Litecoin (LTC) is an alternative cryptocurrency created in 2011 by Charlie Lee that features faster transactions. With an maximum supply of 84 Million tokens available for distribution, LTC was designed as an instantaneous digital cash system.
This year, Ethereum has outshone other top cryptocurrencies by outshinning investor sentiment with positive network upgrades and the implementation of anonymous transactions.
Litecoin is a peer-to-peer network
Litecoin is an open source global payment network not governed by any central authority. Coins are generated by miners and used to make instant, low cost peer-to-peer payments between peers.
As is the case with Bitcoin transactions, Litecoin transactions are recorded on a public ledger known as a blockchain and verified by “miners,” who receive LTC as payment for their efforts.
The Litecoin network allows miners to add transactions to its blockchain every 2.5 minutes compared to 10 minutes for Bitcoin’s block time, using Scrypt as its proof of work algorithm.
Some investors view Litecoin as an asset with long-term investment potential and store of wealth potential, while others use it as an exchange medium. Either way, understanding how Litecoin works will allow you to determine if this digital currency fits within your portfolio or not. Furthermore, The Litecoin Foundation is working globally towards integrating it into digital payment infrastructure systems.
It is fast and cheap
Litecoin is an efficient and cost-effective cryptocurrency founded by Charlie Lee in 2011 at MIT and based on Bitcoin’s open source code; however, with faster block generation speeds and an increased maximum supply than BTC and incredibly low transaction fees that make it ideal for micro transactions or point-of-sale payments.
Like its rival Bitcoin, Litecoin is a peer-to-peer crypto currency with no central authority. With low transaction fees and fast processing speed, this cryptocurrency makes for great online purchases, trading on exchanges, or even gambling purposes.
Litecoin’s price performance has fluctuated over the years, yet many analysts remain hopeful it could become digital gold. Long-term success will depend on acceptance by cryptocurrency markets and regulation; until that occurs it’s best to monitor price movements using investable benchmarks like CME CF Litecoin-Dollar Reference Rate which aggregates trade data from multiple Litecoin markets each day using rigorous index calculation standards and compliance compliance standards.
It is a superior alternative to fiat money
Cryptocurrency prices are driven by supply and demand just like any market. Demand comes from people using cryptocurrency as payment, as well as investors looking to buy or sell. Supply is determined by global monetary policy as well as investor/speculator sentiment in global financial markets.
Litecoin was launched by Charlie Lee, an MIT graduate and former Google engineer, in 2011. Similar to Bitcoin, but with faster transaction speeds and use of scrypt as its proof-of-work mechanism. Furthermore, unlike other cryptocurrencies Litecoin does not require any central authority and is completely decentralized.
Litecoin boasts an abundance of supply with 84 million tokens compared to 21 million for Bitcoin, creating scarcity that can fuel price appreciation when demand surges. Furthermore, mining with ordinary computers makes Litecoin much simpler to use compared to Bitcoin; making Litecoin an attractive alternative fiat money alternative with significant potential and great potential growth potential.
It is a popular currency for Forex traders
Litecoin, an offshoot of Bitcoin, enables instantaneous peer-to-peer transactions at low costs with instant confirmation times. As one of the five biggest cryptocurrencies by market capitalization, LTC/USD trading can be done with multiple brokers with each 0.01 price movement representing one point (your actual point value may differ).
Traders can utilize trading indicators to accurately anticipate trend changes before they happen. For instance, the On Balance Volume indicator measures market momentum by analysing volumes and how they influence prices.
Litecoin’s value is determined by supply and demand as well as investor/trader sentiment, making its price increasingly volatile over time. This has enabled online traders to take advantage of Litecoin’s price fluctuations by trading it Over-the-Counter (OTC) or Contract for Difference (CFD) platforms; you can buy or sell it using various payment methods including credit/debit cards, digital currency wallets like Skrill Moneta Giro Pay OK Pay WebMoney direct bank transfers etc.
