The trader’s mind is the same on any given marketplace. The fears and expectations regarding a commodities price at a particular time and period. But is there a direct correlation between the prices of Bitcoin, Litecoin, and Ethereum?
The response to that question varies quite a bit depending on the combination of which digital asset and the period. From our observations, there are several times where the three virtual currencies have moved in tandem with one another in regards to price even though Bitcoin is the undisputed leader of virtual currency.
For the past few years, the crypto space has witnessed several altcoins gaining relevance in the industry, among these altcoins include, Litecoin which was created in 2011 with the aim of being the second runners-up to Bitcoin’s gold. At present, Litecoin is the 7th largest virtual currency by market capitalization after Stellar, EOS, Bitcoin Cash, Ripple, Bitcoin and Ethereum.
What is the correlation between these three cryptocurrencies? This writing will try to look at the relationship Bitcoin has with Litecoin and Ethereum in trying to decipher their relationship.
Bitcoin and Litecoin
Although not being as rich as Bitcoin, Litecoin is younger, faster, cheaper, smarter, and fast-rising wealthy brother of Bitcoin. On the other hand, Bitcoin is the default virtual currency that had to go through all the troublesome experiences to rise to the top where it sits comfortably today. But even still, the two are brothers who share a lot of similarities with one another.
Launched in January 2009 and widely acknowledges as the world’s first virtual currency, Bitcoin allows investors to make financial settlements without the need for trusted mediators.
These settlements are confirmed and acknowledged by the platform nodes through the use of cryptography and later logged in a public distributed ledger called a blockchain.
Litecoin first surfaced on Github in October 2011as a branch of the Bitcoin Core client and is a few years younger than Bitcoin. According to their website, “Litecoin is a peer-to-peer internet currency that enables fast, almost free cost settlements to anyone around the Globe.”
Many observers have accused Litecoin of the intention of replacing Bitcoin as the top significant virtual currency in the market, but Litecoin’s team have been consistent in stating that their main intention is to work with Bitcoin to aid in solving the world’s future settlement needs.
Bitcoin and Ethereum
Ethereum is another virtual currency that was developed to follow the footsteps of Bitcoin. Created and developed by a Toronto programmer and BTC enthusiast, Vitalik Buterin. He saw it fit to come up with his blockchain technology and virtual currency to compete with Bitcoin in the crypto market to be used as a financial asset and a decentralized platform for decentralized apps, Dapps.
Regarding scalability and transaction speed, both Bitcoin and ethereum have been experiencing a platform clog due to high user transaction giving Litecoin an upper hand.
All three cryptocurrencies have made entirely different design selections, and as with every decision and choice, it opens opportunities while it closes others. It is true that both Litecoin and Ethereum sometime dictate the performance of Bitcoin but the vise versa is usually true most of the time.
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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
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Aluna.Social is a Compelling Social Platform for Crypto Traders and Investors
When one thinks about the social media landscape, the companies that first come to mind are most likely Facebook, Instagram, LinkedIn, and Snapchat. These platforms are a great way to stay connected with friends, families, and colleagues, especially when geographic distance is a factor. But, in addition to just chatting about life in general and sharing pictures, social media can be used to bridge the information gap that exists within the investment community.
Over the last decade, many trading offices have been established in large cities all over the world which allow solo traders and investors to pay a monthly fee in exchange for a workspace. The real benefit to trading in these offices is to participate in the free flow of trading ideas and information. Proprietary trading is one of the most challenging careers to be successful at and the exchange of ideas is almost required in order to succeed. Traders at hedge funds and investment banks work in teams so why shouldn’t remote traders?
While these trading offices are a great way to help bridge the information gap, Aluna.Social may provide an even better way, especially as it relates to cryptocurrency trading.
Aluna.Social, founded by Alvin Lee and Henrique Matias, is a multi-exchange social trading terminal for crypto traders and investors. The goal of the platform is to help newcomers shorten their learning curve,…
CoinFlip Scores Big with BRD Wallet Partnership
As the crypto markets move closer to mass adoption, one of the keys for future success will revolve around attracting as many market participants as possible. While many crypto users are extremely tech oriented, a lot of those on the sidelines are not. The cause of waiting on the sidelines could be due to a variety of reasons such as fear of the unknown, lack of knowledge, age, or a combination of all of the above. In order to entice new users to join the crypto revolution, crypto ATMs are rising up across the country. Of those, the largest and most influential crypto ATM company by a significant margin is CoinFlip.
In early October, CoinFlip announced on its Twitter that it had officially partnered with BRD Wallet to re-introduce their crypto ATM map. Now, BRD wallet users will be able to locate their nearest CoinFlip ATM and receive a 10% discount for both buys and sells. BRD brand awareness is growing quickly within the crypto community thanks to its innovative and entrepreneurial spirit. The team strongly believes in the value of financial freedom and independence, and want to empower people across the world by leveraging the possibilities that Bitcoin and other cryptocurrencies provide.
Cryptocurrencies are already making a huge difference around the world. Citizens of Venezuela, a country devastated by rampant inflation, have been using several cryptocurrencies…
Cryptocurrency Collateralized Debt Positions Are Growing in Popularity
While Bitcoin (BTC) continues to hover around the magical 10,000 price level, altcoins continue to fight an uphill battle. Simply put, hopes of a future bull run continue to diminish as Bitcoin maintains its dominance. One school of thought is that a few altcoins will survive and flourish, but which ones are anyone’s guess. That being said, it’s hard to go wrong picking against the top coins like Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and EOS. These projects have managed to find a foothold in the market and have a better chance than most of staying there. While traders wait for their positions to increase in value, one opportunity that may be worth looking at is initiating a collateralized debt position.
What is a Cryptocurrency CDP?
In traditional terms, a CDP is essentially putting up collateral in order to receive a loan against the deposited amount. There are several examples of this in our day to day lives. Auto title loans from large companies like TitleMax are extremely popular with consumers. Consumers are essentially able to use their car as collateral in exchange for a cash payment which can then be used for whatever needs the consumer has. The consumer can continue using their car as long as debt payments are made.
The same concept applies to cryptocurrency CDPs. Consumers are able to put up crypto tokens, such as…
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