What is Litecoin? Should I Invest in Litecoin?

05/12/2022By: C, Fiona

If you are a novice in Litecoin investment world, you may want to know whether Litecoin is a good investment, or should I invest in Litecoin? Well, before you consider investing in Ethereum, let’s break all the content related to Litecoin on the Internet.

In this article, we will discuss Litecoin investment to help you decide whether you should invest in Litecoin or other cryptocurrencies. If you want to buy and invest in Litecoin quickly and easily. please check BTCC exchange!


Key Points

  • Litecoin is one of the most popular bifurcations of bitcoin. Please note that the main goal is to reduce the block confirmation time from 10 minutes to 2.5 minutes.
  • According to technical indicators and past data, Litecoin has real growth and adoption potential. It is not surprising that the litcoin is still one of the world’s top 20 cryptocurrencies and currently ranks 25th in market value.
  • According to coinmarketcap’s report, LTC’s trading price at the time of writing was $133 and its market value was $9.2 billion. Many people believe that the Litecoin will continue to be the silver of bitcoin gold, and claim that the Litecoin will appreciate in the next few years.
  • Litecoin is one of the most mature cryptocurrencies in the financial field, so if you feel inspired to start investing in LTC, you may be glad to know that our trading education provides different trading courses to help you understand the cryptocurrency market.

What is a Litecoin?

Litcoin is one of the cryptocurrencies with the largest trading volume, ranking 25th by market value. Litecoin is also one of the most popular bifurcations of bitcoin. In fact, it is one of bitcoin’s main competitors.

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

Like other cryptocurrencies, Litecoin acts as a digital point-to-point payment system to help users execute transactions and exchange cross-border goods. Unlike the central bank or traditional payment system (such as PayPal), Litecoin relies on the principle of decentralization, with nodes all over the world. It is not surprising that many people believe that due to the rise of decentralized cryptocurrencies, we will no longer need traditional banking.

Because the Litecoins were not supported by the government or the central bank, the Litecoins were not issued by the authorities, but mined by miners. Please note that the supply of Litecoins is limited, only 84 million, to reduce people’s fear of overproduction and inflation.

Similar to bitcoin, Litecoin uses the consensus algorithm of work proof. However, unlike bitcoin, the block generation time of Litecoin is reduced to 2.5 minutes, while that of bitcoin is almost 10 minutes.

This promotes transaction and processing time and provides reduced transaction costs. In fact, as the developer said, the Litecoin blockchain “can handle higher transaction volume than its corresponding bitcoin”. In addition, in 2017, Litecoin adopted SegWit, which helps cryptocurrency add more transactions to a block through hierarchical network design.

What is LTC?

LTC is the stock code of Litecoin. As mentioned above, Litecoin will generate 84 million Litecoins, while the upper limit of its corresponding bitcoin is 21 million. Please note that at the time of writing, 69360982.02 Litecoins were in circulation.

Start Investing in Litecoins

To start investing in Litecoins and / or other cryptocurrencies, you first need to register online on an exchange that allows you to buy and invest in Litecoins. Exchange brokers are an online platform that enables you to buy and sell Litecoins and any other cryptocurrencies they list.

Is Litcoin a Good Investment?

Yes, the market value of Litecoin is $9.2 billion, which is a good investment. As mentioned above, at the time of writing this article, the transaction price of an LTC is $133. For those who don’t want to invest in bitcoin and want to invest in other alternative currencies, Litecoin is also a good investment. Let’s not forget that there are many undervalued altcoins with different application and technical characteristics, which may surpass bitcoin one day.

For example, Litecoin, the lighter sibling of bitcoin, is four times faster than bitcoin in block generation. In fact, in addition to the transaction confirmation time, there are other differences between Litecoin and bitcoin. Litecoin uses different hash algorithms, which makes mining more attractive and consumes less resources.

In addition, Litecoin is more scalable than bitcoin or even Ethereum. BTC can process about 7 transactions (TPS) per second, while at present, Ethereum can process 15 TPS. In contrast, LTC can handle 56 TPS even during peak periods. For investors who value its practical use, Litecoin is also more attractive. Take retail purchases as an example. Users prefer to deal with the whole unit rather than a fraction of the unit. However, due to its value, BTC is often displayed in decimals, which is psychologically unacceptable.

Imagine if you had to buy a video game for $200! At the time of writing, this will be 1,11 LTC or 00036 BTC. You can see for yourself which one is easier to accept in daily life, right!?

 

Who Should Put LTC in Their Portfolio?

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

  • Cryptocurrency day traders who want to take advantage of potential Wright price fluctuations and tame their volatility.
  • Long term investors, who believe in the future of Litecoin and want to hold LTC. After all, LTC cannot be manipulated by the government, which makes it more sustainable than legal tender.
  • Blockchain enthusiasts who believe in the trading prospects of altcoin and supporters of Litecoin’s mining algorithm script.

