Litecoin is another cryptocurrency that uses blockchain technology. This network is another decentralized payment solution that has been gaining in popularity, and it is one of the biggest cryptocurrencies by market capitalization.
Litecoin, like other cryptocurrencies, spent some time going sideways price-wise after it was first introduced. The market began to attract more attention in the spring of 2017, however, and it has been trending higher ever since. The currency eventually made a move to around $80 per unit in September of 2017, before pulling back towards the $50 level. Litecoin didn’t stay down long, however, and quickly returned for another test of the $80 level. The market cut right through this previous resistance level, and rapidly moved higher, putting in a high of over $366 by December of 2017.
The market has since pulled back again, and is trading for under $300 per unit. Although Litecoin has thus far not shown as much volatility as some other cryptocurrencies, these markets have shown a tendency to exhibit a lot of price volatility. The key may lie in how they respond after any significant sell-offs. Thus far, cryptocurrencies have shown a tendency to bounce back quickly following any downside. This is likely due to investors being willing and able to step in and buy on any significant dips in price.
Price charts can be a very useful tool for both active traders and long-term investors. Charts can be used to spot trends in the price of an asset, and may also be useful for identifying overbought or oversold conditions.Charts are available on numerous time frames, from 1 minute charts to monthly and yearly charts. Active traders may be more interested in short-term charts like daily charts while longer-term investors may be more focused on long-term charts such as weekly, monthly and yearly charts.
Litecoin and other cryptocurrencies are already accepted by numerous merchants, and their acceptance could potentially increase substantially in the years ahead. Litecoin offers a low-cost, quick and convenient payment solution for its users. These currencies can be especially useful for sending payments internationally. They may cost less than wiring funds through a bank, and do not incur any foreign transaction fees that may be associated with credit card payments. In addition, there is no need to convert currency when using cryptocurrencies.
Litecoin can be purchased and traded on numerous exchanges, and could potentially continue to increase in popularity. That being said, the market could also see significant ongoing price volatility as investors and global markets become more involved. Investors looking to hold for the long term may see tax benefits from holding Litecoin in a self directed IRA.
Some have suggested that cryptocurrencies like Litecoin could eventually become far more mainstream, even becoming widely used for everyday purchases such as coffee at Starbucks or gasoline. Should these currencies continue to grow, there is no telling how high prices could potentially climb. Cryptocurrencies appear here to stay, however, and may simply see some of the growing pains associated with a new technology. Although they could potentially pay off handsomely for long-term investors, some bumps should be expected along the way.