Investing in Litecoin - is LTC investment still worthwhile in 2021?

Should you invest in Litecoin today or not? LTC is still one of the most exciting crypto investments in 2021. This page explains why this is so and how best to invest in the token for trading beginners and professionals.

Similar to Bitcoin, Litecoin is primarily intended as a means of payment and is otherwise very similar to its big brother. The cryptocurrency, which was launched in 2011, is based on the same code.

However, it is considered to be more innovative: technologies that are added to Bitcoin are often implemented in Litecoin first. With this simple concept, Litecoin has firmly established itself among the largest cryptocurrencies worldwide.

While Bitcoin is often referred to as digital gold, Litecoin is referred to by many as digital silver. This is to express the close relationship with Bitcoin. Litecoin's currency units are referred to as LTC.

The best crypto brokers and exchanges for Litecoin investment

etoro

Trade real cryptos and crypto CFDs
Licensed broker with deposit protection
Integrated wallet

liquidity x logo

Choice between two trading platforms
Regulated broker
Broad trading offer

Plus500

Many tradable assets
Excellent trading platform
European license

avatrade logo
Good selection of cryptocurrencies
Regulated by CBI and MiFID in Europe
No commissions and low spreads
libretex

Broker fully regulated
Numerous awards
Libertex experience for more than twenty years

How to invest in Litecoin 2021

How can I invest in Litecoin? Which form of Litecoin investing suits me? What are Litecoin shares? And how do I get Litecoin in the first place?

First step: Registering with a broker or crypto exchange

First, you register with your broker or crypto exchange of choice. To invest in Litecoin, we use the broker eToro, as it offers the advantage that you can invest in both real cryptocurrencies and CFDs - in other words, it combines the advantages of a broker and an exchange.

In the form we enter username, email and password and accept the T&Cs:

We then receive a verification email where we click on the link to confirm the account.

Second step: Top up our account

In the next step, we need to fund our account with money in order to be able to invest Litecoin.

Then we click on the "Send" button to deposit the amount.

Other payment methods at our test winner eToro:
In our example we show the investment with credit card. eToro also offers other deposit options:

Payment method

Possible

Buy Litecoin with bank transfer

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Buy Litecoin with a credit card 

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Buy Litecoin with Neteller

ok

Buy Litecoin with Skrill

ok

Buy Litecoin with PayPal

ok

Buy Litecoin with online banking

ok

Buy Litecoin with Rapid Transfer

ok

Buy Litecoin with Sofort

ok

Buy Litecoin with a debit card

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Third step: Investing Litecoin

Now that we have funded our account, we can begin the actual process of investing Litecoin. To do this, we click in the search field at the top and enter "Litecoin" there.

Invest Litecoin 2After that, the buy window opens. Here we have the following options:

  • Buy or sell: In our case we have to set it to "buy
  • Trade or order: Here we can choose whether we want to execute the trade immediately (trade) or delayed (order).
    Amount: How much Litecoin we want to invest.
  • Stop Loss and Take Profit: At which loss or profit our position should be sold automatically.
  • Leverage: With which leverage we want to invest in Litecoin. With leverage X1 we buy real Litecoin, with leverage X2 we buy leveraged Litecoin CFDs.



    After we have configured all the settings, we click on the "Open Trade" button to complete the purchase.

    Now we have Litecoin in our portfolio, the investment in Litecoin is completed!

Pro & Con Litecoin Investment

The pros and cons of investing in Litecoin 2021 are only simple for Litecoin investors at first glance: Because your investment form and your Litecoin investment strategy essentially determine your chances and risks.

Pros

  • More innovative than Bitcoin
  • Very well ranked on CMC/good distribution
  • Good scalability: faster transactions than BTC
  • Limited payout = inflation protection
  • Many different investment options

Cons

  • Uncertain future of the market
  • High volatility, strong price fluctuations
  • No clear unique selling proposition

The cryptocurrency market, and with it the Litecoin market, is notorious for its extreme volatility: in recent years, price movements have often resembled wild rollercoaster rides.

How to invest in Litecoin 2021

Investors can still earn money by investing in Litecoin. However, whether your Litecoin investment is successful depends on a number of factors. For example, which investment strategy is right for you depends on your preferences.

How can I invest in Litecoin? Which Litecoin investing is right for me? Are there Litecoin shares and if so: what is their advantage? And how do you actually get Litecoin? In the next sections we will clarify these questions.

1. Buy Litecoin directly

How do you actually get Litecoin? You can buy Litecoin on an almost unmanageable number of crypto exchanges. Because there are so many, we have tested the best exchanges for you.

In our guide to investing in Litecoin, we explain exactly how you can buy and trade Litecoin. How can I invest in Litecoin? Can I pay Litecoin in euros? And where? Our guide to investing in Litecoin will help you with these questions.

When you buy Litecoin, there is only one factor that determines your profit or loss: The Litecoin price. When investing in Litecoin 2021, tax issues are also relevant, of course.

Our overview page for cryptocurrency investments clarifies the most important tax issues regarding LTC investing.

