Since Ethereum shifted to proof-of-stake (PoS), Litecoin has moved up the proof-of-work (PoW) ranks, grabbing significant investor attention. But before you jump in blind and buy litecoin, you should first understand how Litecoin works, the size of the ecosystem, and why LTC is popular. Here’s what to know.
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What is Litecoin?
To buy litecoin confidently, it’s necessary to know a little about the project. This Bitcoin-inspired blockchain and cryptocurrency was introduced in 2011, focusing on faster transactions — 2.5 minutes per block. Litecoin also has a supply cap — fixed at 84 million.
How does Litecoin work?
Like Bitcoin, litecoin is also a proof-of-work cryptocurrency. Miners solve puzzles to validate transactions and are rewarded in the process. Also, like any other decentralized network, Litecoin boasts immutability. Litecoin’s MimbleWimble security upgrade furthers its presence as a decentralized cryptocurrency, enhancing fungibility and privacy.
What is litecoin popular? (payments)
There are quite a few reasons, including faster transactions and support for mining, that lend popularity to this PoW cryptocurrency. As it follows BTC’s vision of being a payment system, a number of stores, including Snel.com, eGifter, Travala, and more, accept litecoin.
Litecoin, like bitcoin, also follows a halving structure. This approach is expected to impact the price of LTC positively. While the last halving event took place on August 2, 2023, the next one is expected in July 2027.
Litecoin vs. bitcoin
Litecoin is a popular crypto. But let us see how it compares against the biggest player in the cryptocurrency ecosystem — bitcoin. Any Litecoin vs. Bitcoin comparison makes sense as both networks strive to support payments, can be mined, and are PoW tokens. However, LTC mining follows the Scrypt language, whereas BTC adheres to the SHA-256 algorithm.
As a result of this mining-specific dissimilarity, the Bitcoin network consumes much more energy than Litecoin. Also, the max supply cap of litecoin is four times that of bitcoin’s.
“Proof of work is the secret sauce to decentralization of cryptocurrency.”
Charlie Lee, Creator of Litecoin: Twitter
The Litecoin ecosystem
Litecoin is a minimal cryptocurrency with an ecosystem comprising Litecoin nodes, a chain of developers, ATMs, explorers like Blockchair, nodes, and Litecoin trading exchanges. However, wallets and the mining setup deserve the most attention.
Also, the Litecoin Foundation is a major part of the LTC ecosystem, promoting the adoption and development of this PoW token.
Top wallets
If you want to buy LTC, you need first choose Litecoin wallet to store your crypto. Choice-wise, the official LiteWallet is easily the better pick, followed by Exodus, Trezor — the hardware wallet, and Guarda. Prioritize ease of usage and security over everything else.
Litecoin mining
Litecoin miners form a bigger part of the ecosystem. If you are interested in litecoin mining in order to acquire LTC without buying it, joining a mining pool can be a good option. Or, you can invest in specialized mining hardware to get started.
How to buy litecoin?
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Most reputable global exchanges, including Binance, KuCoin, Coinbase, and Kraken, allow you to trade multiple LTC pairs. Regardless of any exchange you wish to onboard, you can buy litecoin in 4 easy steps — set up an exchange account, get KYC verified, fund your account, and search for LTC to place a market or a limit order.
Purchasing LTC on decentralized exchanges, like Pancakewap and Biswap, is always an option if you prefer anonymity.
How to sell litecoin?
There are quite a few ways to offload your LTC. On DEXs, you can swap the same for any other crypto. On a CEX, you can sell your LTC at the market or a limit price, off-ramping the same to fiat. However, if you have LTC in an external wallet, you need to deposit the same into an exchange’s LTC wallet address. You can then directly sell the pair of your choice by accessing the litecoin wallet.
Investing in litecoin: Does it make sense?
If you wish to buy LTC with a longer time frame in mind, our litecoin price prediction could come in handy. Our price analysis foresees that the price of LTC could head towards the $300 mark by 2028, making it a decent investment choice for those looking to HODL.
Has litecoin got a future?
Litecoin has started to gain investor attention. With historical reliance to show for followed by transaction speeds, reputation as the digital silver, support for mining as an additional earning method, and high liquidity for trading, buying litecoin with the future in mind could be a prudent option.
Frequently asked questions
What is litecoin?
Is litecoin better than bitcoin?
Who created litecoin?
Disclaimer
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