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 instances. Litecoin transactions course of about 4 instances sooner than Bitcoin transactions.
Crypto fanatics usually name Litecoin the silver to Bitcoin’s gold, and that is actually true when it comes to value. Litecoin has all the time price a lot lower than Bitcoin, and a few traders have gravitated in the 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 performed in case you purchased $1,000 price of Litecoin three years in the past.
How a lot your Litecoin could be price at present
Because of historic value information, it is easy sufficient to learn how a lot any crypto funding could be price at present.
Between Could 25, 2018 to the identical date in 2021, Litecoin’s value went up from $119.44 to $183.50. That is a rise in worth of almost 54%.
In the event you purchased $1,000 price of Litecoin three years in the past, it could now be price $1,536.34.
Though that is a strong return, it is considerably underwhelming in comparison with the features 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 case you selected a unique coin three years in the past:
- In the event you purchased $1,000 of , you’d have $5,133.89, a 513% improve.
- In the event you purchased $1,000 of , you’d have $4,613.08, a 461% improve.
- In the event you purchased $1,000 of , you’d have $7,800, a 780% improve.
- In the event you purchased $1,000 of , you’d have $99,601.59, a 9,960% improve.
As you’ll be able to see, there have been alternatives for a lot bigger features than what Litecoin delivered. Nevertheless, these are additionally 4 of the biggest cash, and so they’ve all been very profitable this 12 months. Earlier than getting too upset in Litecoin’s efficiency, do not forget that it is being in comparison with the present cream of the crop.
As an example that, listed here 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% improve.
Litecoin hasn’t precisely lit the world on fireplace. However it has performed 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 performed higher up to now doesn’t suggest that pattern will proceed indefinitely.
Is Litecoin an excellent 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 a number of the hottest cash.
Resulting from how risky crypto is, the rule of thumb is to solelywhat you’ll be able to afford to lose. It is also really helpful that you simply restrict crypto to a small portion of your funding portfolio, corresponding to 5% to 10%.
In the event you’ve already determined to put money into crypto, the exhausting half is deciding whether or not some or all of that funding ought to embody 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 may’t discover each coin on the, however you’ll be able to nearly all the time discover Litecoin. Nevertheless, 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 approach 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.
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