Cryptocurrencies have put everyone in amazement from the time they were introduced to this world. These digital assets have the potential to replace the fiat currencies we use today. Cryptocurrencies were created to provide a system that would eliminate the third-party between transactions. Bitcoin is the first cryptocurrency ever. Although Bitcoin was successful in providing a decentralized digital payment system, it was not fast enough, and privacy was not far effective. After some years, Litecoin came which managed to improve its transaction speed and privacy issues. Besides this, NEO was introduced, which combined the features of both Bitcoin and Ethereum. In this article, we will discuss how NEO and Litecoin set apart from other cryptocurrencies.
NEO And Litecoin
NEO is a blockchain system which is powered by either the GAS or a NEO token. Both these tokens have the ability to provide seamless execution of transactions across the decentralized system of NEO. NEO GAS token acts as a fee to approve a user in its blockchain network. The blockchain makes use of smart contracts and DApps just like the Ethereum network. In addition to these features, NEO takes its features from the Bitcoin blockchain network also. Thus, NEO is a combination of both Bitcoin and Ethereum.
Litecoin is a P2P digital currency which was introduced to make the transactions faster and more anonymous than Bitcoin. The blockchain network of Litecoin utilizes a consensus algorithm called Proof of Scrypt instead of Bitcoin’s Proof of Work, which offers more security amongst the transactions between the two parties.
How NEO Is Different From Litecoin
Both NEO and Litecoin are altcoins or alternative coins to Bitcoin. While NEO was designed while keeping Ethereum in mind, Litecoin was introduced to improve the decentralized digital system of Bitcoin by making it more fast and anonymous. The transaction time of Litecoin is four times faster than that of Bitcoin. On the other hand, NEO was introduced to provide a system that would make use of Ethereum smart contracts and DApps in a more efficient way. NEO has the ability to confirm 10000 transactions within a second, whereas Ethereum can confirm only ten transactions within a second.
Is Litecoin A Good Investment
When it comes to investing in Litecoin or any other cryptocurrency, it is essential to consider whether you are spending your money for a long-term or short-term. Now, I will discuss the merits and demerits of long-term and short-term investments in Litecoin.
Merits Of Long-Term Investment In Litecoin
- Litecoin is the most established digital currency. It has about seven years of trading experience in the crypto market. This makes investment in Litecoin less risky for long-term.
- You can spend small amounts of your fund in Litecoin regularly, which protects you from the effects of long-term price movements.
Demerits Of Long-Term Investment In Litecoin
Litecoin has some scalability issues. Due to this, its blockchain system would lose its speed when the number of users increases. This is the only demerit which Litecoin has for long-term investment.
Merits Of Short-Term Investment In Litecoin
- Litecoin has a very high trading volume which means that you will have a lot of buyers for short term investments.
- Litecoin is listed on Coinbase. Because Coinbase is a cryptocurrency exchange platform which process crypto transaction far greater than other exchanges, Litecoin could be easily be traded on a large scale.
Demerits Of Short-Term Investment In Litecoin
The only demerit for short-term investment in Litecoin is volatility. As the trading volume for Litecoin is high, its volatility also gets high for a short-term investment. Litecoin could go 50 per cent down of its value in a certain period.
Is NEO A Good Investment
From recent years, NEO has been performing very well. It has become very popular in a short period of time because the Chinese government supports it. Now, we will discuss the merits and demerits of long-term and short-term investments in NEO.
Merits Of Long-Term Investment In NEO
- With more research and development, NEO has the capability to enhance the price factor. Thus, it is a good choice for a long-term investment.
- It has been in a bullish trend most of the time, which makes it worthy for a long run.
Demerits Of Long-Term Investment In NEO
NEO is facing stiff competition with other cryptocurrencies that deal with smart contracts, particularly Cardano. These cryptos are somehow performing well and could beat NEO in the future.
Merits Of Short-Term Investment In NEO
- The price of NEO cryptocurrency has been recorded to go high for two to three months. So, you can benefit from its short-term surge in price.
- You can take advantage of the short-term increase in price by day to day use of NEO smart contracts and DApps.
Demerits Of Short-Term Investment In NEO
NEO is a cryptocurrency that is mainly focused on long-term investments. Its smart contracts and DApps offer more profitability to its investors in the long run. However, a sudden surge in price for a short-term could be beneficial.
In this article, we have seen how NEO and Litecoin set apart from the other cryptocurrencies available today. Both of these have met the shortcomings of two major cryptocurrencies, Bitcoin and Ethereum. The innovations that these altcoins have provided cater to the upcoming technological requirements in the world of blockchain and cryptocurrencies. As the years pass by, more and more technical requirements would emerge, and NEO and Litecoin would fulfil them while gaining more adoption in the future.
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