What is causing the sudden rise in litecoin?
* Neophytes buying whatever they can put their hands on, because... mania
For clarification: I bought some $1000s worth of LTC when it was under $100 shortly after the Futures news hit. It was pure gamble on my part and I could have easily lost instead of the other way around.
I also bought a few ETH coins when it was around $400 but haven't cashed those out yet. I'm predicting my LTC gains will be wiped by ETH losses.
But I only made about 2.5x my wager, which wasn't much (less than $10000, more than $1000).
Also, as noted, much of a LTC gains could easily be eaten up by ETH losses. BTC is too expensive for my gambling taste.
Complaints of "only" making a 2.5x return.
Or proposed strategies elsewhere in this thread of buying a coin, selling half "when" it doubles, not "if".
But I agree it does highlight how insane the crypto craze is.
I doubt people really understand what they are buying whether it's bitcoin or litecoin. If you think you do, well, then most people do. Don't look at "crytocurrency" as the future "payment method", invest it like an asset. Go in low, come out high.
I invested in litecoin because I believe the market is undervalued. It's like a blue chip but will continue to rise for a while. If litecoin is to continue to rise, my bet is stopping at 600 then stabilized until bitcoin pops again. Litecoin in my view will never pass Bitcoin, but it's nonetheless a fun investment to play with.
In Litecoin's case it's also because it's one of the very few cryptocurrencies that has been adopted by virtually all exchanges, and it has faster transaction times than Bitcoins (for which transaction times and fees are a big problem currently, after the big recent influx of users/investors).
I have been asked my a few friends and family members about investing similar amounts in Crypto, not knowing much about it.
People want piece of the action. The return period is small, LiteCoin up 90% just in the last 24 hrs, up 10000% in the last year. These are bonkers results if you just want to play the market and cash out.