Is Litecoin a good investment in 2022

What is Litecoin

With more and more investors starting to pay attention to LTC, we may wonder if litecoin is a good investment now? Litecoin (LTC) is a peer-to-peer cryptocurrency that was set up by Charlie Lee (a former Google employee) in 2011. Interestingly, Litecoin shares many similarities with Bitcoin and it is actually based on Bitcoin’s original source code.

However, there are some major differences between Bitcoin and Litecoin. For example, Litecoin was designed to be used for cheaper transactions and to be more efficient for everyday use, unlike Bitcoin. In comparison, Bitcoin was designed to be used as a store of value for long-term purposes. To understand this better, it is important to note that, initially, when Bitcoin had dominated the crypto market, transactions were very expensive. As a result, there was a huge group of interested investors who were being left out because they could not afford Bitcoin transactions. As a matter of fact, this was the problem that Litecoin was developed to address.

It is also equally important to note that the coin limit market cap is much higher for Litecoin than Bitcoin. Furthermore, Litecoin’s mining process is far quicker. As a result, Litecoin transactions are faster and cheaper, although generally smaller in size.

Nonetheless, the two cryptocurrencies have some similarities. Like Bitcoin, Litecoin is a form of digital money. In fact, the two cryptocurrencies utilize blockchain technology. This means that both Litecoin and Bitcoin can be used to make investment and transfer funds directly between individuals or businesses. Furthermore, the two blockchains ensure that a public ledger of all transactions is recorded.

To sum up, in brief, Litecoin operates a decentralized payment system free from government control or censorship, with its native currency being Litecoin (LTC).

Litecoin’s price history

2014

Litecoin started trading on September 16th. Initially, the opening price was $5.09. It is important to note that this was not a really bad start compared to other cryptos. However, the price of Litecoin dropped significantly it closed the year 2014 trading at a price of $2.72. But it was not the best time to make investment on Litecoin at that moment.

2015

 Litecoin opened the year 2015 trading at $2.72. Needless to say, just like every other cryptocurrency, Litecoin is highly volatile. For example, the minimum price of Litecoin in 2015 was $1.11. Compare that with $3.48 which was the price of Litecoin at the end of the year. Evidently, Litecoin does not have very stable prices.

2016

Litecoin’s opening price in 2016 was $3.48. Interestingly, up to that time, the price of a Litecoin seemed to be always less than $5.  

In spite of the poor start, Litecoin made significant improvements during the year and eventually recorded a maximum price of $5.95 and eventually surpassed the elusive $5 hurdle. Nonetheless, the lowest price recorded that whole year was $2.98.

 Furthermore, Litecoin finally closed the year 2016 trading at $4.33.

Is Litecoin a good investment

2017

At the beginning of the year, Litecoin’s opening price was $4.33. In comparison, the minimum price of a Litecoin that year was $3.61.

Nonetheless, and very surprisingly, the maximum price of Litecoin that year was $375.29. Certainly, 2017 seemed to be a good year for Litecoin. In fact, the crypto coin eventually closed the year trading at an impressive figure of $232.10. Traders could make a large amount of profit if they had Litecoin investment ahead.

2018

Litecoin opened the year 2018 trading at $231.67. Nonetheless, it is important to note that every year has high prices and low prices, and 2018 was not an exception. For example, the minimum price of Litecoin in 2018 was a really low figure of $23. Certainly, you cannot compare this to the price at the start of the year. In spite of this, the year still had some good days for Litecoin. For instance, the maximum price of Litecoin that year was $323.11. Eventually, at the very end, Litecoin performed dismally and closed the year 2018 trading at $30.47.

Certainly, that is a good example of the volatility of cryptocurrencies.

2019

Initially, Litecoin opened the year 2019 trading at $30.46. This was definitely not a good start. Nonetheless, further along the year, the price of Litecoin rose up to register a maximum price of $146.43.

However, this improvement in price did not last long. The decline in Litecoin’s price was attributed to the bear market trend that dominated the remaining part of the year. Needless to say, that bear market trend led to a significant reduction in prices of all other cryptos. Of course, it was also during this last part of the year that Litecoin registered its lowest price that year to trade at $30.13. Unfortunately without any dramatic change in price, Litecoin finally closed the year 2019 trading at $41.34.

2020

It is true that Litecoin’s market price in January was estimated to be at $41.33. Of course, this was by all measure not a really good price compared to figures from the previous year. Further along the year, the price of Litecoin kept getting worse especially during the early times of the Covid 19 pandemic. Certainly, this was because the pandemic had led to a reduction in most of the activities in the crypto market mid-way through the year. None surprisingly, it was during this pandemic time that Litecoin registered the lowest price that year to trade at $25.57.

