Litecoin is one of the most popular altcoins and one of the oldest cryptocurrencies on the market. With a market worth of more over $12.3 billion, it is now the 14th most valuable coin.
Following a recent dip from its all-time high of $412.96 on May 10, one Litecoin, or 1 LTC, is now valued little under $200 as of June 1, 2021.
Litecoin's value has fluctuated dramatically during the course of its 10-year existence, as it has with all cryptocurrencies. Spikes in the stock's price were swiftly followed by sell-offs. What does this signify for investors in Litecoin? Is it wise to invest in Litecoin in 2021? To answer that question, you must first choose what you would be investing in.Here are a few important points to remember:
- - What is Litecoin?
- - Is Litecoin a good investment right now?
- - How do you invest in Litecoin?
What is Litecoin?
"Litecoin is a digital currency that employs peer-to-peer technology to swiftly make payments anywhere in the globe," explains Ben Weiss, CEO and co-founder of CoinFlip, the world's largest crypto ATM provider. "Litecoin is frequently regarded as the first successful alternative cryptocurrency, or altcoin," because of its complementary nature to Bitcoin and the fact that it has built a market for itself.
Litecoin is one of the oldest and most well-known altcoins, having been founded in October 2011 by computer scientist Charlie Lee. Weiss explained, "It was designed to be a smaller Bitcoin version with four times faster transactions and a relatively small load of 5 cents."
Litecoin can be mined every 2.5 minutes, as opposed to the 10 minutes it takes to mine a block of Bitcoin, allowing the currency to handle more transactions, says Tyrone Ross Jr., CEO at Onramp Invest, a technological firm that gives registered investment advisors access to cryptoassets.
If cryptocurrency is to become a widely accepted form of currency, transaction speed is critical for both users and merchants, says Daniel Rodriguez, according to Hill Wealth Strategies' director of operations in Richmond, Virginia.
Litecoin, like Bitcoin, is based on an open-source payment network that is not centralised. Litecoin, on the other hand, has a far bigger supply cap of 84 million LTC compared to Bitcoin's 21 million. "Litecoin is commonly referred to as the silver to Bitcoin's gold," Weiss explains, citing the disparity in supply limits.
Is Litecoin a Good Investment Right Now?
Weiss claims that Litecoin is very stable compared to other altcoins that were founded around the same time since it consistently ranks in the top 15 cryptocurrencies by market valuation.
"Major proponents of Litecoin believe that more usage and adoption on a broader scale would undoubtedly raise its value, as we have seen recently," he writes, pointing that Litecoin's value has risen quicker in percentage terms than Bitcoin's since May.
"Litecoin is a great investment opportunity if you are interested in investing in a technology that enables rapid and inexpensive borderless transactions," Weiss explains. "Litecoin is also a fantastic choice for newbies to alternative cryptocurrencies because of its affordability and stability." While a single Litecoin is presently worth less than $180, a single Bitcoin is worth more than $37,500.
Others, on the other hand, are less enthusiastic about the altcoin. While Litecoin may be a decent speculative move, Ross believes it is not a suitable investment.
He claims, "If you look at the Litecoin developers and engineers, they aren't really robust." There aren't many examples of investors employing it effectively. Then there's the fact that Litecoin's founder has sold all of his coins except a few to preserve as keepsakes, which Ross considers to be a red flag.
"While there is no actual investing foundation for Litecoin," he claims, "it could be a great trade for someone who isn't concerned with these things and is only interested in price movement." "It is by far the worst for investors who are fastidious about whether or not Litecoin is a good investment."
How to Invest in Litecoin?
There are a lot of ways to make Litecoin investments.
"You may purchase them directly from PayPal or through cryptocurrency exchanges such as Coinbase or Coinmama," Rodriguez explains. "You may also buy other cryptocurrencies like Ethereum and Bitcoin on those exchanges." Binance, Gemini, and other cryptocurrency exchanges are also available.
"Retail investors can buy Litecoin on cryptocurrency exchanges, using cash via a Bitcoin ATM, or via bank transfer through our trade desk for larger transactions," explains Weiss.
If you do decide to invest in Litecoin, Ross advises that you first educate yourself on cryptoasset technology before chasing the price. "Learning more about Bitcoin's roots and what it is attempting to achieve can assist investors in deciding whether to purchase Bitcoin or Litecoin."
Finally, before investing in any cryptocurrency, Ross advises investors to read "The Bitcoin Standard" or "The Bitcoin Whitepaper."