There are about 400 cryptocurrencies active in the market today. Each cryptocurrency was curated keeping in mind a purpose. Every crypto has a goal of either facilitating or resolving problems leading to advancements in the digital currency sector. It started with Bitcoin wanting to make funds transfer easier. One such cryptocurrency is Litecoin. With the LTC to INR value at 9,500 rupees at the beginning of the year 2022, this digital asset is known to possess immense potential. Let us look at a few things that will help us predict what this year is going to look like for Litecoin.
History of Litecoin
Launched in 2011 by Charlie Lee, Litecoin has become one of the most successful altcoins that are being viewed as better than Bitcoin by a lot of people. Litecoin has been subjected to the volatility of the crypto market just like any other cryptocurrency. It was created using bitcoin’s code and shares a few features with bitcoin. The primary reason for the inception of Litecoin was to expedite the transactions happening on Bitcoin.
Although Litecoin ended the year 2020 with 9,849 rupees, it reached the lowest point of the past year in December 2020, where you could have invested in 1 Litecoin at just 5,626 rupees. The graph has been shaky since then and it touched a peak value of 32,196 rupees at the beginning of October 2021. The volatility is one of the factors why Litecoin is preferred for transactions rather than a long-term investment. You can store a few in the hot wallet that you have on your phone which can be used for daily transactions.
More about Litecoin that can help predict the future
Litecoin checks all parameters required to be a successful cryptocurrency – decentralized, transparent, and digital public ledger and peer-to-peer cryptocurrency. Litecoin uses proof-of-work to verify transactions, just like bitcoin but is a faster version of Bitcoin. The mining algorithm called scrypt helps Litecoin in making transactions faster.
The mining process is similar to that of bitcoin and the miners are rewarded with LTC. Once a block is confirmed and done, the next block enters the chain. Litecoin supply overall has a cap of 84 million and 67 million have already been mined. The number of Litecoin mines is halved like other cryptocurrencies. After 2011, the first halving was observed in 2015 from 50 LTC to 25 LTC and in 2019 it was reduced to 12.5.
Litecoin is more efficient and ideal for daily transactions. Like most cryptocurrencies, Litecoin eliminates the need for a third party or an intermediary while making processing payments.
Predictions for 2022
Looking at the pattern from last year, it is clear that there have been some sharp highs and lows for Litecoin. The chart displays an ascending pattern, which is formed by 2 upward trend lines. This pattern is generally referred to as a channel up or rising channel. If this trend continues, Litecoin price may touch 21 thousand rupees in 2022 as this is a bullish chart pattern. However, the pattern seems to be reversing at the beginning of 2022 and the value of Litecoin has dropped 5 thousand rupees since December 2021.
Partnerships are very important in the crypto world and Litecoin ensures they have tied up with some of the giants of this industry. They have also assumed corporate social responsibility. Although Litecoin took a while to gain momentum, experts are positive that it will reach greater heights. Litecoin took a while to establish trust and has been a consistent performer. Litecoin works continuously to ensure the growing demands of customers are met and they keep improving their scalability. The constant improvements point to LTC having a good year. The bullish predictions are 21,000 rupees. While the bearish predictions are 5,500 rupees.
How can you buy Litecoin?
If you are planning to invest in Litecoin, it is imperative to start with a digital wallet that can store your cryptocurrency safely when you are not accessing it. This minimizes the risk of theft and is a secure and sensible way to digital assets. However, it is essential you do not forget the passcode of the wallet, as almost always there are no backups and you can end up losing your Litecoin.
You can head to CoinSwitch, one of the best exchange platforms in the country. CoinSwitch offers the perfect start to your crypto trading journey. You can download the app for free and once you have finished your KYC, you can start trading. CoinSwitch will help you in your journey to becoming a successful investor by predicting the patterns and making the opinion of experts available to you. The best part about CoinSwitch is that they even have the facility of a wallet which you can use. So download the app and start today!