What is Litecoin?
Litecoin is a user-to-user digital currency that can be similarized to the Bitcoin. The Litecoin has gained shape over the years besides challenges like price dips in recent days. The Litecoin operates without a central authority and allows for cheaper and faster cryptocurrency transactions. The currency has gotten much support, which can be proven by figures such as trade volume and liquidity.
The Litecoin comes into the market with the capabilities that allow larger transactions, unlike the Bitcoin. Due to the ability to support multiple purchases, the Litecoin can generate more blocks without having to update the system. The confirmations of a transaction on its platforms are also near immediate than those of its peers.
How they were developed (history)
Former Google employee Charlie Lee developed the Litecoin in 2011. The Litecoin uses the abbreviation, LTC. Motivated by the Bitcoin, Lee thought of a faster cryptocurrency, LTC uses scripts and is 2.5 minutes faster than the Bitcoin. The availability of the coin in the market has been higher and due to the quick reception to the market in 2013 where it was valued at a billion dollars. The Litecoin has found its way to the sixth position, a good rank in the market given the market is made up of about 1600 cryptocurrencies.
The Litecoin has been in use for over five years since official inception in 2013.
Purpose of the token
The Litecoin's creation was solely based on a premise of a faster and cheaper cryptocurrency. The Litecoin achieved such aspirations and even so has become a good investment option given that one Litecoin is valued at about 147 dollars whereas the Bitcoin is at 3600 plus USDs.
Some of the benefits
- It is a faster cryptocurrency network. Being able to complete a transaction at a quicker rate makes the Litecoin a cheaper option than most cryptocurrencies.
- The number of Litecoins in the market is more significant. Less is spent on the production of the coin, and therefore the margins of profit can be assumed to be higher.
- The Litecoin is a safer currency than its peers. The use of script makes the platform more reliable and efficient for use, unlike other platforms that use the SHA-256 algorithm.
- A good investment option. The Litecoin has gotten itself a reputation in the market. With its price 30 times cheaper than the bitcoin, having more of a Litecoin could get you better returns on sale.
- The Litecoin is a more flexible option. Most exchange platforms accept the cryptocurrency. It can also be bought through Bitcoin.
Some of the negatives
- The lack of central authority makes cryptocurrency a tough call. A market crash or a loss in money can be said to riskier.
- The client code is another risk worth noting. Litecoin relies on the old Bitcoin version and is not well maintained making it a risky platform.
The coin has received a lot of hype and has grown so fast that a rush to invest and crush in the market could mean huge losses incurred.