Review of Litecoin Cryptocurrency: Forecasts, Advantages and Disadvantages

The abundance of coins on the cryptocurrency market makes it multifaceted and diverse. Currently, there are more than a thousand different coins and tokens that perform completely different functions. In this article we will review a high-capitalization coin; at the time of writing, it occupies an honorary sixth line in the rating of Coinmarketcap – we are talking about Litecoin.

Contents:
(please, click the topic to scroll down to it)

  1. What is Litecoin? History of the coin
  2. How to create a Litecoin wallet?
  3. Advantages and disadvantages of Litecoin
  4. Mining of Litecoin
  5. The rate of Litecoin and forecasts for the second half of 2018
  6. Conclusion

1. What is Litecoin? History of the coin

First of all, Litecoin is a cryptocurrency, based on the technology of blockchain. That is, it is absolutely decentralized, no intermediaries, institutions or central firewall are needed for its operation. The functioning of the system is provided by all members of the community, each of which has absolutely equal rights. Each member of the community acts both as a user and as a server. This is similar to the peer-to-peer network used for downloading and distributing files (uTorrent).

Anyone who has access to the Internet can store his/her money in Litecoin (as well as in any other coin). At the same time, users have the opportunity to control their own funds independently, without supervision of banks and other financial structures. Litecoin is a digital currency, which can help you to receive and send transactions  almost instantly and with a minimum commission.

History of the coin

The main developer and creator of LTC is the American programmer Charles Lee. The coin was first launched on the 13th of October, 2011. It was the fork of Bitcoin, which solved some of the flaws of the world’s #1 coin. Litecoin gained popularity in the first quarter of 2013, and then the first significant jump of its rate happened, which led to the appearance of a coin in the top-10 cryptocurrencies of the world.

2. How to create a Litecoin wallet?

As we mentioned  above, this coin is the oldest altcoin, which was formed back in 2011. Litecoin is quite a popular coin, it is even called “digital silver”, so the overwhelming number of wallets support it. There are several variations of cryptocurrency wallets:

  • hot desktop or mobile;
  • cloud;
  • cold.

You need to determine what actions you will be making with the help of this coin to choose a wallet that will meet your requirements. Let’s say that if you decided to make a significant long-term investment in Litecoin, a cold wallet is best suited for such purposes. But if your interaction with the coin occurs several times a day, then an online or a hot wallet will be perfect for you. We recommend you to read this article in order to find out more about cryptocurrency wallets and decide what exactly you need.

3. Advantages and disadvantages of Litecoin

Let’s go over the advantages of LTC:

  • the main virtue of Litecoin cryptocurrency is its work speed (if you compare it with the classic Bitcoin, then the closing speed of the blocks is four times faster (10 minutes for BTC, 2.5 minutes for LTC);
  • it has open source code;
  • the basis of its work is the Scrypt algorithm;
  • transactions have a minimum commission.

The main disadvantage of Litecoin is its absolute anonymity, which creates a bad image for the coin, as it is often used for illegal things in DarkNet.

4. Mining of Litecoin

It should be noted that the profitability of mining any coin is far from permanent. The amount of profit obtained depends on many factors:

  • equipment capacity;
  • complexity of the system;
  • coin rate, etc.

Before proceeding to the mining of any coin, not just Litecoin, you should analyze all the abovementioned factors. The complexity of the system usually grows in direct proportion to the number of miners.

Let’s remember how much Litecoin cost in the March of 2017, at that time its rate quickly rose to $30 per coin. Then mining on ASICs became profitable. This led a large number of miners to the market, because of this, the system complexity increased a lot and it became unprofitable to mine Litecoin.

If we talk about the situation with the mining of Litecoin as of mid-2018, then it should be said that there are no big players in the market. This opens up opportunities for private small enterprises to try themselves in this field. However, we want to point out that the rate leaves much to be desired so far.

5. Litecoin rate and forecasts for the second half of 2018

Litecoin currently (end of June, 2018) costs $79 per coin. The peak of the rate was fixed on the 19th of December, when it reached the price point of $364.54. Many analysts still consider investing in Litecoin a rather promising occupation. The average positive outlook of analysts is as follows: $500 by the end of 2018. But the development team led by Charles Lee will have to spare no efforts to make this happen.

6. Conclusion

Litecoin is the first fork of Bitcoin. It was launched back in 2011. It uses the Scrypt algorithm, which allows it to be more efficient in a number of ways than the original Bitcoin. The coin is completely anonymous. Transactions in Litecoin run four times faster than those of BTC, and commissions in the system are almost nonexistent.

According to analysts’ forecasts, the coin has a promising future, but you should not listen to all the statements that you find on the Internet. Do not take them for real, as practice shows, not all of them turn out to be true. As for Litecoin, all the news are rather neutral, and there are no fundamental reasons for it to drop. Litecoin should go up together with the whole market, when the latter comes out of the hole which it fell into in 2018. We are all looking forward to it.

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