Litecoin [LTC] has most the vibrant and loyal community, says Mati Greenspan

On 1st August, Mati Greenspan, the Senior Market Analyst at eToro tweeted a report carrying an analysis of one of the world’s largest cryptocurrencies, Litecoin. Greenspan has summarized the coin to be considered as money due to the revolutionary partnerships established by the Litecoin Foundation.

Moreover, Greenspan’s metric analysis also conveyed that the current trading price of Litecoin is of far less worth than what the cryptocurrency actually deserves.

Investment Risks

According to the researcher, trading in cryptocurrencies involves a fair amount of risk due to its volatile nature but is also profitable at the same time, as observed in the past. High volatility is no stranger to Litecoin either, in the cryptocurrency market.

Greenspan has provided his readers with a few tips to start out in a new market. He stated that steps such as assessing one’s investment goals, methodology and amount of experience are vital to entering a new cryptocurrency trade.

Additionally, only around 20% of one’s portfolio must ideally be allocated to cryptocurrency investments, given the risks posed by the asset type. Through this approach, one will only lose as much money as they are ready to lose. This can also be useful in diversifying a portfolio, as stated by Greenspan.

Use Cases

As the report has mentioned, Litecoin and Bitcoin are similar in conception and hence in use cases. It also stated:

“As a currency, it [Litecoin] can act as a store of value, unit of account and medium of exchange, which are the three use cases that define a currency.”

Greenspan, in the report, has also put across a point about Bitcoin that the ‘digital gold’ of the cryptocurrency market was originally created to promote secure and censorship-resistant online payments. However, its main use case transformed completely, moving towards value storage, which led to the coin being named as the digital gold. According to the report, this shift in its use case was observed due to high fees and slow speed in its transactions.

In contrast with Bitcoin, Litecoin proves to be offering transactions that involve lower cost and higher speed. Despite this, other digital currencies born post Litecoin exhibit superior transaction features than Litecoin. The document reads:

“Litecoin, however combines these advantages with respect to Bitcoin with the fact that it has traditionally been considered the greatest contender to Bitcoin, as well as its large market capitalization.”

When seen from the aspect of liquidity, the report has stated that Litecoin is one of the coins with maximum liquidity and a major actor into bridging the gap between cryptocurrencies and fiat currencies.

Recent Developments

The researcher has observed an increased adoption rate of Litecoin by many businesses, retailers and exchanges alike. A few examples cited by Greenspan in his report are Alza.cz, a significant e-commerce Czech retailer, Wirex, a debit card company backed by cryptocurrency, CheapAir, eGifter and TapJets.

Greenspan has also called Litecoin as vibrant and loyal. He said:

“Besides, Litecoin is known for having one of the most vibrant and loyal communities of the whole crypto sphere, which has become famous for inside jokes, one of the most popular of which is Litecoin’s common nickname chikun.”

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