7 Easy Steps; Bitcoin And Litecoin Purchase
Bitcoin And Litecoin; Since the birth of cryptocurrencies in 2009 with the appearance of Bitcoin (BTC), public interest in cryptocurrencies has increased sharply over the years and prices have experienced significant fluctuations.
For most people, Bitcoin is the gateway to investing in cryptocurrencies. The first cryptocurrency that started it all has been closely associated with creating incredible fortunes and improving the lives of some investors. However, it is far from the only cryptocurrency on the market today.
In the years following the creation of Bitcoin, the cryptocurrency market has seen many other decentralized currencies appear. These currencies are often referred to as “altcoins”. One of the most promising altcoins on the market is Litecoin, and that’s what we’re going to be looking at today.
When it comes to blockchain and verification methods, Litecoin shares a lot of similarities with Bitcoin. However, the two also have several differences that may or may not be appealing, depending on your financial interests and investment goals.
Summary Of Bitcoin And Litecoin And Where To Buy Them
- When it comes to the cryptographic algorithms used by Bitcoin and Litecoin, the two networks use different methods. Bitcoin uses SHA-256, and Litecoin utilizes Script.
- As for the consensus mechanism used by each network, they both use proof of work.
- Bitcoin can boast a much larger market capitalization than Litecoin.
- As BTC has a cap on the number of coins it can produce, Litecoin can produce a much higher number of coins than Bitcoin.
To buy Bitcoins and Litecoins, there are a multitude of options. However, not all are equal. Unfortunately, due to the influx of new investors into the cryptocurrency market, there is an increasing number of scammers waiting to take advantage of their assets.
To avoid these unpleasant situations, we advise you to be well-informed before embarking on the adventure of cryptocurrency. Ask your fellow investors. Look for positive and negative reviews online.
Next, if you’re still not set on your crypto platform, you can always rely on our experts’ pick for 2022: Immediate Edge, a trusted platform with a fairly easy-to-navigate interface.
What Sets Bitcoin And Litecoin Apart From Others?
Proof-of-work: the consensus mechanism and validation process that uses the computing power of GPUs and, to a lesser extent, CPUs to verify blockchain transactions and blocks.
The Litecoin adventure began in 2011 when Charlie Lee founded the network. Previously an engineer employed by Google at a hugely popular Bitcoin forum at the time, Lee described his decentralized currency as the “lite version of Bitcoin.”
The reason for the creation of Litecoin is that there are more and more voices asking for Bitcoin to become a centralized currency, which would defeat the very purpose of the creation of Bitcoin.
In response, Litecoin took over many of the more popular aspects of Bitcoin that powered the original cryptocurrency during the early phases of its creation. But in addition, Litecoin also incorporated several additional features based on what the developers considered to be the weak points of the current Bitcoins system, such as:
- Proof of work: Litecoin uses the proof of work concurrence mechanism, but relies on accessing big amounts of memory rather than a central processing unit (CPU) or graphics processing unit (GPU).
- Scrypt: Litcoin uses Scrypt for its hash function. Script uses SHA-256, but requires much more memory for proof of work. This is said to decrease its reliance on the arithmetic logic units (ALUs) of GPUs and, in turn, on ASIC mining devices.
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The Main Differences Between Bitcoin And Litecoin
When comparing the original cryptocurrency, Bitcoin, and Litcoin, the most noticeable difference between the two is the hash function. Bitcoin uses the much faster SHA-256, which is processed very quickly on the ALUs of graphics processing units.
Market Capitalization Of Bitcoin And Litecoin
Bitcoin and Litecoin are also different in terms of market capitalization. This is a term used to describe the total dollar market value of all minted coins.
Bitcoin can be mined by large mining farms and pools, which makes it much more popular among miners. Furthermore, the demand for Bitcoins is reaching such high levels that there is a huge exchange rate between cryptocurrencies and dollars.
In comparison, Litecoin’s market capitalization is much lower because Bitcoin’s supply is much more limited, which means demand is much higher.
Litecoin is very different from Bitcoin in terms of the number of coins it can produce. The total amount of BTC that can be produced is strictly capped at 21 million coins. In comparison, Litecoin can produce 84 million coins.
This may sound like an advantage for LTC over BTC, but the reality is that supply and demand play a huge role in driving the value of a particular cryptocurrency, and so it is Bitcoin that does it. Outweighs this plan.
Bitcoin and Llitecoin transactions are both instantaneous on each network. However, the main purpose of Litecoin (and the reason for its name) is to prioritize increasing transaction speed.
For Bitcoin, the time it takes for a block to be verified and added to the blockchain (also known as transaction confirmation time) is around nine minutes. But this delay can be significantly increased or reduced depending on the amount of traffic on the network at that time. In comparison, the average Litecoin transaction only takes two to two and a half minutes.
How Many Litecoins Are Left?
Much like Bitcoin, the total number of Litecoin that can be minted is strictly capped. The cap for Litecoin is 84 million coins, while the cap for Bitcoin is 21 million. There are just over 13 million Litecoins left to mint and buy.
Does Litecoin Have A Future?
Like any cryptocurrency, the future of Litecoin relies heavily on current investor sentiment. Additionally, the price of any cryptocurrency can be positively or negatively affected by things like the economic climate, national regulations, and digital currencies sponsored by national governments.
Additionally, future technological and monetary advancements could make cryptocurrencies like Litecoin obsolete, especially when new, more advanced crypto assets emerge.
Why Is Litecoin So Cheap?
Compared to Bitcoin, Litecoin has a much larger coin supply. This means that the demand for LTC is much lower compared to much scarcer digital assets.
The main reason for this is the perspective of cryptocurrency consumers and investors. If a cryptocurrency allows you to buy more things, it naturally has more value than a digital currency which allows you to buy fewer things.
Also, when a cryptocurrency has a higher value to the investing community, investors typically pay more to acquire it. So, as a rare asset with the highest price and purchasing power, Bitcoin is naturally worth more than Litecoin.
In Summary: Is Litecoin A Better Cryptocurrency Than Bitcoin?
It is frankly impossible to answer this question for Bitcoin and Litecoin. Each cryptocurrency is better than the other, depending on your investment goal, trading goals, and your personal views on cryptocurrencies as a whole.
Bitcoin is much more valuable as a rare asset cryptocurrency, but Litecoin can generate itself faster and execute transactions much faster.
Therefore, if you are looking for a higher-value coin to hold as a long-term investment, Bitcoin is probably what you need. However, if you want a coin that is easier to buy and simpler to use in transactions, Litecoin will be more suitable.