Bitcoin is the first digital asset in the world of cryptocurrencies. Altcoins or alternative coins refer to any type of cryptocurrency other than Bitcoin. Litecoin is the first altcoin that works on the fundamentals of Bitcoin. The name Litecoin is abbreviated as ‘Lite version of Bitcoin’ and aims to address the shortcomings of Bitcoin with respect to transaction speed, faster block generation, etc.
Litecoin went live somewhere in 2013 with an initial price of around $4. Since then, manifesting a healthy rally recorded its highest price or ATH at $410 in May 2021. The asset is being said to be extremely undervalued as it failed to achieve the $500 milestone. The upcoming year 2022 is expected to begin with a notable uptrend which may uplift the price towards a 4-digit target.
What is Litecoin-In Brief!
Litecoin like Bitcoin is a peer-to-peer, decentralized network designed for cheaper transactions and to be more efficient for domestic use. Charlie Lee, a computer scientist & an ex-Google employee founded Litecoin in 2011. The asset follows the fundamentals of Bitcoin as it is mainly based on Bitcoin’s source code.
How Does Litecoin Work?
If you know how Bitcoin works, then understanding the working of Litecoin is not a big deal. But the major difference is it’s designed to produce only a finite supply of coins which is around 84 million unlike the 21 million supply of Bitcoin. The Litecoin network also uses the same Proof-of-Work consensus algorithm and rewards the miners with LTC tokens.
The working of the Litecoin platform is much similar to that of Bitcoin, where-in each block is confirmed by the miners and further secure on the blockchain. The transactions are irreversible and anonymous. The miners who verify the block earn 12.5 Litecoins as rewards which are halved every 4 years.
Litecoin vs Bitcoin
Litecoin as it is built using the core fundamentals of Bitcoin tends to share many common features. While Bitcoin is considered as more ‘Store of value’ or a healthy long-term investment plan, Litecoin focuses on being a good payment alternative that can be used for easy transfers.
|Algorithm & Hash Function||PoW with SHA-256||PoW with Scrypt|
|Transaction Speed||10min per Block||2.5 min per block|
|Total Number of Coins||21 million||84 million|
|Miner Rewards||6.25BTC||12.5 LTC|
|Market Cap(As of 27-12-2021)||$961,136,023,622||$10,839,022,496|
Will Litecoin(LTC) Price Hit $300 in 2021?
The Litecoin price maintained a slow rally since its inception. Despite immense bullish market sentiments in 2017, the price failed to cross the $150 levels. However, the 2021 bull rally compelled the price to break out of its comfort zone and head towards $500. But woefully, it fell an inch short of the target and slashed down drastically.
Despite heavy fall, the asset did not remain quiet for long and quickly flipped the bearish trend to surge above $290 during the 2nd phase of a bull run in November 2021. Unfortunately, bears again jumped into action and dragged the price below $150. At present, Litecoin price is attempting very hard to flip the downtrend by breaking through the descending channel. The asset is trading along with the upper levels of the channel for the past three days and initiated the present-day trade on a bullish note after a breakout.
Yet the uptrend is still not valid. The probabilities of the asset re-entering the channels have not vanished yet. Therefore, with only a few days remaining to end the yearly trade, the LTC price may range between $160 to $175 to close the 2021 trade. Or if it undergoes a last moment push, it may close the yearly trade above $200. Hence the $300 target by EoY is very tough but not unachievable.
Additional Read: Litecoin(LTC) Technical Analysis
Factors Affecting Litecoin(LTC) Price Today
Litecoin network is pretty secure and much affordable and hence used as a payment method by most cryptocurrency processors. Not only that but LTC is also used to transfer funds between exchanges, lending platforms, etc.
Usable Day-to-Day Currency
Usually, cryptos are considered the best form for investing your funds for healthy growth in the short-term or long term. Yet Litecoin focuses on becoming an alternative form of currency that can be used on a daily basis with ease. The faster transaction at affordable costs assist the LTC to be a day-to-day currency
Litecoin commonly known as the brother of Bitcoin is assumed to not have begun with its rally as of now. Considering the narrow swing and lowered pace, experts believe the LTC bull rally to be more explosive in the coming days.
Both the RSI and MACD are preparing themselves to point out a huge bullish rally ahead. The RSI is currently ranging at the lower bands which may go parabolic soon. While MACD currently is showing a diluted buying pressure which may get intensified very soon.
Where & How to buy Litecoin
As Litecoin is one of the primitive altcoins still in circulation, most of the cryptocurrency exchanges do offer LTC trade. LTC is also available on CoinDCX, which is India’s most trusted crypto exchange with more than 7.5 million users. The platform offers secure and fast trade at affordable rates.
To buy Litecoin, just download the CoinDCX app on your smartphone and register using your personal and bank details. Also do not forget to complete the KYC process. And Done! Fund your CoinDCX wallet and start trading!! Simple.