit card in a matter of minutes. For many investors, who don't want to deal with complicated exchanges, this makes it much easier to buy into Litecoin.
Litecoin is currently much cheaper than Bitcoin. I doubt the price will overtake Bitcoins. But if anything was to ever happen to Bitcoin (such as a major split in the community) who knows! In my opinion the coin is currently undervalued and this is simply because it's currently not getting the level of attention that Bitcoin and Ethereum does. This could change at any time.
Are you buying into Litecoin? Let me know in the comments.