Nowadays, the cryptocurrency market is full of tokens of different values. Cryptocurrencies are viewed as highly profitable investment opportunities with long-term prospects of doubling, or even tripling one’s initial investment. The popularity of ICO grows with each year. For example, the ICO number practically doubled over the period from 2016 to 2017. Beside the market leaders such as Bitcoin and Ethereum, which have been on the market for quite a while now, there are dozens of other, less expensive yet not less profitable cryptocurrencies to invest in. Despite the fact they have much lower liquidity than Euthereum and Bitcoin, they are easily bought and sold on crypto markets. Let’s discuss the two promising cryptocurrencies and pros and cons of investment into each of these tokens.
Litecoin (LTC) was created in 2011 by Charlie Lee. Litecoin is a “younger brother” of Bitcoin and has already gained a reputation of a stable and reliable cryptocurrency. Many crypto investors think that Litecoin is much better than Bitcoin for a number of reasons.
- Speed of transaction
Transactions of litecoins take only 2.5 minutes, while for bitcoins it is 10 minutes. It is connected to the transaction capacity; while the maximum transaction capacity of $BTC is 7 pts (transactions per second), and 15 pts for $ETH, for $LTC these are whole 56 transactions per second.
- Transaction premium
The average transaction premium is relatively low- about $0.179.
This way, Litecoins allow to make much more transactions per unit of time than does Bitcoin, which also results in faster blockchain confirmation. However, there are certain cons about Litecoins that have to be mentioned.
- Litecoin platform does have any specific features that make it stand out on the market of digital assets.
- Litecoin mining is a very expensive process that requires huge electricity expenses and professional equipment.
For comparison, let’s consider another cryptocurrency that appears to be a good rival of Litecoin. Stellar (XLM) emerged in 2014 as a second project of Ripple’s founder. Stellar tokens were specifically designed to improve the effectiveness of international monetary transactions. Stellar is moderated by a non-profit organization Stellar Development Foundation. Here are the benefits of XLM:
- Stellar is highly decentralized.
- Company has the non-profit goal of fighting with poverty.
- Stellar has partnerships with many banks and companies, including IBM and Deloitte.
Among the negative aspects of the given cryptocurrency is the absence of innovative solutions in the field of international money remittances and Stellar’s losing to its main opponent – Ripple.
When choosing between the two currencies, one has to consider the most recent analytics available. According to recent data, Stellar outstripped Litecoin in the share of market capitalization. Its creator believes that Stellar is objectively better than Litecoin because it is both a currency and a platform. Also, the partnership with IBM and other corporation distinguish Stellar as particularly interesting to investors. Thus, Stellar indeed sounds like a more safe and promising investments. However, it is important to keep an eye on the graphs since things can change any minute.