The cryptocurrency market is fresh off another historic boom. Bitcoin and Ethereum are the leading lights, both in record-high territory. This industry has much more to offer from an asset perspective.
The Philippines is a crypto-friendly jurisdiction. Regular traders can purchase crypto from dozens of local and international exchanges, like PrimeXBT. These exchanges are vital for the fast-growing industry. Accordingly, Filipinos can participate in trading because Bangko Sentral ng Pilipinas has registered several accepted cryptocurrencies aside from Bitcoin.
Litecoin is one of the oldest cryptocurrencies around. However, it has not picked up significant tailwinds from the recent market rally. More investors still need to learn how to trade Litecoin in 2021.
This coin does not have the level of attention of traders Bitcoin commands. One reason could be the fact that its founder, Charlie Lee, dumped significant holdings in the previous bull market. Such behavior dampens investor confidence.
Litecoin Can Still Play a Significant Role
Still, Litecoin is an interesting project to watch. The immediate focus on the future of Bitcoin and other altcoins has swept it under the radar. Regardless, Litecoin has consistently featured in the top ten cryptocurrencies by market capitalization. This is not a meaningless feat.
Litecoin has earned a reputation for digital silver. If Bitcoin is digital gold, Litecoin is the next best thing. Bitcoin has the advantage of being the pioneer.
That said, Litecoin has some functional advantages. It offers faster transaction speeds, by processing a block an average of 2.5 minutes compared to 10 for Bitcoin. Scalability is a significant issue for Bitcoin because of a slower block generation time. This fact means that Litecoin can process more transactions at a lower cost. Transaction costs have a direct correlation to the blockchain throughput.
Therefore, Litecoin is the closest thing to Bitcoin available. It is also remarkably cheaper. How long that lasts remains unclear.
Litecoin has sound fundamentals. If a meme-based coin like Dogecoin can rally, Litecoin is clearly undervalued. However, the prices of cryptocurrency reflect market forces. It is evident that investors have just not warmed up to Litecoin.
With the entry of institutional investors into crypto, that trend may change. Bitcoin is still the biggest beneficiary of this attitude shift. However, it has finite supply and scalability issues. As the market begins searching for alternatives, Litecoin will be right there among the contenders.
Trading Crypto Assets In 2021
The best time to purchase crypto was ten years ago; the next best time is now. Cryptocurrency will continue to have a speculative angle provided the market has an appetite. If recent events are anything to go by, this industry may have its best days ahead.
Notably, they can be incredibly volatile. The best option is to always invest amounts in cryptocurrency that you can afford to lose. Bitcoin is famous for cycles that can leave speculative traders on extreme ends of the spectrum.
Accordingly, some investors trade crypto options. Major exchanges, like PrimeXBT, offer day trading and derivatives. Traders can take up derivatives like CFDs to trade on momentary price shifts. These options can even provide hedge investments against crypto holdings.
It is a dynamic market full of opportunities. Crypto trading is also notoriously risky. The best practice is to first understand crypto assets and price trends well before trading.
Exchange services have made crypto trading remarkably convenient. Besides, the international finance remittance service, PayPal, announced in 2020 that it would begin facilitating crypto purchases. Such events show an industry gradually gaining legitimacy.
The Philippines is one of the most progressive crypto jurisdictions. The only regulations in place prevent vices like money laundering. Virtual asset service providers (VASPs) must apply for a license, a “certificate of authority,” to operate legally. Additionally, these operators need to comply with Central Bank requirements on liquidity and consumer protection.
These measures foster the safety of the public without stifling innovation. The government seems to recognize the power of virtual assets to transform local economies.
Therefore, crypto trading in 2021 is easier than ever. Traders can access markets from the convenience of their phones and make necessary trades. The regulatory and institutional involvement shows an industry gaining more legitimacy and reliability.
Cryptocurrency trading is an exciting and dynamic activity.
Digitization and decentralization ensure that people across the world can participate effectively. For Filipino crypto enthusiasts, the regulatory landscape is clearer than in most other countries.
This industry gives everyone an equal chance to learn and participate. In trading, always be mindful of the associated risk. It is impractical to expect a perfect streak when trading. Regardless, understanding risk and proper analysis can place a trader in the green more often.
- Financial crimes in South East Asia are being dealt with by Advanced Crime Analytics solutions - March 22, 2023
- Forex Currency Pairs to Work with in 2023 - February 22, 2023
- 4 Training Tips for Your New Employees - February 2, 2023