Choosing a cryptocurrency to invest in is a stressful event. We know this because it is one of the most volatile markets to trade in today. However, one of the more successful coins over the past year has been Litecoin.
It has doubled in value since this time last year. Further historical data will show that Litecoin has increased over 5,000% in the past five years alone – incredible. Litecoin has proven to be a less stressful cryptocurrency to invest in versus its competitors.
Litecoin is essentially an updated version of Bitcoin, created in 2011, and is sometimes called Bitcoin-Lite. In this complete crypto guide to Litecoin, we will tell you exactly what you need to know to invest in this still-growing cryptocurrency. We want to provide you with enough background information to make a sound decision on whether Litecoin is a good or bad investment.
Let’s get started!
Crypto Guide to Litecoin: What Is Litecoin?
Litecoin (LTC) was created by a fellow named Charlie Lee back in 2011. Mr. Lee was looking to create a “lighter” version of the Bitcoin Blockchain. A version with cheaper energy costs and faster processing speeds for transactions.
Mr. Lee created and improved existing code from the Bitcoin blockchain, also known as “forking” to accomplish these goals. The result was Litecoin.
Litecoin as a Short Term Investment
When investing money in cryptocurrency, decide whether you will be holding your coins for the short-term or the long term. A short-term investment is often referred to as any trade that is bought and sold within one month to one year. Some traders may only hold short-term investments for days, hours, or sometimes minutes.
Let’s look at the advantages and disadvantages of short-term investing in Litecoin.
- High Trading Volume: A higher trading volume simply means that you have more chances to buy and sell – awesome.
- Multi-Platform Listing: Litecoin is competitively bought and sold across many different crypto marketplaces.
- High Volatility: If you are not prepared to withstand large price swings, you may lose your initial investment.
Next, let’s take a look at Litecoin as a long-term investment. We hope that one of these strategies will help you make your final decision to buy Litecoin.
Litecoin as a Long-Term Investment
When investors in cryptocurrency hold for the long-term, they expect slow and steady gains over a long time. They are not expecting a great amount of volatility in their chosen investment, and they often see very little risk in holding the coin. A long-term investment is usually held for longer than one year, allowing you to handle large price movements as the investment increases in value.
Let’s look at the long-term advantages and disadvantages of Litecoin.
- Smaller Starting Investments: Invest in small amounts of Litecoin at any time to avoid suffering losses from huge price swings.
- Established Trading History: Litecoin has a seven-year history of stable development and trading.
- Scaling in the Blockchain: Litecoin can produce 56 transactions per second but still needs constant development not to slow down as more people access it.
Are you feeling more confident in the future of Litecoin? How about finally deciding on whether to invest in Litecoin or not?
Should I Buy Litecoin?
We hope you took the time to read this crypto guide from start to finish and are confident in your decision to either invest or not invest in Litecoin.
Most importantly, don’t stop performing research. As we explained from the start, the cryptocurrency market is volatile, and the risks, along with the rewards, are very high. Never risk money that you are not already willing to lose.
Don’t forget to store your cryptocurrency in an encrypted and password-protected digital wallet and let us know more about your thoughts on Litecoin as an investment vehicle.