Litecoin is a decentralized digital currency. Based on Bitcoin open source code and using its blockchain infrastructure for faster payment confirmations and a distinct mining algorithm, Litecoin was launched as a peer-to-peer network and currency in 2011.
Like other cryptocurrencies, its value fluctuates depending on market forces and business adoption of its technology. Like all forms of digital money, its price can change quickly.
Litecoin is a peer-to-peer network
Litecoin is a decentralized cryptocurrency designed to provide fast and low-cost payments. Created in 2011 by Charlie Lee, an ex-Google engineer, this digital asset shares many similarities with Bitcoin; however, Litecoin differs significantly in terms of block generation rate, hard cap amount, transaction fees and block generation timeframe compared to its main competitor – with differences including block generation rate rate/hard cap arrangement/transaction fees that set itself apart from its main competitor.
Litecoin stands out from Bitcoin by not requiring complex hardware for mining; rather, its mining algorithm uses an altered form of Scrypt that generates coins four times faster. This allows it to mine blocks faster and thus lessening the need for special hardware.
Though Litecoin offers many advantages, its volatility remains comparable to other cryptocurrencies. Therefore, traders and investors may wish to consult a professional advisor prior to trading it as speculation in cryptocurrencies can pose high levels of risk. Furthermore, when considering your goals for using cryptocurrency as an investment vehicle – for instance storing value – more secure coins should be purchased.
It is a decentralized network
Litecoin is a decentralized network operating on a blockchain that facilitates transactions globally. As a fork of Bitcoin, Litecoin seeks to address three issues encountered with its predecessor cryptocurrency: speed, scalability and centralization.
Litecoin’s network is four times faster than Bitcoin and features lower transaction fees. Furthermore, its developers opted for Tenebrix’s Scrypt hashing algorithm instead of SHA-256 to reduce mining pools’ control over its network and make Litecoin more decentralized.
Like other cryptocurrencies, the price of Litecoin is determined by supply and demand. Traders can purchase LTC on various exchanges and trade it against both other cryptos and national currencies. With an impending halving event set to reduce miners’ rewards and potentially influence token price predictions. But due to limited data samples from past halving events, it would be prudent for traders to exercise extreme caution when trying to predict its price in future predictions.
It is a digital currency
The LTC/USD pair represents the price of one Litecoin (LTC) against US dollars. First introduced by former Google employee Charles Lee in 2011, Litecoin quickly became known as an alternative cryptocurrency to Bitcoin due to its ability to address issues related to mining pools and transaction processing times more efficiently than Bitcoin did.
Litecoin uses the same blockchain as Bitcoin, yet has faster transaction processing times and a smaller coin supply. Like its counterpart Bitcoin, Litecoin is also decentralized currency without an issuer issuing tokens; rather it works through mining – a process where computer power validates transactions using blocks created through transactions created with computer power to form blocks of transactions compiled over time and verified using computer power validation.
Due to this market volatility and other influences, Litecoin remains highly unpredictable; yet has weathered the 2018 crypto crash successfully and remain an established player in cryptocurrency world. Furthermore, its forthcoming halving event is anticipated to have significant price implications; previous halving events have often coincided with bullish price trends.
It is a store of value
Litecoin is frequently used as a store of value and forms part of various crypto portfolios. Additionally, its faster transaction speed and reduced fees make it attractive to small merchants than Bitcoin.
The Litecoin blockchain was designed to be fast and cost-efficient, processing transactions within minutes at negligible fees. Furthermore, its international developer community ensures maximum security; yet cryptocurrency trading can be volatile.
Traders should closely track the LTCUSD pair for potential trading opportunities. This cryptocurrency is moderately volatile compared to other cryptocurrencies and may experience increased price volatility at certain times during the day or week. As investing in cryptocurrency can be highly speculative and risky, only invest with capital you can afford to lose. Hardware wallets provide extra protection from hackers and thieves by automatically generating and storing private keys for you – an option recommended for larger amounts of Litecoin storage.
