Litecoin, an offshoot of Bitcoin, has long been recognized for its long-term stability and as such remains one of the oldest cryptocurrencies on the market today.
Bitcoin remains highly accessible to users, requiring less specialized mining hardware rigs than Ethereum does. But, like any investment decision, its risks must be assessed before proceeding. Therefore, it’s vitally important that any potential investor understands its characteristics and history prior to investing.
Litecoin is a peer-to-peer digital currency
Litecoin is a peer-to-peer digital currency operating on a decentralized blockchain to process transactions and store value. Established by Charlie Lee, an ex-Google engineer, Litecoin has quickly become one of the world’s most popular cryptocurrencies with faster transaction confirmation times and lower fees compared to Bitcoin.
Like Bitcoin, Litecoin employs the Proof of Work protocol, where its transactions are recorded as blocks on the blockchain and verified through mining software. But unlike BTC which uses SHA-256 verification to secure its network, Litecoin employs the Scrypt algorithm for more reliable verification of its blocks.
Traders can store their Litecoins in online wallets that are accessible from desktop computers or smartphones – these wallets are secured using private keys which must be carefully protected by users. Alternatively, traders can keep their investments safe in paper or cold storage, or cash them out through cryptocurrency exchanges like PrimeXBT.
It is a fork of Bitcoin
Litecoin is one of the oldest and most accessible cryptocurrencies available, yet it stands out from Bitcoin by offering some unique characteristics that set it apart. Both currencies serve as forms of exchange and their value depends on how willing people are to spend them.
Similar to Bitcoin, Litecoin uses blockchain to record transactions in an unhackable and decentralized fashion, using computer miners’ computing power to verify blocks of transactions – in return, these miners receive new coins as rewards.
Litecoin was first developed as a fork of Bitcoin by Google engineer Charlie Lee in 2011. It was designed as a solution to Bitcoin’s tendency towards centralization; with faster block processing times and reduced transaction fees making it an appealing alternative.
It is a decentralized network
Litecoin is a decentralized network with near-zero transaction fees for everyone worldwide. Litecoin’s creators developed it to address some of Bitcoin’s shortcomings, such as slow processing speeds and high commission fees for fast transactions. Furthermore, its unique mining algorithm processes transactions instantly while still offering superior security without needing an intermediary authority.
Charlie Lee is a software engineer at Google with degrees in both computer science and electrical engineering, who has worked on YouTube, Chrome OS, Play Games and as product manager of their Wallet before founding Litecoin.
Cryptocurrencies differ from fiat currencies by being supported by cryptographic integrity of their network and are therefore resistant to censorship and fraud. Furthermore, their value is determined by supply and demand which attracts investors and traders; their price fluctuates wildly which should make investors take careful note before investing in cryptocurrencies.
It is a payment method
Litecoin is an electronic payment method using blockchain technology to process transactions. As with Bitcoin, Litecoin prioritizes transaction speed and has become a preferred method for online purchases. Furthermore, it ranks fifth by market capitalization.
Litecoin offers security and consensus through a Proof of Work protocol that requires miners to solve complex math problems to add new blocks to the blockchain and validate transactions, rewarding those who assist. As a result, Litecoin blockchain transactions have faster transactional speeds and are less susceptible to hacking attacks.
Investors can purchase Litecoin directly from exchanges such as Binance. In addition, CFD trading allows investors to speculate on its price movements with short-term investments that do not guarantee returns; investors should carefully consider their risk tolerance before investing. Binance offers real-time updates of the price for Litecoin.
