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 occasions. Litecoin transactions course of about 4 occasions quicker than Bitcoin transactions.
Crypto fanatics usually name Litecoin the silver to Bitcoin’s gold, and that is definitely true when it comes to worth. Litecoin has at all times value a lot lower than Bitcoin, and a few traders have gravitated in direction of it due to that. The query is whether or not that is a smart resolution. So, let’s examine how properly you’d’ve executed should you purchased $1,000 value of Litecoin three years in the past.
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How a lot your Litecoin can be value as we speak
Because of historic worth information, it is simple sufficient to learn how a lot any crypto funding can be value as we speak.
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 the event you purchased $1,000 value of Litecoin three years in the past, it could now be value $1,536.34.
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Though that is a strong return, it is considerably underwhelming in comparison with the positive aspects you hear about with different cash. For a direct comparability, we are able to use the identical methodology with extra of the highest cryptocurrencies.
How Litecoin’s outcomes evaluate to different cryptocurrencies
This is how a lot you’d have should you selected a unique coin three years in the past:
- In the event you purchased $1,000 of Bitcoin, you’d have $5,133.89, a 513% enhance.
- In the event you purchased $1,000 of Ethereum, you’d have $4,613.08, a 461% enhance.
- In the event you purchased $1,000 of Cardano, you’d have $7,800, a 780% enhance.
- In the event you purchased $1,000 of Dogecoin, you’d have $99,601.59, a 9,960% enhance.
As you possibly can see, there have been alternatives for a lot bigger positive aspects than what Litecoin delivered. Nonetheless, these are additionally 4 of the biggest cash, and so they’ve all been very profitable this yr. Earlier than getting too upset in Litecoin’s efficiency, keep in mind that it is being in comparison with the present cream of the crop.
As an instance that, listed below are the three-year returns for a pair cash that have not been fairly so profitable:
- In the event you purchased $1,000 of Bitcoin Money, you’d have $707.71, a 29% lower.
- In the event you purchased $1,000 of TRON, you’d have $1,142.86, an 11% enhance.
Litecoin hasn’t precisely lit the world on hearth. However it has executed higher than many cash, particularly when you think about that some cash from 2018 misplaced all their worth.
There’s yet another necessary factor to remember right here. A coin’s previous outcomes do not essentially decide the way it will do sooner or later. Litecoin may explode in worth, or it may fall off a cliff. And simply because different cash have executed higher to this point does not imply that development will proceed indefinitely.
Is Litecoin a very good funding?
Like different cryptocurrencies, Litecoin may 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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Attributable to how risky crypto is, the rule of thumb is to solely invest what you possibly can afford to lose. It is also really helpful that you simply restrict crypto to a small portion of your funding portfolio, reminiscent of 5% to 10%.
In the event you’ve already determined to put money into crypto, the onerous 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 quicker than Bitcoin and has decrease transaction prices. It is also typically accepted as one of many main cash. You may’t discover each coin on the top cryptocurrency exchanges, however you possibly can nearly at all times discover Litecoin. Nonetheless, Litecoin has traditionally had a tough time getting out of Bitcoin’s shadow. It additionally does not supply 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 isn’t any means to make certain the place Litecoin will go sooner or later, so it is necessary to do your analysis earlier than deciding to purchase in.