Litecoin is among ten most promising and popular cryptocurrencies. This digital coin was created on the basis of Bitcoin, that is why they have many similarities. Now Litecoin is a tool used for conducting payments and it has a lot of features, which distinguish it from other cryptocurrencies.
General characteristics of Litecoin
Litecoin is a decentralized XPS, which has its own currency with the same name (Ltc). The cryptocurrency is a fork of Bitcoin. That means that it was created on the basis of Bitcoin. This is the reason why they have similar characteristics.
Now this cryptocurrency is developing rapidly and it’s raising capital. This has become possible due to the following features:
- Decentralization. Not having a central server makes the system equal for everybody. There are no mediators. Clients speak to each other directly.
- Anonymous basis allows hiding clients’ data.
- Transactions have history, which will be saved in blockchain without any changes. It will not be deleted. All transactions are transparent.
- Ease of use. The system is available for any client from all over the world. The only thing which is necessary is the Internet.
- Deflationary mining implies having a limit. It allows stopping the process at a particular moment. This factor has a positive effect on the price, which doesn’t become cheaper over time due to an increased supply.
- A code is publicly available. That makes it possible to use the basis of the cryptocurrency for your own projects and transform it to become suitable for you.
These features can be also applied to Bitcoin, but Litecoin has its own nuances, which make it much more profitable:
- A quite high level of emission. The limit is 80000000 coins. After 2020, mining will be available only for a quarter of this amount.
- Fast formation of blocks. Each block of 25 coins is created within 2.5 minutes.
- Transactions have a higher level of security due to the speed of operations.
The last point makes it impossible to track transfers. It also solves almost all problems with hackers.
Litecoin cryptocurrency is universal. That’s why it’s so demanded on the market.
The story of creation
The project was developed by Charles Lee from Google. At first, the cryptocurrency was an equivalent of Bitcoin. At that moment the goal of the project was to remove all vulnerabilities, which were made while creating Bitcoin and to set up a more sustainable equivalent on its basis.
The base of the system is a standard code. That’s why there are a lot of similarities between these two cryptocurrencies.
Litecoin was launched in November 13, 2011. At first there was a lack of client programs used within the system, but in 2013, after significant growth, Litecoin was acknowledged as an equivalent of Bitcoin.
In 2017, after activation of SegWit, the exchange rate of the cryptocurrency started to grow. Later Litecoin had different rates, but now a standard price for one coin is approximately 50 USD.
Now the cryptocurrency is among leaders of the market, but there is a significant gap between Litecoin and its competitors. It can be explained by a difficult mining process. Meanwhile, popularity of the currency affects capitalization growth. Now it’s over 3 billion USD.
How Litecoin works
There is a special program as a basis element in Litecoin. This program has an open source code. You need a PC to set up the software. When you go online, you and other clients will connect to the network, which doesn’t have a central server. Integration is conducted by a network protocol.
An algorithm with limits on mining speed and amounts is used for generation in emission form.
The system uses an anonymous connection, that’s why providing data about operations and your account is not required. Emission is limited by a script. Mining implies a procedure of searching for hashes and creating blocks.
All methods of actions are not regulated by a state, as an access to the system will be restricted and impossible.
The cryptocurrency can be mined, exchanged or transferred to other clients as a payment for any services or goods.
Area of use and opportunities
The cryptocurrency has universal opportunities. For example, Litecoin exchanger allows making withdrawals in any currency to a range of XPS.
Due to anonymity and decentralization of the system, mining and saving this cryptocurrency are profitable. The area of its use is not limited, but the most popular directions are the following:
- Investing. The cryptocurrency is used by ordinary traders, who earn money on stocks, and investors, who make a profit, depending on value growth of the digital coin.
- Anonymous transactions to pay for services or to buy goods. As transfers cannot be tracked, such a payment becomes anonymous, That’s why many countries tend to regulate cryptocurrencies.
- Trading in stocks or exchanges to other digital currencies, including Bitcoin.
- Using it as a payment tool.
The last option can be applied to both payments for various online services and transformation of the cryptocurrency to other currencies through exchangers in order to make purchases or standard money transfers later.
Wallets for keeping Litecoin
Wallets for this cryptocurrency are necessary to keep coins. This means that you will need to create a wallet, before you buy Litecoin.
There are several options of wallets, which have an opportunity to keep Litecoin:
- A standard wallet, which should be set up on a personal computer. This option is the most reliable.
- Online wallets. This type is used for keeping coins for a short period of time. It’s better to use more reliable options if you want to save money for a long term.
- Wallets on special platforms in the forms of XPS. Some of such system support cryptocurrency wallets.
- Stock trading platforms also have their own wallets. They are good for those people, who want to trade coins. You should consider other solutions in case of an intention to keep money for a long period of time.
Litecoin is a very popular cryptocurrency, and that is a reason why you can choose any of these options. The most important things to consider are reliability and security of a wallet.
How to buy and sell
Buying Litecoins or selling them can be done using different methods, for example:
- Through exchangers;
- Purchases from individuals;
- Through XPS or cryptocurrency stocks.
You need to create a wallet before making a purchase. The other option to get Litecoin is mining.
The price of Litecoin on different platform can vary, depending on a commission and internal policies of a particular service. If you want to save some money, you can buy this cryptocurrency from individuals, who will sell it cheaper than anywhere else on the market.
Advantages and disadvantages of Litecoin
This cryptocurrency has the following advantages:
- universality of use;
- a great number of options to buy and sell it;
- not having a central server and a lack of mediators.
Litecoin is a popular payment tool. Its most important is a stable development. The downsides are decline in growth and dependence on the cryptocurrency stock itself. But the last point can be applied to all cryptocurrencies.
Litecoin is considered a good payment tool. As a cryptocurrency, it is one of the most capitalized coins. This is related to the fact of having similar features with Bitcoin and having some competitive advantages over it.
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