An Overview of Litecoin: How It Is Different from Other Cryptocurrencies

An Overview of Litecoin: How It Is Different from Other Cryptocurrencies

Individuals who haven’t been in the saga of cryptocurrencies, the concept of litecoin may come as a surprise. It is even more surprising that it is the currency that has no intrinsic value but still remains a volatile commodity for traders and investors across the world. For those who have kept themselves up with conversion rate for cryptocurrencies, it is obvious that the validity of such type of currency is the key player to attract investors’ attention toward this field.

Recent changes in the value of digital currency and the bankruptcy of one of the world’s biggest platforms has questioned the future of this money. Nonetheless, experts of the field reassure those investors who want to utilize litecoin and bitcoins that the “fad” leading to cryptocurrency is likely to stay here longer.

Brief History of Cryptocurrencies and Litecoin

Litecoin is the first byproduct of bitcoin that was started in October 2011 by Charlie Lee. It is one of the digital currencies that enable instant payments to anyone around the world and can be mined (produced) through consumer-grade hardware. Litecoin and other types of cryptocurrencies are used as one of payment methods for products, services and transaction fees. Some currencies, such as, bitcoins and litecoins can also be exchanged with real money at a set rate.

As the first digital currency emerged, some experts were concerned that this type of money might be used for illegal activities since they are easier to exchange and much launder than traditional currency. For instance, bitcoin BTC was caught up in a website of prohibited drugs some time ago. Many people believe that there may be many other examples of illegal use of digital money which however haven’t yet been reported.

The value of cryptocurrencies has been raving since their invention. Bitcoin value, for instance, witnessed a 90-fold increase in 2013, generating hype in the market. In 2014, the situation was quite opposite with a 50 percent drop in the value which also led to speculations that digital money is soon to expire and will go out of sight. Nonetheless, it is too early to declare cryptocurrencies, especially litecoin and bitcoin a failure. While experts in the financial world have diverse opinions on the subject, there are also some who claim that digital money is going to have a place in future’s financial markets.

Litecoins & Their Uses

As decentralized digital money, litecoin can be used to purchase services and products online. This type of currency can only be mined or traded. Miners use computer and relevant software to solve complex mathematical equations in order to get rewarded with virtual money. Almost any good computer can be used to mine cryptocurrency, however, statistic reveal that chances of success are low as it take several days to make a couple of litecoins only.

The best part of litecoins is that they offer merchants an easy and safe way to accept payment since there are minimal or no fees to send and receive money. The software used by litecoin allows you to send funds just like your send emails. The overall production of litecoins is likely to be 84 million which means you do not need to worry about the inflation that can affect the value of your currency.

All litecoin payments are recorded through a strong online system – blockchain that acts as the public ledger and enables the receiver to immediately verify the payment and the sender without having to manually research it. For instance, a customer in the USA can receive funds from someone in London in a matter of seconds whilst both parties obtain clear evidence that the transaction has made and stored on the public ledger.

Anyone in the world can use litecoins and enjoy the advantages of digital currency. The transaction fees associated with this currency are significantly lower than of credit card and bank transfers. Also, litecoins can be used to make exchanges, carry out trades, and shop online. You use these exchanges to trade dollars, euros and even more into digital currencies. Since there are endless possibilities that come with cryptocurrencies, you can protect your financial investment by trading your real money into litecoins. This will help you make exchanges without having to worry about value depreciation of new currency.

No matter what product or service you are looking for, using litecoin can be an excellent way to shop online. They can also come handy to protect your investment by securing them from inflation and other external factors affecting the value.

How Litecoins are Different from Bitcoins

Although litecoin is a byproduct of bitcoins, there are several characteristics that make it different from the first-ever digital currency. These include the following.

  • Litecoins can be bought faster than bitcoins.
  • The limit of bitcoin is set to 21 million while litecoin’s limit is 84 million.
  • While bitcoins are being accepted by more online merchants, litecoins are rising greatly in the popularity.
  • Litecoin is more likely to cost lower than the cost of bitcoin because of a wide recognition in the financial world.

Final Words

Litecoins are a type of digital currency that can be mined and used for several purposes, such as buying and selling different products and services online. Seeing that this type of money can only be used online, you can determine its value by seeing its demand on various currency trading websites and platforms. Like bitcoins and other cryptocurrencies, litecoin can only be mined though the mining process is a very complex task. The best way to make the most out of cryptocurrency trade is to employ the services of a litecoin broker. They are the individuals who will make sure that your trades go smoothly with the help of various tools and resources they have to offer you. You not only get continual updates on the subject but also get an insight on what exactly litecoin is and how it can be obtained and used in addition to trade for it.

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