But amid all this insane growth, many are left wondering, what’s causing it? Here are five reasons.
The last 2 weeks have been very eventful for the cryptocurrency market. Along with Bitcoin, the sister currency Litecoin surged an unprecedented hike witnessing a rise up to 1,800% from the older price and 333% from its prior week’s price.
The insane rise in prices has left everyone wonder the cause of the transition. Fuad Ahmed, a currency trading expert making his analysis in the digital currency is giving an insight in all the reasons that are causing the fluctuation in Litecoin’s prices and attracting all the investors towards the new emerging market. Fuad Ahmed collects the 5 main reasons that are triggering the boom of Litecoin.
Bitcoin and Future Trading.
The month December opened options for future trading in bitcoin. The markets like CBOE and CME on December 10, considering the volatility of the cryptocurrency and looking at the progress in its prices decided to trade futures with bitcoin. Many analysts believe that the reason these markets opted for trade in cryptocurrency is that of the sudden rise in bitcoin prices within a year. It is assumed that the price of Litecoin is going to have the same fate as had the Bitcoin. It was also the same reason that Litecoin was purchased in great quantity as soon as the price of bitcoin started soaring high. The reason behind Litecoin becoming the new most demanded currency is the expectation of it going as high as bitcoin. Its the domino effect of bitcoin’s surge that’s taking Litecoin and other big cryptocurrencies in its fold. The activity in the purchase of digital currency has risen as well as the acceptance and its estimated uses.
The sudden rise in the prices of bitcoin is making it a widespread news, more and more people are flocking towards purchasing it and others have their eyes glued to the price fluctuation. The transaction fee due to the same phenomenon has risen up too. However, the speculators are assuming that litecoin will rise to the same price in 2018 as did the bitcoin, therefore the purchase of it has multiplied and so has its price in the past two weeks.
Buyers Are Beginning to Understand Litecoin
Many new people are moving towards investing into litecoin keeping in consideration the low transaction cost and speed. The currency is giving them an advantage over Bitcoin in many ways.
A software named Changelly is providing its users the option of converting their cryptocurrency to another one. Litecoin, because of its high speed is giving users a great advantage over other currencies.
Increasing number of users on Coinbase.
It used to be a common perception among people that bitcoin is the only cryptocurrency. Whereas, on the Coinbase site, the perception in the recent times has seen to be changing. The site is well known for its popularity and also becoming a sensation around the world for registering a 100,000 people to it every day. The currencies that this site Coinbase supports include Bitcoin, Ethereum, and Litecoin. The availability of litecoin on a popular website like Coinbase is also working in a huge favor for this currency, as the website to some is considered as a symbol of security in cryptocurrency’s purchase.
The effect of bitcoin’s rise on the litecoin is also giving a great favor to the Coinbase, giving it the status of the best crypto exchange present in the world.
As soon as the idea of trading a currency occurs to a new investor, be it a forex trader or that of bitcoin, he out of his naivety makes the most common mistake and buys a currency pair or cryptocurrency that is already floating at a high place in the market. It’s a phenomenon that needs to be understood that a currency at a high price is not the right option to avail. Buying a currency at its peak price kills the idea of getting profit returns out of it. Similarly, the purchase of bitcoin at a time when it’s at the highest place in history is only going to kill the purpose of trading it. In such circumstances, buying litecoin can fulfill the need of the investor from the trade.
The problem with buyers of the Bitcoin is that people are purchasing it out of the trend frenzy. Whereas, Fuad Ahmed suggests that the buyers shouldn’t consider the option of buying a currency when it’s price is at the highest point possible, rather invest in a currency which is still at a comparatively low price and seemingly going above in future.
As the cryptocurrency Bitcoin has managed to make a place for itself in different financial markets, the growth of it has also brought the surge of Litecoin under people’s notice. The reason for this article was to highlight the benefits Litecoin can offer its buyers today and get them the profit they desire to win.