Pros and Cons of Investing in Litecoin
Cryptocurrencies have become the go-to investment for experienced and amateur traders. The reason for this is very simple, the upside potential of crypto is amazing, and there are a lot more options for traders than just purchasing and trading coins.
For instance, trading in futures will allow you to unleash the full potential of leverage and gain huge profits. Still, the best part about crypto is the coins and the blockchain that backs them.
Of course, we are all familiar with the start of crypto, Bitcoin, and Etherium, but some coins have the potential to gain a cult following, and that coin is Litecoin. If you are planning to invest in Litecoin but are wondering what the pros and cons are, we have you covered.
Read below to find out more about Litecoin.
Where to buy Litecoin?
Before we delve deep into the technicalities of whether buying Litecoin is a good idea, let’s talk about where you can buy it. Generally speaking, you can buy Litecoin on every major exchange platform.
Of course, before making the purchase, you will want to read everything about Litecoin and inform yourself to minimize the risk of a failed investment. In addition to that, you will need to look into crypto wallets so that you can store your coins securely.
Most of the time, Litecoin holders opt for hardware wallets. However, for added convenience, some decide to go with mobile and desktop wallets so that they can keep track of their crypto status wherever they go.
How did it perform last year?
Truthfully said, Litecoin’s performances in 2021 were more than underwhelming. However, that doesn’t make it a bad investment right off the bat. The end of 2021 and the beginning of 2022 were extremely difficult periods for cryptocurrencies in general, and we saw the crash bring substantial losses to investors around the world.
That being said, Litecoin has shown its resilience in the past, and it’s expected that a spike in price is on the cards. Either way, its current price is around $54, making it the perfect investment for the future.
Predicted performance for next year
Even though we saw an 80% drop, the future is looking bright for Litecoin. Cryptomarkets are extremely volatile, and you never know when the next bull run will start. Litecoin will also have a high-risk, high-reward ratio, and this might be beneficial to some while also driving away other possible investors.
The greatest pro is that experts predict that Litecoin can reach up to $1000 by 2024, but the con is that nothing in the crypto world is guaranteed.
How can you make money with Litecoin?
Buying and holding crypto, in this case, Litecoin, is the most common way to make money as a crypto investor. This method takes the least expertise, and everyone with a substantial investment can achieve great profits. All they have to do is set up a wallet and load it up with Litecoin.
Of course, some might be discouraged from sitting on coins when extreme volatility is always present. Of course, with the recent reports, it seems that Liteocin holders might finally recoup some losses and maybe get the profits coming in.
On the other hand, you can also trade your Litecoin. Crypto traders follow the same phrase as stock traders, buy low and sell high. The other option is derivative trading. Derivative trading is extremely risky and is generally advised against if you don’t know the ins and outs of crypto.
That being said, if you do possess the knowledge and can trade in futures and use leverage to your advantage, then your financial future has the potential to be golden. Even so, you should always be cautious and never invest more than you can lose.
The biggest cons of Litecoin are not entirely connected to the coin itself. The current market is extremely unpredictable and has been in shambles for nearly half a year. Still, there are some predictions that things might massively shift from bad to extremely good, but no one can see that far.
So as an investor, your main goal should be making a profit. Litecoin can offer you that in various ways. You can either hold and wait for the coin’s price to spike or make the most of the trading options we shared above.