0

Is Litecoin a Good Investment and Should I Invest in Litecoin?

13 Min Read
Last Updated March 27th 2021

Investing In Litecoin : Getting Started

Should I Invest in Litecoin? Is LTC a Good Investment?

If you are new to the world of Litecoin investing, you might be wondering if Litecoin is a good investment or should I invest in Litecoin?. Well, let’s break all Litecoin-related circulating online before you consider investing in Ethereum.

In this article, we’ll discuss Litecoin investment to help you decide for yourself whether you should invest in Litecoin or other cryptocurrencies.

If you want to buy and invest in Ethereum quickly and easily. with 0% commission,  check out eToro Exchange!

What Is Litecoin?

Litecoin is one of the most traded cryptocurrencies, ranking 7th by market cap. Litecoin is also one of the most popular forks of Bitcoin and, in fact, one of the main competitors of Bitcoin.

Here we should also note that Litecoin was built in 2011 on GitHub by former Google employee Charlie Lee, but its financial history originated in 2013 when an improved version of Litecoin was launched and popularised.

Just like other cryptos, Litecoin acts as a digital peer-to-peer payment system and helps users execute transactions and exchange goods beyond borders. 

Unlike central banks or traditional payment systems, such as PayPal, Litecoin relies on decentralised principles, with nodes being spread across the globe. It’s no surprise that many believe that because of the rise of decentralised cryptocurrencies, we won’t need traditional banking anymore.

Because Litecoin is not backed by governments or central banks, Litecoins are not issued by authorities; they are mined instead. 

Note that Litecoin has a limited supply of 84 million to reduce people’s fear of overproduction and inflation.

Similar to Bitcoin, Litecoin uses a proof-of-work consensus algorithm. 

Unlike Bitcoin, however, Litecoin has a decreased block generation time of 2.5 minutes as opposed to almost 10 minutes for Bitcoin

This facilitates transactions and processing times and offers reduced transaction fees. In fact, as stated by developers, Litecoin blockchain is "capable of handling higher transaction volume than its counterpart - Bitcoin".

Furthermore, in 2017 Litecoin adopted SegWit, which helps cryptos add more transactions into a block via a layered network design. 

What Is LTC?

LTC is the ticker symbol of Litecoin.

As stated above, Litecoin will produce 84 million Litecoins, while its counterpart Bitcoin has a limit of 21 million coins. 

Note that at the time of writing, there are 65,982,164 Litecoins in circulation.

Getting Started With Litecoin Investing

To start investing in Litecoin and/or other cryptocurrencies you first need to register online with an exchange which will allow you to buy and invest in Litecoin. An exchange broker is an online platform that enables you to buy and sell Litecoin as well as any other cryptocurrency that they have listed.

Is Litecoin a Good Investment?

Yes, with a market cap of $5,284,797,633, Litecoin is a good investment. 

As stated above, at the time of writing, one LTC is trading at $80.02, with a 24-hour trading volume of $5,195,396,203. Note that LTC is up 5.48% in the last 24 hours. 

litecoin price chart

Litecoin is also a good investment for those who do not want to invest in Bitcoin but other altcoins. Let’s not forget that there are many undervalued altcoins with different applications and technicalities that have the potential to overtake Bitcoin one day.

For instance, Litecoin - the lighter sibling of Bitcoin - is four times faster than Bitcoin in terms of block generation.

Actually, Litecoin and Bitcoin have other differences other than transaction confirmation times. Litecoin uses a different hashtag algorithm, which makes mining more appealing and less resource-consuming.

On top of that, Litecoin is more scalable than Bitcoin and even Ethereum. BTC can handle around 7 transactions per second (tps), while for now, Ethereum can handle 15 tps. In contrast, LTC can process 56 tsp even at peak times.

Litecoin is also more appealing to investors who value its practical use. Take retail purchases, for example. Users prefer to deal with whole units, not fractions of a unit. Because of its value, though, BTC is often displayed with decimals, which can be psychologically overwhelming. 

Imagine if you had to buy a video game for $100! At the time of writing, that would be 1.29 LTC or 0.0054 BTC. You can see for yourself which one is easier to accept on a daily basis, right?!

