Simply Put: Is Investing in Litecoin Risky?

Litecoin is a peer-to-peer cryptocurrency network and open-source project that expands upon the original technology behind Bitcoin. Litecoin was among the 1st altcoins to enter the market and is currently the 5th largest cryptocurrency in the world in market capitalization. Litecoin offers a number of benefits for users over Bitcoin, including faster processing speeds, fewer opportunities for hackers and lower transaction costs.

While Litecoin does structurally improve upon Bitcoin’s technology, it still presents risks to investors. Litecoin’s rapidly aging infrastructure is no longer as unique as it was when the coin debut in 2011, with many altcoins now offering the same benefits and efficiency. Litecoin’s founder, Charles Lee, also sold his stake in Litecoin in 2017, which has affected investor confidence. 

Where to Invest in Litecoin

Investing in Litecoin (or any other type of cryptocurrency) typically begins by opening an account with a crypto broker. A crypto broker offers you access to a trading platform where you can buy and sell cryptocurrencies by placing buy and sell orders. Like a stockbroker, your cryptocurrency broker will execute orders that you place on the platform on your behalf.

There are dozens of brokers offering access to the cryptocurrency market. Some of the factors you might want to consider when you choose a broker might include:

  • Coin access: There are thousands of cryptocurrencies in existence, and no single broker will allow you to buy and sell all of them. It can be helpful to make a list of cryptocurrencies beyond Litecoin that you want to invest in to be sure that the broker you choose fits all of your needs.
  • Trading platform: Some crypto brokers focus on providing a simple, streamlined ordering process, while others appeal to more advanced investors with charting platforms and analysis tools. Your experience trading will determine which type of platform is best for your needs.
  • Fees and commissions: Most cryptocurrency brokers charge a fee or commission on each crypto purchase or sale you make. Research each broker’s fee schedule before you open an account, as fees can quickly cut into your profits if you’re a frequent trader.

Not sure where to begin your search? Consider opening an account with a few of our favorite beginner-friendly brokerages offering access to Litecoin.