Kategorie: Crypto Analysis

Litecoin (LTC) has the potential to make you rich in 2022

Investing in cryptocurrency is slowly gaining traction in the modern world. Though it is still a relatively new venture, cryptocurrency investments have turned a few savvy investors into millionaires. It is always wise to diversify your portfolio to spread your risks when it comes to crypto investments.

There are so many digital currencies now other than Bitcoin and Ethereum. Most investors are unaware of the many altcoins or alternative coins they can add to their packages. Litecoin is one of these coins you can consider adding to your investment. Since it is not as common as bitcoin and ether, you may not know about it too. However, if you are looking for a coin to diversify your portfolio, here are a few reasons you should buy a few Litecoins.

Litecoin is faster than Bitcoin

If you are already into cryptocurrencies, you probably know how transactions happen on the blockchain. Peer-to-peer money transfer is the main reason why most digital coins exist. It means that individuals can send money to each other without needing a third party or intermediaries like a bank or money transfer agency. Bitcoin has been facilitating such transfers hence its popularity, but transactions on its platform are slow and expensive. Developers saw the need to create alternative coins to counter bitcoin’s slow transaction rates. Litecoin is among the many such coins that have managed to increase the speed of transactions, thus attracting many users. Users can process transactions on its platform four times faster than on the bitcoin blockchain. Litecoin might not be the fastest now, but it shows some promising technological developments making it a worthwhile investment. A project that keeps on innovating and evolving is a good investment.

Litecoin has a big market capitalisation

Market capitalisation is the total value of a particular commodity at one point in time. In the case of digital currencies, you calculate this value by multiplying the total number of coins in circulation with its current price. Litecoin is currently trading at about $147 at writing this article, with a circulation of more than 69.3 million coins. Thus, its market cap is approximately $10.1 billion, placing it at number 20 in the cryptocurrency circles. A high market cap indicates that a coin is stable enough to withstand sudden market shocks. The high market cap provides the currency with a cushion that protects it when it becomes highly volatile. It also means that a few whale investors cannot drive the price according to their whims. You can consider having a few of these coins for the long term, knowing that their price will remain relatively stable.

Litecoin is highly liquid

The liquidity of a digital coin is one vital factor that you cannot overlook when choosing a coin to buy. Liquidity is the ease with which you can convert an asset or a commodity into liquid cash. It is critical to invest in a coin that you can sell easily when you need to get liquid cash. It is especially important if you are entering into a short term trade and want to make quick profits with price changes. Litecoin is one of the most liquid coins in the digital coins market. If you want to determine a coin’s liquidity, you can check its 24-hour volume. This volume is the number of coins investors have bought or sold in the last 24 hours. In the case of litecoin, this volume was more than 7.8 million coins, worth more than $1.1 billion. It shows that you could have moved as many as 100,000 units in just 24 hours.

Litecoin has a strong team of developers

There are so many digital currencies at the moment. Research shows that they could now be more than 10,000 coins in the industry today. Most of these coins are temporary pump and dump projects that you should avoid. A good development team means that the coin is a serious project with future prospects. It also means that it is well adaptable to technological advancements to sustain its presence in the market.

That said, litecoin is among the serious projects in this industry. It has a team of experienced and skilled developers to ensure its continuity. The main developer was an engineer at Google and Coinbase. He is backed up by a team that has seen litecoin surpass bitcoin in terms of speed and efficiency. The team was the first to use the Segregated Witness update and also featured Lightning Network. Such developments make a coin worth investing in, knowing that it could be something big and valuable in the future.

Large corporations are using Bitcoin

When large corporations accept using a digital coin, they have identified some useful features in that coin. These corporations infuse confidence in investors and stir up the coin’s value as its demand increases. Litecoin is now working with UFC (Ultimate Fighting Champion), gaming giant Atari and Overstock.com. These companies allow their clients to pay for goods and services using Litecoins. Having such an acceptance has catalysed the growth of this digital currency. It has spurred its demand making its value grow in the last few years. Blockchain technology is slowly changing the gaming industry, and litecoin is part and parcel of this growth. It would, therefore, be wise to invest in such a future.

The post 5 Reasons why you should buy Litecoin appeared first on Coin Journal.

As we prepare for 2022, here is a list of 5 coins you should invest in.

1. Ethereum – Star of the Show

The Ethereum blockchain prides itself as „the world’s programmable blockchain“ capable of hosting numerous applications. It uses cryptocurrency to mean more than money by applying it in decentralising and disrupting various industries. Although it followed the path of Bitcoin, it differentiated itself by being the source of most financial services, games, and apps in the crypto space. It can maintain a secure network due to the decentralised nature of the blockchain.

