Have you ever heard of Bitcoin? It’s a new system that is most definitely taking the world by storm. Where investments and currency used to require cash, Bitcoin has changed all of that. Instead of using cash, this system, and others like it, use cryptocurrency, which is definitely going to change the way that you invest as well.
With Litecoin IRA you’re going to get a whole lot of advanced features for your investment process, so let’s take a look at just what this really means for you.
What is Cryptocurrency?
If you haven’t heard, cryptocurrency is a type of digital currency that doesn’t require you to have physical cash in any sense. These types of currency are entirely new and definitely amazing because they’ve changed the way that you can buy and sell anything, as well as the way you can invest, whether you want to invest in an IRA or anything else.
You’re going to have a whole lot of great things happening with your investment if you do, which we’ll look at a little more through the rest of this article.
What is Litecoin?
Litecoin is another type of cryptocurrency that you’ll definitely want to take a look at. Where Bitcoin is the gold standard of cryptocurrency right now, Litecoin is considered the silver standard. Rather than being a completely new type of currency, it’s actually considered a sort of compliment to the existing currency (which would be Bitcoin).
With this currency, you’re still using the blockchain technology and you’re just getting a few little bonus features to go along with it. It’s a little faster at processing and it’s got a better hash rate. That definitely improves the way you can use it.
Created by Charlie Lee, a Google engineer, the system can process a block up to 4x faster than the current Bitcoin standard. It can carry out processing in as little as 2.5 minutes, where Bitcoin can take up to 10 minutes to process. That’s definitely something that anyone can appreciate.
You don’t want to be standing around waiting for your system to update and your transactions to go through. You want to make sure that it’s going as fast as possible, right? Released under an MIT/X11 license, this is a software option that you can use however you want and even modify.
Benefits of Litecoin
There are several different benefits associated with Litecoin, but we’ll break it down into five basic features.
The first is that Litecoin increases transaction speed. With that 2.5-minute conversion time, it’s definitely a bonus that you’ll want to pay closer attention to and that improves on the current framework of cryptocurrency.
Next, it can produce up to 84 million Litecoins. Whoever wants them can get up to 25 coins per block and those numbers will continue to split in half every four years. Eventually, they’ll reach their cap. That means you know what your coins are going to be worth and how they’re going to work for you in the investment process.
There is no central authority for Litecoin either. That means the people who are using the coins are the ones that are giving it the value and they’re the ones that will allow it to maintain that value over an extended period of time.
You’re going to be using something called SegWit for the transactions that you complete. That’s a unique method of transferring data that actually removes the signature data and increases overall capacity. You’re going to get a much faster and more efficient process this way.
Finally, the system is backed by something called ‘Scrypt.’ Scrypt is the algorithm that allows the system to operate so quickly. It is extremely memory intensive and it has some really high speed to go along with it. That’s definitely going to make a difference in the way that you use the system.
So, now that we’ve delved a little further into Bitcoin and Litecoin in general, it’s time to look at them in the context of your individual retirement account (IRA).
You want to make sure you’re getting a good start on investing for your future, right? You want to make sure that when it all comes down to it you have a decent amount put away for retirement, and that’s where self-directed IRAs come in.
With Bitcoin and other cryptocurrencies being the new big thing, it’s important to consider the way that Bitcoin IRA or Litecoin IRA could be impacting your future investments.
If you’re not entirely sure about the basic aspects of Bitcoin IRA custodians make sure you take a look at the article here. Otherwise, keep reading for just what Litecoin is going to do for your IRA portfolio as well.
You already know that investing can be a scary process and you never know if you’re really going to end up with until it comes time to cash out. To invest in cryptocurrency to boost your retirement funds, you know you’re getting into something entirely new and quality as well. You’ll notice that your virtual currency investment is stored in a type of offline system, which is going to help you to feel safer with what you’re doing.
Cryptocurrency investing is also entirely digital, investors don’t have anything physical that you need to worry about, whether it’s the buying and selling or anything else about the process.
No matter what you’re planning to do with your money, cryptocurrency is definitely an interesting and effective way to start out. You’ll definitely be getting some benefits and you’re going to have a chance to really see how an IRA, and especially a cryptocurrency IRA, can make a huge difference in what you’re trying to accomplish for your future. There’s no reason to sit back and let your life just pass you by or try to make increasingly difficult investment decisions.
With Litecoin, Bitcoin and other types of cryptocurrency, you’re going to be much better off and your IRA is going to have a bit of a jump start that you can feel comfortable about right from the start.