In recent years, cryptocurrencies have gained popularity amongst the common public. Not just them but famous public figures like Paris Hilton, Bill Gates, 50 Cents, Mike Tyson, Kanye West, and many more own cryptocurrencies. The idea of a decentralized platform has attracted many with its advantages. And, out of all, Litecoin cryptocurrency is one of them. But, what is litecoin, and how does it work?
Well, don’t worry. This is the mini-guide that will tell you everything you need to know about Litecoins.
What Is Litecoin?
Litecoin is a popular alternative cryptocurrency that was introduced in October 2011. The platform was created by a former Google engineer named Charles Charlie Lee. The idea was to adapt to the advancements of bitcoins, but with tons of modifications. Litecoin, just like bitcoin, is an open-source that offers a global payment network. Additionally, it is completely decentralized or prevented from being controlled by the center.
The platform was referred to as the lite version of bitcoin, and that is perhaps how it got its name. However, even though litecoin is the lite version of bitcoin, it has come with improved developments since its launch. The initial worth of one litecoin back in 2011 was 30 cents, but do you know what is the price of litecoin today? It is worth $156.95 per litecoin, and according to November 2021 update, the market value of litecoin is $14.5 Billion.
You must have tons of questions about litecoin; what it is, and how it works. Well, in simple words, Litecoin is a digital platform that is not issued by any government and is 100% decentralized. The entire platform is based on the users and how they issue their investments on litecoins.
Every two minutes, the network generates a fresh block verified by trusted mining software. Once the miner verifies the mining process, another block gets added to the chain. This also keeps the record of all the transactions you make through litecoin. Interestingly, the platforms offer incentives to the miners once the mining is successful. And the rewards are nothing but the litecoin cryptocurrencies. So, say, for one successful mining, you will earn 12.5 litecoins.
How to Use Litecoin?
Using litecoins is all about exchanges, and your profit is based on that. For example, if you buy a litecoin from a seller, you will exchange US dollars in return for the litecoin. In the future, when the market value of litecoin rises, you can sell the litecoins twice or thrice their previous worth. This way, you make more than you invest, thus, profit!
How Does Litecoin Work?
As we mentioned earlier, litecoin is a P2P or peer-to-peer digital currency that is not handled by any central authority and offers zero-cost payment transactions worldwide. The platform uses the PoW, or proof-of-work algorithm, to maintain a secured network.
How to Buy Litecoin?
Using Litecoin is pretty easy. All you need to do is go to a crypto exchange platform and buy coins or by using a simple investing application. You can check out online platforms like WeBull, eToro, Coinbase, Binance, etc. Then, you need to:
- Open an account in trusted online broker platforms.
- Upload your ID to verify your account.
- Finally, deposit your fund with your bank account, credit, and debit card.
- Search for litecoin and begin your trade. However, make sure to check the price of litecoin before you begin to sell or purchase.
How Long Does It Take to Mine One Litecoin?
To mine one litecoin can take you up to 45 days on average. A new block gets mined every 2.5 minutes. So it is profitable to mine litecoin, plus if you can earn free litecoins, the trading will become beneficial for you. However, even if you purchase litecoins, you will still achieve profits, but make sure to buy/sell at the right time.
Litecoin vs. Bitcoin
Even though litecoin is just like the lite version of bitcoin, there are significant differences between them.
Bitcoin was launched in the year 2009 by Satoshi Nakamoto. It takes 10 minutes to generate blocks. This platform follows the SHA-256 algorithm. The coin limit of bitcoin is 21 million.
Litecoin, on the other hand, was launched in 2011 by Charlie Lee. This digital platform takes 2.5 minutes to generate blocks. It follows the Scrypt algorithm. The coin limit of litecoin is 84 million.
Litecoin’s Continuing Evolution
The price, or as we may say it, the value of litecoin in recent days is higher than that of 2020. The highest value of one litecoin was worth $410.26. Apart from that, the platform has introduced special other features that improve the speed of transactions with 100% security.
If you wonder what the litecoin future is, then, let’s say, it will become a secured platform that offers lightning network, SegWit, and MimbleWimble.
The following are the benefits of investing in litecoin:
- Litecoin offers lower transaction costs
- It is an open-source digital platform that offers security from hackers on an everyday basis and helps developers adjust the features in no time
- This is one of the most trusted cryptocurrency exchange platforms where the chances of risks and fraud are typically low.
- It offers a great high-speed transaction that makes it easier for you to send coins sooner than ever.
The following are the disadvantages of litecoin
- Even though it offers excellent opportunities, litecoin is not the only digital platform. Many more than work as significant, or even better than litecoin for a few users.
- Since the developer of this platform sold all his stake in litecoin, many people put the faith of leadership in question.
Now that you know what is litecoin, you can practically begin to get started with litecoin and cryptocurrency investments. However, make sure to consult an expert too.