The concept of cryptocurrencies was a new one that was introduced not too long ago and many said that it would never be accepted or make its mark in the world. Since that time, the people that were saying this were proven wrong and nobody could expect the unprecedented success of Bitcoin. As a result, other alternative cryptocurrencies hit the market including Litecoin. If you have never heard of this currency before, it’s time to find out more since a Litecoin investment is a good idea for you right now.
What Is Litecoin?
Litecoin is to digital silver what Bitcoin is to digital gold. It is very similar to Bitcoin and is one of the oldest remaining cryptocurrencies available on the market today. It is still a very promising investment opportunity and the thing that sets it apart from other competing currencies is its incredible staying power. It has the potential for long-term growth and should be a part of any financial portfolio.
The History of Litecoin
In order to understand why this investment is a lucrative one, it’s important to take a look at the history of this cryptocurrency. It is being traded under the LTC ticker symbol and it has been a top performing token ever since it first hit the market back in 2011.
A former engineer who used to work at Coinbase and Google, by the name of Charlie Lee, created Litecoin and he still currently maintains it along with the Litecoin Foundation. The development of this asset is overseen by the foundation and Mr. Lee and recently it proudly became the UFC’s official cryptocurrency.
Litecoin is similar to Bitcoin in that it has a fixed supply and features a reward-halving LTC block. As well, a consensus of work powers the network. The LTC supply, however, has 4x the amount of currency available when compared to Bitcoin and it takes less time for block generation. Litecoin is used more for sending crypto between exchanges while Bitcoin is now preferred for its amazing storing value.
Litecoin Investments in 2019
In 2019, Litecoin went from its bottom price up to its peak price by rising 500%. The lowest price it reached was $20 while the highest was $140. These prices went up and down during the year and due to this behavior, which can be considered to be a high rate of volatility, it’s more risky to trade than other traditional assets. This also means that the rewards can be great if you play the market right.
Litecoin Investments in 2023
Litecoin has risen by more than 70% since the 2023 low that was recorded on Black Thursday. This means that it is up overall by 13% this year. In comparison, Ethereum has risen more than 200% while Bitcoin has gone up by more than 45%. When looking at the numbers, it may seem that Litecoin may not be the best choice but when you put everything into context it also means that this cryptocurrency may have a better ratio in terms of risk to reward than the others. Litecoin has a lot more potential to rise in value in order to catch up with the other currencies and may offer a better financial reward – especially when you consider it’s possible upside recovery to its all-time high.
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How Much Should You Invest in Litecoin?
Currently, Litecoin is hovering around the $50 mark per LTC token and can be divided into eight decimal places. This means that you can invest in a smaller amount to start out if you want. As with any investment, the more you invest the greater your potential returns. Just keep in mind that Litecoin is volatile so don’t invest more than you can you can afford to possibly lose. On the flipside, the more you invest the higher the possible profits and there is the potential to see huge profits by investing in Litecoin.
The potential ROI of Litecoin and indeed all of the other cryptocurrencies should make you stand up and take notice. It’s a good idea to invest in some of these currencies to add greater diversity to your portfolio and to see potential gains. People with traditional portfolios should especially consider the cryptocurrency market because it is not linked to financial institutions or banks.
Litecoin has a lot of strength and has proven itself to be viable in the past. It is currently coming out of a bear market while at the same time creating a strong base. At the moment, this cryptocurrency is poised for an upward trend and can be considered to be an excellent investment right now.
Pros and Cons of Investing in Litecoin
People that got in at the early stage saw incredible profits and there are many signs that are pointing to a possible repeat of this occurrence. There is a possibility that another 10,000 rally will happen and anyone that has a lot of money invested will be in for a shocking profit.
As with anything, there are definitely pros and cons to putting your money into Litecoin right now and they include the following:
- Trends provide potentially explosive returns
- Fees are lower when compared to other cryptocurrencies
- Faster transaction confirmations than Bitcoin
- Solid reputation as one of the crypto market’s top 10
- The halving has less impact when compared to Bitcoin
- Sentiment has recently turned a bit bearish
If you don’t already have Litecoin in your portfolio, it’s time to look into adding it now. You don’t have to invest a lot, although you can if you want to. This is the perfect cryptocurrency investment for people that want to take a risk in order to see potentially huge gains. It is a great stepping stone for anyone that hasn’t yet experienced the benefits of investing in something non-traditional that is trending worldwide.