Nevertheless, in late November, Litecoin’s price improved and it attained the highest price that year of $138.32. In the same way, Litecoin finally closed the year 2020 trading at $124.69.

2021

At the very beginning of 2021, Litecoin attained a high price of $124.67. Certainly, 2021 looked promising for Litecoin. In fact, the lowest price recorded so far is $104.33. As a result, Litecoin is expected to maintain a relatively potential investment throughout the year.

YearMaximum PriceMinimum Price
2014$5.17$2.67
2015$8.73$1.11
2016$5.95$2.98
2017$375.29$3.61
2018$323.11$23.00
2019$146.43$30.13
2020$138.32$25.57
Jan-Oct 31st 2021$412.96$104.33

Comparison between Litecoin and other cryptocurrencies

Bitcoin vs Litecoin

On the surface, Bitcoin and Litecoin have a lot in common. For example, at the most basic level, they are both decentralized cryptocurrencies. Additionally, both Bitcoin and Litecoin utilize proof of work ecosystems. In simpler terms, that means that the underlying process by which both cryptocurrencies are generated, authenticated, and then added to a public ledger, or blockchain is fundamentally similar.

On the other hand, needless to say, there are some differences. For example, the Bitcoin network can never exceed 21 million coins, whereas Litecoin’s network can accommodate up to 84 million coins. Another difference is the average transaction confirmation time (the time it takes for a block to be verified and added to the blockchain). For instance, Bitcoin is currently just under ten minutes per transaction, though this can vary widely when traffic is high. In contrast, the equivalent figure for Litecoin is roughly 2.5 minutes.

LitecoinBitoin
Takes 2 minutes 19 seconds block time on average.Average block time is 10 minutes.
Has a maximum limit of 84 million coins.The limit of supply is at 21 million coins.
Uses a newer algorithm called Scrypt.Still uses the longstanding SHA-256 algorithm

Ethereum vs Litecoin

For starters, it is important to note that the major difference between these two cryptocurrencies is their average transaction fees. For example, every transaction in Ethereum costs $0.85. On the other hand, transactions in Litecoin cost an average of just $0.04.

Additionally, the block time for each of these cryptocurrencies is also different. If you are planning to make an investment in Litecoin or ETH, you should have knowledge of that. For instance, Ethereum’s block time is just 15 seconds. Impressively, that means that within less than a minute, you can confirm multiple transactions. On the other hand, Litecoin’s block time is quite higher than Ethereum’s, taking a whole 2 minutes and 19 seconds.

Finally, the other difference is that the number of Litecoins available is restricted to 84 million while the number of Ethers available is unlimited.

LitecoinEthereum
2 minutes 19 seconds block time on average.Registers 15 seconds block time on average.
Has a maximum limit of 84 million coins.No limit to its supply of coins.
Has an average transaction fee of $0.04.The average transaction fee is $0.85

Binance coin vs Litecoin

Both Litecoin and Binance Coin are known for their quick transaction speeds. Interestingly, Litecoin takes 2.5 minutes while Binance coin only takes 1second. It is important to note that while Binance coin is much faster than Litecoin; both of them are actually quick enough. In fact, to compare, Bitcoin has a transaction speed of10 minutes.

Some similarities also exist between the two coins. For example, just like Litecoin, Binance Coin has a limited number of coins. In fact, there are 84 million Litecoins available. On the other hand, Binance has capped the Binance coin supply at 200 million.

It is important to note that Litecoin users can expect to pay around $0.03 or $.04 on average in transaction fees. On the contrary, Binance Coin was created for internal exchange purposes, as a result, there is no fee directly associated with the network. In fact, you will also get a 50% discount if you pay for trades with Binance coin. However, it is equally important to note that if you use any other cryptocurrency to trade on the Binance exchange, you will pay 0.1% of the total amount.

Binance coinLitecoin
Supply is capped at 200 million coins.Has 84 million coins available.
Records 1 second block time.The block time is 2.5 seconds.
Supports only one type of mining.Can be mined in three different ways.

 Dogecoin vs Litecoin

By this point, it is very clear that Litecoin’s developers wanted it to be similar to Bitcoin. However, on the other hand, they wanted to ensure that it is accessible to the general public. In the same way, Dogecoin was created as a new cryptocurrency that would be more accessible to the general public.

All in all, even though the two cryptocurrencies are very similar, there are some differences. For example, the number of Litecoins available is restricted to 84 million while the number of Dogecoins available is unlimited.

DogecoinLitecoin
It is an inflationary token.The number of Litecoins available is limited to 84 million.
Faster transaction processing speeds.Relatively slow transaction processing speeds.
Less valuable in comparison to Litecoin.More valuable compared to Dogecoin.

