Everything You Need to Know About LiteCoin. How to Invest in LTC

Litecoin is considered the first alternative cryptocurrency. It was launched on October 13, 2011 with the goal of becoming “silver compared to Bitcoin gold” and remains one of the largest cryptocurrencies by market capitalization.

Initially, LightCoin was not positioned as a leadership contender, but as some alternative to Bitcoin. Therefore, LightCoin is one of the cryptocurrencies called altcoin.

Like Bitcoin, Litecoin runs on an open-source blockchain that is not controlled by any central authority. Each Litecoin node operator has a copy of each blockchain to ensure that new transactions do not contradict the entire story, and miners help process new transactions by including them in mined blocks.



Difference Between Litecoin and Bitcoin

The main similarity is that Litecoin, like BTC, is a peer-to-peer (P2P) cryptocurrency based on a blockchain. The last bitcoin and the last Litecoin will be mined at the same time.

However, LTC was developed to eliminate some supposed disadvantages of Bitcoin, so Litecoin and Bitcoin have some key differences. The 1:4 ratio is typical.Halving in Bitcoin’s network happens every 210,000 blocks, in Litecoin’s network – every 840,000 blocks.

LTC’s supply is limited to 84 million coins, bitcoins can be mined for a total of 21 million.

Because the blocks in Litecoin are four times faster, the complexity of mining in its network changes faster.
Litecoin aims to make it easier for merchants to accept payments, so transactions are faster than in the Bitcoin blockchain. On average, one Litecoin block is mined in two and a half minutes, four times faster than 10 minutes for the Bitcoin network. This means that merchants who accept only secure transactions do not have to wait an hour for six confirmations on the network.

While Bitcoin uses the SHA-256 hashing algorithm, Litecoin uses Scrypt. The Scrypt hashing algorithm was designed specifically to avoid potential attacks to provide greater protection against brute force attacks. 

 

Is it Worth Buying Litecoin?

In 2013 and 2015, a single Litecoin was worth less than $2, and in October 2021, by its 10th anniversary date, it had risen to $170. A tenfold increase is impressive, of course, but during the cryptocurrency rally that took place from the fall of 2020 to the spring of 2021 ,Litecoin(+11%) barely managed to overcome the highs of December 2017, unlike Ethereum(+210%) and Bitcoin(+220%).

The comparative dynamics suggest that the intrinsic value of Litecoin is not growing in the same way as other coins. Perhaps this is due to fundamental reasons. And/or Litecoin is not as interesting to institutional investors. When deciding to buy Litecoin, take into account that past performance does not guarantee a continuation of the future trend. 

 

Conclusion
Litecoin has traditionally lagged behind Bitcoin and Ether, and the gap is widening. At the same time, strong new competitors are crowding out Litecoin, which at the time of publication of this article is ranked 15th with a capitalization of $12 billion. 

Given this information, Litecoin looks like a better market for short-term strategies than an asset for long-term holding.

 

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