Do you listen to the headlines in the news every day? then you must be updated on the current emergence of the new cryptocurrencies. The digital coins have come up to make the way e-trade ore easier and faster. There are so many types of cryptocurrencies in existence for you to explore.
Which are you into? Bitcoin, right? well, I can’t blame you since bitcoin has been around for a long time. People seem to trust the currency and they are willing to buy and trade with it. Do you know there is a better currency than bitcoin?
Well, it was not created to compete with bitcoin but to act as the silver while bitcoin remains to be the gold. The aim of the inventor was to give the investor a chance to have a more cheap and efficient currency that they can trade with online and to everyone surprise, it surpassed its expectation.
The thing with bitcoin is that it has been overvalued for long. Many investors have been looking for a new and more exciting currency with a better performance than bitcoin but have the same convenience and properties as bitcoin. That is how Litecoin was invented.
What is Litecoin?
You must have heard about it, on the internet or in the stock exchange. It has been the talk of the exchange industry with its performance surprising many. Am sure you are wondering what it right? well-read along as I tell you more about the currency
Litecoin is a digital currency just like bitcoin and Ethereum. It is considered as a peer to peer crypto currency, an open source software project that as realized. Just like bitcoin, it is not managed by any central authority making trade across border easier and faster.
Litecoin being an open source global payment network gaining popularity, it enables almost zero cost payment to anyone around the world. As you have noticed, you can’t talk about Litecoin without comparing it with bitcoin. That is because it uses the same technology and logic.
Origin of Litecoin
To understand more about Litecoin, you need to know about the origin and how it came to be. This will make you have a background of how the coin came to be;
On 7th October 2011, a guy by the name Charlie lee created the Litecoin. He was actively involved in bitcoin until he came up with the coin. He said that it was meant to compliment the bitcoin and solve the problem like concentrated mining pool and transaction timing.
Unlike the Bitcoin inventor who remains unanimous, when it comes to Litecoin, the inventor is an ex-google worker who is an active social media user. It has made things easier for people like you and me who wants to know more about Litecoin because he answers all the questions aired.
Since the origin, the Litecoin has been performing well in the exchange market with the latest surprise being this year increased by 7291% this is a significant rise compared to bitcoin which saw a rise of 1731%
How does Litecoin work?
Like mentioned earlier, it was meant to be a silver version of the gold which in this case is the bitcoin. It was meant to change how bitcoin work. It was meant to let the normal guy like you and I be able to still trade the coin but how?
- Core logarithm
First, the inventor changed the original core logarithm of sha-256 to crypto- algorithm. What they have in common is that both are a proof of work but when it comes to crypto-algorithm came to make mining difficult. That is because for you to mine the telecon, you need a larger memory that sha-256 dint has.
What does that mean? It means that it regulates the number of Litecoin that is being mined. What is by making the mining math difficult and harder to crack. The core kept off ASIC microchip that was used in mining bitcoin.
- Reduce block confirmation
Litecoin reduced the rate at which transaction is confirmed. For bitcoin, it takes a whole ten minutes for a transaction to be confirmed. When it comes to Litecoin, the confirmation time is 2.5 minutes. That eliminates loopholes for fraud and that means more transaction and mining can be done.
In every bitcoin confirmed, four Litecoin transaction is confirmed and mined. That means you will have 4 lite coins in every bitcoin confirmed. That has made the emergence of Litecoin more rapid and faster.
- There is more of Litecoin to be mined
Due to the increased rate of transaction confirmation, it leads to more Litecoin being mined. Like mentioned, in one bitcoin confirmed, there is 4 Litecoin being confirmed and mined. It means with 21 million bitcoins, there is a fourth number of Litecoin being mined.
Currently, there is no more bitcoin being mined and it stands to 21 million. There are 84 million Litecoin mined up to date. Of this, 53 million are in circulation and 31 million are yet to be mined. That means Litecoin has a substantial trade support for trade volume and liquidity.
Website to buy Litecoin
Just like any other cryptocurrency, it becomes difficult to buy or sell Litecoin online. That is because of the liquidity of the coin. Liquidity is the amount of Litecoin that is flowing through the market at any given time.
The good thing about Litecoin is that it has sufficient liquidity and that makes it possible to buy the coin in US dollars, euros, and other countries currencies that are acceptable. With the information that you have, you can search online and know where to buy the coin.
For beginners, the best place that you can buy the Litecoin currency in a cheap and easy way is by buying through coin base. You can find them online and all you must do is confirm whether they serve your country. If they do, go ahead and register on their portal and buy then currency.
