Litecoin Investing | Is it a good investment ? Legit or Scam?

What is Litecoin Investing?

LTC is the ticker symbol for Litecoin, a cryptocurrency token. It has been a top altcoin since it debuted in 2011. Former Google and Coinbase engineers Charlie “Satoshi Lite” Lee created Litecoin, which is now maintained by Lee and the Litecoin Foundation. Its goal is to promote the development and adoption of Litecoin. The foundation, for example, recently partnered with the Ultimate Fighting Championship to become the official cryptocurrency of the UFC. Altcoins are often a leading indicator for the rest of the cryptocurrency market. Litecoin lights the way for the alt season, according to the community.

Like Bitcoin, Litecoin’s code is nearly identical and includes both a fixed supply and a halving of the block reward. Like Bitcoin, the Litecoin network is based on proof of work. LTC’s supply is four times that of Bitcoin, hard-capped at 84 million LTC. Furthermore, Litecoin’s block generation time was lowered from 10 minutes to 2.5 minutes, making it a faster solution for sending to and from. Litecoin has become a preferred method for sending crypto to and from exchanges, while Bitcoin is now used more as a store of value.

Litecoin gained some notoriety after its founder Charlie Lee sold his holdings at peak prices and potentially triggered a collapse. Despite this, Lee correctly predicted a collapse to $20 and warned users of it. At the bottom of its bear market, Litecoin did just that. Now that the law has been put in place, Litecoin is once again a good investment.

Litecoin: Is it a good investment? In 2020, how it performed

As Litecoin failed to perform like Bitcoin after its halving and did not see an immediate increase in demand because of the reduced supply, its confidence fell even further in 2020, as it failed to reach a new all-time high. There was nothing particularly negative that happened to Litecoin during the year, but any bullish movement in the crypto market left it behind. The price of Litecoin on the LTC/BTC trading pair has fallen even further, but it is finally showing signs of recovery.

Is Litecoin worth investing in 2021? Does It Make Sense?

Litecoin has failed to reach a new all-time high in 2021 as Bitcoin and Ethereum have. However, this does not mean investing in Litecoin is a bad idea. Because it has a long way to go to catch up with the rest of the market, Litecoin may have a higher reward to risk ratio than other crypto assets. In addition, it has more financial potential, whereas other coins have already exhausted a lot of bullish momentum.

Fundamental Analysis of Litecoin

Litecoin continues to attract developers. Among the first to use segregated witness, it is also often used as a testbed for Bitcoin development. The close relationship between Litecoin and Bitcoin, as well as its digital scarcity, make it particularly valuable. Litecoin’s on-chain activity shows a healthy network with more than 100,000 active addresses and about 40,000 transactions per day.

Technical Analysis of Litecoin

Technical analysis of Litecoin is even more bullish than fundamental analysis of the crypto network and underlying asset. A critical flip of reversal in LTCBTC price charts on high timeframes is in progress.The price of Litecoin could explode by a massive margin if this bullish breakout confirms, as it did during the previous market cycle. The previous cycle, after the crypto asset broke out, FOMO and a sudden shift in sentiment drove prices upward by more than 10,000%.

Sentiment Analysis of Litecoin

Litecoin’s sentiment is nowhere near as strong as it was at the peak of the crypto bubble and when Lee sold the top – but things are looking up for the cryptocurrency. Even though sentiment is slightly bearish, Litecoin’s social media mentions are growing, which could indicate that things are close to turning around for Litecoin in a big way.

Litecoin Price Predictions and Expert Expectations

Since Litecoin is a top crypto asset with extreme volatility, experts have made wild Litecoin price predictions. Youtuber and Crypto Capital Venture founder Dan Gambardello expects Litecoin to break out of its “consolidation” after breaking out of its price range. Crypto Research Report Group, a top cryptocurrency research company, predicts that bitcoin will reach $1,200 in 2025 and $2,250 in 2030.

Investing in Litecoin

Like other crypto assets, Litecoin can be acquired by mining or by buying LTC in a few simple clicks on a cryptocurrency exchange or trading platform. You can invest in Litecoin in a variety of ways once you have it. Listed below are some of the most common Litecoin investment strategies.

Buy and Hold

Cryptocurrencies like Litecoin and other altcoins can be purchased on spot exchanges and then moved to a web wallet or hardware wallet for safe storage. It requires the least amount of skill or effort but leaves potential profits on the table. In 2019, Litecoin, for example, rose from under $20 to $160. In 2020, it fell back below $40. Those who bought and held would have missed out on significant profit opportunities. It is now back at around $225 per coin.

Investing

Instead of buying and holding assets, investors can become traders and try to profit from price fluctuations. These are the two main methods of trading. A trading spot involves buying an asset when it is low and selling it when it is high, hoping to profit from each swing as much as possible. However, when the markets crash, the only option is to move to cash as the asset price drops. Spot platforms cannot make money when markets are falling.

A trader who bought Litecoin under $20 and sold it for $140 would have made $120, and when Litecoin dropped back down to the $20 range, he or she would still have almost $100 leftover.

Derivatives trading: Derivatives trading is an alternative to spot trading that allows traders to gain profits no matter which way trends go. Leveraged CFDs make longing or shorting Litecoin even more lucrative by amplifying returns. In addition to increasing risk, you should also use risk management strategies. A derivatives platform like PrimeXBT would have allowed traders to profit both when Litecoin climbed from $20 to $140 and when it fell from $140 to $20. Using 100x leverage, the two $120 price swings and volatility could have resulted in profits of $24,000. Litecoin is back at over $200 today and continues to climb.