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Litecoin – The Most Underrated Currency in the Crypto Bucket

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litecoin underrated

With more than 1,300 cryptocurrencies in circulation, it’s easy to get lost in all the noise. Although most market participants are familiar with bitcoin and Ethereum, much less is known about the broader altcoin universe.

That is quickly changing.

Litecoin has become as a frontrunner in the cryptocurrency market. It emerged as a fork in bitcoin core, and was developed by former Google employee Charlie Lee. In declaring Litecoin, Lee actually announced from his office: “Let there be lite!” At least, that’s the way the story goes.

In just a few short years, Litecoin has become one of the world’s foremost cryptocurrencies. Though gaining in prominence, many investors are still unsure what it is or how it differentiates itself from bitcoin. When it comes to the world’s top altcoins, you might even say it is underrated.

What differentiates Litecoin from Bitcoin?

Bitcoin is still the most popular cryptocurrency but one can say that Litecoin is not far behind. The coin limit of Litecoin is far higher than bitcoin, 84 million compared to bitcoin’s 21 million. The motive behind creating Litecoin was to improve upon bitcoin, to make the process of transaction easier and less time-consuming. The time taken to generate a block of Litecoin is hardly 2.5 minutes whereas that of bitcoin takes 10 minutes. Litecoin uses the scrypt algorithm that integrates the SHA-256 algorithm (of bitcoin). Litecoin chose to use the algorithm to engage new miners, especially the those whose CPUs could no longer compete with ASICs (Application-Specific Integrated Circuits). At the beginning of its journey, Litecoin was also mined on GPUs or graphics cards.

Litecoin scores over bitcoin in the transaction process, as demonstrated by the following:

  • Litecoin blocks are generated in a much shorter time than the bitcoin blocks. Hence, the cryptocurrency ensures a higher volume of transactions compared to the first crypto coin.
  • Theory says that a higher volume of the transaction (translates to faster block time) means that the risk of security breaches decreases significantly. The sender will have to wait for only 5 minutes for two confirmations while one confirmation with bitcoin takes up to 10 minutes.

The Journey Towards Prominence

“When I released Litecoin there were a lot of other cryptocurrencies that were pre-mined by founders wanted to be super rich. I preannounced Litecoin on Bitcointalk, so people could mine it from the get go. It was more widely distributed from the start than Bitcoin.”

  • Charlie Lee, founder of Litecoin

Litecoin

Litecoin

We have seen that Litecoin has a greater transaction speed than bitcoin. Litecoin was one of the first crypto coins to realize the worth of Segregated Witness or SegWit. The aim of SegWit is to free up the block space by conducting speedier off-chain transactions. By incorporating SegWit, Litecoin can use the Lightning Network, which enables the participants to conduct transactions at virtually no cost. The Lightning Network is rapidly proving to be an effective solution to scalability issues of cryptocurrencies.

Litecoin has already been accepted by many countries like South Korea, Japan and Switzerland. Since the beginning of 2017, Litecoin has risen roughly 7,300% compared to bitcoin’s 1,700%.

Exchanges that Favour Litecoin

When it comes to cryptocurrency trading, the currency pairs favored worldwide are LTC/USD, LTC/BTC, LTC/USDT, LTC/EUR and LTC/KRW. Given below is a list of cryptocurrency exchanges that support Litecoin. The volume given below is dated 29th December 2017.

