As the Bitcoin network started to grow, it was evident that transaction times can get very long. An ex Microsoft employee, Charlie Lee, saw this issue and decided to create his own coin, called Litecoin. He used the Bitcoin code as a base and improved many aspects of it, making the new blockchain much faster than its predecessor. Litecoin was created to handle frequent small transactions and be easily tradeable.
- Litecoin is a decentralized, open-source global payment network not controlled by any central authority.
- As you can probably see for yourself, that’s a pretty significant benefit!
- Returns on the buying and selling of crypto assets may be subject to tax, including capital gains tax, in your jurisdiction.
- The simpler algorithm supported Litecoin’s faster transaction speeds.
- Litecoin originally started gathering attention during its explosive growth in November 2013, where it saw a near 15x spike in price.
As of October 25, 2021, the total value of all bitcoins in circulation was around $1.1 trillion, while the market capitalization of Litecoin was about $13.42 billion. Litecoin, in order to keep up with the DeFi times, has made it possible to build Litecoin smart contracts since the fall of 2021. Using a second-layer solution called OmniLite, users can build decentralized applications and smart contracts on the Litecoin network. Additionally, Litecoin has value for micropayments and is integrating features like smart contracts and the MimbleWimble upgrade to enhance its usability and privacy.
Should You Buy Litecoin?
However, in the future, it might be possible that ASIC hardware will be used to mine Litecoin. So, when it does, it means that those who can afford expensive equipment will have more chance of receiving Litecoin mining rewards. These days, Bitcoin miners need to use ASICs (Application-specific integrated circuits) hardware, What is Litecoin which is really expensive. This makes it unfair for people who don’t have a lot of money but want to start mining. Basically, mining is the process that allows people to send and receive funds without needing a third party! There are many different types of mining though, but they are each a type of consensus model.
It’s important to note that exchanges within the U.S. are monitored and regulated by the Securities and Exchange Commission to ensure that the best interests of investors and traders are upheld. With that in mind, if you live in the U.S., your choices are limited to exchanges within the U.S. Litecoin uses a hashing algorithm called Scrypt (pronounced es-crypt). But it found greater acceptance in the cryptocurrency community after the 2011 Tenebrix project modified Scrypt to work with regular CPUs for mining. The most popular of these is Ledger Nano X. Even though hardware wallets come with a price, you have to consider the importance of security, especially if you hold lots of coins. Fast transactions, frequent updates and one of the largest market caps in the world make this coin very desirable.
Litecoin Atomic Swap
Litecoin (LTC) is an altcoin founded in 2011 by former Google engineer Charlie Lee. It aimed to be the lite version of Bitcoin that enables nearly instant and low-cost payments. In summary, Litecoin offers a compelling alternative to Bitcoin, excelling in faster transactions, lower fees, https://www.tokenexus.com/ and broader coin supply. As a driving force for innovation in cryptocurrency, Litecoin’s user-friendly features and ongoing upgrades position it as a dynamic player in the digital financial landscape. Litecoin has a lot of amazing features, one of which is the Lightning network.
- LTC is available on most crypto exchanges (e.g., Binance, Coinbase, Gemini) against other cryptos like BTC or ETH and national currencies like dollars and euros.
- The only critique we’d make about Litecoin (LTC) is the absence of critical information such as clear directives, project roadmaps and ambitions.
- You are responsible to inform yourself before investing money, time and effort.
- MimbleWimble is a privacy protocol that builds on confidential transactions that encrypt or obscure information like transaction amounts.
Comparatively, Bitcoin has high demand and low supply (a total of 21,000,000 BTC), and Ethereum (ETH) has a high demand and supply (120,251,525.51 ETH). Litecoin (LTC) has been around for a long time, has been battle-tested, has carved out a proven use case, has proven its demand drivers and is one of the top twenty coins listed on CoinMarketCap. Cryptocurrencies have been stuck in a bear market for a long time, with a few rallies. Not every chart looks the same, but the general opinion of the market follows the moves of Bitcoin. The first Lightning Network transaction occurred in early May 2023, causing a 7% Litecoin (LTC) price spike. This layer-2 solution should help Litecoin Network scale as much as 10x.
There are a variety of third-party service providers that offer interest on Litecoin and allow you to take loans out against your Litecoin. Please note that this typically requires using centralized-third party services, bringing additional risk. The Litecoin network – and the miners that support it – bring Litecoin(s) into the world every 2.5 minutes. Another concern is that cryptocurrencies are commonly used as the currency of the dark web. The dark web is where illegal goods such as drugs, weapons, and stolen credit cards are bought and sold online.