One of the oldest cryptocurrencies on the market, Litecoin is also one of the most popular altcoins. It is currently the 14th largest coin in terms of market capitalization, with a total value of over .3 12.3 billion.
One Litecoin, or 1 LTC, is priced at just under $ 200 as of June 1, 2021, following its recent decline to its all-time high of $ 412.96 on May 10.
As with all cryptocurrencies, Litecoin’s value has experienced wild swings during its 10-year lifespan. Spikes in its price have been quickly followed by sell-offs. What does this mean for Litecoin investors? Is Litecoin a good investment in 2021? To answer that, you first need to know what you’d be investing in. Here are a few important points to understand:
- What is Litecoin?
- Is Litecoin a good investment right now?
- How do you invest in Litecoin?
What Is Litecoin?
“Litecoin is a digital currency that uses peer-to-peer technology to make fast payments anywhere in the world,” says Ben Weiss, CEO and co-founder of CoinFlip, the largest crypto ATM provider. “Due to the complementary nature of Litecoin to Bitcoin and the fact that it has established a market for itself, it is often considered the first successful alternative cryptocurrency, or altcoin.”
Created in October 2011 by computer scientist Charlie Lee, Litecoin is one of the earliest and longest-standing altcoins. “It was designed to be a lighter version of Bitcoin with transactions four times faster at a very low fee of 5 cents,” Weiss says.
Litecoin can be mined every 2.5 minutes compared to the 10 minutes it takes to mine a block of Bitcoin, making it possible to handle more transactions in the altcoin, says Tyrone Ross Jr., CEO at Onramp Invest, a technology company that provides access to cryptoassets for registered investment advisors.
The speed of transactions is important for both customers and traders if cryptocurrency is to become a widely accepted form of currency, says Daniel Rodriguez, director of operations for Hill Wealth Strategies, a wealth management firm in Richmond, Virginia.
Like Bitcoin, Litecoin uses an open source payment network that is not controlled by any one authority. Unlike Bitcoin, however, Litecoin has a supply limit of 84 million LTC compared to Bitcoin’s 21 million. “Litecoin is often referred to as Bitcoin gold rather than silver because of the supply gap,” says Weiss.