Why Litecoin Is the Unbanked’s Entry to Crypto

Did you know that 1.4 billion people worldwide don’t have access to traditional banking institutions? It’s a huge number of individuals deprived of the benefits of using various financial services. On the other side, there’s a trend of increased mobile access to the internet. 

We can also see that global crypto payments are increasing. If you believe digital assets are your ideal entry point to the crypto industry, you should consider Litecoin as the initial investment. LTC offers a combination of speed, simplicity, and reach. This guide offers the current analysis of the market, along with why Litecoin is an excellent entry point into the crypto world.

Unbanked Populations and the Global Crisis of Access

If someone is unbanked, that means they don’t have an account in a bank or access to even basic financial options. The limitations could refer to restricting how users can save money or acquire a loan. 

The reasons behind this might depend on regulations, income, and geography. Some authorities are strict regarding the financial services, especially international ones, available to their citizens. Individuals might not have suitable paperwork, such as an ID or regular income, to access loan options. Finally, people can reside in rural regions where banks or ATMs aren’t available.

Africa’s Mobile-First Shift

The African financial market has become strongly focused on mobile technology in recent years. Traditional banks might not be available in some areas, but with a stable internet connection and a mobile phone, crypto assets can be unlocked.

In these conditions, an efficient cryptocurrency like Litecoin is the perfect fit. Its architecture is light, and it doesn’t use a lot of data. That means you could process LTC transactions quickly even on internet networks that aren’t so powerful. Also, low transaction charges make Litecoin a great option for frequent payments. These microtransactions can serve for daily needs or remittances when sending money to the family from abroad.

Southeast Asia’s Informal Economy

In Southeast Asia, the economy can be described as informal. A significant part of workers receive their salaries in cash rather than getting paid into bank accounts. Job security is often non-existent, and users don’t have access to credit options or a pension system. 

You will see a large number of remittances sent from big cities to rural regions. It’s where cryptocurrencies like Litecoin come into play. LTC can be a great option for transferring money fast and with low fees. At the same time, users avoid central banking systems that often take days to finalize the transfer.

Latin America’s Banking Gap

The problems with traditional finance systems in South America include corruption and high inflation, which often creates distrust among users. Venezuela and Argentina are examples of countries where inflation has significantly degraded the value and reputation of national currencies.

In those conditions, crypto is gaining more trust among users. People are turning to Litecoin and digital currencies for regular use. LTC is a payment method that has low fees and offers reliability. Although the market is volatile, it is less speculative than local currencies. Additionally, users can access fast and decentralized transfers without any central authorities controlling or monitoring transactions.

The Barriers to Traditional Finance

For many users, it’s not about not wanting to be a part of the traditional banking systems. It’s rather not being able to join it due to various reasons. These include the following:

• The necessary documentation. Some individuals might not have ID cards, tax documentation, proof of address, and other necessary paperwork.

• Physical access. In rural areas, a bank or ATM might be far away.

• Trust problems. Some countries have high levels of inflation and corruption, making the banking system unreliable.

Slow traditional banking transfers also force users to look for faster digital alternatives. 

What Makes Litecoin Suitable for the Unbanked

While Bitcoin is the market’s gold, many find Litecoin to be the crypto silver. It’s because the currency is suitable for microtransactions. Three main reasons for this include affordable and fast transactions and excellent merchant and wallet support.

Low Transaction Fees

If you want to buy Litecoin or swap it, you’ll be surprised that network fees are affordable. LTC is among the cryptocurrencies with the lowest fees out there. You only pay a fraction of a cent per transfer. In comparison, Bitcoin and Ethereum can charge dollars per transfer during peak hours and congestion troubles. With Litecoin, the network will only charge a little and won’t affect your planned conversion much.

Fast Settlement Time

Litecoin can complete block generation in approximately 150 seconds. As a comparison, Bitcoin takes up to ten minutes. Fast settlement time is important for all types of transfers, from remittances to payments for various services. You receive an almost instant payment validation, which is important when you are purchasing a product with LTC.

Wide Wallet and Merchant Support

Excellent adoption is a strong advantage of the LTC blockchain. For starters, you can get a Litecoin wallet for free, and there is a wide range of wallets supporting this currency. Besides software options, you can also go with hardware wallets like Ledger or Trezor. Crypto wallets are available on computers, Android, and iOS devices. It’s not necessary to have the latest phone versions or modern devices to use them, which is important for emerging markets.

Nowadays, an increasing number of merchants accept LTC, including NOWPayments and CoinGate. The crucial reason for this is that Litecoin is a payment method for microtransactions and transactional currency rather than a long-term investment.

What It Means for Crypto Adoption Globally

The unbanked population presents a huge opportunity for the crypto industry. The adoption of digital currencies doesn’t begin at Wall Street or Silicon Valley. Instead, it’s among users who primarily use their mobile phones to access the internet. 

These users need accessible tools and currencies to conduct transactions over the Internet. The crypto industry offers a way for anyone, from a street vendor in Caracas to a cash worker in Lagos, to access digital banking services.  Litecoin is fast, simple, and accessible. Its scalability will only keep growing, making it a great option for scalable markets.