How To Invest In Litecoin (LTC)

Litecoin is one of the most popular and oldest cryptos and has maintained its relevance in the crypto community over the years.

The cryptocurrency has enjoyed a long-dominant stay in the market with incredible gains. Because of this, many crypto investors wonder whether it's too late to invest in this digital currency.

Whether you're new to Litecoin, thinking of getting back in, or just want to know if you should invest in Litecoin (LTC) - this article is for you. In it, we'll answer the long unanswered question of whether Litecoin is a good investment, what it is all about, and how to buy it.

What Is Litecoin (LTC)?

Following Bitcoin's footsteps, several altcoins were released to build upon or improve what the world's first-ever cryptocurrency set out to do. 

One such altcoin was Litecoin, created and released in 2011 by Charlie Lee, a former Google employee.

Altcoins are cryptocurrency alternatives to Bitcoin. And Litecoin fits that description perfectly. Created as a fork of Bitcoin's source code, the cryptocurrency is almost identical to Bitcoin but with better utility.

The goal of Litecoin was to solve the transaction limitations of Bitcoin's network, and it does this as a lighter version of Bitcoin. 

Litecoin has a faster transaction and confirmation speed and can do so because it runs on Scrypt Algorithm. Scrypt confirms crypto transactions quickly because it utilizes high-speed memory and can generate coins that handle bulk transactions.

The project aimed to supplement Bitcoin's network rather than compete. Soon, the crypto's investors and enthusiasts quickly accepted this narrative and dubbed the altcoin "the silver to Bitcoin gold."

As more investors learned about it, Litecoin witnessed a price surge making it one of the highest valued coins and top five cryptos for a long time.

How Is Litecoin Different Than Bitcoin?

The most noticeable difference between Litecoin and Bitcoin is each cryptocurrency's algorithms. While Bitcoin uses the SHA-256 algorithm, Litecoin works with Scrypt, a faster and easier algorithm that uses less energy.

Litecoin also has some differences/advantages compared to Bitcoin. As mentioned earlier, the cryptocurrency was launched to prioritize transaction speed, which is the main reason for its popularity. 

Currently, it takes the Bitcoin network an average of nine to ten minutes to confirm the status of one transaction, while Litecoin's is roughly 2.5 minutes - four times faster than bitcoin.

This shorter transaction speed is because Litecoin's network possesses faster block generation. 

Although Litecoin comes with all these improvements to the crypto community, Bitcoin still tops the table.

What Are The Benefits Of Litecoin?

Cryptocurrencies were invented as better alternatives to fiat currencies bringing transparency and efficiency to traditional financial systems. They do this by applying blockchain technology to the system, which has led to crypto projects solving real-world problems.

Litecoin is one of such projects used as a means of payment. As mentioned earlier, the altcoin offers faster transactions and confirmations, quickly settling transactions.

The cryptocurrency is also accepted as a standard means of payment on many platforms.

Another benefit the crypto has is its multiple and secure storage options. Every crypto investor understands that a critical aspect of investing is ensuring your coins are safe from hackers.

The best way to keep your coins is by investing in a cold storage wallet.

And unlike most coins, Litecoin is compatible with multiple and reliable cold storage wallets.

Should You Invest In Litecoin?

The relevance and value of every cryptocurrency are highly dependent on the frequency of its use and the number of people holding it.

Following the failure of the August halving to push Litecoin's price higher, the cryptocurrency has struggled to maintain its previous stay in the top crypto-list worldwide.

At the time of writing, Litecoin possesses 0.47% market dominance and ranks #18 on Coinmarketcap. Investors speculate this steady decline is also caused by the absence of new capital flow, which has tamed transaction volumes worldwide. 

In 2021, Litecoin failed to reach a new all-time high, even as Bitcoin and Ethereum have. 

But, this doesn't mean that buying/investing in Litecoin is a bad idea. 

It shows Litecoin may have a greater reward to risk ratio when compared to other assets because it has a lot of catching up to do with the rest of the market.

That said, Litecoin may have more financial rewards long after other coins have exhausted their bullish momentum.

How To Buy LTC

Presently, LTC is listed on top exchanges like Coinbase and Gemini.

That said, our recommendation, however, is the SEC-approved eToro platform. 

eToro is almost unrivaled in the arsenal of analytical tools it provides. 

To buy LTC on the eToro exchange, follow these steps:

• Sign up: Go to eToro.com, create an account, fill in your KYC details, and confirm the process.
• Make a deposit: Use the best-suited option to transfer currency into the platform. That could include fiat, stable coins, ETH, or Bitcoin.
• Search for LTC: After that, navigate to the trade section. You will need to select the currency pair you want to exchange for the coin and click the Buy button. 

The purchased LTC coins will be sent to your wallet on the exchange. 

The Bottom Line

Just like other crypto assets, Litecoin isn't yet accepted universally. 

That is because the crypto market has only been around for a short period - 14 years - and is still expected to become a major game-changer in the financial sector.

With many years of adoption still ahead, we can safely say that it isn't too late for those who want to invest in the digital currency.

Also, apart from the crypto's functionality, many Litecoin investors consider the crypto to have potential long-term holding benefits. 

Like any currency investment, investors and analysts speculate that Litecoin will build relative wealth over time.