What is Litecoin? A Step-by-Step Guide.

What is Litecoin? A Step-by-Step Guide.

  • 15 October 2020
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What is Litecoin, and how to mine it? Litecoin is one of the oldest currencies in the cryptocurrency market. It was published by Charlie Lee two years after Bitcoin was released in October 2011.

Charlie Lee was a former Google employee who designed Litecoin to complete Bitcoin and solve some problems such as transaction time, costs, and centralized mining pools.

Charlie Lee made some changes to the source code of Bitcoin and its blockchain protocol. He wants to make it more suitable for everyday use and to be accepted by the general public.

The main goal of Litecoin was to reduce the authentication time of each block from 10 minutes to 2.5. In this way, the network can verify more transactions. Currently, 14,400 Litecoins are mining daily, which is the maximum possible amount.

What is Litecoin functionality?

As mentioned in “What is Litecoin” it is a universal payment tool based on blockchain technology like other digital currencies. This peer-to-peer digital currency has many similarities to Bitcoin, but its platform uses a different blockchain that allows faster transfer for transactions.

The software for creating and transferring the coin is open-source. The system uses a completely decentralized platform. This digital currency has experienced steady growth since its launch and is now one of the most popular cryptocurrencies on the market.

As explained in “What is Litecoin” perhaps one of the reasons for its popularity is its performance, but we should consider its similarity to Bitcoin in our mind.

The price of Litecoin on October 14, 2020, is 49.65 USD. It has about three billion Market Cap values. The ranking in the CoinMarketCap platform is #10.

What is Litecoin’s difference from Bitcoin?

There are several differences and similarities between Bitcoin and Litecoin that are listed below:

  • Maximum supply, many cryptocurrencies have limited supply. Despite 84 million coins, its supply volume is four times more than Bitcoin. Experts believe that this asset will reach about a quarter of the value of Bitcoin in the future.
  • Mining Algorithm, as mentioned in what is Litecoin, the base of both of these digital currencies is on proof-of-work algorithms. Bitcoin uses the SHA-256 algorithm, while Litecoin uses the Skrypt algorithm, which is computationally more compact but uses significant memory Skrypt algorithm can calculate easier and with less workload. Therefore the ability to confirm transactions is faster than the Bitcoin algorithm.
  • Transaction speed, The Litecoin network is faster than the Bitcoin blockchain. It takes 2.5 minutes to mine a block of Litecoin, and now it is 10 minutes for Bitcoin.
  • Block Rewards, as explained in “What is Litecoin” miners are rewarded for their cooperation in the network. Thus by adding a new block, they receive rewards for each correct calculation. Miners currently receive 25 coins per block. In the Bitcoin network, however, 12.5 BTC is considered as a bonus.
  • These days, economical bitcoin mining is only possible with ASIC devices. But the graphics card is still one of the most common ways to mine Litecoin. Of course, using ASIC devices is more cost-effective than the graphics card method.

What is Litecoin mining?

If you want to know “What is Litecoin mining,” we should say that its mining is like Bitcoin mining. This cryptocurrency is the 10th most valid cryptocurrency currently.  So many people are looking to mine it. Today, there are various methods for mining Litecoin, such as:

  • Individual Litecoin mining, in this method, the person must provide all the instruments and mining equipment alone and pay all the electricity costs. This method is much more expensive and requires more capital that you may not be able to pay for it. Your mining machine must support the Skrypt algorithm. As we say in “What is Litecoin mining” you cannot mine Litecoin with the Bitcoin mining machine.
  • Litecoin mining pool is a virtual place where the miners gather their processing power and everyone tries to mine a block. In this method, each miner benefits based on its processing power. In the mining pool, you share resources such as computing power and electricity costs with other miners.
  • Membership in some mining pools is free.
  • Antpool mining, the largest mining pool in China is Antpool. Antpool is also suitable for Bitcoin and Ethereum. Its membership is free.
  • Litecoin cloud mining, in this method, the person pays for a mining rig of a mining pool, and everything will be ready for you. Each rig includes a group of computers that are configured only to mine cryptocurrency. Here is where Minerland provides you the best cryptocurrency mining service using arbitrage on mining algorithms.

It depends on your budget to choose one of them. However, cloud mining has always been preferred among others.

What is Litecoin mining?

What is Litecoin’s advantage?

There are some advantages for this crypto as following:

  • Network Development: Litecoin has considerable potential for widespread growth and acceptance.
  • High-speed transfer: as mentioned in “What is Litecoin” ability to transfer funds internationally without the need for a traditional costly transfer process, which takes only a few minutes to get to the farthest points.
  • Trading Fee: The cost of transactions is low.
  • Transaction control: The algorithm controls the high volume of transactions and confirms reactions immediately.
  • Large volume: The technology can generate four times more coins per year than the Bitcoin network.
What is Litecoin’s wallet?

