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Cryptocurrencies such as Ethereum, Litecoin, and Bitcoin have been making news because their values keep rising drastically. These currencies use complicated blockchain technology and mathematics to build a system that lets users store, pay and gain value from the coins.
Litecoin investment is complicated, understand that. The risks may be many, but the potential rewards outweigh them.
Litecoin is a peer-to-peer online currency that allows for instant, almost-zero cost payments to anybody in the world. It is an open source, worldwide payment network that is entirely decentralized. Mathematics protects the system and enables users to take charge of their finances.
Litecoin is the most popular internet currency after Bitcoin and Ethereum. There has been a debate as to whether it is second after Bitcoin but that is a topic for another day.
Litecoin differs from the other digital currencies in several ways.
• First, unlike with Ethereum and Bitcoin, Litecoin uses Scrypt (a software algorithm) in mining units. This software prevents users from creating powerful custom computers (or rigs) just for mining currency.
• The last and best news to investors, Litecoin is the cheapest among the three digital currencies. In June 2017, Bitcoin was at $2,500, Ethereum was at $300, and Litecoin was at $40.
If you have decided to invest in Litecoin, bear in mind that it is a currency. Do not expect it to have the characteristics of a bond or stock. You do not buy shares of Litecoin instead; you swap your currency for Litecoin currency.
For instance, as of today, $1 is equal to $43 in Litecoin. The aim of acquiring Litecoin is so that you can wait for its value to rise. Then you will exchange your Litecoins for dollars (you look for an investor willing to buy the Litecoins).
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THE BAD NEWS IS YOU cannot exchange Litecoin at your local stockbroker. You have to open a digital wallet. If you are a US citizen, Coinbase is the best digital wallet for you. You can buy and sell the three online currencies (Bitcoin, Ethereum, and Litecoin) on Coinbase. And since it is a digital wallet, you can use it to send, receive, sell and buy Litecoins as well—and yes, you can also pay for products and services online.
Just like any cryptocurrency, Litecoin has a high degree of risk. But with its low price and easy accessibility via Coinbase, It could be a game changer.