Litecoin is a peer-to-peer Internet currency and an open source project that enables instant, near-zero cost payments to anyone in the world. It is much faster and cheaper than the Bitcoin and also, an open source that is fully decentralized without any central authorities. Though it is cheaper and faster, it has its own benefits and disadvantages that need to be considered before investing in it. The pros and cons of investing in Litecoin are listed below.
Pros and Cons of Investing in Litecoin are explained separately here:
Pros of investing in Litecoin
- Open source project
Litecoin is an open source project as it has the capability and flexibility to execute relevant and useful tech improvements including SegWit and the lightning network. Thus, it is an improved version of Bitcoin.
Litecoin is considerably faster than Bitcoin in terms of completing transactions as it takes near about 2.5 minutes, compared to the 10 minutes it takes to perform a similar operation in the final. Also, the presence of the Lightning Network in Litecoin fosters and promotes faster transactions.
- Cheap option
It is a cheaper option for people looking to perform transactions with less or almost zero transaction fee in comparison to Bitcoin.
As Litecoin is created by a former Google employee, it is highly reliable and is trusted by many people all around.
- Mining is easier
Since Litecoin uses new Proof of Work algorithm, the process of mining is much easier and straightforward than in Bitcoin.
- Less volatile
Litecoin is considerably less volatile during market crashes or corrections than other cryptocurrencies.
Cons of investing in Litecoin
- Damage in Litecoin market
Until the Bitcoin’s scaling problem is solved, Litecoin market will be somewhat damaged.
- Fork of Bitcoin
As Litecoin is a fork of Bitcoin, there implies very few if any, new and innovative ideas, which is something that other coins have to offer.
- SegWit development in Bitcoin
The counter move of Bitcoin adding SegWit to its catalog of offerings makes Litecoin loose one of the values that made it different.
So, these were the advantages and disadvantages of Investing in Litecoin