Although some people claim that Litecoin does not provide anything new in technology, the fact is that the investment potential of Litecoin exceeds that of impressive. Last but not least, LTC investment is also a great asset for those who just want to diversify their portfolio to reduce risk and diversify returns.

Is There Any Risk in Investing in Litecoin?

Although investing in Litecoin is worth it, investing in Litecoin is also risky. Let’s not forget that, given the volatility of the market, investing in Wright currency and cryptocurrency will be very risky.

For example, in August 2020, the Litecoin reached $70, and in just a few days, it was reduced to $45. Please note that this $45 level can now be used as the bottom line of LTC self closing, and it is also a psychological barrier for investors.

In addition, like other cryptocurrencies, regulatory changes will reduce the demand for cryptocurrencies. Here, we should mention that some major economies such as China have implemented severe measures to reduce the use of cryptocurrency.

Therefore, investors should decide whether cryptocurrency investment is suitable for their financial objectives. It’s up to you — and only you — to decide whether you’re willing to take risks and invest in LTC.

If you decide to invest in Litecoin, explore the risk return of Litecoin before you jump in and out of any transaction. Always be cautious when it comes to risk management and profit; Always focus on continuous movement and self-discipline.

Believe it or not, trading psychology plays a key role in helping investors cope with stress and embrace risk.

How Much Can a Litecoin Be Worth?

Although it is speculative to predict the price of the Litecoin based on price data and technical analysis, many traders see the potential of the Litecoin, especially in the short term. In fact, there is still positive sentiment towards the Litecoin in the short term, which may increase its bull trend.

Let’s mention again that as of November 30, the transaction price of an LTC was $80.02. Interestingly, although cryptocurrency is inversely related to other assets, according to capital, Wright currency is related to the performance of the market index and other assets to some extent. So, for example, in the event of a sharp collapse of the S & P 500 index, the Litecoin may be sold off sharply.

Although past performance does not represent future performance, looking back, we should note that the Litecoin reached a high of $360.93 in December 2017. Compared with its price in 2018, this is an 8200% increase.

Analyzing the past data, we should also mention that 2019 is a good year for the Litecoin. The LTC price increased from $32 to more than $140 and stopped at $42.75 on December 31. Therefore, from the beginning to the end of 2019, investors holding LTC have made huge profits.

In contrast, 2020 will be a more dramatic year for investors and economies around the world. On March 12, 2020, LTC fell to $30.93, also known as Black Thursday. Since then, however, LTC has successfully recovered from the coronavirus pandemic.

In fact, although Litecoin has experienced some downward pressure caused by the bullish market after the pandemic and higher interest in cryptocurrencies, Litecoin has been relatively stable despite the continuous pandemic – investors hope that the bull market will continue. In fact, many experts believe that the surge of bitcoin will have a positive impact on Litecoin, and investors hope BTC can reach a new high this year. According to wallettor, it could reach $570 in the next few years. Some cryptocurrency platforms even predict that LTC may reach $1800 by 2025.

 

Should I Invest in Litecoins?

Although it’s up to you to decide whether Litecoin is a good investment, let’s not forget that Litecoin is one of the currencies with the highest market value. Not only that, Litecoin may also become a tool for online services and decentralized finance in the future. As more and more online stores begin to accept cryptocurrencies, more and more investors may begin to invest in Litecoins.

After all, the rise in the popularity of Litecoins is often a response to LTC demand. Why? Very simple, because the cryptocurrency market is dominated by the principles of demand and supply!
Interestingly, many wealthy investors are also turning to LTC investment. According to the data, there are more than 283 Litecoin addresses, and each address has an LTC of more than $1 million.

For example, NFL star Richard Sherman, one of the big investors, said he invested money in Litecoin. So, do you think Litecoin is a good investment?

How Much Should I Invest in Litecoins?

If you ask yourself, “how much should I invest in Litecoins now?”, Here’s an episode: never invest more than you can lose.

Although the main slogan of cryptocurrency is to buy low and sell high, don’t forget that LTC investment is risky, so never invest your life savings in LTC or any other assets. Experts suggest that the investment in a single transaction should not exceed 1% of your capital.

Always study the market to determine your entry and exit prices, and pay attention to cryptocurrency news to make the right investment decisions.
Interestingly, some analysts claim that Litecoin has the habit of leading bitcoin in market movement, so it is necessary to keep abreast of the latest situation in the cryptocurrency market.

In other words, investing in LTC is not necessarily complicated. Cryptocurrency investment is open to anyone. You can start investing in cryptocurrency for only $100. LTC can also trade on many cryptocurrency trading platforms, and its adoption rate is quite high compared with other digital assets. For example, with eToro, you can easily start buying and trading LTC, as well as more than 90 cryptocurrency pairs.

In addition , BTCC offers leveraging up to 150x on USDT perpetual contracts that support 18 major cryptocurrencies. BTCC have proven themselves trustworthy within the crypto industry over many years – we recommend you try them out.