Are you interested in investing in cryptocurrency but aren’t sure how to get started?
One of the main cryptocurrencies you should consider investing in is Litecoin. While Litecoin may not be as big as other cryptocurrency giants like Ethereum and Bitcoin, it’s still a worthy investment and has made quite the name for itself over the last several years.
Just recently, Litecoin hit the $400 mark. The value of Litecoin is also projected to go up, so now is a good time to invest. But how do you invest in Litecoin?
Read this post to learn all about Litecoin investments.
What is Litecoin?
Before we talk about investing in Litecoin, we first need to answer the question, “What is Litecoin?”
Litecoin and Bitcoin are both cryptocurrencies, but their similarities pretty much end there. Litecoin is an alt-coin, which is the name given to any cryptocurrency that isn’t Bitcoin (the original cryptocurrency).
There are many other alt-coins available for investment, with Ethereum, Cardano, Polkadot, and Steller being some of the most popular. Litecoin is based on Bitcoin optimization, and it’s much cheaper than Bitcoin, which is mainly due to a lack of brand recognition.
While Litecoin’s all-time high hovers a little over $400, Bitcoin’s all-time high hovers over $63,000. Thanks to many updates and optimizations, Litecoin may soon be more viable than Bitcoin.
Like Bitcoin, Litecoin is a blockchain-based cryptocurrency that you can use to send money to anyone, anywhere, and at any time in a secure, anonymous environment. To obtain Litecoin, you can either purchase it or mine it, with the former being the easiest option to get ahold of it.
Reasons to Invest in Litecoin-
Understanding the benefits of Litecoin investment is also important before you make the decision to buy. Here are some of the primary reasons to invest in Litecoin:
A. Profitable Mining:
While mining Litecoin can take a lot of work, there’s still a lot of money to be made in the Litecoin mining industry.
B. Fast Transactions and Lower Fees:
Litecoin gives you access to quick and affordable transactions, some of which are 10% of what Bitcoin transactions cost. Plus, you only have to wait a few minutes for a transaction to clear.
C. More Stability:
Cheaper cryptocurrencies tend to be more stable than their expensive counterparts.
How to Invest in Litecoin:
If you’re ready to jump into Litecoin investing, here’s what you need to do:
1. Choose an Exchange:
First, you need to choose a cryptocurrency exchange for buying your Litecoin. Cryptocurrency exchanges are platforms that allow you to buy, trade, and sell Bitcoin and other alt-coins like Litecoin.
Currently, there are a little over 500 cryptocurrency exchanges, although that number is expected to rise. Some of the most popular cryptocurrency exchanges include Coinbase, Binance, and Bisq.
Once you choose an exchange, you’ll need to register for an account and go through the verification process. If you plan to purchase Litecoin using your bank account, you’ll also need to link that to the exchange.
2. Invest in a Litecoin Wallet:
While you can leave your Litecoin on the exchange after you purchase them, this is generally not advised, as it’s the least safe way to store cryptocurrencies. While it’s not easy to hack an exchange, it does happen. Plus, exchanges can sometimes be shut down without warning, leaving you without access to your Litecoin.
One of the best ways to keep your Litecoin safe is to move it to a cryptocurrency wallet. Some of the most popular crypto wallets include Ledger Nano X, Mycelium, Exodus, and Trezor.
While storing your Litecoin in a wallet comes with a small fee, it’s worth it for the added security. There are two main types of crypto wallets to choose from: hardware wallets and software wallets. Both types of wallets keep your cryptocurrency safe by providing you with a secure digital code that only you have access to.
Software wallets can be stored on your desktop, mobile device, or online. Hardware wallets are designed to make your Litecoin storage more secure by allowing you to keep your private keys on a hardware device. Then, when you want access to your Litecoin, all you need to do is plug your hardware device into an internet-enabled machine.
3. Know Your Investment Options:
Once you purchase Litecoin, you need to decide how you’re going to invest so you can start making money. The options you have to include:
4. Buying and Holding:
One of the easiest investment strategies is to buy Litecoin and hold onto it until the prices go up and then sell it. When Litecoin first came out, one coin was worth about $0.30.
If you had bought 10 Litecoin early on, your investment could be worth well over $4,000 by now. While this may not seem like a lot compared to the millions early Bitcoin investors have made, it goes to show that you can make a decent amount of money by simply buying and holding.
5. Short-Term Trading:
Short-term trading is another popular option for Litecoin investors. While it’s a bit risky, it can help you earn some income quickly.
While you won’t earn as much as you would with long-term trading, if you’re looking for some extra money in your everyday life, this is a great option. Short-term trading typically involves buying and selling Litecoin based on the highs and lows in the market.
Usually, you’ll buy Litecoin and then wait a few days for the market to move to make a sale. You also have the option to day trade, which is a bit riskier and takes more commitment. With this method, you’ll buy and sell Litecoin within the same day to turn a profit.
Day-trading profits are usually very thin, and with this method, you’ll need to focus on building wealth slowly over time. For short-term trading, you’ll need to pay attention to Litecoin prices in other currencies, such as Litecoin price CAD.
Value of Litecoin: Time to Buy Litecoin
Now that you know a bit more about the value of Litecoin, it’s time for you to decide if Litecoin is the right cryptocurrency for you. As we mentioned at the beginning of the article, there are hundreds of cryptocurrencies, so it’s important to do your research to find the right one.
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