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What Is Litecoin and Is It Worth Investing in LTC in 2021?

Last Updated December 8th 2020

Litecoin Investing in 2021 Explained

What Is Litecoin and Is It Worth Investing in Litecoin in 2021?

What is Litecoin (LTC)? Was LTC a reasonable investment in 2020 - a grim year for investors and economies worldwide? Is it worth investing in Litecoin in 2021? Is LTC a cryptocurrency that’s here to stay?

Today, we will introduce Litecoin. We will also try to answer the following questions - What is Litecoin? Is LTC a good investment?” and “Should I invest in Litecoin in 2021?”

So, if you want to know more about the cryptocurrency sector and some major players worth investing in, then keep on reading.

What Is Litecoin?

Litecoin is one of the top cryptocurrencies by market cap, currently ranking 5th as per CoinMarketCap.

Litecoin was created as a fork of Bitcoin in order to improve its scalability and speed issues. In fact, Litecoin is one of the most popular forks of Bitcoin that, based on tech analysis and past data, is here to stay long after 2021.

To be more precise, Litecoin was created in 2011 by former Google employee Charlie Lee, which is also a factor that gives Litecoin a sense of credibility. Lee recognised the potential for cryptocurrency within Bitcoin - a pioneering asset back then - but wanted to make money transfers and everyday payments more efficient by offering bigger blocks and lower transaction fees.

Just like other cryptocurrencies, Litecoin is a decentralised platform, which means that the need for intermediaries and central banks is eliminated. As a matter of fact, with more than 5,000 cryptocurrencies in existence, many investors and blockchain enthusiasts believe that blockchain technology is the future of banking - with Litecoin being a major player to consider!

What Is LTC?

LTC is the ticker symbol of Litecoin. Note that Litecoins are not purchased by governments but mined and released under MIT/X11 lісеnѕеѕ.

The good news is that this popular coin can be found on nearly every exchange and be used for investing, trading, purchasing goods, and everyday transactions.

Furthermore, innovative technologies, such as the Lightning Network and Atomic Swaps, enhance instant global financial settlements and cross-blockchain trading. 

For those new to the realm of cryptocurrencies and blockchain technologies, we should note that Atomic Swaps are defined as smart contracts that allow the exchange of one cryptocurrency for another. The Lightning Network, on the other hand, is defined as a second layer technology that uses micropayment channels to make transactions more efficient.

How Does Litecoin Work?

Litecoin is a peer-to-peer cryptocurrency that works similarly to Bitcoin. That said, Litecoin allows people to send transfers and execute everyday payments beyond borders fast and at low transaction fees.

Compared to Bitcoin (often seen as a store of value), Litecoin is a preferred choice for small purchases, with its Atomic Swap technology being a major factor that facilitates further cross-border transfers.

Talking about Litecoin and its fast transactions and low costs, we should note that Litecoin can process 56 transactions per second. In contrast, Bitcoin can process only 7 transactions per second. 

Litecoin also offers fees that are minuscule when compared to other payment systems, such as PayPal.

As stated above, Litecoin does not rely on central banks or authorities, so Litecoins are not issued by a government. Litecoins (LTC) are mined instead.

For those new to the cryptocurrency sector and blockchain technologies, we should mention that mining is defined as the process of processing transactions and creating blocks of data that are added to the blockchain digital ledger. Mining is the actual process that eliminates the need for third parties.

There is a limited supply of 84 coins, four times bigger than Bitcoin - with 66,032,586 Litecoins in circulation (as of December 7, 2020).

The good news is that compared to Bitcoin, Litecoin uses a more accessible and power-efficient mining algorithm called Scrypt. Note that Scrypt is an intensive memory algorithm that demands calculations to be carried out sequentially. Being more democratic and accessible  - preventing Application-Specific Integrated Circuits to monopolise mining - LTC mining may attract more miners and investors.

Another major difference between Litecoin and Bitcoin is the fact that Litecoin generates blocks every 2.5 minutes as opposed to 10 minutes for Bitcoin (with 12.5 Litecoins being generated per block).

