Introduction
Litecoin is one of the most traded cryptocurrencies today. This coin once ranked as the third most valuable cryptocurrency in 2021 with a market capitalization of over $9.1 billion before losing this rank to be counted as the fourteenth most important cryptocurrency in 2022. Notwithstanding the massive dip that befell the Crypto market this year, the price of Litecoin has been more resilient all through the bear season losing only 56% of its value so far since 2021 compared to Bitcoin which lost over 70% of its value from its all-time-high created in 2021.
Can Litecoin rise again in its valuation to regain its status as the third most valuable Cryptocurrency in the world? What does the future hold for Litecoin in 2023? Is it time to buy Litecoin (LTC) or are we to expect more dip? This work has provided useful insights into these pressing questions about Litecoin today.
What is Litecoin?
Litecoin is one of the oldest cryptocurrencies created. This coin was created in 2011 as a fork of Bitcoin by Charles Lee – who was a former Google engineer. The coin was created as an open-source cryptocurrency with improved features than Bitcoin when it comes to making fast payments.
What does the future hold for Litecoin?
Litecoin is one of the most popular Cryptocurrencies traded today. The fair price stability shown by this coin amidst the massive dip that befell the Crypto market in 2022 suggests that many investors are still interested in this coin, and are not ready to give up their bags yet. The price of this coin is currently trading above $70 by December 2022. Many analysts are looking up to this coin closing the year above $100. Others are hopeful that this coin will do better in 2023. The major forecast for this coin is to reclaim its lower resistance level at $217 by 2023. Can Litecoin surpass this level?
One important factor that could limit the performance of Litecoin in 2023 is the current interest rate hike that has caused many investors to withdraw from crypto investments. As long as the aggressive interest rate hike is not carried into 2023, then Litecoin has a greater chance of performing better. Otherwise, we can always expect this coin to be influenced by the prevalent market conditions such as those we are facing today.
List of best crypto exchanges to buy Litecoin
Binance
eToro
Crypto.com
Kraken
Gemini
Kucoin
Coinbase
Gate.io
BitPanda
OKX
Is Litecoin a good investment package?
Litecoin has become one of the investors’ favorites when it comes to cryptocurrency investments. This is based on its low maximum supply of 84 million. Despite having a large market capitalization of $5.3 billion at this point, there are still chances of this coin rising higher in the future. However, there is no guarantee that the price of this coin will keep rising as the crypto market is largely speculative.
Advantages of buying Litecoin
- Litecoin serves for making decentralized payments online.
- Many investors use this coin to hedge against inflation as it has a maximum supply.
- Litecoin provides a means for traders to diversify their portfolios.
- It is very fast for carrying out transactions at a cheaper rate.
Disadvantages of buying Litecoin
- Litecoin, just like every other cryptocurrency, is not regulated today.
- Litecoin is a speculative asset and there is no assurance that the coin will remain valuable in the future.
- Litecoin is not yet a legal tender and not a generally acceptable means of payment.
- Its price movement is usually subject to Bitcoin’s dominance in the market.
Angela Spearman is a journalist at EzineMark who enjoys writing about the latest trending technology and business news.