The blockchain is powered by Ethereum (ETH)– its native currency. It is minted with every block and distributed to miners. There’s no limit to the amount of ether that can be minted, and the supply is set to increase by 4.5% every year. Two ETH is minted every block. Every protocol or application on the network expends ether. The more the blockchain is used, the more the demand for ether, and the higher its worth. ETH is currently worth $4,056.72 across exchanges and can be bought on all exchanges known to man. It is second to BTC with a market cap of $482.2b.

2. Bitcoin – expected to hit 100+

Since its launch in 2009, Bitcoin has peaked over five times, reaching an all-time high of $69,045 on November 10, 2021; about $31,000 shy of $100k. Bitcoin (BTC) is expected to hit $100k in 2022, but this milestone will ride on many factors. Bitcoin is currently trading at $50,186, meaning that if you buy now, there’s the possibility of making X2. One of the factors that drive the price of Bitcoin is market demand as other assets. This implies that the higher the demand for Bitcoin, the higher the price. And with a limited supply, the closer Bitcoin gets to its limit, the higher its price will get. Asides from market demand, the marginal cost of production might also affect its price. Every year, Bitcoin experiences an average growth of 200%. This has driven governments and institutions to understand everything about cryptocurrency and blockchain technology. However, this has brought about more regulations that might make the price go up or down. With the current state of the world’s economy, Bitcoin has presented itself as the saviour. Institutions, investors, and governments now store value using Bitcoin. Even though the world’s economy stabilises and everything returns to normal, the confidence in Bitcoin will still be maintained. With the current increase in the adoption of Bitcoin for payment and store of value, the price will move up in the long run as demand will rise. A very good example is El Salvador that used Bitcoin as a store of value.

Similarly, the increased use of Bitcoin in speculation and derivatives will affect the price. Bitcoin is now featured in futures trading, making it more than a utility. All these factors will contribute to how the price of Bitcoin will move in 2022. But don’t be cut unaware when the price moves past $100k. It is very possible. Bitcoin has a market cap of $948.5b. It is on sale on every exchange platform.

3. BNB – the Continued Growth of BSC

Binance coin (BNB) is the native token of the Binance exchange platform. It powers the Binance ecosystem. It was launched in 2017 and issued during an Initial Coin Offering (ICO) between late June and early July 2017 for 11 cents. Fifty percent of the total supply was sold at the ICO, 10% was given to angel investors, and the remaining 40% was allocated to the founding team. There is a limited supply of 200 million BNBs in circulation. This is continuously depreciating because of the timely burning events. During the coin burning, Binance uses 20% of its revenue to repurchase and burn BNB. This is planned to continue until 50% of the amount in circulation has been destroyed. This limits supply, creates scarcity and drives the price upward. With the continued growth of the BSC (Binance Smart Chain), the demand for and adoption of BNB will increase and its price also. However, it should be noted that BNB is non-inflationary. It is currently ranked third behind Ethereum and Bitcoin, with a market cap of $91.3b. It is trading at $543.57 on Binance, gate.io, Coinsbit, and CoinTiger.

4. Solana – Ecosystem Growing, Main Challenger to Ethereum Long Term

Solana is an open-source computing network aiming to increase the speed of transactions while ensuring decentralisation. It was developed in 2017 by Anatoly Yakovenko. The Solana network can validate over 50,000 transactions per second for less than a penny per transaction. It employs the proof-of-stake mining model to validate transactions, create new coins, and monitor the amount in circulation. This model allows holders to stake their tokens and become validators. As validators, they earn rewards and share in the transaction fees.

Due to its ability to perform the same functions as the Ethereum blockchain, many believe it can take over from Ethereum. Like Ethereum, it is capable of interacting with smart contracts. Due to this, it has numerous use cases, ranging from investing apps and games to DeFi, DEXs, social media, etc. An NFT project, Degenerate Ape Academy, has been launched on it. It supersedes the Ethereum blockchain with the number of transactions per second, speed, transaction fee, and mining model. Unless the Ethereum blockchain takes proactive steps, these factors will help it be a worthy challenger of the Ethereum blockchain. The platform uses Solana (SOL) as its native token. This token is used for paying transaction fees and staking.