What does all that mean in real-world settings, though? Imagine that Bob in the UK wants to send some money to Sarah in Australia. If Bob goes to a bank, his transfer will take a lot of time, money, and paperwork. If he decides to use Litecoin instead, he can avoid all these issues; it will take only 2.5 minutes for Sarah to receive her funds. This is the time needed for miners to verify the transaction as legitimate.

Would you consider investing in Litecoin?

Is it Worth Investing in Litecoin in 2021?

Given the fact that Litecoin is the fifth-largest cryptocurrency by market cap, it’s believed that investing in Litecoin in 2021 is worth it.

Many investors claim that Litecoin in 2021 is worth considering, insisting that its price could grow further in the long-term.

Data show that there also appears to be some significant upside potential for LTC: as long as the token continues to show higher lows in the hourly, its bull run will also continue to grow.

litecoin pricechart

Though Litecoin is currently trading at $84.57 with a 24-hour trading volume of $3,413,410,775 - which can’t really compare with Bitcoin - Litecoin has some significant growth potential.

In fact, Litecoin saw an increase of over 70% since Black Thursday 2020 and managed to recover from the ongoing coronavirus pandemic.

Moreover, as Litecoin has a max supply of 84 million, its scarcity makes LTC a safe harbour from depreciation and inflation and might help it become a store of value for long-term investors, especially in turbulent economic times.

That said, when deciding to invest in cryptocurrencies, always keep in mind that crypto investing can be risky. Never invest more than you can afford to lose. This doesn’t mean that investing in LTC in 2021 is a bad idea: it just shows that the risk to reward ratio of LTC should be considered.  

How Much Will Litecoin Be Worth?

Being one of the most traded coins in terms of market cap, you may ask “How much will Litecoin be worth?”

Despite the consolidation process that LTC has been facing lately - with prices nowhere near as impressive as during the crypto bubble hype a few years ago - a bullish trend is expected. Experts predict that Litecoin may reach new highs in the years to come.

Litecoin, as stated above, exhibits higher lows and positive momentum and sentiment; as indicated by the MACD (Moving Average Convergence/Divergence) indicator, a bullish outbreak may happen soon.

If this bullish outbreak occurs, LTC could increase by a massive margin.

According to Capital, the current price of LTC is an attractive entry point for those who want to hodl LTC during 2021 - with Litecoin price predictions for 2021 between $87 and $107, which are the 0.382 and 0.5 Fibonacci extension levels.

According to Cryptoground.com, LTC will be trading at $347.8 by the end of 2024. 

Dan Gambardello, Founder of Crypto Capital Venture, on the other hand, claims that there will be a “massive run to $1,000+”.

According to some more extreme predictions, such as those provided by PrimeXBT, LTC may reach $10,000 by June 2023.

Crypto Research Report Group, however, calls for Litecoin to reach $1,200 in 2025 and a possible peak of $2,250 in 2030.

What Will Affect LTC in 2021 and Beyond?

Though price predictions remain speculative, there are different factors that affect cryptocurrency and LTC investing, including technology, demand and supply, regulations, and market sentiment.

One of the most influential factors is Litecoin’s relationship to Bitcoin. In fact, LTC - one  of the first cryptos to integrate SegWit - is often a testbed for BTC. 

Here we should note that SegWith is a technology that aims to split transactions into two segments and add the unlocking signature as another structure in order to improve efficiency.

So, if investors bet on the tech-based future of Litecoin, then prices can increase further and even help LTC end up becoming one of the premier cryptos.

To provide an example, many financial institutions have already adopted LTC. The Litecoin Foundation has acquired 9.9% of Germany's WEG Bank to help LTC become a part of mainstream banking, bridging the gap between crypto and traditional finance. 

Gaming giant Atari also partnered with LTC in May 2020. And as we know, blockchain technology is the future of gaming!

On top of that, Litecoin can be now sent and received via WhatsApp using the Lite.IM bot, which can enhance mass adoption.

Note that although cryptocurrencies have been used in the Dark Web, now more and more legitimate and legal stores are adopting Litecoin as legal tender.

