The story of Litecoin is one that is both old and full of promises. In its essence, Litecoin is a peer-to-pee,r open-source cryptocurrency project developed under the MIT/X11 license with no centralized authority. Though almost identical to Bitcoin in many respects, Litecoin was one of the earlier offshoots, or forks, of the leading cryptocurrency. As one of the firstborn cryptocurrency altcoins available, LTC had immense potential for trading and was one of the first to be listed on exchanges. As such, Litecoin is a favorite of crypto traders. It’s even considered one of the best cryptos out there, has its own cult following, and is being actively bought, sold, and traded on virtually every exchange available.
Litecoin was released via an open-source client on GitHub on October 7, 2011, by Charlie Lee. The Litecoin network went live on October 13, 2011, and was the result of a fork in the Bitcoin Core network client. The new coin, branded LTC, or Litecoin, had a decreased block generation time of just 2.5 minutes. It also brandished an increased maximum in the number of coins issued, had a different hashing algorithm (scrypt instead of SHA-256), and operated on a slightly modified GUI.
The success of the new coin among crypto enthusiasts was evident, as throughout November 2013, Litecoin experienced unprecedented growth and even had a 100% rise in price in just under 24 hours. Litecoin even reached the $1 billion market capitalization mark in November 2013 and become a unicorn in its own right.
By May 2017, Litecoin had become the first of the top five cryptocurrencies by market capitalization to adopt the Segregated Witness protocol. The first-ever Lightning Network transaction was also completed using Litecoin in May of the same year, thus rendering Litecoin a hallmark and pioneer of a new breed of transactions and technological advancement. The milestone transfer involved just 0.00000001 LTC from Zürich to San Francisco and was completed in less than a second.
Litecoin – The Pros and Cons
Litecoin is not a perfect altcoin, nor is it a mediocrity. The Litecoin Network is quite impressive in its own right, as it can process a blockchain block every 2.5 minutes. This is a significant improvement over the 10 minutes required for Bitcoin, which is often used as the dirty end of the stick against the leading cryptocurrency. Naturally, the developers of LTC claim that the cryptocurrency can perform much better and has greater application prospects. Litecoin uses scrypt for its proof-of-work algorithm, which is, in essence, a sequential memory-hard function that requires incomparably more memory than a non-memory-hard algorithm. The use of this algorithm makes it more difficult for FPGA and ASIC devices to mine Litecoin. As such, the process is more expensive than the one needed for the production of Bitcoin, which uses the SHA-256 algorithm.
The main benefits of Litecoin, apart from the fast transaction times and mining speeds mentioned earlier, are that Litecoin is completely anonymous and enables online purchases on a large number of accepted outlets. This advantage makes LTC a remarkably popular second choice to Bitcoin in online transactions.
The second main benefit is that commissions for Litecoin are lower than for Bitcoin, which allows the Litecoin Network to be used more extensively and as the basis for projects that seek to charge lower commissions for their services.
The main disadvantage of the Litecoin cryptocurrency is that it’s based on a very old version of the Bitcoin network and is therefore quite vulnerable. However, the arrival of more advanced network updates has negated the effects of its heritage and rendered it a more secure altcoin.
How to Buy Litecoin With BTC
The process of buying LTC with Bitcoin is not as difficult as you may think. Buying Litecoins online is as simple as creating a Litecoin wallet and finding an exchange that sells them. Ledger, Trezor One, Exodus, and others are excellent examples of wallets that can store LTC safely.
The next step is opening an account on any exchange that trades Litecoin. The process is a standard procedure of passing KYC and authorizing access to your personal account. The next requirement is a wallet with BTC to trade. Once you’re granted access to the exchange, the trading or exchange process can begin. Here are some of the exchanges that support Litecoin purchases with Bitcoin:
All of these exchanges allow users to buy Litecoin with BTC and vice versa. As always, the trading process is subject to exchange-rate fluctuations and volatility. The price of LTC is quite stable and is not entirely subject to severe market changes.
Try out buying Litecoin with Bitcoin on one of the most convenient terminals available through Xena Exchange via the (LINK) and enjoy the value of having such a useful coin as LTC in your wallet.