Would you consider investing in Litecoin LTC?

Who Should Put LTC in Their Portfolios?

Because of its potential, Litecoin is an attractive investment for different types of investors, including:

  • Crypto day traders who want to take advantage of potential Litecoin price swings and tame its volatility.
  • Long-term investors who believe in the future of Litecoin and want to hold LTC. After all, LTC can’t be manipulated by governments which makes it more sustainable compared to fiat currencies.
  • Blockchain enthusiasts who believe in the future of altcoin trading, as well as supporters of Litecoin’s mining algorithm Scrypt. 

Though some claim that Litecoin offers nothing new in terms of technicalities, the truth is that Litecoin’s investment potential is more than impressive. 

Last but not least, LTC investing is also a great asset for those who simply want to diversify their portfolios in order to reduce risks and spread rewards.

Is Investing in Litecoin Risky?

Though investing in Litecoin is worth it, Litecoin investing can be risky. Let’s not forget that investing in Litecoin and cryptocurrency can be highly risky given the volatility of the market.

For instance, in August 2020, Litecoin reached $70 and in a matter of days, it moved down to $45. Note that this level of $45 can act now as a floor for the self-off of LTC, as well as a psychological barrier for investors.

On top of that, just like any other cryptocurrency, regulatory changes can reduce crypto demand. Here we should mention that some major economies like China have imposed draconian measures to reduce crypto adoption.

Therefore, investors should decide for themselves if cryptocurrency investing is suitable for their financial goals. It’s up to you - and only you - to decide if you are willing to risk and invest in LTC.

If you decide to invest in Litecoin, explore the risk-reward profile of Litecoin before you jump in and out of any trade. Always proceed with caution when it comes to risk management and profits; always focus on consistent moves and self-discipline. 

Believe it or not, trading psychology plays a crucial role to help investors cope with stress and embrace risks.

How Much Could Litecoin Be Worth?

While making Litecoin price predictions is speculative, based on price data and technical analysis, many traders see the potential of Litecoin, especially in the short-term.

In fact, in the short-term, there is still a positive sentiment towards Litecoin, which could add up to its bull trend.

Let’s mention again that as of November 30, one LTC is trading at $80.02.

Interestingly, though cryptos are anti-correlated to other assets, Litecoin is somehow correlated with the performance of broad-market indexes and other assets, as per Capital. So in the event of a sharp meltdown in S&P500, for instance, there’ll be probably a sharp sell-off of Litecoin. 

Though past performance is not an indication for future performance, looking back, we should note that in December 2017, Litecoin reached an all-time high of $360.93. Compared to its price in 2018, this was an 8200% rise.

Analysing past data, we should also mention that 2019 was a good year for Litecoin. LTC price increased from $32 to over $140 and stopped at $42.75 on December 31. Thus, investors who were holding LTC from the start to the end of 2019 made a significant profit.

In comparison, the year 2020 has been more dramatic for investors and economies worldwide: LTC fell to $30.93 on March 12, 2020, aka Black Thursday. 

Since then, however, LTC has managed to recover from the coronavirus pandemic. 

In fact, though Litecoin has been going through some downward pressure caused by a post-pandemic bullish market and higher interest in cryptocurrencies, Litecoin has been relatively stable despite the ongoing pandemic - with investors hoping that the bull run will continue. 

Actually, many experts believe that a surge in Bitcoin will affect Litecoin positively, with investors hoping that BTC will reach new highs this year.

According to LongForecast, LTC may reach $150 in the years to come. Some crypto platforms even predict that LTC may hit $10,000 by 2025.

Should I Invest in Litecoin?

investin in litecoin

While it’s up to you to decide if Litecoin is a good investment or not, let’s not forget that Litecoin is one of the most popular coins in terms of market cap.

Not only that but Litecoin may become a tool of the future of online services and decentralised finance. As more online stores begin to accept crypto, more and more investors may begin to invest in Litecoin.

After all, the rise in popularity of Litecoin is often in response to the demand for LTC. Why? Simply because the crypto market is ruled by demand and supply principles!

