Can the crypto reach $500?
CRYPTOCURRENCIES including Litecoin have garnered attention from investors in 2021 – but they come with plenty of risks.
Whether you decide to invest in either Bitcoin or its little brother, both come with a number of risks because they are cryptocurrencies.
When it comes to buying crypto in particular – you’ll want to be cautious in the extremely volatile space. If you aren’t – you could lose a lot of money quickly.
Just ask investors who were unfortunate to buy at Litecoin’s all-time high of $412.96 in May.
Although Litcoin has seen some gains in the past couple of week, investors still find their value in the cryptocurrency down by more than half since May’s peak.
Also, be aware of fees and charges. These can cost more when compared with regulated investment products.
Plus, there’s scant regulation for crypto firms, so you’ll likely be without protection if things go wrong.
While Litecoin seems like an enticing bet, make sure that you don’t invest in anything that you don’t understand.
What is Litecoin?
As the name indicates, the cryptocurrency is small.
But Litecoin, which was established in 2011 by Google engineer Charlie Lee, operates similarly to Bitcoin.
Mr Lee on occasions refers to Litecoin as the “silver to Bitcoin’s gold.”
The two cryptocurrencies act similarly in how their global payment operations are set up. Both are not controlled by financial institutions.
Like most cryptocurrencies, Litecoin uses blockchain technology for processing and recording transactions.
While Litecoin is smaller, it is a quicker and cheaper alternative when compared to Bitcoin.
Currently, Bitcoin commands a market capitalization that exceeds $1trillion, while Litecoin’s valuation lies just below $12billion.
Will Litecoin hit $500?
As stated before, Litecoin exploded to $412.96 in early – the closest it has ever gotten to the $500 mark.
Now, however, Litecoin trades at $174.90. In the past 24 hours, Litcoin has risen 3%.
While China has banned all cryptocurrency transactions, big brother Bitcoin has gained on recent favorable news coming from the U.S.
This can be attributed to Gary Gensler, chair of the US Securities and Exchange Commission, repeating his support for Bitcoin exchange-traded funds (ETFs).
Odds are this helped give Litecoin a boost as well.
Now the question is will it return to its enormous gains any time soon? And will it reach $500?
A bullish forecast comes from PrimeXBT, which made a bold prediction in September for 2021: “If support can hold, after some sideways price action Litecoin could explode to around $7,000 per coin, based on the measure rule,” it said.
But others aren’t as sanguine on the cryptocurrency surpassing the $500 mark by the end of 2021.
In 12 months’ time, the price of Litecoin could exceed $255, according to Wallet Investor.
But near the end of 2026, Wallet Investor sees Litecoin exceeding $557.
Then there are more bearish cases from others such as LongForecast, which projects the price of Litecoin to range from just $161 to $206 at the end of 2024.
Plus, check out four things you need to know about Dogecoin.
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