Where to Buy Litecoin With USDT
Buying Litecoin with USDT is just as simple as buying LTC with BTC. The process of acquiring a wallet and opening an exchange account is identical for all relevant operations. The only difference is that users will be required to have USDT, or Tether coins, in their wallets to make the exchange. Almost every prominent exchange allows users to trade and purchase Litecoin with Tether. The following are some of the exchanges that allow users to buy Litecoin with Tether:
These exchanges feature convenient interfaces for exchanging USDT for Litecoin at favorable rates. To make the transfer, users need to enter their Tether and Litecoin wallet addresses and make the exchange.
Try out the Xena Exchange terminal (LINK) to swap your USDT for LTC and see how convenient it is.
How to Buy Litecoin With Cash or Using a Bank Card
Buying Litecoin using a credit card or with cash, such as the US dollar, also involves the creation of an account on an exchange that allows such purchases. The process is the same, with users required to pass a KYC procedure and subsequently tie a credit card to the account and confirm it accordingly. This process is best suited for those who are just starting out with trading and are new to the crypto market or have chosen Litecoin as their first asset. The following are some of the exchanges that allow users to buy Litecoin using a bank card:
It’s important to keep in mind that buying Litecoin with cash can involve some significant transfer commission fees. The best way to buy Litecoin is using other cryptocurrencies, such as BTC and ETH, as that way, users can accurately predict the exchange rate and their ensuing losses. In addition, the essence of trading cryptocurrencies is the volatility factor, which allows for the opening of short or long positions and even scalping. Using cash is not the best approach in this regard.
Buying Litecoin in the United States can be a problem, since bank cards in the USA are traced, and US citizens are not allowed on all exchanges. In addition, US citizens are charged a 4% convenience fee, which is quite a hassle and an additional expense that can negate any profits gleaned from trading LTC. The best Litecoin trading platform for buying LTC using US-issued American Express cards is the Abra exchange.
A number of exchanges also allow users to purchase Litecoin using PayPal. The process is almost the same as tying a bank card to one’s account, except that users need to transfer cash from their PayPal account to their account on the exchange. Coinbase, Xcoins, Bitdegree, and Exadex allow transfers from PayPal. However, it is not recommended to buy LTC using PayPal for security reasons. One of the reasons is that PayPal transfers may be unsatisfactory and users might complain, but it will not lead to any refunds from the exchange, since there is no way to verify that the funds were sent from PayPal.
It is possible to sell Litecoins in the exact same manner as it was purchased, just reversed. The only difference is that the trader must bear in mind that the exchange rate is volatile and can be subject to change. It’s therefore advisable to hold on to Litecoin, given its relatively stable nature.
Try out the convenient approach Xena Exchange has taken to simplify the process of buying Litecoin with cash through its terminal (LINK).
Litecoin and its Development
Litecoin is not just a coin to be traded, it’s a useful instrument being used to build various applications. Litecoin is considered the silver of the crypto world, as opposed to gold, which is Bitcoin. Litecoin is a Bitcoin sidechain and is said to be able to compete effectively with the Bitcoin Lightning Network. For instance, Litecoin is cheaper and faster and is often considered an alternative for payment systems.
The Litecoin Foundation was created to support projects and broaden the concept of mutual support within the blockchain community. The Foundation has also stated that Litecoin has started working with X9 developers and XSN to enable Litecoin support on Neutrino. The latter is a light Lightning Network client designed to maintain and strengthen Litecoin development on the Lightning Network. The Litecoin Foundation has also accredited CoinGate as its official Litecoin Lightning payment processor to foster merchant adoption on the Lightning Network.
The Foundation has also announced that Token Pay has enabled the Litecoin Foundation to acquire a 9.9% stake in the German WEG Bank so that it can build financial solutions for the long term. Litecoin is also collaborating with Beam and other cryptocurrency projects to help aid research and development for privacy and fungibility implementations for the Litecoin blockchain.
All in All
Litecoin is only beginning its development, despite being one of the old-timers of the crypto market. It is a convenient, relatively stable, and highly useful altcoin. As a completely anonymous asset with fast transaction times and a good network throughput, it has significant potential as a trading asset and as a currency for making payments.