Are you curious about the concept of halving of a cryptocurrency? Do you know that every cryptocurrency reward starts halving at one point? What does the process really mean and how it affect the price of cryptocurrency? Well, the market sentiment is what matters the most. However, let’s take a look at the effects of the halving of the Litecoin reward.
The Halving of Litecoin and Its Effects on the Cryptocurrency
First, you have to know how halving of a cryptocurrency takes place. So, when miners record a block successfully, they earn some coins depending on the network they are on. If you are on the litecoin network as a miner, you will earn some litecoins every time you successful record a new block on the blockchain. Every cryptocurrency experiences the halving event, and Litecoin has gone through the same. The recent halving of the cryptocurrency took place in the August of 2019. At that point, the reward for each miner for storing a successful block came down from 25 LTC to 12.5 LTC.
It is important to know here that you can always predict a halving event. In the case of Litecoin, the halving event takes place after every 840,000 new blocks on the Litecoin network. If you are interested, the next halving event will take place in 2023. There are some websites where you can already see the countdown of the halving. If you like doing calculations, the LTC network records 576 new blocks in every 24 hours.
The halving has already taken place and in the beginning, there was some negative impact on the LTC market. It is important to know here that some miners who are in it just for the rewards are bound to walk out of the market when their rewards reduce. And that’s exactly what happened. The price of the cryptocurrency went down after the halving event. However, you should know here that the price of the cryptocurrency was already going down since the June of 2019. The effect of the halving event is gone now. If you are interested in investing your money in this digital currency, you can do that with ease today.
The price of Litecoin has started to rise once again. It was down at $44 at one point just a few months ago. However, at the time of writing this, the price has doubled once again.
Should You Trade Litecoin
While no one can give you any guaranties on whether you will profit from your trades or not, you can definitely increase the chances of doing so. You might want to look at this XTR Gate review to know where you can start with cryptocurrency trading to make money from it. Also, you have the Neuer Capital blog review that can help you get started with trading. There is nothing wrong with Litecoin as you can already predict form the graphs of 2020. The price of the digital currency is going up and that too steadily. Not to mention, experts consider it one of the safest cryptocurrencies to invest your money in.