A beginner’s guide to Litecoin – FXGM South Africa

Litecoin has started out as a humble little brother of Bitcoin. This line may be related to all future cryptocurrencies, but Litecoin has proven to be faster and more secure than Bitcoin itself. The past 2017 showed us a remarkable growth in Litecoin value, which doesn’t seem to stop. Although Litecoin receives praises in the past few months, there is more to the cryptocurrency than we can see from first sight.

With an initial release date of 7thOctober 2011, Litecoin is an open-source, peer-to-peer cryptocurrency. It doesn’t rely on any central bank, which is the first and foremost similarity to Bitcoin. However, every new player in the game tends to bring some improvements. Litecoin uses Segregated Witness to reduce the number of bottlenecks in its network, and also increases the transaction speed.

Litecoin reached a $1 BLN market cap in November 2013, and this cap has quadrupled by 2017.

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Let’s talk about the differences

All cryptocurrencies share a number of similarities, but what makes them unique are the different advantages of every token-system.

  • Litecoin has a higher volume of transactions – the Segregated Witness, which we mentioned, increases the transaction verification rate on each block. This reduces the payment confirmation from 10 to 2,5 minutes. And a four times faster confirmation is something to look for.
  • The faster the processing, the more secure environment we get. This almost eliminates the possibility of a double-spending attack – a certain hack, which enables the “attacker” to spend the same money for two separate transactions.
  • We are all aware of the Bitcoin coin limit – 21 million BTC. Litecoin has a limit of 84 million coins, again – quadruple the stats of Bitcoin.
  • Due to the usage of scrypt hashing (in opposition to the SHA-256), Litecoin is harder to mine. And some may not see this as an advantage, but it brings a more level playing field for miners. The elimination of parallel processors acceleration gives all miners a chance to take an equal part in the mining process.

Is Litecoin as useful as Bitcoin?

FXGM South Africa crypto-specialists are clear on this one – yes. Litecoin can be used almost anywhere you can use BTC. Merchants all around the globe have adopted the Litecoin as a payment method. And the growing value of each LTC token speaks for itself. Litecoin doesn’t stop to expand their list of services, merchants, and providers, which accept the cryptocurrency.

There are three main ways to invest in Litecoin, depending on your personal preferences.

  • A direct purchase from an exchange – this is the easiest way to acquire Litecoin. Credit card, cheques, even money transfers can get you Litecoin. Keep in mind, exchanges usually have a charge fee for their services, but it doesn’t go above the 2% mark. The most common choice for such action is Coinbase.
  • You can also receive payments in Litecoin – you may be providing a service or selling products to customers – both transactions can be finalized in the receiving of Litecoin. It has lower fees, lower commissions and overall cost, which adds up to more profits for you. In addition, Litecoin is faster and more resistant to fraud.
  • Mine Litecoin – although mining can seem slow, it is still a legitimate method of acquiring Litecoin. You will need specialized equipment, but it is worth it in the end. If you put a lot of work into it, faster mining will give you more Litecoin than any other method in the long run.

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