Crypto Academy Week 9 - Homework Post for @yohan2on | Litecoin

Introduction

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Globally, cryptocurrency is the top and trending currency which many persons has engaged by investing on crypto and as well trading on it. Perhaps, there are numerous cryptocurrencies in the market that are available to invest on and Litcoin is one of the top cryptocurrency.

Review of Litcoin

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Litcoin remains among the biggest and leading altcoin currently in the world. Although, bitcoin (BTC) and Ethereum (ETH) is ahead of litcoin. As such it has served as an alternative altcoin to many investors due to its nature. Litcoin is a decentralized ecosystem that was set up in the year 7th October, 2011 by the help of computer scientist named Charlie Lee, who previously worked for Coinbase in the year 2013 as engineer. Charlie Lee is recommended as the chief creator and founder of Litecoin. Litecoin has the symbol Ł or LTC and possess almost the same code to that of the bitcoin.

As of the year 2011, October 13 precisely, Litcoin network was presented live and the coin observed instant rapid growth in November 2013 where within the interval of 24 hours they experienced 100% jump. However, litcoin is not controlled and managed by a single owner or by governmental body which is why it's observed as one of universal open means network payment.

The beauty of litcoin network is that every 2.5 minutes, it process each block which is why is more quicker than some altcoin like bitcoin in terms of confirming transactions to the user. The network of Litecoin is powered by proof algorithm which requires a device called scrypt. Litecoin is generated via a crytographic protocol which are released under the control of MIT/XLL licences.

Every Altcoin has it's own problems and from the cause of the study, I observed that mining remains one of the problem Litcoin is facing. And this because it is characterized of integrated circuit known as Field Programmable gate array(FPGA), and Application specific integrated circuit (ASIC) as well as scrypt algorithm which made it very costly and complex to generate.

Important Attributes of Litecoin

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Actually bitcoin remains the biggest and leading cryptocurrency among other altcoins in the world but there are some features in which Litcoin possess that is better than bitcoin. It is characterized with a high standard reputation which why it remains as one of the top crypto assets in crypto market.

Block generation time
The block generation time to process a bitcoin is every 10minutes, while Litcoin network do process block in the interval of 2.5 minutes as such this made litcoin to be quicker in terms of transaction confirmation than bitcoin.

Low Transaction Fee
Another beauty of LTC over other crypto asset is the transaction fees. It has low fee charge and to process it takes 1/1000 litecoin no matter the size.

Some other significant points in Litecoin includes:
Coin limit and block reward to the miners
The limit coin of Litecoin is 84million and the miners are rewarded with 50LTC which was later halved to 12.5LTC. It was also documented that 66 million of Litecoin were circulated in March, 2021.
Storage
Large scale Litecoin can be stored in can very cold hardware wallet, desktop, and many more other wallet. Trezor and ledger are very good example of hardware wallet. Both ledger( ledger Nano X and Nano S) and trezor has the ability to store digital coins like litecoin offline but it requires a savvy user.

Encryption of Litecoin wallet

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One of the benefits of encrypting wallet is to safeguard it and prevent external body from having access to the transaction and balance. In Litcoin wallet, it requires you to put your password before making any spending. Therefore, this has provide adequate security from external body to steal from the wallet.

How to Invest In Litecoin

Just as mentioned earlier that cryptocurrency is the trending currency people has really investment on. Therefore, investing in litecoin is either by buying through other crypto exchange like binance exchange or by mining. Below is the following ways in which one can invest in litecoin.

1. Buying and storing

Buying litecoin in some secondary exchange platform like binance, huobi and other peer to peer (P2P). Some persons in my domain bought litecoin through Roqqu exchange and store it over there before sending it to binance exchange platform where he thinks is better and well secured. While some of them that bought at low $64 as of 2019, because they stored it in a secured place, later they sold it in a higher value $180 which they got hugh profit from it.

2. Trading

Litecoin can be used in trading. Although, trading is not that easy because one can loss big amount of cash while trading. With this effect, trading of crypto asset like litecoin requires professional or someone who understands trading very well since it's price fluctuations.

Spot Trading
For instance, spot trading Litecoin to USDTin binance exchange is very simple when you understand the candle stick chart very well, you can make a huge profits regardless of the price fluctuations . Below is the image of trading litecoin to USDT.

So a good trader can purchase litecoin at the rate of $30 and sells it ate the rate of $160 which the profit will be $130. However, to achieve a huge profits you must be a good trader that understands the candle stick chart.

Derivatives trading: This is another means of trading but it's very difficult to understand and more risky than the spot trading. Although, profits can be obtained from it only when you understand the strategy behind the risk management.

Conclusion

The volatility of Litecoin enables it to generate profit as such it has been observed that Litecoin is a good investment which makes Litecoin to have a bright future to climb regardless of it failing to breaks the record of bitcoin and Ethereum.

Thanks for reading.

@yohan2on