Litecoin price (LTC)
About Litecoin (LTC)
Although Bitcoin is the cryptocurrency with the most mainstream attention, there are literally dozens of very popular coins in their own right, and one of them is Litecoin. It is one of the largest cryptocurrencies at the moment. If you’re reading this article, you have probably heard of Litecoin and wondered what it is about and whether you should buy Litecoin. Keep reading to learn more about this coin.
What is a Litecoin?
Litecoin is a peer-to-peer internet currency that allows you to receive, store and send money to other people. It is one of the earliest, most accepted, and most reliable digital currencies created to improve Bitcoin. Litecoin was ranked the third most popular cryptocurrency until the emergence of other cryptocurrencies like Ripple and Chainlink.
Because it made function an alternative to Bitcoin, it is no surprise that it was created from Bitcoin’s primary code but with some slight changes. It uses a different hashing algorithm that speeds up the transaction confirmation to just around 2.5 minutes, which is indeed a better improvement than Bitcoin, which takes as long as one hour for transactions to be processed.
Since Litecoin was created to serve the same purpose as Bitcoin but with a better experience, it is widely referred to as silver to Bitcoin’s gold.
How does Litecoin work?
As stated earlier, Litecoin functions in a way that’s very similar to Bitcoin as there are very little dissimilarities between them. The coin was created by Charlie Lee, a former Google (NASDAQ:GOOGL) engineer, who is also a former director of engineering at Coinbase.
Litecoin consists of nodes that run the network by performing tasks like confirming transactions and mining tokens. Litecoin developers also used Lightning protocol, which is an algorithm that speeds up the global settlement of transactions. It uses the scrypt hashing algorithm rather than Bitcoin’s proof-of-work algorithm, called the SHA256 hashing algorithm.
Another notable feature of Litecoin is transaction privacy, which makes it more secure than Bitcoin. When you use Litecoin, all your transactions are recorded on a private ledger, allowing you to make more private payments.
Where can you buy Litecoin?
Like Bitcoin, Litecoin is available on a number of cryptocurrency exchanges and you can purchase it with fiat currency or with Bitcoin. The process for this approach changes slightly for each platform but in general, it all works the same. If you’re looking to buy Litecoin, the following are some of the great platforms to consider:
Buying any cryptocurrency comes with its own risks, and it is not any different with Litecoin. However, Litecoin has proven to be a reliable coin over the years, maintaining and increasing value since it was created. You can think of it as another version of Bitcoin, but only that transactions are faster and cheaper than Bitcoin. Now that you know what Litecoin is, how it works, and where to buy it from, go ahead and make the purchase.