Do you already know what Litecoin is? If not, don’t you worry we’ll tell you everything about it here!
When talking about cryptocurrencies, almost everyone think only of Bitcoin. What they don’t know is that there are several types of cryptocurrencies available on the market and that one of the options that’s becoming popular with every past day is the one known as Litecoin.
This is in fact the second most important e-coin right now, after Bitcoin of course. But if you don’t have any idea of what it is and you want to invest on some good cryptocurrency, here we’ll show you everything you should know about Litecoin. This way you will be able to determine if it is or not the best alternative for you and your desire of being part of the cryptocurrencies market.
What is Litecoin?
In general terms, it is an anonymous cryptocurrency with a P2P network basis. This means that there is not any kind of authority controlling the money flow. In this case, the network knots manages the transactions, the availability and everything related to this digital money system.
As other e-coins do, this cryptocurrency allows users to make instant payments effortless from wherever they are. But fortunately it mantains their identities completely secure during all the process.
This cryptocurrency was created on 2011 by a user of Bitcoin. This person had the idea of setting it up as a complement of this another system. Nevertheless, even when it’s based on Bitcoin, Litecoin is not related to it. Actually, it comprises a different and independent kind of software.
What are its advantages?
One of the advantages of the Litecoin system is that it has a limit of 84 million Litecoins. This is 4 times more the capacity of money that can be managed through Bitcoin, which corresponds to 21 million.
Also, the Litecoin network is faster compared to other cryptocurrencies framework. It only needs 2 minutes and a half to generate a transaction while Bitcoin needs 10 minutes for doing it. All this means that Litecoin is a more handy system, at least compared to Bitcoin.
Continuing with the advantages, this cryptocurrency works with a scrypt algorithm that allows users to mine through normal computers. This way, the pc keeps working with the same speed and people with non-special devices can easily use the platform.
Furthermore, the Litecoin system is open-source, so its development code is public and editable. According to this, it is possible to create or improve another project starting from that.
Finally, you have to consider that no matter what project you want to develop, only you’re responsible for the money. Remember that there aren’t authorities controlling the process, so only you and the other users have power over it.
Due to this, you have to watch the security of your file, where all your e-coins get store. If you lose it, you’ll also lose all your money accrued.
Litecoin vs. Bitcoin
As we have said before, one of the differences between both cryptocurrencies is that Litecoin allows managing 84 million e-coins while Bitcoin has a limit of 21 million units.
Moreover, Litecoin corresponds to a faster platform because it shows the transactions almost immediately. To see your operations you only have to wait 2 minutes and a half and not 10 minutes as happens with Bitcoin.
On this way, Litecoin allows you to do 4 times more transactions in only a fifth part of what Bitcoin does. Obviously, this sets it up as a more efficient digital money platform compare to the #1 cryptocurrency system.
Now that you know everything about this cryptocurrency, you can determine if it’s a good idea to be part of this system. However, if you’re still doubting about which one is better between Bitcoin and Litecoin, there are 7 things you need to consider before investing on Bitcoin and we invite you to read them here.