What is Litecoin?
Litecoin (LTC) is one of the most traded cryptocurrencies and was released in 2011, two years after Bitcoin. Whereas Bitcoin is often compared to gold, Litecoin is seen as silver.
The technology of Litecoin is based on that of Bitcoin. And Litecoin has gone through rapid growth since early 2017.
How can I use Litecoin?
Litecoin can be used to pay for products and services. Being one of the most prominent cryptocurrencies in the world, an increasing number of companies have started accepting Litecoin payments.
The mission of Litecoin’s founders is to create a cryptocurrency that can be used for small daily transactions, both online and offline.
Who founded Litecoin?
Litecoin was invented by Charlie Lee, a San Francisco-based entrepreneur and former Google employee. Lee envisioned a coin that could be used on a day-to-day basis, whereas he saw Bitcoin as more of a savings vehicle.
Lee still works on Litecoin full time, although he sold his own LTC to avoid any suspicions of a conflict of interest and to create more transparency about his role in the development of Litecoin. Being a highly visible figure in the cryptocurrency market, this has helped Litecoin gain popularity all over the world.
Litecoin vs. other cryptocurrencies
The technology that both Litecoin and Bitcoin rely on is near-identical, although some important differences exist. An important difference for users is the average time it takes for a transaction to be confirmed.
It takes about 10 minutes for an average Bitcoin transaction to get through. For Litecoin, however, this is a mere 2,5 minutes. In addition, Litecoin is mined using a different algorithm type than Bitcoin, which can be read about below.
Another difference is Litecoin having more coins on the market and a higher maximum amount of coins to be mined. The price per Litecoin is, therefor lower than the price per Bitcoin. It also avoids having to trade with a fraction of the coin, which can be confusing.
What does the future hold for Litecoin?
As with all cryptocurrencies, it is hard to predict where Litecoin will stand in 10 or even just 2 years. For some time, however, Litecoin has established itself as one of the more popular cryptocurrencies available on the market. It seems that Litecoin is here to stay.
How is Litecoin created?
Litecoin uses an algorithm called ‘Scrypt’ for mining. In contrast to Bitcoin, which uses the processor-intensive SHA-256, Scrypt is more memory-intensive for systems. This means it is relatively easier to mine Litecoin than Bitcoin with a regular computer system.
This has resulted in Litecoin becoming a fairly accessible cryptocurrency for beginning crypto enthusiasts, contributing to its popularity.
Can I earn money with Litecoin?
Yes, it is possible to make money with Litecoin. By the end of 2017, one LTC was worth about 80 times as much as it was during the start of 2017. However, as with all cryptocurrencies, Litecoin is volatile and constantly moving.
It is possible to make a large profit in little time, but it is also possible to lose a large portion of your investment. Be aware of the risks and always trade responsibly.