Litecoin is stored in wallets on the blockchain. You can access a wallet from anywhere in the world. As said in “What is Litecoin” this coin is an international and decentralized cryptocurrency. So all the Litecoins are the same, and you can control your Litecoin wallet from anywhere in the world. As explained in “What is Litecoin” its authentication officially returns to the original Bitcoin. You can store your digital asset in various wallets, containing the following:

  • Trezor hardware wallet
  • Ledger Nano S hardware wallet
  • Jaxx mobile and desktop wallet
  • Litecoin Core desktop wallet
  • LoafWallet mobile wallet
  • Exodus desktop wallet
  • Electrum desktop wallet

As mentioned in “What is Litecoin” this coin has similarities with BTC.  If you need a safe storage space for your crypto assets, a hardware wallet can be your best choice.

What is Litecoin’s wallet?

What is Litecoin’s risk of transactions?

Because these cryptocurrencies are still new, it will be difficult to estimate their value. As explained in What is Litecoin, the changes in the way of managing international capital may reduce the need for cryptocurrencies. Countries like China have laws that control the outflow of capital from their country, so you can invest in cryptocurrencies to circumvent these restrictions. Changing these rules or similar rules can affect the cryptocurrency market.

Cryptocurrencies do not currently have codified rules, and this has led many people to take the risk of investing in this space. Litecoin is a currency that is more like a commodity in nature, so market fluctuations such as supply and demand affect its price. But at the same time, many short-term traders see this as a positive risk.

What is Litecoin’s disadvantage?
  • As explained in “What is Litecoin mining”, the mining process requires a lot of energy.
  • Litecoin is not as popular as other cryptocurrencies such as Bitcoin or Fiat currencies.
  • Estimating their future value is a challenge and you may have to switch to another currency if it devalues.
  • You need technical knowledge to keep your coin safe.
What is Litecoin’s history?

like Bitcoin, it started at around 1 cent. The currency had better price growth until 2014. After that, it faced a significant decrease. It went up and down in the price range of $ 1 to $ 4 for about three years. The year 2017 was the year of the Litecoin price explosion. While Bitcoin grew by about 1,700 percent in 2017, the asset rose by 7,000 percent and peaked at $ 320.

After this tremendous growth, the price of Litecoin gradually fell to a low level, and on December 3, 2021, the price of each unit of Litecoin is about $ 153.

Like Bitcoin, the acceptance and use of this crypto are directly related to its price increase.
As mentioned previously, increasing public awareness in the field of cryptocurrencies and the expansion of blockchain currencies led to a sharp rise in prices of all currencies at the top of the table. Many companies, including some gambling sites, accepted Litecoin as a payment method, which did not go unnoticed.

What is Litecoin's history?

How to buy Litecoin?

As explained in what is Litecoin, it is one of the oldest digital currencies after Bitcoin, ‌ has always been at the top of the list of popular cryptocurrencies. This popular cryptocurrency is attracting a lot of attention after a stunning growth of about 7,000% in 2017.

As explained in “What is Litecoin wallet”, you first need wallet software to receive and store your coins. To get acquainted with and receive Litecoin wallets, refer to https://www.bitdegree.org/crypto/best-litecoin-wallet.

These coins are purchased from digital exchanges. There are generally two ways to buy Litecoin:

  1. Direct purchase with traditional currencies such as Euro or Dollar.
    Buying cryptocurrencies directly in dollars is a common practice around the world. To buy digital currencies with dollars, you need international accounts such as Master or Visa cards.
  2. Convert other cryptocurrencies to Litecoin.
    Users who do not have access to international credit cards buy Litecoin by other currencies. In this way, from reputable sites such as LocalBitcoins.com, you can buy Bitcoin or Ethereum using your country’s traditional currency. Then transfer this bitcoin or Ethereum to reputable exchanges and convert it to Litecoin.
What sites can exchange cryptocurrencies with Litecoin?
  • As mentioned in “What is Litecoin” users can use exchange sites that convert Bitcoin or Ethereum to Litecoin. Changelly is a fast digital currency exchange platform that offers the best cryptocurrency exchange rates on the market. This site is not an exchange.
    The Changelly robot is compatible with large and popular cryptocurrency platforms such as Poloniex and Bittrex. In a fraction of a second, the robot registers sales requests on these platforms, after that selects the best available price displayed on the home page and shows it to the user. In Changelly, you can exchange about 35 cryptocurrencies very quickly and instantly.
  • One of the easiest ways to convert currencies is through the Ship Shift website. This platform has a simple, beautiful user interface, and anyone can easily convert their currency into it. The high security of this exchange is famous among users. This system does not store your money, so maybe you are being blocked. Proper speed and fee are also better features of this system. Proper speed and fee are also better features of this system.
  • The Binance Chinese exchange is also a better way to buy Litecoin. Because the exchange office is Chinese, the possibility of sanctions and blocking the money is very low. Many users in most countries can use this site. You can charge bitcoins or other currencies in this exchange and buy this crypto or other currencies. As we said in “What is Litecoin”, this exchange can save your capital as a wallet. We suggest that you transfer your currencies to secure wallets after purchase.

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