Interestingly, many wealthy investors are also turning to LTC investing. Data show that there are more than 283 Litecoin addresses with over $1 million LTC in each. NFL star Richard Sherman, for instance, is one of the big investors who said he had invested money in Litecoin.

So, do you think that Litecoin is a good investment?

How Much Should I Invest in Litecoin?

If you are asking yourself “How much should I invest in Litecoin right now?”, here’s a tidbit: never invest more than you can lose.

While the main mantra in the crypto sector is to buy low and sell high, do not forget that LTC investing can be risky, so never invest your life savings in LTC or any other asset. Experts suggest investing no more than 1% of your funds on a single trade.

Always study the market to determine the right entry price and exit price for you and follow the crypto news to make the right investment decisions

Interestingly enough, some analysts claim that Litecoin has a habit of leading Bitcoin in terms of market movement, so stay up-to-date with the crypto market.

That said, investing in LTC doesn’t have to be complicated. Cryptocurrency investing is open to anyone and you can start investing in crypto with as little as $100.

LTC is also traded on many crypto trading platforms and has a pretty good adoption rate compared to other digital assets. With eToro, for instance, it’s easy to start buying and trading LTC as well as up to 90+ crypto pairs.

 

Is Litecoin a Good Investment and Should I Invest in Litecoin?: 

Key Points

  • Litecoin is one of the most popular forks of Bitcoin. Note that its main goal was to reduce block confirmation times from 10 to 2.5 minutes.
  • Based on tech indicators and past data, Litecoin has a real potential for growth and adoption. It’s no surprise that Litecoin remains one of the top ten cryptocurrencies in the world, currently ranking 7th in terms of market cap.
  • LTC is trading at $80.02 at the time of writing and has a market cap of $5,284,797,633, as reported by CoinMarketCap.
  • Many believe that Litecoin will continue to be the silver to Bitcoin’s gold and claim that Litecoin will increase in value in the years to come.

Litecoin is one of the most established cryptocurrencies in the financial sector, so if you're feeling inspired to start investing in LTC, you may be pleased to know that we at Trading Education provide different trading courses to help you understand the cryptocurrency market. 

Furthermore, eToro allows you to buy crypto and trade CFDs of up to 90+ pairs.

eToro – Best Cryptocurrency Platform For Both Traders and Investors

eToro have proven themselves trustworthy within the crypto industry over many years – we recommend you try them out.

Virtual currencies are highly volatile. Your capital is at risk.

If you liked our article Is Litecoin a Good Investment and Should I Invest in Litecoin? please spread the word and share it with anyone who might be interested in cryptocurrency investing.

FAQs

Is it worth investing in LTC?

Yes, it is worth investing in LTC. Litecoin has proven time and time again that it is a worthy investment. Given different technical signals and fundamentals, many experts believe that Litecoin will enter a bull uptrend, which makes investing in Litecoin more than worthy.

Is it smart to invest in Litecoin?

Yes, it is smart to invest in Litecoin. Considering the tech potential of Litecoin and the substantial ROI that Litecoin might generate, exposing yourself to LTC investing can be smart and also profitable. At the same time, do not underestimate the volatility of the crypto market and always proceed with caution. 

Could Litecoin be a better investment than Bitcoin? 

Though Litecoin is often compared to Bitcoin as both cryptos are closely related and have influenced each other, in technical terms investing in Litecoin can be a better investment. Simply because LTC transactions will be confirmed four times faster than those involving BTC, which also translates into lower transaction fees to buy and sell LTC. That said, Bitcoin is still the most popular and traded coin in terms of market cap - Bitcoin ranks 1st in the crypto sector and has a market cap of $346,244,653,427.

Where to invest in Litecoin? 

Though Litecoin is easily accessible, the best place to start investing in LTC is via eToro. The eToro Exchange allows investors to buy and sell crypto and trade CDFs of up to 90+ cryptocurrency pairs without any commissions or fees.

Top Brokers in
    All Regulated Brokers
    67% of retail clients lose money when trading CFDs with this provider.