Litecoin – another famous coin in the crypto world

Cryptocurrency has expanded its global reach with more than 18,000 various types of currencies. Find out how one, Litecoin, works.

Litecoin works just like the most famous cryptocurrency, Bitcoin, but with a different algorithm and mining process. Created in the year 2011, Litecoin was made to break the record of Bitcoin being popular so massively within a short time.

While Bitcoin is now declared limited in quantity and requires very high energy for mining, Litecoin was introduced using the Bitcoin Blockchain as an alter coin for Bitcoin. It now holds a market capitalization of $8.7 billion. Buy and sell bitcoin using platform for competitive market rates. 

Litecoin was developed to be used in day-to-day processes. It is a peer-to-peer digital currency just like bitcoin. With similar features to Bitcoin, it is also a computational system that needs graphics processing. It is easy to mine and takes lesser time. The ability to be processed in lesser time made it look more efficient in the growing era of cryptocurrency. 

Use of Litecoin

Litecoin is a type of cryptocurrency used to perform transactions among businesses or individuals. It stores the address of the transaction and enables tracking of the currency shift performed. Since it is a decentralized form of currency, it is also free from the involvement of third-party such as the government. 

The difference between Bitcoin and Litecoin

Litecoin is an altcoin of Bitcoin that was created using the same Blockchain but with an altered algorithm. The term altcoin is generally used to indicate cryptocurrencies other than bitcoin. 

  • Litecoin was created to bring more efficiency, but it could not get as many eyes as expected as bitcoin.
  • Litecoin is the preferred crypto for investors but, Bitcoin still holds more value among investors. 
  • Different cryptographic algorithms are used by Bitcoin and Litecoin: Scrypt is used by Litecoin, whereas Bitcoin utilizes the SHA-256 encryption method. 
  • The market capitalization of both currencies differs with a higher gap. 
  • Since the number of Bitcoin is limited, Litecoin can be produced in a higher amount. Bitcoin is fixed up to 21 million whereas bitcoin is 84 million.
  • Litecoin takes less time in transactions than Bitcoin. A bitcoin transaction takes almost 10 minutes whereas litecoin takes 2 to 8 minutes.
  • The cost of Bitcoin and Litecoin is a differentiating factor since Bitcoin is quite expensive and Litecoin is relatively cheap.

Litecoin supply

Litecoin was said to be present in the number 84 million when they were created. Over the years, now only 14 million Litecoin can be mined. The limited stock is maintained to hold the value of Litecoin. It is relatively easy and time convenient to mine compared to Bitcoin.

Where can you buy Litecoin?

As cryptocurrency is accepted in many countries around the world, litecoin can be bought through any cryptocurrency exchange application. It follows an easy-to-perform transaction process while maintaining the security and authenticity of the cryptocurrency. In trading exchanges, you can buy litecoins with fiat currencies. You can also buy it with other cryptocurrencies.

Litecoin profit over the years

Litecoin has seen exponential growth in its value over the years. In the year 2017, it experiences a hike of about 500% within four months. The history of the pricing of Litecoin mentions a lot about its efficiency. It has seen great highs and lows from the year 2011 until now. 

Litecoin as an investment

While many users persist in investing in cryptocurrency and Litecoin, others also advised resisting because of the volatility of the currency. However, it is totally from the perspective of the investor since cryptocurrency is said to be the future currency. You just need adequate knowledge about the whole market and the said currency before getting into investment.

The first alternative to Bitcoin

When the cryptocurrency was introduced into the market, it was said to be unique in its origin. But in 2011, when Litecoin was introduced, it stood as an alternative to Bitcoin. This alternative was faster in the transaction but also faced criticism regarding its volatile nature in value fluctuation.

Litecoin is a faster and cost convenient form of peer-to-peer transaction, but with all its pros comes a few cons. Not least of which is the volatility of the crypto currency market, and associated risk factors when investing.