Should I Invest in LTC?

investing in litecoin

With different advantages of LTC over BTC, such as shorter block generation times, digital scarcity, and low transaction fees (reduced from 0.001 to 0.0001 LTC/kb), investing in Litecoin can be a good investment for you.

That said, cryptos are highly volatile and investing in LTC can be risky, especially during times of turmoil. On top of that, there is always a risk of massive piracy of wallets, so you may risk all your LTC without the possibility of returning them.

But here’s a tidbit: investing in LTC doesn’t have to be complicated. All you have to do is to do your own research and decide for yourself if possible rewards outweigh potential risks.

While nobody knows how the global economy will recover from the pandemic, investing in LTC can generate high returns in the years to come. Believe it or not, according to stats, on December 18, 2017, Litecoin reached $360.93, which was an incredible increase of over 8200% when compared to its price of $4.40 in 2016.

Who Should Consider Adding Litecoin to Their Portfolios in 2021?

Because of the potential of LTC as an investment in 2021, more and more beginners and experienced investors are willing to add Litecoin to their portfolios.

In fact, according to data, Litecoin has over 100,000 active addresses, with more than 40,000 transactions every 24 hours.

Investing in LTC is a great option for:

  • Cryptocurrency day traders: With a large 24-hour trading volume, clearly, LTC is a desired asset among cryptocurrency day traders who believe in LTC in the short-term.
  • Crypto investors:  Based on the long-term potential of Litecoin, investing in LTC is an attractive option for investors and even crypto whales.
  • Forex traders: Given the impact of the coronavirus pandemic on economies and fiat currencies, many forex traders may turn to LTC investing because cryptocurrencies are often seen as a safe haven in times of economic turmoil.
  • Blockchain enthusiasts: With its strong development team, LTC is favoured by many blockchain enthusiasts who believe that the use of blockchain technology may reshape the future of decentralised finance.
  • Financial institutions and merchants: As stated above, more and more big institutions and retailers are partnering with Litecoin to bridge the gap between cryptocurrencies and real-life settings.

Last but not least, investing in LTC is a clever way to diversify your portfolio, which is a great technique to reduce financial risks by investing in different assets.

Ready to invest in Litecoin?

Is It Worth Investing in 2021? | Final Words

With its impressive technology, obvious relation to Bitcoin, and growth potential, we can conclude that LTC is here to stay long after 2021.

While it’s up to you to decide if you should invest in LTC in 2021, let’s not forget that some experts believe it may reach new highs and even hit $10,000 in the near future.

Now when you know more about LTC, you can decide for yourself if investing in LTC is worth it. 

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Key Points

  • Litecoin is one of the top 10 cryptos by market cap, as reported by CoinMarketCap.
  • Litecoin is a decentralised peer-to-peer network that allows the execution of cross-border transactions and everyday purchases.
  • LTC is the ticker symbol of Litecoin.
  • One LTC is currently trading at $84.57.
  • Based on tech and fundamental analysis data, LTC might become a profitable investment far beyond 2021. 
  • Many experts believe that LTC will continue to grow and even hit $10,000 in the years to come.
  • Its relation to BTC, strong development, and digital scarcity make Litecoin an attractive investment for day traders, investors, everyday users, and blockchain enthusiasts alike.

If you enjoyed our article What Is Litecoin (LTC) & Is It Worth Investing in Litecoin in 2021, please share it with anyone interested in cryptocurrency investing and altcoin trading.

FAQs

Is it smart to invest in Litecoin?

Yes, experts claim it is smart to invest in Litecoin now. Based on different technical signals and fundamentals, Litecoin will enter a bull uptrend. Given the substantial ROI that Litecoin might generate in the years to come, exposing yourself to LTC investing is smart. That said, never underestimate the volatility of the crypto market.

Could Litecoin be a better investment than Bitcoin in 2021? 

Though Litecoin is often compared to Bitcoin, in technical terms Litecoin has faster transaction times and lower fees to buy and sell LTC, which can make it a better investment in 2021. That said, Bitcoin still ranks 1st in terms of adoption and market cap, with analysts claiming that BTC may hit $50k in 2021.

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