What is Litecoin? – Introduction
It is essential to know the difference between Litecoin (LTC) and Bitcoin (BTC) – the highest crypto in the world – during digital market transactions. Once you know the difference between both, you can increase your profit.
Some questions are arising due to the progress of technology and digital transactions e.g.: What is Litecoin? What is the difference between Litecoin and Bitcoin?
New expressions are arising as a result of the development of the Crypto trading market. Consequently, it is required that the trader always read/learn about this type of asset/investment.
In this article, we will provide you with the best information to have a clear idea of LTC.
We will clarify some questions, as well as inform the market perspectives for the LTC trading market.
What is Litecoin?
LTC is a peer-to-peer cryptocurrency created in 2011 by computer scientist Charlie Lee. The fully decentralized crypto is a global payment network. LTC is not a fiat currency – type of money that is not endorsed by any asset such as oil, natural gas or grains – e.g. dollar (USD) and yen ( ¥). In other words, it is impossible to withdraw this coin from an ATM.
Cryptocurrencies have a decentralized nature. Therefore, they are not regulated by any bank nor other authority. For this reason, LTC and BTC work as a free market.
Miners are responsible for creating new units of cryptocurrencies. For mining digital currency, it is fundamental to have access to a supercomputer as well as a field of knowledge.
How is Litecoin different from Bitcoin?
Although LTC and BTC are digital currencies, there are some important divergences between both coins. Below we can see them.
Transaction speed
LTC is better than BTC for small-amount transactions and day trade, because the first coin has an Estimated Time of Arrival (ETA) of 2 minutes. On the other hand, BTC has an ETA of 10 minutes.
LTC was adapted from an open source code of BTC, however with several modifications. Because of this, there is a difference between these two transaction time.
Processing speed
Blockchain technology is used by miners during the cryptocurrencies mining process. The system can record any information about digital currency. It also distributes exact copies of a database across an entire network. Besides, blockchain protects customer data.
LTCs are created faster than other cryptocurrency e.g. BTC, because their produced time is smaller than the highest crypto in the world.
Unit Limit
LTC’s source code enables creating 84 million coins in total until it reaches its mining amount limit. BTC has a limit of 21 million coins.
Algorithm
Although LTC and BTC use the same proof of work – is the original consensus algorithm in a blockchain network – LTC and BTC have different cryptographic algorithms.
LTC uses the Scrypt algorithm – easier to decrypt. BTC uses the SHA-256 algorithm – older and denser algorithm – it makes BTC mining slower and more difficult than LTC.
What cryptocurrency to invest in?
To decide on which cryptocurrency to invest in, traders need to take several aspects e.g.: How much and why I should invest. Besides, it is extremely crucial to know what LTC is.
Purchasing BTC is the best option for those who have a lot of money, since this coin is the most important cryptocurrency.
Despite that, LTC is more democratic, because investors can purchase more units of it and it is cheaper than BTC.
Consequently, purchasing LTC can be a big deal for new traders or people who don’t have much money for investing, especially if their goal is fast transactions.
What is Litecoin – Conclusion
To make the best investments, it is important to understand the crypto universe. Therefore, you must know that all decisions regarding this universe are yours.
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