Will Litecoin Crash in 2017?

Will Litecoin Crash in 2017?

What is Litecoin and will there be a Litecoin crash?

We’re not sure if there’s going to be a Litecoin crash. Litecoin is interesting since it’s sort of an advancement to Bitcoin. The currency has a much higher eventual supply which solves the issue of scarcity and scalability that Bitcoin may have in the future. Thus, it’s a great option to trade since it most probably will increase in value over time. Furthermore, there are many advantages to using Litecoin. The average block time is also 2.5 minutes, four times faster than Bitcoin. That means that transactions can happen much faster than Bitcoin and it can handle more transactions.

It was really made to be one of the currencies which will be used when cryptos become much more mainstream. With this great potential, also comes the doubt which most cryptocurrencies suffer from. In the past, Litecoin has been one of the most stable cryptocurrencies and for now, continues in the same way. However, we’re starting to see small two-day rises and small crashes which indicate volatility coming in slowly. This indication has led several people to believe that there might be a Litecoin crash coming soon.

Check out our article for the best way to invest into Bitcoin, if you’re interested in other altcoins.

Why will Litecoin Crash?

Litecoin is a digital currency that was founded by former Google employee Charlie Lee in 2011. The currency is the fourth best performing crypto currency, with prices reaching $42 in 2017 compared to $3 in October 2016, and a market cap of $2 Billion. Cryptocurrency trading on Litecoin can be quite profitable due to the volatility of the coin. The currency has shot up since January 2017 and is trading for around $50 at the end of August. A lot of people have claimed to have become very rich due to the 1500% price gain this year.

Usually, when people start to claim high riches due to a specific cryptocurrency, there’s a small period where the currency gains a lot of exposure. Many more in the industry start watching the coin due to the apparent profits it has been making. However, if the coin doesn’t perform well during this kind of period, we can expect to see a large scale unloading of Litecoin. Since a coin’s value is based on the perceived value it has, if people start selling Litecoin, there will definitely be a Litecoin crash. Fortunately for people interested in Litecoin, we haven’t seen such a situation yet but as the currency grows, the fear of that crash grows too.

What does the future look like for Litecoin?

According to me, the price of Litecoin next year should have a dramatic increase due to mass adoption. This mass adoption might take more time to come, however, but when it comes, the price will skyrocket. As of now, it’s sitting at $50, and that’s one of its all-time-highs. This price might climb up to over $500 just like Bitcoin did. The difference is that nobody expected Bitcoin to climb so high; with the benefit of hindsight, we can assume that it might climb as high as well.

The important part of the project is that the project has a solid idea and the currency is well designed to be perfect for a future mass adoption of cryptocurrency. If that does happen, we can definitely expect Litecoin to be one of the leaders in the market. In the near future though, we are starting to see the early days of a successful currency but along with that comes the great chances of a Litecoin crash.

How can you take advantage of the volatility?

You can use CFD trading to firstly be safe if there’s a Litecoin crash. With the rise of Bitcoin cash, the possibility of a Litecoin crash has been growing since they’re both competitors in essence. Plus500 is a leading CFD trading platform for instruments such as commodities, stock and market indices. It offers some high standard features that professional traders might use for everybody. Since a CFD can be volatile and cause losses, Plus500 provides risk management tools to increase the safety of your funds. However, be careful, your losses could exceed your deposit.

That’s why we always suggest users start with a demo account with virtual currency which the people can use and trade to learn more about the trading world. Therefore, with an increased safety and ease of use, the Plus500 platform is one of the best in the market.

 

If you’re interested in trading Litecoin, check out our guide for how to trade altcoins.

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About Article Author

Michael Serrano
Michael Serrano

Michael is an engineer and a bitcoin evangelist. He has been involved in cryptocurrencies since 2013. His biggest wish? 1 billion users of bitcoin, ether and litecoin by 2020. In the last 10 years he has worked for various early-stage start-up as a back-end developer.

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