What is Litecoin (LTC)? Table of Contents
What is Litecoin?
Litecoin is a decentralized peer-to-peer currency (also called cryptocurrency) based on the Bitcoin system.
The creators of Litecoin wanted to adapt the Bitcoin model to develop a more stable and efficient currency.
However, there are several fundamental differences between Bitcoin and Litecoin, including the way in which currencies are “mined”, the security procedures, and the number of coins that will be produced in total.
In 2013, the value of Litecoins jumped from $ 0.01 to over $ 20.
The updated price for 2017 is $ 4.19 Will Litecoin be able to return to the levels of a few years ago?
How was Litecoin born?
Litecoin was first placed on the market in October 2011 by Charles Lee.
Since then, Litecoin has become the second most traded virtual currency in the world (Bitcoin is in the first place) with approximately 44 million dollars in circulation on the market.
After two years of “apprenticeship” in the market, Litecoin experienced strong growth in 2013 reaching a share capitalization of $ 136.5 million.
Over the years, the Litecoin developers have covered multiple security and trading flaws, making this virtual currency highly secure and reliable.
What are the differences between Litecoin and Bitcoin?
Litecoin currently has several advantages for the trader compared to Bitcoin:
- Speed of transactions
- Litecoin takes about two and a half minutes to make a transaction while Bitcoin takes about 4 times as long (approximately 10 minutes).
- Both cryptocurrencies boast maximum security but different algorithms are used to encrypt the data. Litecoin uses script, a more complex version of the SHA2 algorithm used by Bitcoin.
- Greater liquidity
- The maximum limit of Litecoin available on the market amounts to about 80 million dollars, 4 times higher than that of Bitcoin.
Litecoins, as well as Bitcoins, can be exchanged for real money through special online platforms
The exchange between the virtual currency Litecoin and the US dollar (LTC / USD) is one of the most numerous every month but also Litecoin and precious metals are highly appreciated among traders.
In recent years, several cryptocurrencies have been born in an attempt to improve bitcoin, for example, Peercoin, Ethereum, or Ripple but none have had the same success as Bitcoin or Litecoin which are currently considered the most reliable virtual coins.
How to buy Litecoins?
Unlike real money that is issued by the central bank, Litecoins can be obtained in the following ways:
- Exchanging them for real money on special online trading platforms;
- Litecoin mine: an expensive and complicated process that requires the use of the latest generation technological equipment;
- Exchanging them with Bitcoins (BTC / LTC). It is possible to operate on Litecoin CFDs: all the advantages of cryptocurrency with those of contracts for difference together.
The future is on the side of cryptocurrencies.
Thanks to increasingly advanced technology and with more and more virtual transactions (these are almost totally replacing those with real money), virtual currencies such as Litecoin and Bitcoin will play an important part in the world of finance in the coming years.