Litecoin graphCurrency Pairs

Litecoin graph

Volume of Litecoin trading

  • GDAX: The volume for the pair LTC/USD is currently at 650746.783 LTC on the Global Digital Asset Exchange or GDAX, which is owned by the San Francisco-based Coinbase. The exchange offers four digital currencies for trading: bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) and bitcoin cash (BCH).
  • Bitfinex: The volume for the pair LTC/USD is currently at 248736.848 LTC on Bitfinex. The cryptocurrency exchange is operated by iFinex. Bitfinex offers leverage up to 3.3x and supports a horde of cryptocurrencies, Litecoin being one of them.
  • Binance: The volume for the pair LTC/BTC is currently at 213338.740 LTC on Binance. This cryptocurrency exchange platform is prevalent among Chinese and English participants. It is easy to open an account on Binance and trade with the help of this user-friendly platform.
  • Bittrex: The volume for the pair LTC/BTC is currently at 111330.484 LTC on Bittrex. Based and regulated in the USA, Bittrex offers more than 190 cryptocurrencies available.
  • Bitstamp: The volume for the pair LTC/USD is currently at 70363.757 LTC on Bitstamp. Despite some attacks, Bitstamp has continued to stand strong. It has experienced considerably high volumes of cryptocurrency trades throughout the year. It is regulated by CSSF (Commission de Surveillance du Secteur Financier).
  • Bithumb: The volume for the pair LTC/KRW is currently at 133825.700 LTC on Bithumb. The exchange platform is based in South Korea. Besides being a leading exchange for trading bitcoin, Bithumb supports Litecoin and Zcash.

Other cryptocurrency exchanges that support Litecoin are Coinone, Kraken and Livecoin.

 

The Future

Charlie Lee had announced on Reddit (20th December 2017) that he had sold and donated his entire LTC balance. The founder of Litecoin does not have any LTC in his pocket! This has had a huge impact on the crypto community. But his announcement does not mean that he has cut off all ties with his brainchild. Charlie Lee said, “I will still spend all my time working on Litecoin. When Litecoin succeeds, I will still be rewarded in lots of different ways, just not directly via ownership of coins. I now believe this is the best way for me to continue to oversee Litecoin’s growth.”

User response litecoin

Users’ Response to ccn.com

We have already seen in this article that Litecoin has some notable advantages over bitcoin due to the incorporation of SegWit. Crypto connoisseurs say that a person should reap the benefits of Litecoin being undervalued, compared to bitcoin. One of the advantages is that Litecoin has a cap of 84 million. The price of Litecoin at present is $240.75 USD (as of 29th December 2017). The market value of the crypto-coin has grown significantly since its inception. This is another reason to trade with Litecoins and to transact using this cryptocurrency. The upside is that the financial media is gradually focusing on other cryptocurrencies like Litecoin, Cardano, Monero, and Ripple. This gives Litecoin the potential to outperform the first crypto coin.

Featured image courtesy of Shutterstock. 

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.5 stars on average, based on 9 rated postsHira Saeed is a tech geek girl with a passion to write on latest technology trends. She is the Founder of Tech Geeks community in Pakistan and also runs her copywriting and social media agency, Digital Doers. Follow her on @heerasaeed.




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Bitcoin

Bitcoin’s Year of Accumulation

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Although bitcoin looks poised to extend its January losing streak to five consecutive years, 2019 will be a year of slow accumulation for the virtual currency, according to Eric Thies, a well-known technical analyst. In the meantime, traders can expect the bear market to reach its climax once a new yearly bottom is breached.

Accumulation Year

In promoting the view that 2019 will be an accumulation year for bitcoin, Thies directed our attention to the major bear trend that emerged in 2015. That was the year bitcoin exhibited significant volatility, albeit in a lower range. Following the latest breakdown in price, bitcoin could be in for a similar trading pattern this year.

“Similar to 2015, 2019 may be the year of accumulation,” Thies said, according to CCN. This means bitcoin is likely to be an attractive investment in $2,000-$4,000 range – even with wild swings priced in.

Bitcoin’s volatility regime has changed dramatically in the last two months. Following a period of unprecedented calm, volatility surged to nine-month highs in the back end of December. Volatility will likely remain a factor for the foreseeable future as the technical tug-of-war continues. More on this: Bitcoin Maintains Narrow Trading Range as Recovery Faces More Resistance.

Circulation Grows

That bitcoin will remain highly volatile is supported by the recent influx of digital currency into circulation. Anonymous owners of dormant bitcoin wallets have been trading with greater frequency since October, which means their activity may have predated the November price collapse.

Data from Flipside Crypto recently showed that long-dormant bitcoin wallets have accounted for about 60% of the market’s circulating supply in the last 30 days alone. What’s more, active bitcoin supply has increased by a whopping 40% since the summer. This, of course, feeds into higher expected volatility.

