Litecoin was created to address pressing issues of Bitcoin. It is only lately that Litecoins could be bought, sold, and traded directly.
Litecoin was created to be the silver of Bitcoin’s gold. Next to Bitcoin, Litecoin is the cryptocurrency that is mined which has the highest market capital.
Each time you read technology news, virtual currencies, especially Bitcoins and now Litecoins, are always mentioned.
Virtual currencies or cryptocurrencies are electronic currencies that are decentralized, not owned by any central bank, and does not charge fees for transactions as the banks do.
Virtual currencies or cryptocurrencies allow you to make online purchases of goods and services (real). Some cryptocurrencies can even be used to purchase foods and services outside the online world such as a cup of coffee in a physical coffee shop. The novelty and popularity of cryptocurrencies especially Litecoins and Bitcoins have made their values soar high.
A Litecoin is an online currency that can be used to buy goods and services. While Litecoins have real money values, they do not have a physical form. The value of Litecoins are determined by online exchanges that trade Litecoins as well as other online currencies or cryptocurrencies.
Mining creates Litecoins. Similar to Litecoins, miners need to solve complex mathematical problems in exchange for Litecoins. Mining for Litecoins can be done with any computer with an average graphic card.
Litecoins were launched in 2011. It was based on the Bitcoin and has been positioned as an alternative cryptocurrency to Bitcoins. This cryptocurrency is pretty much like Bitcoin in the sense that it is also an open-source payment network which can be used globally. It is also decentralized and not under the control of any central bank.
The major difference between Litecoins and Bitcoins is that Litecoins have a faster rate of black generation than Bitcoins.
Litecoin was created to address the shortcomings of the Bitcoin cryptocurrency. Its liquidity and high volumes of trade are proof that through the years, this cryptocurrency has earned the support of the industry.
While with a lot of similarities, it is a lot easier to mine for Litecoins than for Bitcoins. It can be mined even with the most basic computer hardware.
The Litecoin has been position as Bitcoin’s little brother. The following are their similarities and differences.
Block time speeds and speed of confirming transactions are two of the issues most often complained of by Bitcoin users.
Ethereum is now the second largest cryptocurrency in the market next to Bitcoin as being the largest. Ethereum took the place of Litecoin which held on to the second position for a long time. It was only logical for Litecoin to be second to Bitcoin because it was developed to address Bitcoin’s crippling issues. While it had a faster transaction confirmation time, Bitcoin was far more popular and thus maintained being in the top spot.
It used to be that Litecoin was at the number two spot, and its value was always not too far away from Bitcoin. In 2016, Litecoin did not trade so well. However, this 2017, it is predicted to wake up and soar high.
Litecoin and Ethereum are extremely different from each other (Bitcoin and Litecoin have so much similarities). Both Litecoin and Ethereum have different purposes as a cryptocurrency. While Litecoin was created to overcome Bitcoin issues, Ethereum was created to overcome Litecoin issues.
Two of the most popular Litecoin cryptocurrency exchanges are Gemini and Bitsquare. Here is some deeper detail on both of these exchanges:
Gemini is a high-level exchange for many crypto currencies, including Litecoin. Co-founded by the Winklevoss twins of Facebook fame, Gemini is one of the first fully regulated and licensed US exchange for Bitcoin, Ethereum, and Litecoin. What this means for exchangers is that Gemini’s requirements for capital and standards of regulation have been made similar to that of a financial institution.
Another bonus of this is that Gemini’s deposits (that take place in US dollars as the fiat currency) are held at a bank insured by the FDIC. Additionally, the majority of digital currency traded through Gemini is kept in cold storage.
Gemini only trades in Bitcoin, ether, Litecoin, and US dollars, making the security high and the potential issues of smaller crypto currencies or ICO’s non-existent. The exchange operates via a maker-taker fee schedule with discounts available for high volume traders, and all deposits and withdrawals are free of charge.
Bitsquare is an extremely user-friendly and intuitive peer to peer crypto currency exchange offering stellar support for the purchase and sale of Litecoin, amongst many other currencies. These coins are exchanged for other crypto currencies or fiat currencies, such as the dollar, euro, or yen.
Bitsquare markets itself as a truly decentralized and peer to peer exchange that is instantly accessible and requires no need for registration or reliance on a central authority. Bitsquare never holds user funds and no one except trading partners exchange personal data.
The Bitquare crypto currency platform offers incredibly high-level security for an exchange of its size, with multi signature addresses, securitized depositing, and a purpose-built arbitration network in the case of trading disputes. Bitsquare delivers real anonymity, a driving force for some in the crypto currency community.
Getting started with Litecoin is easy.
The following is how to buy Litecoins.
Most exchanges where you can buy Litecoins do not directly sell Litecoins. In most cases, you will need to buy Bitcoins first and then trade your Bitcoins for Litecoins. There are only very few exchanges who directly sell Litecoins.
You can also exchange your Bitcoins for Litecoins. There are exchanges that offer this service.
Once your Litecoins are ready, they will be sent to your Litecoin wallet. You can then use your Litecoins to purchase goods and services online.
If you want to convert your Litecoins into cash, sell them for cash.
Once the transaction has been confirmed, the amount equivalent to the value of your Litecoins will be credited to your bank account.
You can also sell your Litecoins for PayPal credits. Choose an exchange that exchanges Litecoins for PayPal USD. The exchange with the best rate will usually appear on the top of the list. Choose the exchange with the rate that you like.
Once the transaction is confirmed, the amount equivalent to the value of your Litecoins will reflect on your PayPal balance.
Litecoins are living up to the reasons why they were developed. Block time speeds and speed of confirming transactions, two of the most pressing issues of Bitcoins, have been completely addressed by Litecoins.
Litecoins though have one downside. It can be difficult to find an exchange where you can directly buy, sell, and trade Litecoins. You will need to covert or buy Bitcoins first and buy, sell, and trade them for Litecoins. This is the major reason why despite being able to address the shortcomings of Bitcoin, Litecoins have not been gaining as much ground as Bitcoins and Ethereum.
All these have changed when one of the leading cryptocurrencies exchange started making it possible for users to directly buy, sell, and trade Litecoins. This caused the value of Litecoins to soar high in value.
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