Litecoin ranks among the 10 most valuable cryptocurrency assets, making it highly visible and liquid. While its prices have fluctuated with those of other cryptos in recent months, they could soon rebound with stronger demand from users.
Established in 2011, Ethereum is a peer-to-peer cryptocurrency built upon Bitcoin code. Invented by computer scientist Charlie Lee who previously worked at Alphabet Inc’s Google, and published its code.
It is a digital currency
Litecoin is an open source cryptocurrency operating as a global payment network. Created by former Google employee Charlie Lee in October 2011, Litecoin differs from Bitcoin by having faster block generation rates and using Scrypt algorithm for verification.
Like other cryptocurrencies, Litecoin is not centrally controlled and its supply is limited. Users can store Litecoin in either an electronic wallet (whether virtual or physical) that can be accessed anywhere worldwide and that contains private keys that allow for transactions on blockchain technology to take place.
However, despite its revolutionary technology, Litecoin has failed to gain widespread adoption among investors. While Bitcoin’s futures open interest has grown substantially over the past several weeks, Litecoin’s has not seen significant increase. This may be attributed to its lower network value relative to Bitcoin; furthermore it has been trading sideways and below its support level of $55 for months; potentially leaving further losses unchecked.
It is a peer-to-peer network
Litecoin (LTC) is an Internet currency that enables instantaneous, near-zero cost payments across borders instantly and instantly. Based on Bitcoin’s open source code but differing in some regards such as faster transaction confirmation times and its smaller maximum supply of 84 Million coins.
Litecoin was first developed by an ex-Google employee in 2011 to complement Bitcoin (BTC) and address issues such as mining pool concentration and transaction timings, while also being more compatible with other blockchain technologies like Lightning Network.
Litecoin mining differs significantly from Bitcoin mining in that it utilizes special computers known as “mining rigs.” These machines perform equations required to verify and record new transactions on its ledger, with rewards divided according to how much time and energy each computer contributes toward this centralized system. As a result, this creates a more resilient, secure, and reliable blockchain – often described as the “silver to Bitcoin’s gold.” It has become widely accepted payment option across merchant processors and e-commerce platforms alike.
It is a payment network
Litecoin is an online payment network featuring an alternative mining algorithm and faster block confirmation times. Each block includes recent transactions on the blockchain and is generated every 2.5 minutes; with a maximum supply of 84 Million Litecoins currently in circulation.
Contrasting with Bitcoin, which serves both as a store of value and medium of exchange, Litecoin was built for speed. With fast block generation enabling transactions to occur faster than with its rival Bitcoin.
Traders appreciate the LTC/USD pair as it provides exposure to both an attractive crypto asset and one of the strongest fiat currencies, the United States Dollar. But this pair can be highly volatile and should only be traded over short timeframes as consumer and investor sentiment, regulatory changes, economic conditions and technological advances can all impact cryptocurrency prices; hence diversifying your investment portfolio is highly recommended.
It is a store of value
Cryptocurrencies can be highly unpredictable and investments could potentially face loss. You should carefully consider your investment experience, financial status and risk tolerance prior to investing in them. Binance does not provide financial advice and does not endorse or recommend specific products or services.
Litecoin was initially created as a fork of Bitcoin, often being described as the “silver to its gold.” Utilizing similar blockchain technology but prioritizing transaction speed over value. Furthermore, Litecoin features its own hashing algorithm and lower block generation frequency than Bitcoin as well as being capable of handling more transactions while having a greater maximum supply (84 Million LTC).
Even with its modest market capitalization, Litecoin shows great promise as an alternative store of value. Some experts predict it may double in value over five years due to its low transaction fees and quick confirmation times; however, for this potential to become reality it must gain widespread adoption and secure more partnerships.
