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Is Litecoin a good investment?

Is Litecoin a good investment

October 16, 2020 | 

JOHN K MWANIKI |  0 Comments| 

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Created in 2011 by George Lee, Litecoin is one of the top altcoins. The coin is ranked 10th with a market capitalization of $3.3 billion. Its maximum supply is 84million coins. 

The coin has had a mixed year so far. It started the year at around $50, then declined by the end of the first quarter. It then took a rally to hit the highs of $70 in mid-August. It has yet been on a downward spiral returning to the current prices of $50. It is currently on a sideways market run. It can either go on a bullish or bearish run.

This article looks into whether Is Litecoin a good investment.

Is Litecoin a Good Investment? 

Like any other cryptocurrency, Litecoin is volatile. Its prices are prone to changes based on market movements. Every trader must understand the risk that comes with investing in the coin. Other than that, the currency is an ideal investment. It only calls for proper risk management. 

The best way to invest in Litecoin is by observing the market. Use the various market analysis tools to understand the possible market run. Consider using technical analysis and indicators. 

With the tools, you get to observe more than the market movements. The tools help you identify the possibility of a rise or fall. For example, you get to establish the possible support and resistance levels. You are better off investing when the digital currency has gone past the resistance levels. Otherwise, you also want to avoid currencies below the support levels. 

Investing in Litecoin is a good idea. Even though it experiences volatility, the coin has been stable for some time. It has been trading at the ranges of $40 – $50. At this rate, the currency is not headed for some significant changes in the future. You can also set your ideal end target when you start investing. 

The cryptocurrency upturn in recent times has been good for the coin. The number of users holding the currency is going up. Studies show an increase in accounts holding more than 1000LTC and above. The recent interest is an indication of user confidence in the coins. They are looking to gain from the possible future upturn. 

Is Litecoin a good investment?| How to Invest in Litecoin

Litecoin has developed over the years to be a reputable asset. It allows for various investment options. Some of the ways to invest in Litecoin include;

  • Buy and Hold 

Buy and hold is the most popular crypto investment model. It involves buying the asset from a spot crypto exchange. The trader then moves the assets to either a web or hardware wallet for storage. 

Buy and hold does not require any expertise. It only requires discipline and a little understanding of price movements. That is why it is advisable to use market research tools like technical analysis. 

The primary concern with the model is the possibility of missing out on earnings. The volatility of cryptos means the coin would rise and fall before reaching the target date. 

  • Trading 

Trading is the opposite of buying and holding. It involves gaining from the price fluctuations. Traders purchase the assets at low prices to sell higher. The target is to make as much profit as possible from the swings. 

Spot trading is the most popular type of Litecoin trading. The previous Litecoin price swings have led to most traders making profits. 

The concern with trading is that the traders can't gain when the market is on a downward spiral. They have to look for other options while holding or selling off the assets. 

  • Litecoin Investment Trust 

Like any other asset, Litecoin provides for Litecoin-trusts. It operates like any other trust, except, in this case, it holds Litecoin as the only trust. By buying the trusts, a trader gains a share in trust, not the Litecoins themselves. 

Buying trust allows one to gain from the coins without owning. The trader doesn't have to manage the challenges of buying and storing the coin. 

The only concern is that trusts are from intermediary platforms. It costs more to buy the trusts from the sources. You also forfeit the feeling of owning coins.

Benefits of Litecoin

Using Litecoin comes with several advantages giving more appeal as a good investment. The first advantage is its fast transactions. It takes 2.5 minutes to confirm transactions. This is four times the transaction speed of Bitcoin. 

The coin is ideal for payments. Most people transact in small amounts. Using the highly rated cryptocurrencies can be a little hectic. Litecoin's low value allows for a round figure in transacting. For example, it currently costs around 0.00876BTC to buy a $100 product. The same product costs around 2LTC. Using LTC remains more convenient in the end. 

The coin is also cheaper to invest in. It would be best if you had a lot of money when getting into Bitcoin. You might end up losing too much in case of value decline. With the lower rates, you can get started quickly on Litecoin. 

The importance of the coin has led to its popularity. Most of the merchants adopting cryptos have it in their fold. The more use cases mean more convenience for traders. It also means a sure investment. 

Is Litecoin a Good Investment Bottom Line 

Investing in cryptos is a risky venture. Digital currencies are highly volatile. They also pause risk on the possibility of scams and losses. For that, you need due diligence before investing in any asset. 

Investing in Litecoin is a smart business move. The coin comes with the needed assurance of performance. As a top ten virtual currency, it keeps attracting new users. It, in the process, becomes more stable. It also comes with the high liquidity for ease of trade. 

Litecoin is excellent both as a long and short-term investment. It has a possible price increase in the coming days. Predictions indicate the coin will hit $1500 by 2030. You need to be part of such gains by investing early enough. 

Lastly, like any intelligent business person, you have to secure against risks. You keep safe by spreading risks by investing in various assets. Consider other cryptos like Ethereum, Bitcoin, and Ripple. You might also consider traditional stocks. 

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