What Is Litecoin & How To Invest In It?
Litecoin (LTC) is a peer-to-peer online currency that allows instant payments around the world. It is an open-source, global payment network. The network is secured by mathematics and you can control your own finances. It is faster in transaction confirmation times than most other math-based currencies. LTC has significant trade volume, industry support, and liquidity. It also offers better storage efficiency compared to other cryptocurrencies.
How does it work?
Litecoins are created by the process of mining. This involves processing a list of LTC transactions. The following points should help you understand how it works:
- It is available in limited supply. The volume is capped at 84 million units.
- Currently, a single block is generated every 2.5 minutes.
- The mining software verifies a block and it is visible to any miner who intends to view it.
- When a miner verifies a block, a new one enters the chain.
- The first miner who verifies a block earns 50 LTC. The number of LTCs awarded gets reduced with time.
- It is relatively easier to mine Litecoins compared to other cryptocurrencies, as lesser processing power is required.
Pros and Cons
There are many advantages to investing in LTC. At the same time, you should also know about some of its limitations. Here are the key pros and cons of this platform.
The pros of investing in LTC are as follows:
- Open-Source: LTC is a fork of the open-source BTC Core Client. This open-sourced system can readily execute software changes and updates to address evolving market needs.
- Fast: Litecoin is faster than most cryptocurrencies. In fact, it is even faster than Bitcoin. As already mentioned above, transactions are processed within 2.5 minutes compared to Bitcoin’s 10 minutes.
- Larger Volume: More Litecoins are available than Bitcoins. While the cap is 21 million on Bitcoin, 84 million LTCs can be mined. Even when it has greater quantity, there is no compromise on quality compared to Bitcoin. This means you can mine and invest in more coins.
- Lower Fees: Another reason for choosing LTC is its low transaction fee. Thus, you can expect greater profits from investing in it.
- Improved Security: Quicker transaction processes means that the system is less vulnerable to attacks. There is a very small time-window for attackers to complete a double spending attack.
There are a few cons too to the LTC. The most profound ones are as follows:
- Less Unique: When Litecoin was launched, it was focused on improving upon Bitcoin. It is still better in terms of speed and efficiency. Updates to Bitcoin have also enhanced it. So, LTC is not as unique as it was in the beginning.
- Declining Market Image: Charlie Lee was the original author behind Litecoin. His name itself played a big role in building the popularity of this cryptocurrency. Recently, he sold his complete LTC holdings and this has affected the coin’s market image.
How to Invest in LTC?
If you want to invest in LTC, you will need a digital wallet. Such a wallet will allow you to purchase and sell LTC and other cryptocurrencies. There are a few trusted digital wallets available in the market. You can also use them to send and receive Litecoin.
European investors ready to take the leap into Litecoin and get their hands on LTC tokens can register for free today at Virtuse Exchange.