If you’re looking to invest in cryptocurrencies but don’t know which one, this guide will help you make your decision. While Bitcoin (BTC) has dominated the cryptocurrency world since it first launched, and still claims the largest market cap of any cryptocurrency, other currencies have seen increases in value recently, such as Litecoin (LTC). However, Litecoin is much different than Bitcoin and its features may give it an advantage over BTC in the future. Read on to learn more about why Bitcoin or Litecoin may be right for you and how these digital currencies might perform during the next economic downturn or recession.
So, What Is a Cryptocurrency? A cryptocurrency is a form of digital currency in which encryption techniques are used to regulate its use and generate its release. There are many different types of cryptocurrencies available today, but Bitcoin (BTC) remains one of the most popular examples. Bitcoin is decentralized, meaning it’s not controlled by any government, central bank or administrator. It’s also public, meaning that anyone can see how much bitcoin (BTC) you own at any given time. That differs from traditional currencies like euros and dollars that are owned by banks and governments with some amount of privacy between them and their customers.
Supply and Demand
As with all things, an increase in demand leads to an increase in price. We’ve seen a boom of cryptocurrency coming into play over recent years, but we can’t expect that to continue forever. So how do you make sure you’re not caught out when supply overtakes demand? Try diversifying your portfolio. For example, if you own three Bitcoin, consider investing in other types of cryptocurrencies (e.g., Ripple) and other asset classes (e.g., gold). By spreading your risk across multiple investments, it becomes much harder to have everything crash at once—which would then ruin your chances of getting back on track quickly.
Advantages of Bitcoin over Litecoin
Bitcoin’s mining difficulty adapts and increases every 2 weeks (it takes 4 years to reach maximum mining difficulty). Therefore, Bitcoin miners are more likely to receive a return on their investment than Litecoin miners. This trend is opposite to Bitcoin, where smaller companies have an advantage over large ones.
Advantages of Litecoin over Bitcoin
Longer transaction times, meaning it’s less likely that a transaction will get lost. Transaction fees are also smaller (nearly half of Bitcoin). In 2015, a block on Litecoin takes 2.5 minutes to complete and can handle up to 56 transactions at once. There are more than 4 times as many Litecoins as Bitcoins (84 million total possible coins versus 21 million total possible coins). Faster transfers between exchanges and wallets, making it easier to convert between currencies. Easier to use with merchant processors and other systems, which means merchants and vendors may be more willing to accept it as payment. However, there has been controversy overusing them in certain countries like Germany. Not controlled by any company or organization – because of its open-source nature, no single entity has control over it.
Bitcoin and Litecoin are two of many cryptocurrencies that have been developed in recent years. These digital currencies are based on blockchain technology, which has made them increasingly popular with online users. Many people consider cryptocurrencies to be a good long-term investment. The price of Bitcoin has fluctuated wildly over time, but it reached an all-time high in late 2017 and remains high as of 2018. This can make some people nervous about investing in Bitcoin, especially if they’re unfamiliar with cryptocurrencies, but experts believe Bitcoin will remain a safe bet due to its unique position in an expanding market. Here are a few questions you might have when considering whether to invest in Bitcoin.