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 by way of value. Litecoin has all the time price 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 choice. So, let’s examine how properly you’d’ve achieved when you purchased $1,000 value of Litecoin three years in the past.
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How a lot your Litecoin could be value right this moment
Due to historic value information, it is easy sufficient to learn how a lot any crypto funding could be value right this moment.
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%.
For those who purchased $1,000 value of Litecoin three years in the past, it will now be value $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 technique with extra of the highest cryptocurrencies.
How Litecoin’s outcomes examine to different cryptocurrencies
Here is how a lot you’d have when you selected a unique coin three years in the past:
- For those who purchased $1,000 of Bitcoin, you’d have $5,133.89, a 513% enhance.
- For those who purchased $1,000 of Ethereum, you’d have $4,613.08, a 461% enhance.
- For those who purchased $1,000 of Cardano, you’d have $7,800, a 780% enhance.
- For those who purchased $1,000 of Dogecoin, you’d have $99,601.59, a 9,960% enhance.
As you may see, there have been alternatives for a lot bigger good points than what Litecoin delivered. Nevertheless, these are additionally 4 of the biggest cash, they usually’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 instance that, listed here are the three-year returns for a pair cash that have not been fairly so profitable:
- For those who purchased $1,000 of Bitcoin Money, you’d have $707.71, a 29% lower.
- For those who purchased $1,000 of TRON, you’d have $1,142.86, an 11% enhance.
Litecoin hasn’t precisely lit the world on hearth. Nevertheless it has achieved higher than many cash, particularly when you think about that some cash from 2018 misplaced all their worth.
There’s another essential factor to remember right here. A coin’s previous outcomes do not essentially decide the way it will do sooner or later. Litecoin might explode in worth, or it might fall off a cliff. And simply because different cash have achieved higher to this point does not imply that pattern will proceed indefinitely.
Is Litecoin an excellent 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 number of the hottest cash.
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Attributable to how unstable crypto is, the rule of thumb is to solely invest what you may afford to lose. It is also really useful that you just restrict crypto to a small portion of your funding portfolio, reminiscent of 5% to 10%.
For those who’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 may 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 not any method to make certain the place Litecoin will go sooner or later, so it is essential to do your analysis earlier than deciding to purchase in.