Cardano vs Litecoin

First and foremost, it is important to note that the main difference between Litecoin and Cardano is that Litecoin is a peer-to-peer network while Cardano is a blockchain system. In brief, a peer-to-peer network is a decentralized concept connecting peers with no need for any intermediaries or central power. In contrast, a blockchain is a decentralized ledger which tracks digital assets on a peer-to-peer network. Cardano’s blockchain in particular involves a group of academics and developers for peer-reviewed research. 

LitecoinCardano
Has a supply cap of 84 million coins.Supply cap is at 45 billion coins.
Decentralized payment mode.Smart contract blockchain platform. 
Non-profit organisation.For-profit organisation.

What do other people think of Litecoin

It is true that the majority of people on social media claim that Litecoin is a relatively stable altcoin compared to others created around the same time. In fact, Litecoin consistently ranks in the top 15 cryptocurrencies by market cap. As a result, some people think it is a good investment.

Additionally, the major supporters of Litecoin are hopeful that an increase in its usage and its adoption on a grander scale will inevitably raise its value. This is actually what has been happening in the last couple of months.

Interestingly, every investor looking for advice on social media platforms is told that Litecoin facilitates fast and inexpensive borderless transactions. Consequently, many people jump into the conclusion that Litecoin is a great investment opportunity.

Similarly, other people claim that Litecoin’s affordability and stability are the reasons that make it an excellent option for those looking to get their feet wet with alternative cryptocurrencies. In fact, they point out that while Litecoin currently trades for less than $200, the price of a single Bitcoin is more than $36,000.

That said, others are less bullish on the altcoin. They claim that while Litecoin could be a good speculative trade, it is not a good investment. The main reason behind this is because the developers and engineers of Litecoin are not seen as robust. Additionally, there seem to be no good cases of investors using it in a meaningful way.

However, the main issue making Litecoin seem like a bad investment option is that Litecoin’s creator has sold all of his coins minus a few to keep as collectibles. The masses on social media see this as a questionable sign.

FAQ

How to buy Litecoin

If you want to buy Litecoin, first you will need to open an account with an exchange platform.

It is important to note that before you begin trading, you must first transfer money into your exchange or brokerage account. Of course, this transfer could be from a checking account, a savings account, a wire transfer, or even a PayPal transfer.

Once you have successfully deposited enough money, you can then buy Litecoins by searching the term Litecoin or its ticker symbol LTC on the exchange trading or transfer platform. Typically, you can either choose the number of dollars you will put in or the number of LTCs that you want. Normally, the purchase will go through immediately.

How to mine Litecoin

Litecoin mining works similarly to mining Bitcoin. Needless to say, this is because Litecoin is a Bitcoin fork with a few tweaks and changes to its source code. However, please note that Litecoin cannot be mined efficiently using CPU or GPU graphic cards. Instead, application specific integrated (ASIC) mining machines will be needed.

How high will Litecoin go

According to Longforecast prediction, the price of Litecoin will experience some highs and lows in the coming years. In that light, we have summarised their predictions by picking out the highest and lowest prices of Litecoin for the next five years and highlighted them in the table below. For more details, please read this article.

YearMaximum PriceMinimum Price
31st Oct- 31st Dec 2021$223$161
2022$398$139
2023$422$205
2024$315$144
2025$169$99

Why is Litecoin going up

Much of the momentum in Litecoin’s price is driven by momentum in the crypto market as a whole. In fact, if other cryptos and altcoins are rising in value, this tends to have a knock-on effect on Litecoin. On the other hand, if coins are falling in value, Litecoin tends to fall too.

Should I buy Litecoin

Yes. Overall, Litecoin is beginning to gain footing in a hypercompetitive cryptocurrency ecosystem and is transforming itself into something more useful. As a result, that makes it a worthwhile holding for investors seeking to put their money into altcoins.

Summary

To sum up, it is important to note that while Litecoin does structurally improve upon Bitcoin’s technology, it still presents risks to investors. For example, Litecoin’s rapidly aging infrastructure is no longer as unique as it was when the coin debuted in 2011. In fact, many altcoins are now offering the same benefits and efficiency. Additionally, Litecoin’s founder, Charles lee, also sold his stake in Litecoin in 2017. Needless to say, this really affected investor confidence.

All in all, Litecoin can be a good investment in the future. However, in 2021, Litecoin is officially a dinosaur coin. This is because it presents an especially high risk for a top 20 crypto market. As a result, it faces stiff competition from newer and better cryptocurrencies. With some caution, however, you can still make money from Litecoin.