Question

You are hired by GDP Consulting Ltd to provide a blockchain and cryptocurrency analysis. Your group is required to provide an overview of the cryptocurrency Litecoin and analyse an investment opportunity associated with that currency.

Answer the following questions

1. How would you advise institutional investors/hedge fund managers to approach crypto-investment?

2. Will cryptocurrencies increase (decrease) the risk of their investment portfolios?

Answer 1

Q.1How would you advise institutional investors/hedge fund managers to approach crypto-investment?

Ans:I will advice client's all the benefits of cryptocurrency like:
Cryptocurrencies are booming once again in 2020 after almost 3 years of quiet accumulation. And while new investors are coming into the scene looking for the best coins to invest in, others have already set their eyes on the most promising cryptos.
One of those coins is Litecoin. Created by Charlie Lee in 2011, Litecoin aims to solve the issues that Bitcoin is currently facing. The “older brother” is not all best for instant transactions, while fees are also pretty high. Bitcoin mining is also becoming less profitable and small-scale payments seem almost impossible.

If you recognize these issues, then you should certainly consider Litecoin as a part of your portfolio. Let us take you through some of the advantages of Litecoin, and how these could help the popular coin climb to the top once again.

1.   Litecoin offers more democratic mining In contrast to Bitcoin, Litecoin is encoded with Scrypt algorithm. Both algorithms solve mathematical problems on their supported blockchain, in order to discover the next transaction block, and get rewarded accordingly
2.   Transactions are faster and cheaper
its popularity also increased due to its unique features (at the time).
Litecoin has 4 times the total supply of Bitcoin, at 84.000.000 coins and each block is able to process more transactions leading to faster confirmations.
This is great news for merchants worldwide, who require micro-payments to be concluded instantly. An average transaction of Litecoin takes just 2,5 minutes to complete (time required to mine a block), as compared to 10-minute transactions made with Bitcoin.
3.   You can buy a whole coin for a cheap price
Small-cap crypto currencies are also more likely to see value % gains as opposed to those with a higher cap. This is because new users seek instant gratification and higher profits despite the risks involved. As such, Litecoin, which is massively undervalued at the moment, could become more profitable than Bitcoin in the next uptrend.

4.   It is listed on all major exchanges
Are you looking for ways to buy Litecoin with credit card or debit card? Well then you are in luck, since all major exchanges list Litecoin on their platforms.

New investors can buy Litecoin easily, without having to go through complex and timely processes.

More exchange listings means higher liquidity, which is very important for cryptocurrencies. The higher its liquidity, the higher the demand to trade the coin on open markets.

Due to being one of the earliest coins in the market, the coin has already established a positive reputation. While the future is uncertain, top-ranking coins tend to be the first choice of experienced investors during bull markets

The process of buying Litecoin is very simple, and we will walk you through the steps of the process down below.

Visit our website of GDP Consulting ltd

Verify your identity on the selected platform and get ready to make a new transaction.

Follow the information on the platform of your choice and purchase any amount of Litecoin.

At this point, your Litecoin will either be stored on an exchange-based wallet or the platform itself will ask for your personal wallet address to deliver your coins instantly.
As soon as your coins are delivered and become visible in your wallet, you are set. At this point, you are able to hold, sell or exchange your Litecoin.

Q.2Will cryptocurrencies increase (decrease) the risk of their investment portfolios?
Ans:Litecoin is one of the most popular coins in the cryptocurrency market. Currently, it is listed as the 7th most popular coin in data platform CoinMarketCap. Being worth just a little more than $40, it is has dropped more than 80% in value over the last 3 years.

Where will it go from here? Only time can give a definitive answer. However, when looking at the current market conditions, we can see that a recovery is well under way. Pair that with the recent halving of Bitcoin, and you soon start to see an emerging pattern.

If a bull market is in sight, then Litecoin will certainly benefit from it. As such, it might be a smart idea to hold some LTC when that time