Since 2017 there have been so many cryptocurrencies that it is tough to keep up with them. In fact, at the time of writing this article, there are more than 2000 cryptos, and more are coming up every day.
With these kinds of numbers, it is almost impossible to sift through and find those that are worth your time. It is for this reason that we put together this Litecoin news article to enlighten you on one of the best cryptos so far.
What is Litecoin?
Litecoin is a peer to peer online currency. It enables payments to anyone across the globe at almost zero transaction.
Litecoin is an altcoin that came from Bitcoin. Charlie Lee developed it with the aim of having a purely online digital currency that works better than Bitcoin and at the same time is lighter than Bitcoin. The lightness of Litecoin was intended to make it more appealing to the masses, and it has worked. The evidence of its appeal can be seen in its 1000% price increase in 2017.
How does Litecoin work?
Each cryptocurrency seems to have its signature which lies in how it works and Litecoin is no different. Like Bitcoin, when a transaction takes place, a miner who is a person who creates Litecoins gets a reward.
Like Bitcoin again, Litecoin uses the proof of work reward system. Where a block had to be complete and verified to earn a reward.
Transacting with Litecoin is very simple, and all you need is to get a crypto wallet.
When you want to pay someone in Litecoin, all you need to do is to enter the person’s address into our wallet, enter the amount you need to send and send.
Why Should I choose Litecoin over Bitcoin?
Litecoin has been called Bitcoin’s little brother and uses the same code, and many may not know why to opt for one over the other.
Like any other altcoin, Litecoin is an improvement of Bitcoin, and three main features make it the better alternative.
Let’s look at some of them.
- The speed of processing transactions
The processing speed of transactions is not only important to those transacting but to those receiving rewards as well. The faster the transaction turn around rate is, the more rewards there are.
While a Bitcoin block completes in around 10 minutes, the Litecoin block turnaround time is just 2 and a half minutes. This means a Litecoin miner will have four rewards while the Bitcoin miner gets only one. This makes Litecoin more lucrative.
- Its total number of coins
Bitcoin’s total number of coins stands at 21 million while Litecoin has a maximum of 84 million coins. Since Litecoin also has a smaller price, it is easier for investors to purchase whole units rather than fractions. This gives them more confidence and makes the altcoin more attractive.
- Its market capitalization
Again strictly from an investor’s perspective, Litecoin’s market capitalization of $17 billion is far more attractive than that of Bitcoin at $281 billion.
You may be asking why this is so and yet Bitcoin’s is higher. Well, given how high Bitcoin’s capitalization is, it is unlikely that it will double soon. However, Litecoin having a lower capitalization has more potential, and an investor can get a massive return on their investment.
Cryptocurrencies have come to revolutionize how we do things, and more so how we transact. The stage at which they are, we no longer choose them just by price but also considering what they are bringing to us that other cryptocurrencies are not.
Litecoin has a bright future ahead as we can see by how much of an improvement it is to Bitcoin. This is enough reason to watch this space to remain on the winning team.