After hearing Bitcoin’s success, you are probably starting to wonder if you should give it a try. But before you dive into the world of cryptocurrencies as an investment option, you need to know just one more thing. While Bitcoin has a stellar performance this year so far, there is another cryptocurrency in town that’s performing even better than Bitcoin by a wide margin.
While the general public remained clueless, virtual asset traders have known Litecoin, one of Bitcoin’s competitors, for quite a while now. Some people view it as just Bitcoin’s clone, but experts say that it’s the safer virtual currency between the two.
MOVE over Bitcoin, there’s a new cryptocurrency in town.
Well actually, digital currency investors will already be well versed in Litecoin – the second largest digital currency that was launched in 2011 and appears nearly identical to Bitcoin, but with a few key differences.
How to buy Litecoin and is it safe?
The cheapest, easiest way to purchase Litecoin is by using your Bitcoin currency at a site such as Bit Bargain.
You can also get hold of Litecoins by mining them, using standard computing equipment.
However, Litecoins have a less developed infrastructure than their heavy weight Bitcoin brother, meaning they’re more difficult to purchase.
The best way for novices to purchase is certainly through using an existing Bitcoin stash.
Anyone thinking of investing in Bitcoin or another cryptocurrency should be very careful.
Their values are volatile, with the ability to plummet as quickly as they shoot up.
And investors are frequently targeted by hackers and other criminals who seek to steal their crypto-cash online.
Be especially careful if you are using direct, peer-to-peer platforms to sell and buy cryptocurrencies.
Today the US Securities and Exchange Commission halted a multi-million dollar digital token sale by California-based restaurant review app firm Munchee.
SEC chairman Jay Clayton said there were substantially more opportunities for fraud from initial coin offerings.
The US regulator also warned consumers of the dangers of investing in crypto-currencies issued by firms – the latest in a string of warnings from global regulators.
Why has it spiked?
Litecoin reached a new record on December 11, extending its recent gains and increasing its year-to-date (YTD) returns to more than 4,000%.
On 14 December the price was £222.60 ($299.39) – putting it down 2.9 per cent from the day before.
After beginning out 2017 at $4.33, this latest high represented a YTD return of roughly 4,215 per cent.
The surge can partly be attributed to by the launch of Bitcoin’s futures contract this week, fuelling confidence in cryptocurrency – though in fact the surge had started long before.
Is the cryptocurrency as valuable as Bitcoin?
Bitcoin has enjoyed a meteoric rise this year – but its younger sibling Litecoin actually has more than twice its year-to-date gain.
Compared to its 4,215 per cent rise in value, Bitcoin’s 1,800 per cent rise pales in comparison.
But Litecoin is considerably cheaper at the moment, with the $312.040 unit price a fraction of Bitcoin’s £12,626.16 – as valued on December 12.
Whatever happens, the 30 per cent leap in Litceoin’s value this week certainly speaks volumes for the astronomical rise of cryptocurrency.
via The Sun