Whether you're new to Litecoin Investing, thinking of getting back in, or just want a refresher on why invest in Litecoin — this article is for you
Below we cover 15 major reasons why you should invest in Litecoin and why Litecoin investing can be so powerful.
Litecoin is among the list of numerous altcoins but has a favourable position compared to thousands of others. Like bitcoin, Litecoin has been around for quite a long time. It is that one coin that has closely been following in the steps of its predecessor, bitcoin. But what exactly is it, and why should you invest in Litecoin LTC today?
Litecoin, as mentioned is one of the many altcoins but is a fork of bitcoin. Altcoins are alternative coins that came after bitcoin. A fork is when a blockchain breaks into different paths to create two distinct coins. Litecoin broke away from bitcoin’s blockchain to become an independent coin.
This coin was made or developed by Charlie “Satoshi Lite” Lee, a former Google and Coinbase engineer, back in 2011. Its tinker or code name is LTC. While not as big as bitcoin, you can still invest in LTC and have good returns if you know how to read the cryptocurrency markets.
There are a variety of reasons to invest in Litecoin LTC. Here are some that can act as a guide to support in Litecoin LTC today. You will also get to learn a lot more about the coin as you learn why you should invest in LTC.
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15 Reasons Why You Should Invest in Litecoin Today
First, let's start with the hard fact-based reasons to invest in Litecoin, and then we'll transition into some less discussed, but still important, reasons to invest.
1. Litecoin has Digital Scarcity and a Close Relationship to Bitcoin.
Gold is valuable because it is precious and very scarce. This aspect also applies to bitcoin, which is now termed digital gold. Litecoin is also an open-source, peer-to-peer digital currency that operates more or less in the same manner as bitcoin. While bitcoin is digital gold, crypto enthusiasts term this coin as digital silver.
This aspect alone is a strong driver of value as users view the coin as following in its predecessor's footsteps. Litecoin has a limited simply of coins, meaning that only a set number of coins will ever be mined and remain in circulation. The amount of LTC is hard-capped at 84 million.
It utilizes the same block reward halving as bitcoin and is also dictated by proof of work consensus. Members on the blockchain must all agree before any new coin is minted hence its scarcity. Users and investors can rest easy knowing that there will be no more than the limit to flood the market.
Read More: Bitcoin vs Litecoin
2. Litecoin has a High Market Capitalization.
Market capitalization is the value you get when you multiply the existing price of a commodity by the total number of that commodity in supply. In the case of digital coins, this number is the total amount of coins in circulation at a particular time.
Currently, Litecoin stands in the top 10 of all cryptocurrencies in terms of market capitalization. The current price of this coin is $346, with a market cap of just more than $23 billion. This figure indicates that the coin is highly liquid hence a good investment option.
If you just want to buy and sell, you will not have a hard time converting this coin into liquid cash or another valuable cryptocurrency. You can easily trade it for bitcoin and Ethereum, among other top digital coins. Considering this aspect, you can choose to buy and keep the coins and wait for the price to hike or buy and sell multiple times as the price fluctuates.
3. Litecoin Has a Practical Use
Litecoin halving technology determines how many coins can be mined within a particular time. In a bid to better bitcoin, the developers lowered the time of block generation from ten to two and a half minutes. This lowering made transactions on the Litecoin network become faster than that of bitcoin.
Most users now prefer using this coin to carry out transactions like payments and trading from one exchange to another. While bitcoin has been relegated to a means of storing value, Litecoin is has taken over the role of digital currency or a main means of exchange.
It is more or less the same as using paper money for everyday transactions while storing gold as a measure of value. Continued use of Litecoin in this manner means that it will keep its price stable even as it increases in value. You stand to gain a lot by investing in such a coin.
4. Litcoin has a Greater Reward to Risk Ratio.
Many investors, both seasoned and newbies, are running after coins that seem to be extremely volatile. Most digital coins have been following in bitcoin’s footsteps, hitting all-time highs in 2021.
Savvy investors and few lucky individuals have made a good sum from the bullish charge that these coins have shown this year.
However, most are forgetting about the likes of Litecoin stability and gradual growth. Even if this coin has failed to hit any new all-time high like the rest, it still stands as a viable investment option. Compared to the others, it has a greater reward to risk ratio due to its gradual growth.
While the rest are shooting up exponentially in short periods, they are also falling as fast putting most investors at risk of massive losses synonymous with the massive profits. As for Litecoin, the probability of making massive losses has been reduced significantly by its gradual trend.
It is very ideal for those who need to invest and cash in after a considerable time. Other coins will have already exhausted their bullish momentum.
Check Out: Could Litecoin Be A Millionaire-Maker Coin?
