Litecoin is a well-known cryptocurrency and one of the oldest. It is presently the 14th most valuable coin, with a market capitalization of over $12.3 billion.
Following a recent decrease from its all-time high of $412.96 on May 10. One Litecoin, or 1 LTC, is currently valued at little under $200 as of June 1, 2021.
Litecoin’s value has changed significantly during the course of its ten-year existence, as it has with numerous cryptocurrencies. Stock price increases followed by sell-offs almost immediately. What does this imply for Litecoin holders? Is investing in Litecoin in 2021 a good idea? To answer that question, you must first decide on the type of investment you wish to make. Here are some important points to remember:
- What is Litecoin and how does it work?
- Is it a good time to buy in Litecoin right now?
- What is the best way to invest in Litecoin?
Global crypto ATM service CoinFlip describes Litecoin as “a digital currency that uses peer-to-peer technology to process payments swiftly.” In addition to Bitcoin, Litecoin has its own market and is largely considered as the first successful altcoin.
Cryptocurrency Litecoin was founded in October 2011 by computer scientist Charlie Lee. It supposes to be a lighter version of Bitcoin, Weiss explains.
According to Tyrone Ross Jr., CEO of Onramp Invest, a technology firm that gives registered investment advisers access to cryptoassets, a block of Litecoin can mine every 2.5 minutes. Unlike Bitcoin that is 10 minutes, allowing the altcoin to handle more transactions.
If bitcoin is to become a widely accepted method of payment, according to Daniel Rodriguez, director of operations at Hill Wealth Strategies in Richmond, Virginia, transaction speed is crucial for both customers and retailers.
Like Bitcoin, Litecoin is based on a decentralized open-source payment network. In comparison to Bitcoin’s 21 million supply cap, Litecoin has an 84 million supply cap. “Litecoin sometimes described to as the silver to Bitcoin’s gold,” Weiss argues, highlighting the supply restrictions difference.
Is it a Good Investment?
Weiss says that Litecoin is more stable than other altcoins created around the same time since it constantly ranks in the top 15 cryptocurrencies in terms of market capitalization.
“Major proponents of Litecoin believe that more usage and acceptance on a bigger scale would undoubtedly raise its value,” he continues, pointing out that Litecoin’s value has risen faster than Bitcoin’s in percentage terms since May.
“Litecoin is a tremendous financial opportunity,” Weiss argues. “Litecoin’s low cost and strong reliability make it a great choice for beginner cryptocurrency users.” The difference between the value of Litecoin and Bitcoin is presently less than $200.
Others, on the other hand, have reservations about the altcoin. While Litecoin may be a good speculative move, Ross does not feel it is a good investment.
“Look at the Litecoin devs and engineers,” he claims. There aren’t many examples of used successfully by investors. The fact that Litecoin’s creator has sold all of his coins save a few to retain as souvenirs is also a caution to consider, according to Ross.
In spite of the lack of a solid investment foundation, he claims, “Litecoin may be a fantastic trade for someone who is solely concerned in price movement.” It’s the worst investment for picky investors.
Investing in Litecoin
Litecoin may purchase in a variety of ways.
“You can buy them through PayPal or cryptocurrency exchanges like Coinbase or Coinmama,” Rodriguez adds. “You may also buy Ethereum and Bitcoin on these exchanges.” Others like Binance and Gemini can access.
Customers can acquire Litecoin on cryptocurrency exchanges, through Bitcoin ATMs, or via our trade desk for larger transactions.
“You can buy them from PayPal or cryptocurrency exchanges like Coinbase or Coinmama,” Rodriguez adds. “You can also buy Ethereum and Bitcoin on such exchanges.” Others like Binance and Gemini are also accessible.
Finally, Ross recommends that investors read “The Bitcoin Standard” or “The Bitcoin Whitepaper” before investing in any cryptocurrency.