Litecoin is the first altcoin and second Cryptocurrency after Bitcoin, created by a former Google engineer named Charlie Lee in 2011. Litecoin was forked from the protocol of Bitcoin. Therefore it is also based on an open-source global payment network, which eliminates the control of other financial authorities.
Like many other cryptocurrencies, it uses the Proof-of-Work algorithm to make transactions fast and secure. In the beginning, this coin was the only competition of Bitcoin, but after the launch of many other cryptocurrencies with new offerings, Litecoin value and popularity decreased. In addition, at the time of release, this coin was titled the "lite version of Bitcoin."
Understanding Litecoin
Lite coin is a purely decentralized currency, making its transactions end-to-end encrypted. This means the transaction made through Litecoin are only limited to the sender and receiver, eliminating the need for a third party. In addition, these coins are created with a simple method called mining, and a new transaction block is created every 2.5 minutes.
Miners need to have high-end computers to solve complex cryptography problems for verifying the transactions of Litecoin. However, on verifying each block, miners get awarded with free 12.5 Litecoin, which they can hold or sell in the open crypto market.
Like Bitcoin, Litecoin has a limited supply that will never exceed the limit of 84 million. However, the halving of Litecoin was started in 2019 and will continue until the last coin is mined. According to the Litecoin foundation, all 84 million coins will get mined before year 2142.
How Does Litecoin Work?
The working of Litecoin is similar to Bitcoin, as these both are open-source projects that run on the mechanism of POW. But there are some differences between both as well. Litecoin has faster transaction speed and has overcome the supply issue of Bitcoin. It has a total supply of 84 million, which is way more than Bitcoin's 21 million.
How Is Litecoin Used?
Litecoin is a very volatile coin, so a person can easily use it for making their day-to-day transactions. One can find many merchants, such as Newegg, Sling TV, and the American Red Cross, who are ready to accept payment in Litecoin.
However, various applications are available that will help you to make person-to-personal payments through LTC. In addition, like every standard Cryptocurrency, you can use this coin as a long-term investment. People often see trading in this coin because of its volatility. One you have purchased Litecoin make sure to open account in trusted crypto wallet.
How to Trade In Litecoin?
Well, like all other cryptocurrencies, one can simply buy it from crypto exchanges such as Wazirx and Binance. However, Litecoin trading is very straightforward; you only have to buy LTC and sell them for profit when its price increases.
Of course, placing a Litecoin trade is a great way to earn a significant profit, but it includes much risk. However, the world of Cryptocurrency is full of uncertainties; therefore, Investing without consulting an expert is risky because it can become worthless anytime.
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