Our recommendation: Buy cryptos with eToro

  • Incl. wallet
  • Buy and sell cryptocurrencies directly in the wallet
  • Paypal, credit card and instant bank transfer
  • Regulated provider
  • Real cryptos or CFD trades

2. Trade Litecoin

LTC investing does not necessarily require you to buy Litecoin. You can also earn money with Litecoin by trading derivatives, for example.

Many different crypto brokers offer these. For trading Litecoin CFDs, we definitely recommend the crypto broker eToro. You can find our big stock exchange and broker check here.

CFDs have a clear advantage: they allow high returns even if the Litecoin price falls. Because with CFDs, those who can correctly predict price fluctuations earn money.

Because you do not buy Litecoin directly in CFD trading, you do not need your own LTC wallet for this investment option.

3. Buy Litecoin shares

Investing in Litecoin 2021 is also possible by means of shares. This option is definitely interesting for medium to long-term investments.

For those who want to invest in Litecoin Investment Trusts, for example, save themselves the trouble of dealing with wallets and private keys. This makes LTC investing very easy.

There are now a whole range of interesting shares on blockchain products, so-called bitcoin mining shares, blockchain services and litecoin investment trusts, for example. Our link will take you to our overview of online share buying.

4. Litecoin Mining

Mining is another way to earn money with Litecoin. However, mining is hardly profitable due to the high electricity prices.

The so-called miners are the cogs in the Litecoin blockchain. Without them, no new blocks would be created on the Litecoin blockchain. Transactions would then no longer be confirmed and the blockchain would grind to a halt.

With each new block, the transactions recorded on the previous block are confirmed by the miners and thus become valid.

In order for mining to be profitable for the miners, they are remunerated for their efforts in Litecoin and receive all transaction fees that become due on the block they found for the users of the network in transactions.

Litecoin falls: Is it too late to invest in Litecoin?

Litecoin's great strength - its proximity to bitcoin - is also the currency's greatest weakness. For although it is likely that Litecoin will retain an important role in the market in the medium term, it is quite conceivable that this will no longer be the case in a few years.

The differences to bitcoin are not concrete enough for Litecoin to be able to hold its own as a competitor in the long term - one might think.

It is quite conceivable that Litecoin will succeed in raising its profile through innovation and create a clear use case that differs from that of Bitcoin. The Litecoin investing risk is very real. However, investing in Litecoin can still be worthwhile.

The Litecoin price has been rising steadily over the past few years, reaching its previous peak during the great crypto hype in the winter of 2017/2018. However, like the other cryptocurrencies, Litecoin has lost a lot of value since then and until today.

Litecoin may fall even further. Or the market will recover from its crisis and flourish again in the coming weeks and months. Is it too late to invest in Litecoin in 2021?

Can I still earn with LTC in 2021?

Unfortunately, no one can give you a clear answer. But an approximation can help you to come to your own assessment. That is what this is all about: On this page we try to clarify whether you can earn with an investment of euros in Litecoin.

We will show you new investment options such as buying Litecoin, trading Litecoin with CFDs, Litecoin investment trusts, banking on Litecoin and Litecoin stock options.

In the winter of 2017/2018, cryptocurrency prices turned the investment world upside down: one record followed the next. Within a very short time, many cryptocurrencies gained thousands of percent in value. The great hype infected more and more investors worldwide.

What is Litecoind

They invested in Ethereum, bought Bitcoin at enormous prices or entrusted their capital to dubious or even criminal companies in Initial Coin Offerings (ICOs).

Then the bubble burst. As quickly as the prices had risen, they fell again. Since then, there has been great scepticism about the market. Litecoin is also still falling in value.

When will the Litecoin price rise?

Litecoin may fall further. The lack of acceptance and lack of a clear location of cryptocurrencies by regulators are giving the new technologies a hard time.

That is why many consider the Litecoin investing risk too high - and advise against buying Litecoin. Enthusiasts, on the other hand, are certain that the Litecoin market is far from having shown what it is capable of.

Despite the turbulence, however, Litecoin development continues to progress thanks to a great developer community. Cryptocurrencies have the potential to revolutionise the financial world in the long term.

It can be considered extremely unlikely that this revolution will fail to materialise - even if it has just stalled a little.

The acceptance of Litecoin is rising

There are also many positive signals suggesting that the acceptance of cryptocurrencies like Litecoin is slowly but surely increasing. More and more governments are taking the issue seriously and are introducing new laws and regulations.

The many new investment options such as Litecoin shares also promise great things: because they open up the market to an audience that has problems dealing with wallets and private keys.

Litecoin's market capitalisation of around 3.2 billion euros indicates a relatively stable user and investor base, which for the time being safeguards that the cryptocurrency will continue to exist. At the same time, the large gap to Bitcoin shows that Litecoin will probably never be able to fully assert itself against its competitor.

That there is a future for cryptocurrencies can be considered as good as certain. What role Litecoin can play in this future is uncertain today. In the short to medium term, it is hard to imagine the cryptocurrency without it. An investment in the Litecoin market may still be worthwhile in 2021.