If that’s not enough, consider that 1,000 addresses hold 85% of available bitcoin. As Bloomberg recently noted, many of these holders remained on the sidelines during the 2017 bull run and its subsequent collapse. If dormant accounts are becoming active again, there’s good reason to suggest that the whales are looking to re-enter the market.

Not Overnight

It’s reasonable to expect that bitcoin will become more attractive at lower prices, especially as more institutional investors access the crypto market in the coming year. But that doesn’t mean the accumulation will happen overnight. Previous bear cycles have taught us that downtrends can stretch for 1-2 years before any noticeable accumulation takes place. The only difference this time is there are more people involved, and more eyeballs on the price.

Additional reading: Crypto Winter and the Fed?

To demonstrate bitcoin’s potential at current levels, and why 2019 will be an attractive year to boost one’s holdings, it’s worthwhile to reflect on the cryptocurrency’s yearly lows rather than its highs. Below is a quick snapshot of bitcoin’s yearly bottoms stretching all the way back to 2012:

  • 2012: $4
  • 2013: $65
  • 2014: $200
  • 2015: $185
  • 2016: $365
  • 2017: $780
  • 2018: $3,200

Traders tend to focus on bitcoin’s lack of new all-time highs as evidence that the market is going nowhere, but these figures clearly show that BTC is a solid investment at almost any period in the last seven years (of course, this isn’t the case if you bought during the peak of 2018).

Make no mistake: technical analysis and market sentiment clearly show there is more pain ahead for bitcoin and the broader cryptocurrency market. But as the long-term value proposition continues to hold, there’s strong reason to believe we haven’t seen the last bull market. In the meantime, 2019 prices could represent a unique buying opportunity for those who missed the boat two years ago.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.7 stars on average, based on 741 rated postsSam Bourgi is Chief Editor to Hacked.com, where he leads content development for one of the world's foremost cryptocurrency resources. Over the past eight years Sam has authored more than 10,000 articles and over 40 whitepapers in the fields of labor market economics, emerging technologies, cryptocurrency and traditional finance. Sam's work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Contact: sam@hacked.com Twitter: @hsbourgi




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Altcoins

Lite.IM Surpasses Facebook In Race To Support Cryptocurrency Compatible Messenger

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Since the early part of 2018, crypto traders have been bombarded with bad news.  Hacks, broken promises, and overall lack of enthusiasm have resulted in huge losses.  But more than that, some promising cryptocurrencies just haven’t survived.  As traders look to the future, they should begin looking at projects that have the potential to disrupt industries and take them to the next level.  One company that has the potential to accomplish that is Zulu Republic (ZTX).

Zulu Republic is an ecosystem of blockchain tools and platforms, designed as a place where people, businesses, and organizations can thrive on their own terms.  The company’s stated mission is to advance the development of decentralized technologies, to promote human rights and empowerment around the globe, and to reduce the global digital divide.

Well the company is off to a great start with the development of Lite.IM.

What is Lite.IM? 

Lite.IM is a project aimed at expanding global cryptocurrency adoption.  With Lite.IM, users can send, receive, and manage Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and the company’s native currency (ZTX), on Facebook Messenger, Telegram, and SMS (in the USA and Canada).  To get started managing these cryptocurrencies on the aforementioned platforms, users simply need to send a text-based command to the Lite.IM bot.  The commands are as follows:

Telegram:  @LiteIM_bot

Facebook Messenger:  @lite.im

SMS (USA and Canada only):  760-LITEIM-0

Competition with Facebook

On December 21st, 2018, Facebook announced that it was developing its own stable cryptocurrency that users would be allowed to exchange through its popular chat service, WhatsApp.  But while Facebook’s initial approach will target users based in India, Lite.IM is open to everyone in the world.  Further, Zulu Republic has previously mentioned that they expect to announce support for WhatsApp in the next few weeks.  It certainly appears as though Lite.IM has the upper hand here.  And that is before even addressing Facebook’s obvious privacy concerns.

