Litecoin does not get as a lot consideration as extra high-profile cash, however does it ship higher returns?
Launched in 2011, Litecoin was one of many earliest altcoins, which is the time period for cryptocurrencies aside from Bitcoin. Though it is much like Bitcoin technically, it drastically improved transaction instances. Litecoin transactions course of about 4 instances sooner than Bitcoin transactions.
Crypto lovers typically name Litecoin the silver to Bitcoin’s gold, and that is actually true when it comes to worth. Litecoin has all the time value a lot lower than Bitcoin, and a few buyers have gravitated in the direction of it due to that. The query is whether or not that is a sensible choice. So, let’s examine how effectively you’ll’ve accomplished in the event you purchased $1,000 value of Litecoin three years in the past.
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How a lot your Litecoin can be value at this time
Due to historic worth information, it is easy sufficient to learn the way a lot any crypto funding can be value at this time.
Between Could 25, 2018 to the identical date in 2021, Litecoin’s worth went up from $119.44 to $183.50. That is a rise in worth of practically 54%.
In case you purchased $1,000 value of Litecoin three years in the past, it will now be value $1,536.34.
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Though that is a stable return, it is considerably underwhelming in comparison with the positive factors you hear about with different cash. For a direct comparability, we will use the identical technique with extra of the highest cryptocurrencies.
How Litecoin’s outcomes examine to different cryptocurrencies
This is how a lot you’d have in the event you selected a special coin three years in the past:
- In case you purchased $1,000 of Bitcoin, you’d have $5,133.89, a 513% improve.
- In case you purchased $1,000 of Ethereum, you’d have $4,613.08, a 461% improve.
- In case you purchased $1,000 of Cardano, you’d have $7,800, a 780% improve.
- In case you purchased $1,000 of Dogecoin, you’d have $99,601.59, a 9,960% improve.
As you possibly can see, there have been alternatives for a lot bigger positive factors than what Litecoin delivered. Nonetheless, these are additionally 4 of the most important cash, and so they’ve all been very profitable this 12 months. Earlier than getting too disenchanted in Litecoin’s efficiency, keep in mind that it is being in comparison with the present cream of the crop.
For instance that, listed below are the three-year returns for a pair cash that have not been fairly so profitable:
- In case you purchased $1,000 of Bitcoin Money, you’d have $707.71, a 29% lower.
- In case you purchased $1,000 of TRON, you’d have $1,142.86, an 11% improve.
Litecoin hasn’t precisely lit the world on fireplace. Nevertheless it has accomplished higher than many cash, particularly when you think about that some cash from 2018 misplaced all their worth.
There’s yet another vital factor to remember right here. A coin’s previous outcomes do not essentially decide the way it will do sooner or later. Litecoin might explode in worth, or it might fall off a cliff. And simply because different cash have accomplished higher to this point doesn’t suggest that pattern will proceed indefinitely.
Is Litecoin a very good funding?
Like different cryptocurrencies, Litecoin could be very risky. It is a high-risk, high-reward funding, even when these rewards have paled compared to among the hottest cash.
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Resulting from how risky crypto is, the rule of thumb is to solely invest what you possibly can afford to lose. It is also beneficial that you simply restrict crypto to a small portion of your funding portfolio, similar to 5% to 10%.
In case you’ve already determined to spend money on crypto, the exhausting half is deciding whether or not some or all of that funding ought to embrace Litecoin.
To Litecoin’s credit score, it is a lot sooner than Bitcoin and has decrease transaction prices. It is also typically accepted as one of many main cash. You possibly can’t discover each coin on the top cryptocurrency exchanges, however you possibly can nearly all the time discover Litecoin. Nonetheless, Litecoin has traditionally had a tough time getting out of Bitcoin’s shadow. It additionally does not provide a lot that makes it distinctive, like Ethereum and Cardano do.
Those that invested in Litecoin on the proper time have achieved good outcomes. There is no manner to make certain the place Litecoin will go sooner or later, so it is vital to do your analysis earlier than deciding to purchase in.