Earn money with Litecoin

As an investor, you can sometimes lose your nerves. Because when the investment you have just made falls, there is a lot of worry: Will it go up again and will I miss out on something if I sell?

Or should I get out before the losses get out of hand? A good investor recognises trends and impulses on the market early on and acts accordingly. Often the winner is the one who does not go with the crowd.

The trend in recent months has been downhill. When the LTC market picks up speed again, those who buy Litecoin at the lowest price and know when to get out will make the most profit.

What sounds simple in theory is difficult in practice. Theoretical and historical knowledge as well as experience equip Litecoin investors best.

If you have no experience at all with cryptocurrencies, it is best to invest very small and try it out first before betting more.

What is a Litecoin Wallet

Volatility: When the slump is followed by a rise and the rise is followed by the next slump

Today it is the other way round: there has been no talk of records for a long time, more often one reads of scepticism, of warnings or exaggerated future scenarios. More money is flowing out than in. Many cryptocurrencies are considered effectively dead.

Many, but not all. And especially well-established coins like LTC are not breaking away any time soon. If there is a new uptrend, there is a good chance that the Litecoin price will benefit.

How to make money with Litecoin: numerous possibilities

Investing in Litecoin 2021 is possible, for example, through brokers, or the Litecoin Investment Trusts. A good alternative, but one that increases the risk of investing in Litecoin, is trading so-called CFD derivatives.

You don't have to buy Litecoin directly and you don't need a Litecoin wallet. And you become independent of the Litecoin price. You make your profits by trading CFDs by correctly predicting how the price will behave.

How can I invest in Litecoin? You can find out on this page. We also present a Litecoin investing guide for buying Litecoin, for trading Litecoin and for Litecoin shares.

Litecoin Investing Tips & Tricks

With our Litecoin investing tips you might be able to avoid some beginner mistakes.

To be able to make smart tactical decisions and not break a sweat, you should definitely only invest as much in Litecoin as you can afford to lose.

Also, don't underestimate the risk that comes with Litecoin investing. Before investing in Litecoin 2021, you should be aware of the possibility of losing your investment.

By adding at least four more assets to your investment portfolio, you can mitigate your risk.

It is also advisable to invest in classic, more conservative forms of investment. For example, you could buy shares online.

How big is your risk tolerance?

Short-term Litecoin investments such as Litecoin trading with CFDs can pay off extraordinarily - but are riskier than conservative methods such as holding purchased cryptocurrencies for the medium to long term.

The Litecoin market now offers many attractive alternatives: For example, by investing in Litecoin shares, you can save yourself the hassle of dealing with wallets and private keys and don't have to worry about the security of your wallets.

Litecoin

Is a Litecoin wallet mandatory?

Speaking of wallets: If you bet on the Litecoin price development and buy Litecoin, it is tempting to leave your coins at crypto exchanges like eToro and do without a Litecoin wallet.

Tempting, but also dangerous. Because a Litecoin wallet protects you: if your exchange goes bust or gets hacked, you might lose your investment.

Conclusion

Litecoin Conclusion

Investing in Litecoin 2021 - this can be worthwhile under certain circumstances. The deciding factor is which form of investment an investor chooses here - and how the market will behave in the future.

A Litecoin investment does not have to be dependent on price developments. When trading derivatives such as Litecoin CFDs from our test winner, it is possible to profit even if Litecoin falls. But even those who buy Litecoin can be optimistic in view of positive signals.

In the not too distant future, cryptocurrencies will be part of our everyday lives. The Litecoin development is progressing. It is hardly conceivable today that cryptocurrencies like Bitcoin or Ethereum will no longer play a role tomorrow.

FAQ

Is the LTC investment still worthwhile?

Due to the high volatility of the coins, an investment in cryptocurrencies can still produce great returns. The key is to buy the coin of your choice at the right time. You should also have the necessary knowledge of how cryptocurrencies work in detail.

Which cryptocurrency will go through the roof?

This cannot be answered easily. Many factors play a role, including whether the acceptance of the chosen currency increases, what the purchasing power of investors is like and whether crypto exchange hacks or other bad news can depress the respective price. Litecoin is one of the largest cryptocurrencies, so there is a good chance of decent returns with the coin.

What options do I have when I want to invest in Litecoin?

You can either buy the coin of your choice directly and hope for price gains, or invest indirectly in the cryptocurrency. This includes trading via CFDs, shares, derivatives and many more. Mining the coins also continues to enjoy popularity.

Is Litecoin also suitable for long-term investment?

Absolutely. If you assume that the coins will continue to gain in importance in the future, then you should invest in Litecoin. It is not unlikely that more and more transactions will be carried out using digital coins in the medium term.

About the author

Hi there, my name is Zalman Weinberg. I'm enthusiast with over 7 years of experience in cryptocurrencies and blockchain. Professional Trader providing Blockchain solutions to Startups and Enterprises. Expert in all cryptocurrency exchange APIs (BitMEX, Bittrex, Binance, Bitfinex, Kraken, Poloniex, Gdax etc.). I have also worked with multiple Forex broker APIs.

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