5. Litecoin has Fast Transaction Times and Low Fees
Litecoin has many similarities to Bitcoin but plays a more practical role than the latter. When Litecoin develops reduced block time confirmation to 2.5 minutes, they made this coin more scalable and can process a higher number of transactions at a much lower fee than bitcoin.
Currently, the Litecoin network is four times faster than that of bitcoin. The main idea bitcoin developers had was to wrestle control of money from banks and governments, but they failed to consider the transaction costs. Charlie Lee and his developers identified this as a weakness in bitcoin and made the cost of transacting on the Litecoin network considerably low.
As of the moment, the fee charged on a transaction by the Litecoin network is about 1/50th that of bitcoin. The good thing is that it costs 1/1000 of an LTC to have a transaction processed. The fee is fixed irrespective of the size of your transaction.
The low costs of transactions coupled with the Litecoin’s appealing features have made it a favourite to many crypto users. The more users a digital currency draws, the more it gains in terms of value.
6. Litecoin has a Dedicated team of Developers.
Every digital currency has a team of developers whose work maintains it and keeps up with changes in technology. The key developer, in this case, is a former Google and Coinbase engineer. He has a team of other skilled and experienced developers that have continuously worked on improving the performance of the Litecoin network.
This network now allows for Atomic Swamps or the exchange of one cryptocurrency with another across blockchains. It also features Lightning Network, which is a second-layer technology channel that allows faster and efficient transactions.
These developers have also ensured the coin’s stability making it less volatile as compared to bitcoin. Users can, in that case, rely on it more as a means of exchange.
They were also the first to include a Segregated Witness update, showing this team's desire to keep ahead of technology. You would be better placed investing with a team that is focused on the future like this one.
7. Large Corporations are already using Litecoin
UFC (Ultimate Fighting Champion) and Overstock.com are just a few among the many established institutions working with Litecoin. Overstock. Com has now for a while been accepting this coin as a form of payment.
For UFC, the Litecoin Foundation formed a partnership where this coin will act as the institution’s official cryptocurrency. That means that other organizations or individuals dealing with UFC will have an opportunity of paying or receiving payment using LTC.
This move is a significant score for LTC and will without a doubt contribute towards increasing its price. Another partnership is with gaming giant Atari that signed with the Litecoin foundation in 2020. Blockchain technology is set to revolutionize the gaming industry, and Litecoin will be part of this revolution.
Such partnerships create investor confidence and encourage more people to invest. It is for this reason too that you should not be left behind. You should expect other established organizations to follow suit for fear of being left out (FOMO).
Read Also: Is Litecoin a Good Investment?
8. Litecoin is Listed in Multiple Exchanges
There are more than four thousand cryptocurrencies today, but most of them are just pump, and dumb projects aiming at making cash illegally then fade away. As an investor, you need to discern between serious projects and the one-time frauds that have nothing to offer.
One of the best ways to know whether a digital currency has anything to offer, is to look at the exchanges it is listed. With only a few exchanges available, and with so many coins, you can be sure that these exchanges will seriously filter those cryptocurrencies to least only those that have a practical use to users, and have a promising future.
Among the most prominent exchanges are Binance, Coinbase, and eToro among others. If you find a coin listed in one of these, then you should know that it has something to offer.
Litecoin is not only listed in all of the serious exchanges, but its chief developer has been one of the engineers at Coinbase. Therefore, it is right to say that it is a coin worth your investment since you can easily sell it in one of these exchanges.
9. Litecoin Continues to Expand
Litecoin continues to expand giving investors more opportunities to make more money. A few weeks ago some developers created an Ethereum –compatible token called pLTC.
This project might not be a direct LTC improvement, but it has significantly enhanced the reputation of LTC. The token has borrowed heavily from LTC strategy and pegs on its reputation for growth.
The token that exists on the Ethereum blockchain is pegged on a 1:1 ratio with LTC. The token was officially launched in mid-2020 and aimed at allowing more cross-chain transactions providing users with another means of exploring the power behind decentralized finance.
This token continues to take foot in the digital currencies world while on the Ethereum blockchain, but it is pegged on LTC as the primary digital asset. Considering the influence Ethereum has on smart contracts, LTC will also share that popularity and growth make it a valuable asset to invest in.
In addition, Litecoin is also developing Lite.IM bot, a technology that will enable LTC users to send and receive this coin via WhatsApp, further enhancing mass adoption and encouraging further growth.
10. Litecoin Shows Strong Signs for Growth
As mentioned earlier, Litecoin is among the top ten digital currencies by market capitalization. It has shown some level of stability throughout its lifetime and indicates some bullish run despite the coin not hitting an all-time high like most other coins on its status.
Still, most experienced investors consider the coin a worthy investment and project that its price could go higher in the long run. In 2020, the coin recorded an impressive 70% growth throughout the coronavirus pandemic. It is also among the topmost traded coins hence its liquidity.
