Your ultimate guide to investing in LTC

Bitcoin (BTC) and Ethereum (ETH) are regarded among the top coins in the market because their value has dramatically skyrocketed over the years. It also uses blockchain technology which is a tamper-proof distributed ledger that records all crypto transactions.

Litecoin takes pride in being one of the first altcoins ever created in 2011 by Charlie Lee, a computer scientist who became one of the most successful altcoin developers in the market. If you’re strongly considering Litecoin as your primary cryptocurrency, know that there are both risks involved and potentially high returns like the other types of coins in the industry. 

Is Litecoin a good investment? To know the answer to that, you first need to learn what it is and its worth in the market.

Litecoin defined

Litecoin is a peer-to-peer digital currency that allows users to instantly send and receive funds. Similar to other coins in the market, it is decentralised which means that the central authorities have no control over your transactions.

Moreover, Litecoin was the third most popular cryptocurrency in the market only behind Bitcoin and Ethereum. However, it fell off the rankings due to the increasing popularity of Ripple (XRP), a cryptocurrency that allows users to do a multitude of transactions like payments, trading, and even acts as a remittance system.

LTC falls under the category of altcoins (alternative coins) which simply means it’s a cryptocurrency that is not Bitcoin.

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Compared to Bitcoin, Litecoin guarantees fast and inexpensive transactions. This is one of the reasons why LTC users are still holding onto their coins even though it fell off the chart. 

During its heyday, there were some debates about it being second behind BTC but that is highly speculative. Regardless, Litecoin has quite a history and it’s a great coin to have in your portfolio if you haven’t already due to its unique features and quirks. 

What’s unique about LTC?

There are notable key differences between Litecoin and other cryptocurrencies. Unlike BTC and ETH, Litecoin uses a software algorithm (Scrypt) to mine its coins. This prevents people from making powerful computers (rigs) that specifically mine currencies. 

Litecoin is also one of the fastest currencies in terms of transaction speeds which clocks about 2.5 minutes, as opposed to Bitcoin’s 10 minutes. 

In December 2021, Litecoin was traded for $160 while Bitcoin was at $2,500. This provides users marginal returns which can quickly stack up should the value rise in the following years. 

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How to invest in Litecoin?

There are quite a handful of ways to smartly invest in Litecoin. To give you an idea, here are the top strategies you can use to invest in LTC:

Learn the basics

Before delving into the unique strategies and information you need to know, you first have to understand how investment works in the cryptocurrency market. Investing simply means you put up a capital required by an investment to expect double or even ten times a return. 

Use a reliable digital wallet

The most important step to take when investing in Litecoin is to use a reliable digital wallet. A digital wallet is software that allows you to store your cryptocurrencies safely. 

Another great aspect of digital wallets is they allow users to easily send and receive funds with just simple clicks. Some of the best wallets are Coinbase and Ledger Nano S. Another great choice is Uphold and Binance which both can store almost over a hundred different currencies in one package. 

Take advantage of exchange platforms

One strategy that most people tend to overlook is the use of investing apps. These applications act like exchanges that allow users to trade their Litecoin to earn a profit. Wallets also have this feature which makes them more versatile to use. 

The top exchanges out there that are purely trading platforms are Robinhood and Webull, both of which are excellent starter kits for new investors. There are two types of ‘orders’ that are common when using exchange platforms. These are the limit and market orders. 

Limit and market orders when using exchange platforms

The crucial part about trading is knowing how traders send their cryptocurrency in relation to the price and the execution of the transaction. This is where limits and market orders come in.

When exchanging cryptocurrencies with other users, it is best to look for the coin’s value in the market. Sometimes, the price may be good enough for you to trade to yield a decent amount of profit. 

A market order simply means that buying and selling crypto coins are set at the current market value. This ensures that you are getting the value you intend of acquiring from trading at a guarantee. 

The risks associated with market orders are having a lower value than what you want because crypto is highly volatile. This is why transactions are done in a swift manner which Litecoin can take advantage of due to its fast speeds. Market order is for people who want a guaranteed exchange where the value can change depending on the status of the market. 

A limit order, on the other hand, is for investors who want either the maximum buying price or the minimum selling price in a transaction. When you place a limit order, you tend to buy or sell a particular digital asset at a particular price. 

Is it worth the investment?

Litecoin is worth the investment, especially since it is still considered one of the top coins in the market. While it may not be in its prime like it used to be, there is always a potential for Litecoin to top the boards once again.

Learning how to invest in Litecoin and what is Litecoin worth is a step that leads you to placing your investments in the right places. When you earn high returns from LTC someday, know that your understanding of the coin and how to invest in it were the sole reasons for your investment doubling or even tripling in price. 

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Words: Vonn Consul