High volatility
The crypto market is highly speculative and therefore highly volatile. As of June 2021, Litecoin was among the top 10 cryptocurrencies; as of October 2021, it’s nearing the bottom of the top 20. Given how swiftly things can change, this trend may not be an indicator of things to come, but it’s important for investors to bear in mind when considering litecoin as a speculative play vs. a store of value.
Uncertain future
As noted earlier, when LTC first launched in 2011, traders were intrigued by its innovative use of the bitcoin source code to provide transactional efficiencies. Now that novelty has worn off, thanks to innumerable new crypto contenders, and it’s not clear whether LTC has the staying power to keep investors’ loyal.
Regulatory holdups
Although in theory Litecoin can be used for swifter payments, the reality is that the adoption of crypto as a universal means of payment and legal exchange is still up in the air.
All of which to say, though investing in Litecoin does offer some upsides — the currency has high liquidity, for one, and a full decade’s worth of staying power, for another — it’s not without some risks.