Also, it can be used in participating in the platform’s governance. Holders can vote on future upgrades, fixes, and proposals submitted to the community. Out of the 489 million planned for circulation, 260 million SOL is already in the market. It is currently ranked 5th with a market cap of $61.3b. One SOL costs $198.4. It is listed on Binance, MEXC Global, Huobi Global, KuCoin, and Coinbase Exchange.

5. Terra – Fan Favourite, Strong Use Cases, finally seeing Mainstream Recognition

Simply put, Terra is a blockchain where stablecoins can be created. It is an open-source layer-1 protocol that allows the creation of stablecoins tied to physical currencies or assets. These stablecoins can be traded, spent, saved, and exchanged on the platform.

The Terra blockchain is already gaining traction across the world as a DeFi service provider and stablecoin payment platform. However, it is still evolving and expanding. The Terra platform uses LUNA as its native token and to maintain the stability of the stablecoins. The total supply of LUNA is under a billion.

LUNA performs various functions, including payment for transactions fees, volatility absorber, and staking. It is also used to partake in the governance of the platform. Holders can create and vote on proposals in the community. Terra (LUNA) costs $98.8, and it is ranked 9th with a $36b market cap. It can be found on OKEx, MEXC Global, Binance, and Osmosis.

Remember, the crypto space is very risky and volatile—only part ways with funds that you can lose. Invest wisely.

The post Top 5 Best Cryptocurrencies to Invest in for 2022 appeared first on Coin Journal.

After a decisive slump in December, Avalanche (AVAX) and most cryptos have rebounded. Although momentum is starting to die down, we have seen some positive uptrend in recent weeks. But can AVAX sustain enough gains to surge beyond the $147 mark? This will take the coin to all-time highs. Well, before we get to the price action and analysis, here are some highlights:

• Avalanche (AVAX) has in the last two days surpassed its 20-day EMA of $109, suggesting bullish momentum.

• At the time of writing, the coin was trading for $113.74 albeit it was down about 3.68% in 24-hour intraday trading.

• The Relative Strength Index or RSI is also looking bullish with a reading of around 57.

Data Source: Tradingview.com 

Avalanche (AVAX) – Price analysis and prediction

For most analysts watching AVAX, one of the key things in the price action was to see if the coin can surge beyond its 20-day EMA and sustain gains above that. Well, AVAX did exactly that two days ago and even though it has seen some losses over the last 24 hours, it is still way above the 20-day EMA. 

AVAX is however facing stiff resistance at $119.69. The coin had earlier tested that threshold but has since fallen. But as long as the price action is above the 20-day EMA, a surge above $119 is possible. It could also be the momentum trigger needed to push AVAX well above $147.

Should you buy Avalanche (AVAX)

Avalanche is one of the main competitors to Ethereum. It is today among the most promising blockchain projects. If you are a long-term investor, you should definitely have AVAX in your portfolio. The recent price action however makes it a tricky one for short-term plays. Unless the coin drops below its 20-day EMA, it is not primed for short-term speculative trades.

The post Can Avalanche (AVAX) surge towards all-time highs of $147? appeared first on Coin Journal.

Chainlink (LINK) is a smart contracts platform that ranks among the top 20 crypto projects in terms of market cap. At the start of December, LINK, its native token, saw a sizable correction that sent the price tumbling. But the coin was able to find sufficient support around $17 and consolidated there. It has since reported decent gains ever since. Here are the highlights:

• At the time of writing, LINK was trading at $22.43, down 4% in intraday day trading.

• Despite this, the coin is still up over the last 7 days, reporting gains of nearly 15% over that period.

• However, LINK is facing major resistance around the $23 mark, something that could hamper a prolonged bull run.

Data Sources: Tradingview.com 

Chainlink (LINK) – Price analysis and prediction

After a decisive correction, there were fears among analysts that LINK could tumble well below $15. But despite this downtrend, we saw the coin find support and consolidation around $17. It stayed there for some time before breaking out towards $20. At the time of writing, the LINK was trading at $22.43. 

We are however seeing a lot of resistance around $23. LINK must surge beyond that and sustain those gains for any decent uptrend to take hold. It is however important to note that RSI readings suggest that LINK is overbought. For this reason, upward momentum could face severe bear pressure if current LINK holders decide to lock in their profits.

Should you buy Chainlink (LINK)

Chainlink (LINK) has always been a great investment for anyone looking to diversify their crypto portfolio. The long-term fundamentals are just too good to ignore and besides, LINK has also delivered decent returns this year. We think the price right now is still discounted and offers a good opportunity to get in on the action. There will however be significant short-term volatility.

