If you are a cryptocurrency investor seeking to diversify your portfolio by investing in a crypto network with a high upside, Litecoin may nicely fit the bill. Like Bitcoin, Litecoin has existed for a long time and continues to follow in the footsteps of its predecessor, Bitcoin. Here are some reasons why you should invest in this altcoin.
High Market Capitalization
Typically, market capitalization is about the value or total number of digital coins in circulation for a certain period. Litecoin is currently among the top 15 cryptocurrencies in regard to market capitalization. It has a market cap of $4.70B, and the current LTC to USD exchange rate is $63.91 USD. Based on the figures, it is undoubtedly clear that Litecoin is highly liquid, making it a good investment option.
If you are a forex trader looking forward to buying and selling, this coin can give you an easy time converting it into liquid cash or any other valuable cryptocurrency, like Ethereum and Bitcoin.
Digital Scarcity Presence and Close Bitcoin Relationship
While crypto enthusiasts refer to Bitcoin as digital gold, Litecoin is termed as digital silver. Based on this aspect alone, you can tell how valuable this open-source, peer-to-peer digital currency is as it operates similarly to Bitcoin.
Typically, Litecoin features a limited supply of coins. This means at any given time, only a set of coins remains in circulation. This assures investors that there can never be more than the limit to Litecoin mining to flood the market. Like Bitcoin, this coin uses the same block reward halving and relies on proof of work consensus.
Greater Reward to Risk Ratio
Litecoin features gradual growth and stability, which makes it a viable investment option. The gradual growth gives it a greater reward-to-risk ratio. While other coins may shoot up rapidly within short periods, they fall as fast, rendering investors into massive losses. Litecoin’s gradual trend significantly lowers the risk of making huge losses.
Low Fees and Fast Transaction Times
While Litecoin shares multiple similarities with Bitcoin, it has the upper hand in a few areas. First, Litecoin is more scalable than Bitcoin, enabling it to do an extensive range of transactions at a reduced fee.
The Litecoin network currently boasts four times faster speed than the Bitcoin network. Users benefit from a fee of about 1/50th of Bitcoin on a transaction. Typically, you incur 1/1000 of an LTC to process your transaction, and the fee remains fixed regardless of the transaction size. Litecoin’s enticing features, alongside low transaction costs, make it a favorite altcoin for numerous crypto traders.
Listed in Multiple Exchanges
Today, more than 9,000 cryptocurrencies exist, but not all are worth your time and investment. You must be very discerning to differentiate serious projects from one-time frauds with absolutely nothing to offer.
An excellent technique to determine a digital currency’s value is to check if it is listed in multiple exchanges. If a coin is listed on several reputable exchanges like Kraken, Binance, and Coinbase, it shows that it has practical use for investors, and its future is promising. Litecoin is listed on all reputable exchanges, making it easy to buy or sell.
Expert Expectations and Predictions
Expert prediction can help you tell whether you will get good returns from a cryptocurrency. Cryptocurrency experts keep track of emerging trends in digital currencies, such as trading volume, market capitalization, and liquidity, to offer valuable insights and predictions that can guide your investment.
Crypto experts at Coinpedia predict that Litecoin will continue to grow and surpass the $500 mark by 2025. Other experts at Digitalcoinprice expect this altcoin to hit nearly $500 by 2028 and get to about $1,000 by 2030. All these optimistic expert predictions show that Litecoin is headed in the right direction, and investors should prepare for good times ahead.
Litecoin is no doubt a viable alternative for investment and with great growth potential. You can take advantage of its low prices, initial capital, and other benefits to invest now, as you will reap significantly in the future. Like any other cryptocurrency, this coin might have a few risks that are manageable with proper risk management strategies.
