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 apart from Bitcoin. Though it is much like Bitcoin technically, it drastically improved transaction occasions. Litecoin transactions course of about 4 occasions sooner than Bitcoin transactions.
Crypto lovers usually 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 traders have gravitated in direction of it due to that. The query is whether or not that is a sensible determination. So, let’s have a look at how effectively you’ll’ve executed for those who purchased $1,000 price of Litecoin three years in the past.
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How a lot your Litecoin can be price right this moment
Because of historic worth data, it is simple sufficient to learn how a lot any crypto funding can be price right this moment.
Between Might 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 almost 54%.
When you purchased $1,000 price of Litecoin three years in the past, it might now be price $1,536.34.
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Though that is a strong return, it is considerably underwhelming in comparison with the good points you hear about with different cash. For a direct comparability, we will use the identical methodology with extra of the highest cryptocurrencies.
How Litecoin’s outcomes examine to different cryptocurrencies
This is how a lot you’d have for those who selected a distinct coin three years in the past:
- When you purchased $1,000 of Bitcoin, you’d have $5,133.89, a 513% improve.
- When you purchased $1,000 of Ethereum, you’d have $4,613.08, a 461% improve.
- When you purchased $1,000 of Cardano, you’d have $7,800, a 780% improve.
- When 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 good points 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 dissatisfied in Litecoin’s efficiency, do not forget that it is being in comparison with the present cream of the crop.
For example that, listed below are the three-year returns for a pair cash that have not been fairly so profitable:
- When you purchased $1,000 of Bitcoin Money, you’d have $707.71, a 29% lower.
- When you purchased $1,000 of TRON, you’d have $1,142.86, an 11% improve.
Litecoin hasn’t precisely lit the world on hearth. Nevertheless it has executed higher than many cash, particularly when you think about that some cash from 2018 misplaced all their worth.
There’s yet one more 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 pattern will proceed indefinitely.
Is Litecoin a superb funding?
Like different cryptocurrencies, Litecoin may be very unstable. It is a high-risk, high-reward funding, even when these rewards have paled compared to a few of the hottest cash.
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On account of how unstable crypto is, the rule of thumb is to solely invest what you possibly can afford to lose. It is also really useful that you simply restrict crypto to a small portion of your funding portfolio, reminiscent of 5% to 10%.
When 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’ll be able to’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 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 sure the place Litecoin will go sooner or later, so it is necessary to do your analysis earlier than deciding to purchase in.