The post Should you buy Chainlink (LINK) today? Price analysis and predictions below appeared first on Coin Journal.

While Bitcoin remains on top of the cryptocurrency market, other upcoming coins challenge this supremacy. One such coin is Polkadot, a relatively new coin carving its niche in this industry. But what is Polkadot, and how does it work? Understanding what this coin is all about will help you determine if it is a worthwhile investment.

Polkadot is a bit different from its predecessor Ethereum. Unlike Ethereum, which has only one avenue for transactions, such that only one transaction can happen simultaneously, Polkadot operates on parachains or parallel chains that are a series of interconnected blockchains. The parachains allow more transactions on the Polkadot blockchain, making it cheaper than carrying out these transactions on Ethereum.

Polkadot developers have also made the platform flexible enough to connect to other blockchains easily. This ability allows it to serve specific requirements. It makes the platform more interactive as compared to Ethereum.

Polkadot has shown some significant growth and seems like a good investment. However, you should keep in mind that there are no clear-cut reasons for investing in any digital currency. All of them are volatile and can either make you money or lead to losses. It all stems down to your research and making informed decisions. That said, here are five reasons why you may want to have the coin in your portfolio.

Polkadot solves interoperability issues

Polkadot protocol is unique as compared to other blockchain platforms. Interoperability has been a challenge for most blockchain-based projects. Blockchain projects are forced to create bridges to connect with other each other. These bridges increase the cost of transactions.

Polkadot is becoming popular with both investors and users because it is solving this problem. The protocol allows communication from public to private networks and private to public networks at no additional cost.

The protocol will enable the networks to transfer any data, assets and tokens. Solving this issue has seen Polkadot rise in popularity and value as it attracts more users, making it a worthwhile investment.

Polkadot allows for specialisation and customisation

This feature is another cause for the popularity of the Polkadot platform. There are many blockchains, and each has different functionalities. No one blockchain provides a platform able to support all functionalities. Polkadot provides a Substrate development framework that allows other blockchains to customise their platforms to fit a particular use case. With different blockchains operating on the same platform, developers can now focus on only the necessary code. This simplification allows more projects on the Polkadot platform that will continue attracting more developers, users, and, by extension, investors. As the Polkadot community continues to grow, so will its value. Investing in it now could see your investment grow tremendously soon. You can make good money if the coin rises even with a small margin.

Polkadot has a robust team

Polkadot project is spearheaded by a group of skilled and experienced developers. This project is part of the Web3 Foundation founded by one of Ethereum developers and co-founder Gavin Wood. Gavin is well known for developing Proof-of-Authority (PoA) consensus, Whisper and Solidity, among other developments. Other developers include Robert Habermeier, an experienced developer with expertise in distributed systems, cryptography and blockchains, as well as Peter Czaban, who holds a Master’s degree from Oxford University and has experience in data analytics. With such a team behind this project, you can expect better and bigger developments to take place in the future. With such prospects, the Polkadot project is likely to grow in value, making it a coin worth investing in.

Polkadot has a high market cap

In addition to its functional features, Polkadot has also shown some impressive growth in its financial side. The coin currently has a market cap of more than $24 billion. Such a market cap indicates that the coin is highly stable. It is unlikely to be affected by sudden market shocks as its high capitalisation keeps it stable. You acquire the market cap by multiplying the total number of coins in circulation with the coin’s current price. Even though all cryptocurrencies are volatile and are adversely affected by sudden market shocks, a high market cap provides some form of cushion from this shock. The market cap also indicates the value of a particular coin. Coins with high market caps are lower-risk investments since they can sustain market shocks. Polkadot has shown that it can do this by holding on to its value despite the crypto market going through severe shocks in the last few months.

Polkadot has a high liquidity

The liquidity of a cryptocurrency is the ease with which you can buy or sell it when you need to convert it into fiat currency without significantly affecting its price. It reflects the general health of a cryptocurrency. A highly liquid coin is easier to trade as you will always find willing buyers and sellers in real-time. You can quickly capitalise on any trading opportunities that present themselves in the market. To determine the liquidity of a coin, check its daily trading volume. The higher it is, the higher the coin’s liquidity. In the last 24 hours, Polkadot has recorded a trading volume of more than $1 billion. This volume indicates that there is enough demand in the crypto market for this coin. Whether you plan to buy it and keep it for the long or short term, you will be able to sell it when you need to.

The post 5 Reasons to Buy Polkadot appeared first on Coin Journal.