When it comes to cryptocurrency, privacy and security have always been two issues at the forefront.  Given the rough year that Facebook has had in that regard, users must certainly be forgiven if they have trouble trusting the social media giant.  In September, 2018, Facebook announced that an attack on its computer network had exposed the personal information of nearly 50 million users.  Apparently, the hackers were able to exploit a feature in Facebook’s code to gain access to user accounts.  Even prior to this announcement, Facebook was already under Congressional scrutiny over revelations that a British analytics firm obtained access to private information from nearly 87 million Facebook users.  Not to mention Facebook’s rumored involvement with Russian election meddling.  Suffice it to say, it has been a tumultuous year for Facebook.

And while users may have concerns trusting Facebook’s ability to handle cryptocurrency data, they shouldn’t have those same concerns with Lite.IM.  Private keys are RSA encrypted with the user’s password.  Lite.IM will never ask for that information nor will it be stored.  Because of this, no third party will ever have access to that valuable information.

Conclusion

The truth of the matter is that Facebook is an absolute giant and has grown at an extraordinary rate since its initial public offering.  Facebook has hired some incredible talent, from executive positions to marketing to development.  And while one should never count them out, I simply wouldn’t be able to trust them with all of the recent issues.  Perhaps in time, after regaining the public’s trust, users could once again look to Facebook as a leader.

Fortunately, users have another strong and dependable option.  Lite.IM will allow users all over the world to manage popular cryptocurrencies via their favorite messenger platform.  Users should continue to stay tuned for future developments.

Featured image courtesy of Shutterstock. 

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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Cryptocurrencies

Why Investors Should Be Paying Attention to Dotcoin

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I remember one of the first terms I learned in economics class was “complementary goods”. If one thing was bought that meant that the other would be in higher demand as well. In terms of investing, this tells you that investing in breathalyzers which can detect marijuana would be a smart move, or any other “cottage industry” to the medical marijuana rush.

But in terms of blockchain, it helps to figure out a way to make money on the trading industry, without becoming a trader yourself. One way to do this is to find a token that is tied to a trading exchange.

Cryptopia’s Utility Token

As a budding cryptocurrency exchange, Cryptopia has a lot of work to do. It also has clearly not been a good year for the cryptocurrency industry. However, Dotcoin (DOT) functions as the utility token to Cryptopia and could prove to be a good way to benefit from a comeback in cryptocurrencies. If the comeback occurs, trading would likely increase, as would the demand for DOT.

DOT is used to pay for coin listing fees and is how Cryptopia covers referral fees to traders. The requirement for listing fees to be paid means that during a crypto boom, when there are projects aplenty, something like DOT would be in high demand. The same thing applies to referral fees. Nobody is referring friends to join exchanges in a down period, so this is more likely to change when crypto hits the news again.

With over 2 million users as of the time of writing this, Cryptopia is a mid-sized exchange with not a lot setting it apart. To put it in perspective, I have only ever used Cryptopia to purchase DOT. That isn’t a “red flag in itself, but as a trader, you can actually use past experience to decide how likely it is that many traders will move to a different exchange.

In the end, so many companies (and especially trading exchanges) depend on network effects for their growth. For each new customer, it becomes slightly easier to attract another one. This applies to all exchanges though, and some of the biggest exchanges have been able to lower fees or offer deeper liquidity pools as a result of their larger user base.

What Your Investment Means

As an internal utility token, you are essentially making a bet on the platform. Currently trading around 150 satoshis, DOT has been running flat for a while. This makes it a low volatility bet with high potential upside. Previous resistance levels have been around 300 satoshis (with an all-time high at 650-ish).

As a utility token that is inextricably tied to a single exchange, it is almost for sure that it will spike again in the future. This is because a certain “price floor” exists on these sort of tokens which is hard to escape. That isn’t to say a return is guaranteed (this is a low market capitalization coin, after all), but more that there is more upside potential than downside risk.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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Hacked.com and its team members have pledged to reject any form of advertisement or sponsorships from 3rd parties. We will always be neutral and we strive towards a fully unbiased view on all topics. Whenever an author has a conflicting interest, that should be clearly stated in the post itself with a disclaimer. If you suspect that one of our team members are biased, please notify me immediately at jonas.borchgrevink(at)hacked.com.

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