Litecoin was released on October 7, 2011, as an open source client from Charlie Lee on GitHub. The Litecoin system is technically almost identical to the Bitcoin system. Over the last 8 years, Litecoin has it ups and downs. It reached the top at around 365 Dollar and then crashed to 25 Dollar. The Cryptocurrency market hype is almost over and many people don’t want to invest in crypto anymore. Nobody really knows where Litecoin will head, therefore it is hard to find a good Litecoin investing strategy for 2019. Because of that, we analyzed the market and trends, so we can give you promising advises.
The reason for the Litecoin crash
When the first Litecoin crash happened, many investors believed that regulations where the reason for that. After the second crash happened, everyone blamed the state again. But Litecoin did not crash because of regulations, it crashed because of the hype and with it the unrealistic expectations.
One year after the release of Litecoin it jumped from 0 Dollar to 60 Dollar in weeks. After that, it dropped slowly back to 0 Dollar over the next few years. By mid-2018, it was slowly rising again. Litecoin suddenly jumped from 80 dollars and peaked at around 365 dollars on January 2018. After the big jump, it crashed from 365 Dollar to almost 100 Dollars in 1 month. It then jumped again to 240 Dollar and crash shorty after again. After a small jump, it then slowly dropped from 180 Dollar to 50 Dollar. So Litecoin crashes were normal.
It was a repeat of the market triggered by the hype of investors. So Litecoin other cryptos like Bitcoin grew mostly because a lot of enthusiasts and beginners bought coins without understanding the technology. They suffered the most when the market crashed. So it took Litecoin one year to gather enough excited people to create the first bubble and fife years to create the second bubble.
When is the next Litecoin crash?
The price of Litecoin is rising again. It seems that the next wave of excited people start to invest. We predict, that Litecoin will peak in the next 4 years. The current crypto market has the size of 800 Billion Dollars. This pretty low if you compare it to the dot-com bubble with near 9,5 trillion dollars. As a result, Litecoin could be able to achieve a huge increase once again. So Litecoin has the potential to jump again to new highs.
What are the trends for Litecoin in 2019?
The analysis has shown, that the price of Litecoin jumped and dropped rapidly. As a result, a lot of investors have lost their money. The price of Litecoin rose over the past months, but there are not many people out there that want to trade with Cryptocurrencies anymore. As a result, the trading volume of Litecoin will drop.
That doesn’t sound promising, but it actually is good for us. The low trading volume will cause a low price volatility. As a result, you realize faster when the cryptocurrency market bottomed.
In addition, there are also more institutional investors that will join the crypto market. This is a good sign that at the end of 2019 the crypto market could see huge gains again.
Also, the downward trend has now been broken. The Litecoin price has now been able to hold for several weeks. As a result, investors are confident that the price will rise again.
And most important, the developer of Litecoin are making huge changes. So there were 2 key issues: long transaction times and the fact that at some point only users with special hardware could dig for new tokens. In order to solve these problems, Litecoin wants to make fix these issues.
- More blocks in less time: With Bitcoin, it takes ten minutes for a new block to be added to the blockchain. With Litecoin, on the other hand, a new block is to be generated every 2.5 minutes, and they want to get even faster.
- Mining for all: Litecoin uses a proof of work algorithm to confirm individual transactions. While the Bitcoin uses SHA256 here, the Litecoin uses Scrypt. Because of that, the algorithm is optimized for the use of conventional computers. The purchase of special hardware should therefore become nonsensical – and the mining should be spread over as many shoulders as possible.
These developments can help to improve Litecoin and push the price.
Our Litecoin investing strategy for 2019
Litecoin and the cryptocurrency market lost a lot of value over the years. The reason for that is that a lot of investors are scared. Despite the fact that all cryptocurrencies lost a lot of value, the crypto market is still growing.
Following the analysis, we expect an uptrend again in around one year. In three to four years Litecoin might reach his high point. It will then crash again and maybe never recover.
So If you are looking for a short term investment, Litecoin shows huge potential to grow in the next few years. But we are not sure if it will survive. So our advice is to wait until Litecoin holds its new upward trend. Then buy small amounts and wait until you see if the market stabilizes. If that’s the case, invest in larger quantities.
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