Litecoin is a digital currency that was announced in 2011. After the launch of Bitcoin as the first cryptocurrency, many companies launched their cryptocurrencies with an aim to provide more unique and benefiting features. Within a very short duration, Litecoin became the second highest currency having a huge number of miners and market cap.
Here’s all you need to know about this highly speeding cryptocurrency trend:
What is Litecoin?
Litecoin is among the best peer-to-peer cryptocurrencies and an open source software project released in 2011. This is a decentralised framework where the development and sharing of currency is done through an open source cryptographic protocol.
Its development resembles Bitcoin, but also has some unique factors when it comes to encryption algorithms, block generation period, maximum number of coins and much more. It costs almost zero payments to the users and controls its own finances.
Being the second well known cryptocurrency after bitcoin, Litecoin faces comparisons with Bitcoins in several areas. Let’s go through the features which distinguish Litecoins from Bitcoins and other cryptocurrencies:
1. Transaction volume and speed:
The transaction volume of Litecoin is 2.5 minutes which means, the transactions occur more frequently and quickly. The waiting time for customers is quite less and the speed of the system is very high. Bitcoin, however has the transaction volume of 10 minutes which is comparatively very high! This feature was developed to fight the issue of scalability where the number of transactions processed in a time can be high. This simply means that the timing of processing transactions for Litecoins is 4 times faster than the bitcoins.
2. Cost of transactions:
Litecoin offers the best cost for transactions which is nearly zero. The transaction cost of Litecoin is $0.09 while that of Bitcoin is a whopping $5.00. In this, Litecoin wins the argument as for small transactions; Litecoin will be a very convenient option to choose. If you are looking for small transactions, you definitely won’t choose to pay $5.00 for bitcoin transaction!
Mining is one of the unavoidable aspects while investing in any cryptocurrency. The aim of Litecoin was to decentralize the mining benefits between all the miners. The current number of maximum Litecoins is 84 million while the bitcoins are 21 million. Having a lot of transactions happening at a single point of time with 84 million Litecoins in the market is not an easy task and surely highlights scalable development.
The miners are quite good in benefit as Litecoin has announced to produce more Litecoins and are offering 25 Litecoins per block.
4. Best hashing algorithm:
Litecoin uses Scrypt algorithm which uses less processing power than other algorithms. Litecoin also focuses on using high speed ram for speedy processing of transactions. This makes Litecoin able to rule the cryptocurrency world! Charlie lee has experience in working with best cryptocurrency exchanges along with his work experience at Google which also makes Litecoin more reliable and trustworthy!
5. Better blockchain:
Blockchain is the first thing which is considered to measure the success rate of any cryptocurrency. Each transaction which happens in a digital network is recorded in a block which starts developing into a block chain. The litecoin blockchain develops a new block every 2.5 minute which is quite more than other currencies. This simply means more number of transactions and more speed.
6. Easy purchase
You can buy the Litecoins more easily. Compared to the other Altcoins, purchasing the Litecoins is quite flexible. First, the number of Litecoins is quite high where each miner can get his share. Secondly, you can also purchase Litecoins with your credit card or bank account. There are mediums like coinbase and Bitpanda from which you can easily buy and convert the litecoins.
Apart from this, the security features for Litecoin is almost similar to the features of other cryptocurrencies.
Is Charlie lee’s Litecoin worth your investment?
- Litecoins provide secure, speedy and cost effective transactions
- Number of coins is 84 million which is highest compared to the other currencies
- Founder Charlie lee is has a strong working experience with cryptocurrencies and is available and socially active and
- Best encryption for securing wallets and transactions
- Improved version of bitcoin
Risks with investing in Litecoin:
- Change in value of the currency
- The system is decentralized and can face the issue of cloning and security threats
- Wallet thefts and volatile market prices
- Cut throat competition from Bitcoin
Just like the other cryptocurrencies, there are certain risk factors associated with investment in Litecoin but, investing in Litecoin can be a best option at a given point of time. With the best encryption mechanism, high transaction speed, low transaction costs and reliable team, it is worth it to give a try and invest in Litecoin.
It is one of the fastest growing currencies which has gained popularity and is a best option for small and large transactions makers.