Litecoin is currently trading below the psychological level of resistance at $200 after rebounding from overnight lows of $190.
The ninth largest cryptocurrency in the world, which fell in the world rankings this year in light of the rise of DeFi, remains in bullish position on higher time frames despite offering some short-term warning signs.
Since the breach above $58 in the fourth quarter of 2020, Litecoin has consistently formed higher bottoms against a pair traded in US dollars to signal a clear bullish trend.
LTCUSD chart by TradingView
It then posted an annual high of $249 in February, however investors will be concerned about the recent rally on March 13 that failed to break through the resistance level of $229.
Trade volume has declined steadily since the recent rise, indicating that bullish momentum began to decline after a three-month period saw litecoin’s value increase by more than 150%.
While volatility has declined over the past few weeks, it looks as if it is a big move on the cards with all the momentum indicators reset.
However, many of them will depend on the bitcoin track, which is struggling in itself to maintain momentum after its highest level this month at $61,800, where it is currently trading at $57,000.
Litecoin was released in October 2011 by Charlie Lee, a former Google employee. It’s a Bitcoin fork, and the main difference is when to create a smaller block. The protocol also increased the maximum number of currencies and implemented a different text-based algorithm.
Litecoin is one of the leading cryptocurrencies and is one of the top 10 digital currencies by market value.
As with any investment, it is useful to do some homework before giving up your money. Cryptocurrency prices are volatile and rising rapidly. This page does not recommend a particular currency or whether you should invest or not.
What is LITECOIN?
Litecoin is a peer-to-peer Internet currency that offers instant payments at a cost close to zero to anyone in the world. Litecoin is a fully decentralized open-source global payment network without any centralized powers. Mathematics secures the network and enables individuals to control their financial resources. Litecoin has faster transaction confirmation times and improved storage efficiency compared to the leading math-based currency. With industry support and volume of trade and liquidity, Litecoin is a proven way to trade complementary to Bitcoin.
There are 180 internationally recognized currencies in circulation, ranging from Samoa’s Tala to Burmese keats. Just as with a regular currency, there are many cryptocurrencies too. Since it was the first, Bitcoin has enjoyed all the publicity, but it competes with dozens of ambitious alternatives – one of which is the Litecoin.
Measured by the market value of the market value (or the amount of currency on the market), Litecoin is the third largest cryptocurrency after Bitcoin and XRP. Litecoin, like its contemporaries, operates in a sense as an online payment system. Like PayPal or the bank’s internet, users can use it to convert currency to each other. But instead of using the U.S. dollar, litecoin performs transactions in litecoin units. This is where the similarity of Litecoin ends with most traditional currencies and payment systems, although it is still one of the top five virtual currencies other than Bitcoin.
How Litecoin is made
Like all cryptocurrencies, Litecoin is not issued by the government, which has historically been the only entity that the community trusts to issue funds. Instead, the litecoin coins are regulated by the Fed and taken out of the press in the engraving and printing office, through a detailed procedure called mining, which consists of processing the list of litecoin transactions. Unlike traditional currencies, the supply of litecoin is constant. In the end there will be only 84 million litetin traded and no more than another currency. Every 2.5 minutes (as opposed to 10 minutes for Bitcoin), the Litecoin network creates the so-called cluster – the entry of the ledger for recent Litecoin transactions around the world. This is where the value inherent in the litecoin is derived.
The block is verified by the mining program and made visible to any “miner” who wants to see it. Once the metal checks it out, the next block enters the string, which is a record of each transaction at all in the litecoin.
The incentive for mining is that the first miner to successfully verify a mass is rewarded with 50 litecoin. The number of litkus granted for such a task decreases over time. In October 2015, it was halved, and half will continue at regular intervals until 84,000,000 litecoin is mined.
But can an unscrupulous miner change the mass, allowing the same litecoin to be spent twice? No. The fraud will be discovered immediately by another miner, unknown to the first. The only way to really manipulate the system is to convince the majority of miners to agree to treat false treatment, which is practically impossible.
Cryptocurrency mining at a rate worthwhile for miners requires an evil processing force, courtesy of specialized hardware. To mine most cryptocurrencies, Dell Inspiron’s CPU is not close enough to complete the task. This brings us to another point of litecoin differentiation; Although the more the machine’s mining capacity, the greater the chance that it will gain something of value to a miner.
What is the value of Litecoin?
Any currency – even the US dollar or gold bullion – has value only as society believes. If the Fed starts trading a lot of banknotes, the value of the dollar will fall in a short time. This phenomenon goes beyond currency. Any commodity or service becomes less valuable as it becomes readily available and cheap. Litecoin innovators realized from the outset that it would be difficult for a new currency to develop a good reputation in the market. But by restricting the number of litehades in circulation, founders can at least allay people’s fears of excess production.
There are inherent advantages to litecoin compared to Bitcoin. Litecoin can handle more transactions, given the time of creation of the shorter block. Litecoin also has transaction fees that are barely recognizable. It costs 1/1000 of Litecoin to process the transaction, regardless of its size. Compare this with the 3% PayPal fee.
In the physical world, stores with the most reliable value become the currencies chosen in the event of a crisis. In the late 1990s and early 2000s, Zimbabwe became synonymous with hyperinflation. When inflation reached 89.7 per cent (give or take a few points) and made the Zimbabwean dollar worthless, it wiped out the fortunes of many people who were unlucky enough to own liquid assets. People had no choice but to use something more stable – primarily the US dollar and the South African rand – for daily trade. The inherent scarcity of Litecoin makes hyperinflation impossible, but there is still a challenge of gaining public acceptance and making more people use the currency.
Once the currency reaches a critical mass of users who trust that the currency is already what it represents and may not lose its value, it can maintain itself as a way to pay. Litecoin is not universally accepted anywhere, so its founders admit that it has fewer than 100,000 users (even that Bitcoin has less than half a million users). But as cryptocurrencies become more accepted and their values stabilize, one or two of them – possibly including litecoin – will emerge as standard currencies in the digital world.