Cryptocurrency is a digital currency that enables users to undertake digital payments. You might have come across many popular names including Bitcoin, Ethereum, Dogecoin, Polkadot, etc.
All these individually and collectively represent crypto tokens. Cryptocurrencies are an alternative payment mechanism that uses a unique algorithm. Crypto tokens work as both digital payment and investment models. The token allows users to undertake easier transactions on the web. To complete a transaction a user needs a digital wallet. Such wallets can be of any type. It may be your personal user computer or cloud-based software. Get ready to trade with eKrona.
Are there risks to crypto investments?
This indeed is a debatable topic. Many economists and financial experts do not approve of crypto investments. Other than being a threat to the economy, cryptos also have various other risks.
This investment model is only ten years old and hence cannot be considered a foolproof model. The market is highly volatile and prices fluctuate every day. The market is open 24*7 making a token price change without any warning. No banks or regulatory agencies are monitoring your transactions. It makes all crypto transactions unregulated and lacks protection during losses. Also, the ability to liquidate these holdings is not as easy as it seems. Since it is an uninsured investment model, it becomes difficult to liquidate. Also, every cryptocurrency works on the internet and technology. It means these tokens are prone to hacking and phishing attacks. Your crypto tokens are generally stored in digital wallets. Suppose, if you tend to lose your wallet details then you end up losing your entire investment.
Understanding Litecoin and its investment options
Litecoin (LTC) works like the Bitcoin blockchain and is created using the same method. The token came into effect to address various issues related to Bitcoin mining. The token addresses issues and complaints about the Bitcoin network being controlled. Large-scale enterprises were unable to gain an upper hand in mining due to stringent controls. While the token was not able to address this inherent issue, it has indeed been reworked as a mining token. The token also works to enable easy peer-to-peer transactions.
The token was released in 2011 and had a pre-mined supply of 85 million coins. The platform generates a new block once every 3 minutes. The supply of tokens is reduced to ensure that there is no inflation and that prices are protected.
Litecoin is trading at $50 per token
Yes, like other crypto tokens Litecoin is also under pressure. Since May 2022, the crypto market is depicting a downward trend. Many popular tokens including Bitcoin, Ethereum, and Shiba traded on red lines. The trend is continuing for more than two months in a row now. Terra USD, the popular stablecoin, is completely washed out of the crypto market.
The market performance of LTC is also plunging since March 2022. The crypto token once priced at $132 declined by more than 60%. The token value has been reduced to as low as $50 per token. Market experts also predict that the token may reduce prices even lesser.
Various factors contribute to price fluctuation. Other than a market crash, inflation, and economic crisis there are a few more reasons. LTC came up with a recent update to include MimbleWimble. The update did not go well with crypto followers. Reports came out that the update hurts public sentiments as well. The token saw a huge fall in many crypto exchanges and the world market.
Additionally, the token is also a classic example of a bear market. Prices of many tokens fell to an all-time low due to it. Litecoin typically works using the same philosophy as Bitcoin. However, the token allows users to undertake transactions at an easier and faster pace. Due to this similarity, the token also created a negative reputation amongst Bitcoin lovers. This contributed to a further reduction in prices.
Is it the right time to invest in LTC?
The answer would be a straight no here. It is important to not make any investments in LTC right now. Take time to study the market trends. Make sure to invest once the token shows signs of recovery. Now you do not need to wait until prices reached $100. But make your investment slow.
