Similar to Bitcoin, Litecoin is among the top five cryptocurrencies in the online market. The digital currency can easily be sent globally with low transaction fees. Owing to its impressive features, every smart investor wants to invest in this cryptocurrency. As most of the people are unaware about the importance of this digital currency, to make them informed, here are things that everybody need to know about Litecoin.
Released on 7th October 2011 by former Google employee – Charlie Lee, Litecoin is a peer-to-peer cryptocurrency that works on the blockchain technology. Litecoin is the first fork of Bitcoin that uses scrypt hashing algorithm instead of SHA-256 algorithm. In November 2013, Litecoin experienced rapid growth that includes 100% increase in just 24 hours. It reached a market cap of $1 Billion in the same month. Then in May 2017, Litecoin became the first cryptocurrency that adopted Segregated Witness.
Value of Litecoin
Litecoin is like Bitcoin in many things so it is valuable. Until now, just 84 Million Litecoin exists and it creates the scarcity and increases its value. The cryptocurrency can be sent anywhere across the world with low transaction fees and all this increases the value of Litecoin.
At present, Litecoin mining is totally different from the way it used to be. Today, there are many methods of mining Litecoin, such as joining a mining pool, hardware mining, and Litecoin cloud mining. When two users successfully confirm a transaction, and add a new block (set of transactions) on the blockchain that is called Litecoin mining. Post this, each miner is paid out block reward or you can say new Litecoin as per their effort. In the initial times, Litecoin price was $32. Now, one Litecoin (LTC) = $56.47. Therefore, it can be easily observed that this cryptocurrency is rapidly growing in the market.
How to Purchase Litecoin
As Litecoin is one of the top 10 cryptocurrencies, so it is easy to purchase Litecoin in comparison to other altcoins. There are many ways of buying Litecoin, such as exchanges and trading. The easiest way to buy Litecoin is purchase it with Bitcoin. This is the fastest approach used by most of the users. In case, you reside in Africa, Asia, and South America then it is better to first purchase Bitcoin and then convert them in Litecoin.
There are around dozens of Litecoin exchanges from where you can buy Litecoin for dollars and euros. For instance, investors of UK can purchase Litecoin from exchanges through domestic banking transfer; however this is not possible in most of the countries.
You might think that the easiest way to buy Litecoin is using an exchange and doing fiat wire transfer; however this is not an easy process for plenty of reasons. Therefore, it is advisable to use popular Litecoin exchanges to avoid any loss.
At present, Litecoin wallets is limited as Bitcoin is the only cryptocurrency that most people wants to invest in and use on regular basis. Therefore, the demand for Litecoin wallets is not much. Offline storage of coins and protect Litecoin from hackers are two important features supported by only a few Litecoin wallets. If you are looking for long-term secure storage of Litecoin, then hardware wallets are an ideal option for you.
Litecoin Vs Bitcoin
The major benefit Litecoin has above Bitcoin is its unique features. As compared to Bitcoin, Litecoin has four times better transaction capacity. Secondly, Litecoin is a bit faster than Bitcoin. The average block time of Litecoin is 2.5 minutes and Bitcoin’s average block time is 10 minutes. However, Litecoin has much space for growth and less use cases when it comes to Bitcoin (BTC).
Hash rate of Litecoin will grow if price increase; however for the timing Bitcoin is the most preferred cryptocurrency in the mining industry. In terms of acceptance, Bitcoin is the leader that helps merchants in trading. On the contrary, Litecoin does not have this support. Bitcoin has a large group of developers; however Litecoin not as many. In addition, Litecoin code is also ported above Bitcoin.
Bitcoin is the most stable cryptocurrency as it is available in most of the markets and Litecoin is at second place. For buying and selling, OTC markets are available in the industry. For Litecoin, these markets may be available but they are not popular.
After Bitcoin, Litecoin is the second cryptocurrency that has high demand in the mining industry. If you are new to this industry and planning to invest in Litecoin, then you should start with Litecoin cloud mining. To start with this, all you have to do is choose a reliable cloud mining service provider, select a purchase plan, and thereafter you will be provided with a hash rate. Use that hash rate to mine Litecoin and earn ROI on investment.