May 26, 2021 | AtoZ Markets – As most of us have learned from Economics 101, both gold and silver were used as currencies, both serving their own unique purpose. In very much the same way, Litecoin is the digital silver to Bitcoin’s digital gold. So, what is Litecoin’s role within the current landscape made up of over 4000 cryptocurrencies? And how can you up your game when trading LTC/USD?
What is Litecoin?
Litecoin refers to a peer-to-peer cryptocurrency as well as the open-source software project it operates from. Litecoin was created with one goal. Of creating a faster and cheaper version of Bitcoin. It is safe to say that its creator Charlie Lee managed to achieve this. Litecoin has now consolidated its position amongst the top 10 cryptocurrencies in the world and enjoys a growing following worldwide. As Most cryptocurrencies on the market, it uses blockchain technology to power its transactions and is used to transfer funds directly between businesses and individuals.
Litecoin: A Short History
Created in 2011 by former Google employee Charlie Lee The Litecoin network went live on October 13, 2011. The very first version of Litecoin was in fact a fork of the Bitcoin core client. Due to this, its evolution has been related to Bitcoin’s growth, adopting most of the patches that were designed exclusively for Bitcoin.
Due to this, the development of Litecoin is heavily dependent on Bitcoin. A case in point is one of the most famous forks that is UASF (user activated soft fork). This resulted in the deployment of SegWit, or segregated witness, that was supposed to solve Bitcoin‘s malleability problem. However, in an unexpected turn of events, Litecoin managed to deploy it before Bitcoin, on 10th May 2017.
Having said that, there are other famous Litecoin forks that did not come from Bitcoin. Some of these Litecoin forks even resulted in the creation of other altcoins. The most famous altcoin to have been forked from Litecoin has to be Dogecoin, which was created as a joke in 2013.
How does Litecoin work?
Litecoin is a source code fork of the Bitcoin Core client. Due to its very close proximity to Bitcoin, it is worth taking a look at how it differs from the king of crypto. Because its creator’s main goal was to create a faster and cheaper version of Bitcoin, Litecoin has a faster block propagation. This means one block is created every 2.5 minutes instead of the 10-minute target put on Bitcoin. It also has an improved graphical user interface (GUI) as well as a Scrypt algorithm instead of SHA 256 that is used by Bitcoin. As opposed to Bitcoin, Litecoin does not use ASICs. ASICs are application-specific integrated circuits. They are sophisticated devices that focus on mining and outperform most of their CPU counterparts. Due to this, they are also much more expensive and difficult to maintain. In contrast, Litecoin uses Scrypt-capable ASICs that were developed over time to enable Litecoin mining more efficiently at a cheaper price.
Another important factor that distinguishes Litecoin is the fact that there are more Litecoins in supply than Bitcoin. Bitcoin has just 21 million coins in circulation while Litecoin has 84 million coins.
Why Is It Worth Your Time?
So, after learning all this, is it worth investing in Litecoin rather than Bitcoin? Research and evidence seem to conclude that yes, Litecoin due to its main features is definitely worth looking into.
It offers faster block times and higher transactions. This means it is a more scalable and practical medium of exchange when compared to Bitcoin. However, it is most definitely not considered a competition to Bitcoin but rather a complement to the most famous crypto around given that Bitcoin remains a more significant store of value. As was the case in its early stages, Litecoin remains a testing ground for Bitcoin’s protocol. Litecoin however, has grown into a remarkable altcoin in its own right enjoying popularity, recognizability, and trust by many crypto users all over the world. It is also one of the most popular cryptocurrencies used by traders. Why?
Because of its trade volume and frequent price swings, it offers several opportunities for profit to day traders. Litecoin is also a favourite by people who have just started trading cryptos. Given it has been around for a long-time, it is considered as the ‘silver' to Bitcoin’s ‘gold’ given it has been around for quite some time and uses the same network like Bitcoin. Traders also see Litecoin as a transaction overflow or buffer for Bitcoin, even more considering its cheap buy-in.
Where to Trade LTC/USD
One of the most important things when looking for an online broker who offers LTC/USD is making sure it is reliable, trustworthy, and uses the latest technology to operate. TradeOr is an online broker that places innovation as a priority while not skimping on security and reliability, offering safe and quick transactions from its simple and efficient platform. They also offer a 50% deposit bonus on your first deposit. Are you are a trader looking to show your worth and prove you have what it takes to trade to the top? TradeOr is launching their $25k To The Top trading competition in less than a week. This will give traders the opportunity to trade their favorite assets from June 1st to August 31st, 2021, and win 1 of 3 great prizes, plus monthly funds. Many traders are already enjoying this unique experience so what are you waiting for?