Hello, wonderful people of steemit, hello professor @kouba01, it is another day of the steemit Crypto Academy trading Contest week 3 and as a participant today, I will be trading on Litecoin (LTC).
The name and introduction of the project token, and which exchange can be traded on, project/technical/team background, etc.
What is Litecoin
Litecoin usually abbreviated as LTC is a cryptocurrency which was designed to deliver secure, fast and low cost payments by tapping into the awesome feature of blockchain technology. It was created to behave like the Bitcoin protocol but their difference arises in terms of block transaction times, hard cap, hashing algorithm used, and some other factors. The block time of Litecoin is just 2.5 minutes and also has a very low transaction fee hence making it the best choice for micro transactions. The launching of Litecoin in oct. 7, 2017 was via open an source on GitHub and five days after, Litcoine Network went live. Ever since then, it's uses cases has increased along with its trading merchants as it is now among the top ten cryptocurrency when tanked according to market capitalization.
Founders Of Litecoin
The founder of Litecoin is Charlie Lee. He is a computer scientist who is reconed as one of those who had mined Bitcoin earlier hence giving him a solid knowledge of what the Blockchain technology behaves like. Between 2015 to 2017, he also with the role of director of engineering at coinbase and later moved to other ventures. He was once Google's software engineer.
Currently, Charlie Lee is the managing director at Litecoin foundation and also a well known as advocate of cryptocurrencies. Some other individuals on the board of directors include: Alan Austin, Xinxi Wang and Zing Yang and each of them are well certified in their own fields.
About Litecoin
Taking Bitcoin out of the picture, Litecoin is the next well known pure Cryptocurrency to ever exist. This succes can be ascribed to it's clear utility benefits and simplicity.
As of the first quarter of 2021, Litecoin entered the list of the most widely used coins with over 2,000 stores and merchants who now accept Litecoin all around the world.
Speed and cost-effectiveness are the main benefits of Litcoine transactions. In just minutes, Litecoin transactions are confirmed with a nearly negligible transaction fee. This factor alone has made it the choice of as an alternative to Bitcoin whose transaction fee is not negligible. It uses a Proof of Work consensus Mechanism.
New Developments
Litecoin foundation announced long awaited upgrade of MImblewible Extension Block (MWEB) in January 31, 2022. Litecoinhad initially pioneered the release of the MImblewible testnet in late 2020 to test how confidential the MImblewible Extension will handle it's transactions.( MImblewible is a Blockchain protocol and a layer 2 solution that aids other blockchain projects to scale better by confirming their transactions without jeopardizing the project's security.)
This upgrade that has been added will make Litecoin scale more better hence giving it more advantage over Bitcoin.
Litecoin Metrics
| 1 | Metric | Value |
|---|---|---|
| 1 | Price | $121.60 |
| 2 | Trading volume | $773,631,893 |
| 3 | Market cap | $7,785,440,427 |
| 4 | Circulating/ Max supply | 69,759,068.98/ 84M |
| 5 | Explorer | blockchair.com, explorer.litecoin.net, LTC.tokenview.com, bscscan.com, chainz.cryptoid.info |
| 6 | Contract address | HECO: 0xecb56cf772b5c9a6907fb7d32387da2fcbfb63b40xecb56cf772b5c9a6907fb7d32387da2fcbfb63b4, Binance Smart Chain (bep20); 0x4338665cbb7b2485a8855a139b75d5e34ab0db94 |
| 7 | Link | litecoin.com |
| 8 | Rank | 21 |
| 9 | Consensus algorithm | Proof of Work (PoW) |
Litecoin Market Place
Some Exchanges where litecoin can be acquired or traded include:
| sn | Exchange | Pair |
|---|---|---|
| 1 | Binance | LTC/USDT, LTC/BTC, LTC/BUSD, LTC/USD, LTC/EUR, LTC/ETH, LTC/BNB |
| 2 | Coinbase | LTC/USD, LTC/EUR, LTC/EUR, LTC/ETH, LTC/GBP |
| 3 | KUCOIN | LTC/USDC, LTC/BTC, LTC/ETH, LTC/KCS, LTC/USDT |
| 4 | Houbi Global | LTC/USDT, LTC/BTC, LTC/HUSD |
| 5 | KRAKEN | LTC/USD, LTC/EUR, LTC/XBT, LTC/USDT, LTC/GBP, LTC/ETH, LTC/AUD LTC/JPY |
| 6 | FTX | LTC/USD, LTC/USDT, |
| 7 | GATE.IO | LTC/USDT, LTC/USD, LTC/BTC |
| 8 | BYBIT | LTC/USDT, LTC/BTC, LTC/USDC |
| 9 | BITHUMB | LTC/KRW, LTC/BTC |
| 10 | BITSTAMP | LTC/USD, LTC/EUR, LTC/BTC, LTC/GBP |
Why are you optimistic on this token today, and how long do you think it can rise?
