Litecoin (LTC) is one of the most demanded altcoins after Bitcoin. It is steadily on the list of cryptocurrencies that should be in any investor’s portfolio. Litecoin is usually traded with USD or other cryptocurrencies, i.e. it is easiest to buy the coin for dollars. You can see the rate of cryptocurrency with USD at: https://cryptex.net/trade/LTCUSD. Let’s understand why Litecoin is so popular.
Reasons traders love Litecoin
LTC is a cryptocurrency based on the Bitcoin protocol. The blockchain process transactions faster than Bitcoin, also it has low transaction fees. Due to its speed and cost effectiveness, the payment instrument is used quite widely. A total of 84 million Litecoin is expected, this number will be mined by the year 2140.
The feature of LTC is that it has significantly more coins available than the same Bitcoin. The latter has a limit of 21 million coins, 19 of those are already in circulation. At the same time, we should consider that about 20% of bitcoins are irrevocably lost. As a result, the market is very concentrated and controlled mostly by a few big players.
Litecoin, on the other hand, has lower mining costs and more coins available in the future, which makes it possible to attract amateur miners. This increases decentralization, speeds up the exchange of coins between users, reduces transaction costs, and increases privacy.
What gives the currency extra stability is that its founder is known. He is Charlie Lee, a former Google employee. He constantly communicates with press and tries to stay in the public eye, what increases public confidence to his brainchild and attracts experienced investors.
LTC and USD
In general, LTC trades mostly with USD or other cryptocurrencies because USD is one of the most popular currencies on exchanges. However, the expected weakness of the dollar weakens the overall rate of the cryptocurrency as well. However, as Bitcoin rises, so does the LTC to USD exchange rate, which provides overall trading stability.
The LTC/USD cryptopair was positively affected by the addition of option contracts for “LightCoin” by cryptocurrency exchange Binance and other major exchanges. This happened in November last year and caused a surge of interest in the cryptocurrency, which has now gone down a bit.
Rate forecast for the near future
So far, according to the estimates of experienced traders, LTC/USD rates continue to move in the decline. Mostly Litecoin is selling now, so the fall in the rate is the most likely scenario for the near future. But in general, as with other cryptocurrencies, the fall is unstable and will not necessarily last long.
In general, many experts say that LTC is now up 8% in 2021, despite the massive rate correction. And in theory, the growth will only continue, so as an investment tool for the patient trader Litecoin suits well.
The fact that LTC more and more often appears in the list of accepted currencies at different exchanges and online stores adds some positive aspects to the forecast. This means that business trusts this cryptocurrency, recognizes its stability in general. In addition, the development team is constantly making some improvements to their network to ensure the reliability and stability of Litecoin.
If you look at the LTC/USD cryptocurrency chart, you can see that Litecoin has experienced both ups and downs. But this is typical for the cryptocurrency investment market, as crypto is a high-risk and unstable financial instrument. But overall, Litecoin’s position has always leveled off, and the currency itself has remained a valuable digital asset, so it is well suited to be added to an investment portfolio.