Having sustained its value during this period is an indication that the digital currency is resistant to depreciation and inflation, and could eventually emerge as the real store of value for long-time investors especially during harsh economic times like the 2019-2020 pandemic periods. It is a coin worth risking your money on as a long-term investment option.
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11. Litecoin is Adopted by Financial Institutions
Several coins are now used as means of payment by various organizations, but only a few have managed to get acceptance from financial institutions like banks.
Remember, financial institutions view digital currencies as a threat to fiat currency that they have dominated for a long time. Litecoin alongside others such as bitcoin is among the few that are now being integrated into the systems of many financial institutions.
These institutions have realized the potential Litecoin has as a means of payment. With a technology such as SegWith that aims to divide transactions into two different segments to improve efficiency, you can expect more and more financial institutions to integrate this coin into their systems, which will further strengthen and grow the value of this currency.
This growth will make the coin a viable investment option for both the short and long term, but especially for the long term.
12. Litecoin has optimistic Expert Predictions and Expectations.
A good way of determining whether a cryptocurrency will give you good returns is going through expert predictions. There are cryptocurrency experts whose work is to follow through with the trends of established digital currencies.
These experts usually have very detailed information regarding these coins from their inception throughout their existence. If you follow these charts, you will know how a particular coin has been performing, what has been affecting it, its market capitalization, liquidity, trading volume, and price among other important aspects that you need to consider before investing.
With Litecoin, some notable experts think it will continue growing even past the $1000 mark. One of these experts is Dan Gambardella, the founder of Crypto Capital Venture, who also has several YouTube crypto channels. According to him, Litecoin is probably going to surpass the $1000 mark after it breaks out of its consolidation.
Another expert, the Crypto Research Report Group, predicts that this coin will hit $1200 by 2025 and possibly peak at $2,250 by 2030. The expert is a top digital currency research firm.
13. Litecoin is Easy to Buy and Sell
Most people have not yet invested in cryptocurrencies because of two main reasons. Either they do not understand how this market or industry works, are afraid of investing, or both.
The majority are those that do not know how the industry works. Most do not know what they should do when they want to invest in a particular asset or coin. Investing in Litecoin is a straightforward process. You first need to decide if you wish to do a long-term investment or a short one.
For a long-term investment, all you need is to open an account with one of the major exchanges like Binance. You then deposit the amount you want to invest and buy the coins. You can then invest in a crypto wallet, preferably a cold wallet, and store your coins there.
When the price hits your target, you go back to the exchange and float the coins for sale. The exchange will have them sold in no time. You will pay a commission for selling the coins. You can then withdraw your money to your bank account or other available payment systems.
If you are a short-term investor, it means you want to gain on price fluctuations. That means you enter into a position when the price is low, and exit when it reaches your targeted price.
It is more or less like long-term trading, only that you now do it several times over a short time. Trading platforms such as PrimeXBT will first require you to buy some bitcoins, and then use the same to place these positions now using LTC CFDs. This type of trading is a bit risky but more profitable.
Investing in Litecoin with these exchanges is very easy, so even a new investor can do it without the need of brokers that promise a lot and deliver nothing, only to end up with your money. As long as you have a reliable connection, you are good to go.
Read More: How to Buy Litecoin - Beginner’s Guide
14. Litecoin has Multiple and Secure Storage Options
If you are worried about getting your investment stolen after you invest in Litecoin, then this information will help dissipate your fear.
Litecoin is an established cryptocurrency that is compatible with multiple and reliable wallets. A key aspect of investing in any cryptocurrency is ensuring that your coins are safe from hackers. The best way to keep your coins safe is by investing in a cold storage wallet.
This wallet is basically one that is not connected to the internet. Unlike conventional financial institutions where your money is at the mercy of a central authority, with cryptocurrency, once you have your coins securely stored in cold storage, no one can interfere with them in any manner.
Most cryptocurrencies are not compatible with established wallets like Exodus and Infinito. These two are soft wallets connected to the internet.
They are ideal for quick and small transactions. If you want to go long term, you have a variety of options including Trezor, and Ledger Nano S. While not a reason as to the growth of your investment, it is a security measure that ensures you have your investment intact until when you need to liquidate and take your profits.
15. Litecoin needs a Low Initial Capital to Invest
Bitcoin price is now up the roof. Even though you can buy a portion of the digital gold, you still need quite a fortune to invest in the same. Litecoin’s price is still low and provides you with an opportunity to stake on it without spending a lot of money.
The good thing is that like bitcoin, you can also buy a fraction of Litecoin. That means that if you just want to test the waters and see how the coin performs, then you can use invest a small portion of your money and have the coin as part of your portfolio.
If it increases in price, you gain on it, if it does not, you will not have spent a fortune, and your mixed portfolio can help cover any loss you incur. However, you can be assured that this coin will grow due to its features and widespread acceptance.
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