When purchasing at the coin base. You will need to carry some identification with you. that is because when it comes to Coinbase, they are strict when it comes to financial matters, you need to adhere. Once you get to the site, you will sign up and get a registration form to which you will fill.
On registration, you are required to fill your name email and you will be needed to choose a password. Coin base will send you a message via email to verify your email and once you click on the link provided, you will be directed to a verification page.
In the verification page, you need to add your phone number and upload a photo of your ID. You are also required to add a payment mode. It won’t take long to verify your account and once the account is ready, you can make your first purchase using the account.
If that doesn’t serve your country, don’t worry, you can still trade with the bitcoin that you have. That is by using the bitcoins that you must buy Litecoin. You can also buy in other sites which include;
Features of the Litecoin currency
For you to understand more about Litecoin, you need to know what makes Litecoin different from the rest or ho can you identify Litecoin? Litecoin has three distinctive features that make it different and unique from the rest, this include;
The blockchain is made in a way that it can handle a high volume of transaction than any other currency. That was made possible by implementing various technical aspects to speed up the process. For Litecoin investors, they have seen the benefits of this through its efficiency and lower cost.
When it comes to the mining of this currency, Litecoin uses an algorithm called crypt. That determines the mining of new coins and allows a similar higher degree of mining by allowing accessibility to new miners who may be willing to mine.
Using the new algorithm helps in the mining of new Litecoin without the use of ASIC- based mining hardware. Currently, miners are given 25 new Litecoin per block. The amazing part of this is that this amount is halved way four years which is 4 times that of bitcoin maximum supply.
Initially, Litecoin as made to function like the bitcoin, that explains why they have many similar characteristics. Still, Litecoin has been gaining popularity since it is well integrated and enjoys support from investors who are looking for an alternative currency.
Litecoin is widely spread and is being accepted by exchanges, ATMs, online and offline traders, the casinos and investors. With that, minors and investors of the coin are seeing a brighter future with the coin since you can comfortably trade with the currency.
Yes, when you are dealing with cryptocurrency, it is wise and advisable to have where you can safely keep your currency when you are not trading them. There are several wallets on which you can store your Litecoin;
- Hardware wallet. You can use the trezor and the ledger wallets.
- You can download any supported online wallet from your device.
How is Litecoin different from bitcoin?
Cryptocurrency can be a hard nut to crack especially if you are a new investor. You can be overwhelmed with the many currencies coming up and their juicy good part about them. In the case of Litecoin, it is hard to differentiate between the coin and bitcoin
If you are a beginner, I know after reading all this, you might be confused as to what is the difference between bitcoin and the Litecoin. It is true, Litecoin as designed to be the silver version of bitcoin, then how is it different? Let us look at these three factors
- The rate of confirming transactions
In bitcoin, its algorithm allows only one transaction to be confirmed in every 10 minutes. Hen it comes to Litecoin, the transaction gets faster. Its algorithm allows confirmation of transaction after every 2.5 minutes. That means Litecoin limits fraud chances hence secure.
- Number of coins created
It is the number of coins that can be mined at one time. For Litecoin, its algorithm allows it to create a total of 84 million. When you look at this number compared to the bitcoin one, it is four times of the bitcoin. Faster confirmation of transaction leads to faster mining of the Litecoin.
- Cryptography algorithm
Like mentioned earlier, they both use proof of work algorithm, for bitcoin, the sha256 hashing algorithm has been used to mine the coin. When it comes to Litecoin, the crypt hashing algorithm is used. The Litecoin algorithm is CPU intensive on machines made to mine bitcoins
Future of Litecoin
According to traders, investors and people trading online, the future is bright. More than more people are getting acquittance to the coin and they are loving it. the value may not be like of that of bitcoin, but there is still time for it to reestablish itself.
Litecoin is in many ways an improved version of bitcoin with less awareness compared to bitcoin. that can only mean one thing, with more awareness and trust in the coin, its value can trade at a high rate and more people will consider trading with the coin too just like they do with bitcoin.
For you as an investor, it is time to explore. There is no harm in investing in the coin. With the information at hand, you are promised of a secure and easy way of trading using the coin. You need to get the coin and have your own experience.
Cryptocurrency is the new way to go when it comes to how people are trading. With the emergence of different currencies, its time for you to explore for a better currency which will be faster to confirm and will be more in circulation. The best solution is the Litecoin.