Litecoin is a leading proof-of-work cryptocurrency that was developed to solve some of the toughest challenges that Bitcoin has. Its transactions are significantly cheaper than Bitcoin and its speed is faster. As a result, for a long time, it was considered a proxy for Bitcoin.
In this article, we will explain what Litecoin is and where it is available to buy Litecoin with PayPal.
What is Litecoin?
Litecoin is a cryptocurrency that was designed to make it easy for people to send private payments on the internet. Like Bitcoin, it was also built to enable people to pay in online and offline companies.
Still, in the past decades, the volatility of the coin has made its use as a means of payment to be a bit limited. As a result, most people who own it do so hoping to make money as its price rises.
Litecoin has some more unique features than Bitcoin. For example, while Bitcoin has a supply limit of 21 million coins, LTC has a limit of 84 million. According to CoinGecko, about 70 million coins have already been mined.
Other features are that mining Litecoin is relatively cheaper than Bitcoin and its transactions are faster and much cheaper. Litecoin has a market cap of $8 billion and a total diluted value of over $9 billion.
Litecoin performance
To determine whether it is a good investment, we need to look at the Litecoin historic performance. Between September 2016, Litecoin has risen by more than 2,000%, meaning that it has outperformed the S&P 500, Nasdaq 100, and even gold. In the same period, however, Bitcoin has soared by over 7,000%.
Litecoin has also had its ups and downs over the years. For example, in 2017, the coin jumped to an all-time high of $418 and then crashed to a low of $23 in 2019 as the Federal Reserve hiked interest rates four times. It then started a major rally in 2020 as the Fed embraced a more hawkish tone. It managed to move from $22 to about $420 in 2021. Litecoin has dropped by 72% from its 2021 high.
Why LTC has lagged
There are several reasons why Litecoin has gone down the cryptocurrency ladder. First, it has lost its close correlation with Bitcoin. Historically, the two used to move in the same direction but this correlation ended in the third quarter of 2021. For example, as Bitcoin rose to an all-time high of near $70,000, Litecoin was still 70% below its all-time high.
Second, Litecoin has faced strong competition from newer proof-of-stake cryptocurrencies like Solana, Avalanche, and Polkadot. These coins have better features than Litecoin. For example, they use validators instead of miners. As a result, they have a lower carbon-footprint than Litecoin. Also, they have a smaller transaction cost and their speeds are better.
Third, LTC has underperformed because of the Federal Reserve. As part of its Covid response, the bank lowered interest rates and started an open-ended quantitative easing policy that pushed most coins higher. Now, with inflation rising, the bank has started hiking rates and has signaled that it will implement a quantitative tightening policy. Historically, cryptocurrencies tend to underperform in a period of high rates. Therefore, these factors make it difficult to recommend Litecoin as a worth investment.
How to buy Litecoin with PayPal
There are several ways of buying Bitcoin with PayPal. The easiest option is to use the PayPal app to buy the coin in a number of steps. For example, you just need to have cash in your account balance and select Litecoin. If you don’t have cash, PayPal will do a direct withdrawal from the linked bank account. This is a good option because it is free.
However, it is only available in a limited number of countries like in the US and UK. It is also available in countries like Germany if you are in Europe. We found this complete guide from cryptomonday.de where it shows you how to buy litecoin with paypal in Germany:
“PayPal ist eine der zuverlässigsten Zahlungsoptionen weltweit und Sie können sie bei vielen Krypto-Brokern finden.” cryptomonday.de zeigt dir, wie du Litecoin mit PayPal kaufst.
The second option is to buy Litecoin from an exchange that accepts PayPal. Unfortunately, most of the well-known companies like Kraken, Gemini, and OKX don’t accept PayPal as a payment option. Some that accept PayPal are Coinbase and eToro. You just need to create an account with them and then select PayPal as your preferred method and then complete the transaction.
Third, you can buy Litecoin with PayPal using one of the popular peer-to-peer options like Local Bitcoins and Paxful. These companies provide a platform where people can buy and sell cryptocurrencies among themselves.
Summary
Litecoin is one of the biggest cryptocurrencies in the world. However, its dominance has been slipping in the past few months. In its place, it has been replaced by other fast-growing coins like Cronos, Avalanche, and even Dogecoin. Therefore, the coin will likely continue struggling in the coming months. In this article, we have also looked at some of the best ways to buy the coin using PayPal and where it is available.