Today, I am optimistic about Litecoin because of;
1. Litecoin Privacy and Scarcity: Litecoin is a Blockchain project whose security is unquestionable and it's user privacy is highly maintained. For people looking for somewhere safe that they will invest their money without being noticed, well Litecoin is a safe spot. Also, Litecoin maximum and total supply is pegged at 84 million LTC. This is a good and well defined figure unlike some currencies whose supply run into trillions or more.
2. PayPal and Venmo Merchants: Paypal is investing in a new business unit focussed in crypto and digital currencies. Already, PayPal supports four coin namely Bitcoin, Ether, Bitcoin Cash and Litecoin. PayPal is likely to have about 29 million merchants and in these transactions, Litecoin must definitely be used given that it is the cheapest amongst the four coins supported by PayPal. This will this allow Litecoin to sky rocket to higher heights.
How to analyze the token? (Using the analysis knowledge learned from professors’ courses)
For today's trading excercise, I will use KUCOIN exchange and I will trade on LTC/USDT pair. The analysis tools I will employ are Fibinacci retracement tool and Triangular Moving Average Cross (TMA cross).
• Fibonacci Retracement: Fibonacci Retracement refers to horizontal lines that tries to expose places where there is a possibility of the price to reverse direction. It Shows this points in the market using support and resistance lines. Traders tend to buy at a Fibonacci support level at the Retracement when the the market is in an uptrend.
• Triangular moving average (TMA): is referred to as double smooth. So, it is the average of an average. What it does is to smoothen things out even more unlike the noisy and spiky Simple moving average (SMA). TRIMA is technically the average of a given no. of SMA.
Firstly, I open tradingview site and on the Chart, I add the various indicators. I have used 10 and 20 periods of (TMA). I had to await as longer period TMA (20) cross over the shorter period TMA (10). At this point, I await the action of two candle sticks as confirmation of the bearish trend reversal.
Next I use the fibonacci retracement levels to determine where the market may possibly establish a support and it is with this support that I plopen a sell/short, set my take profit. I then place my stop-loss slightly above the TMA crossover.
| Entry | Take Profit | Stop-loss | PNL |
|---|---|---|---|
| 121.02 | $120.5 | 122.03 | -$0.9 |
Do you recommend everyone to buy and the reasons for recommending/not recommending?
Litecoin is a promising coin being among the top 20 coins and also very popular alongside Bitcoin, it has got potentials. There is no much function for which litecoin is known for as it is just a pure Cryptocurrency with core purpose of storing financial value but such coins like litecoin get adopted easily. If the use cases of Litecoin continue to increase, then I believe that it is a very nice coin that one may want to have in his wallet. Already, merchants like PayPal and Venmo have already adopted it. More and more adoption could have a significant impact on the value of the coin.
Summary
Litecoins longitivity amongst other top currencies is a proof that altcoins can remain relevant, and withstand the test of time while they continue to evolve. The major catalyst that has quickened the rate of Litecoin adoption is it's fast transaction capacity, low cost and it's growing community as well. Nevertheless, time show that Litecoin is the next Bitcoin and also a worthy Bitcoin supplement.
Hello @gabikay,
Thank you for choosing our team to participate in the 3rd week of Season 6 of our trading competition, hoping that you will make gains during this period, you deserve a Total|7/10 rating, according to the following scale:
My Review on your choice of pair:
My Review on your trading style:
We thank you again for your effort and we look forward to reading your next article.
Sincerely, @kouba01
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