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Litecoin, one of the first cryptocurrencies ever released, is also one of the most well-liked alternative cryptocurrencies. With a total market valuation of about $12.3 billion, it is now the 14th largest coin.
Following a recent decline from its all-time high of $412.96 on May 10, one Litecoin, or 1 LTC, is now only worth little less than $200 as of June 1, 2021.
Like all cryptocurrencies, the value of Litecoin has fluctuated wildly throughout the course of its ten-year history. Sell-offs have occurred shortly after price spikes. What does this signify for holders of Litecoin? In 2021, is Litecoin a wise investment? You must first know what you would be investing in in order to respond to that. Observe the following crucial details:
Litecoin: What is it?
Is Litecoin currently a wise investment?
How does one buy Litecoin?
Litecoin: What Is It?
According to Ben Weiss, CEO and co-founder of CoinFlip, the leading provider of cryptocurrency ATMs, “Litecoin is a digital currency that leverages peer-to-peer technology to send payments anywhere in the globe rapidly.” “Litecoin is frequently referred to be the first prosperous alternative cryptocurrency, or altcoin, due to its complementary nature to Bitcoin and the fact that it has created a market for itself.
One of the first and longest-running alternative currencies is Litecoin, which was developed in October 2011 by computer scientist Charlie Lee. It was created to be a “lighter form of Bitcoin” with transactions that are four times faster and cost only 5 cents, according to Weiss.
According to Tyrone Ross Jr., CEO at Onramp Invest, a technology firm that offers access to cryptoassets for registered investment advisors, Litecoin can be mined every 2.5 minutes as opposed to the 10 minutes it takes to mine a block of Bitcoin, making it possible to handle more transactions in the alternative currency.
If bitcoin is to become a commonly used form of payment, Daniel Rodriguez, director of operations at Hill Wealth Strategies, a wealth management company in Richmond, Virginia, thinks that transaction speed is crucial for both clients and merchants.
Similar to Bitcoin, Litecoin operates on a decentralised, open-source payment network. But in contrast to Bitcoin, Litecoin has a much higher supply cap of 84 million LTC as opposed to Bitcoin’s 21 million. According to Weiss, “Litecoin is frequently referred to as the silver to Bitcoin’s gold because of the variations in supply restriction.”
Weiss claims that Litecoin is very stable compared to other altcoins that were developed around the same time since it consistently ranks among the top 15 cryptocurrencies by market cap.
He notes that Litecoin’s value has increased more than Bitcoin’s on a percentage basis since last May. “Major proponents of Litecoin are hopeful that a growth in usage and adoption on a broader scale would surely improve its value, which we have began to observe recently,” he says.
“Litecoin is a terrific investment opportunity if you are interested in investing in a technology that enables quick and affordable borderless transactions,” adds Weiss. “Litecoin is also a great option for people wishing to get their feet wet with alternative cryptocurrencies because of its affordability and stability.” For instance, a single Bitcoin costs more than $36,000, while the price of Litecoin is now less than $200.
Others, though, are less enthusiastic about the altcoin. While Litecoin might be a solid investment, according to Ross, it is not a good speculative trade.
The Litecoin engineers and developers, he claims, “aren’t that strong.” There are also few instances of investors employing it effectively. Another problem, according to Ross, is that the inventor of Litecoin sold all but a small number of his coins to preserve as collectibles.
Litecoin does not have a reliable investing foundation, but for someone who is simply interested in price activity and doesn’t care about these factors, it might be a solid trade. “Litecoin is by far a poor investment for people who are very concerned about being a good investment,” said one investor.
There are numerous methods for purchasing Litecoin.
Rodriguez explains that you can purchase them straight from PayPal or exchanges like Coinbase or Coinmama. You may also buy other cryptocurrencies like Ethereum and Bitcoin using those exchanges. Additionally, there are additional cryptocurrency exchanges like Binance and Gemini.
Weiss explains that “retail investors can buy Litecoin through cryptocurrency exchanges, with cash at a Bitcoin ATM, or by a bank transfer via our trade desk for individuals wishing to make larger purchases.”
If you do decide to invest in Litecoin, Ross advises that you conduct your research on the technology behind cryptoassets before chasing the price. Investors can determine whether to purchase Bitcoin or Litecoin by learning more about the history of the cryptocurrency and what it aims to produce.
Ross also advises readers to read “The Bitcoin Standard” or “The Bitcoin Whitepaper” before making a cryptocurrency investment.