Investing in crypto-assets can be tricky, especially since there are so many options to choose from and the market, as a whole, changes quickly. There are, however, leaders who have demonstrated their worth through consistency and security. Among the most prominent cryptocurrencies, Litecoin’s value increased by 5000 percent in 2017.
Today, Litecoin is one of the most well-known cryptocurrencies. It began in 2011 as an extension of Bitcoin before evolving into a unique ecosystem in the following years. Charlie Lee created Litecoin as a lightweight replacement for bitcoin that experienced frequent bottleneck issues. The cryptocurrency got the name “Lite” bitcoin during its early years.
Litecoin aims to provide its users with seamless peer-to-peer transactions. As a result, numerous exchanges and trading platforms endorse Litecoin. Although Litecoin fell short of people’s expectations in the years that followed, it acted as a game-changer in the crypto world. Litecoin remains a major player, with its developers actively maintaining it.
What is Litecoin?
Litecoin is an open-source project licensed under the popular Massachusetts Institute of Technology (MIT) license. For mining, Litecoin uses the Scrypt algorithm, and it also helped popularize Mimblewimble. This is the technology that aids Litecoin’s ability to provide privacy solutions.
Litecoin is identical but still manages to have some technical advantages over Bitcoin and other altcoins, especially the implementation of Segregated Witness and the Lightning Network protocol that increase block capacity and overall network optimization.
This effectively allows the network to process more transactions at any given time, mitigating overloads and blocks as seen with bitcoin. Litecoin is similar to Bitcoin in many ways, such as having a fixed number of tokens in circulation (Litecoin has an upper limit of 84 million coins that can ever be mined) and operating on a proof-of-work consensus.
Litecoin’s edge over Bitcoin
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Low Transaction Costs
The average transaction fee for Litecoin transactions is $0.04, whereas the same operation in Bitcoin costs $1.9. Litecoin is the most affordable among major cryptocurrencies, making it very popular among investors.
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Mining
Litecoin uses GPUs instead of expensive ASIC (Application Specific Integrated Circuits) devices. GPUs consume less power, allowing for cheaper mining costs and the availability of parts. Litecoin mining units use the Scrypt algorithm, discouraging people from building powerful custom rigs specifically to mine the coin.
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Transaction Time
A transaction on Bitcoin’s network takes about ten minutes to verify. Previously, this appeared extremely fast, but it was very slow and unsuitable in reality. It only takes 2.5 minutes to process a Litecoin transaction.
Is it Still Wise to Invest in Litecoin?
Advantages
- Availability: Litecoin is traded on several major exchanges. That is, you can buy LTC through your trusted broker at convenient rates.
- High Trading Volume: Litecoin was first traded in 2011 and has maintained a high volume over the years. This not only indicates its popularity among investors, but it also means investors can easily identify a trend. In addition, its high trading volume means you can easily find buyers whenever you want to sell.
Disadvantages
- Saturated Alternative Market: Litecoin entered the market very early and was one of the first altcoins to expand on Bitcoin’s network. Many altcoins operating on their blockchain offer comparable levels of security, even though Bitcoin still holds its own when it comes to speed and efficiency.
- Litecoin is Volatile: Volatility is a significant issue in the cryptocurrency market. The value of any cryptocurrency coin can fluctuate dramatically, increasing the losses, especially for short-term investors.
How to Invest in Litecoin
Unlike investing in stocks, crypto investors can only profit when the price rises. However, given the cryptocurrency market’s volatility, price is much more significant than in the stock market.
The easy steps include opening an account on a cryptocurrency exchange, funding the account in your local currency, and purchasing LTC. Once done, you can transfer your Litecoin to a crypto wallet or trade them on the exchange. You can also buy it from an individual willing to sell it.
Conclusion: Is Litecoin Still a Good Investment
Yes, but if you decide to invest in Litecoin, educate yourself on the fundamentals of cryptocurrency and the risks that come with it. Experts predict the price will rise to about $139 in January 2026, while some analyses also point to the digital currency rising to around $585 in 2030.
At Solutiontales we make it easy to understand the throes of cryptocurrencies, but our words should not be taken as a financial advice. Remember, a wise investor can make money in a bull or bear market when given the right data.