What to Know Before Buying Litecoin
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When it comes to buying cryptocurrency, Bitcoin and sometimes Ethereum get all the attention. However, one of the oldest cryptocurrencies is now starting to gain attention. If you are considering buying Litecoin, keep reading this comprehensive guide to learn more about cryptocurrency before making your first purchase.
Litecoin was developed by a computer scientist and former Google engineer named Charlie Lee. The cryptocurrency was designed to be a superior version of the infamous Bitcoin, a faster and lighter variation. Litecoin processes transactions four times faster than Bitcoin. With a network block generation time of just 2.5 minutes, Litecoin can process thousands of transactions per second. This is a significant advantage for users of Litecoin, especially when it comes to sending large amounts of money. Compared to Bitcoin, Litecoin is also more secure, as it uses different encryption algorithms. In addition to its increased transaction speed, Litecoin has a smaller cap than Bitcoin, making it a more attractive choice for large transfers.
1. Designed Purpose
The biggest cryptocurrency ever developed – bitcoin – was created to decentralize the financial system by providing an alternative payment method that anyone can use. Litecoin is a cryptocurrency that works in a similar way to Bitcoin. However, unlike Bitcoin, Litecoin has revolutionary ideas and features such as Segregated Witness and Lightning Network, which enable fast transactions across borders. Furthermore, it is stable, inexpensive, and trades for less than $200. While it is still a risky investment, it offers investors an excellent long-term return.
Litecoin was created in 2011 to be an upgraded version of bitcoin. Former Google engineer Charlie Lee created the digital asset, and in many ways, as a superior version of bitcoin. It’s four times faster when processing transactions and doesn’t use as much energy to complete.
2. Price History
Litecoin’s price has closely followed that of bitcoin since its creation in 2011. However, bitcoins price movements have been more extreme than that of Litecoin. Many will say it’s because of the extra attention that bitcoin gets when the value is on the rise.
Another thing to keep in mind is that Litecoin is cheaper per coin than bitcoin. Today Litecoin is around $108 per coin, and bitcoin is sitting just under $30,000, a significant difference between them. Although you can now buy fractional shares of certain cryptocurrencies, buying litecoin will give you more ownership than you would with other cryptos, such as bitcoin.
Litecoin has experienced significant changes in value over the years. In late 2017 and 2018, those trading litecoin saw the price jump from under $50 a coin to over $200 in just a few short months, making massive returns for people holding the coin.
3. The Founder
Unlike bitcoin who’s founder goes by the pseudonym Satoshi Nakamoto. The creator of litecoin is outspoken about the digital currency and its potential. Litecoin’s popularity has increased since the project’s launch in 2011. Its principal founder is Charlie Lee, a longtime Bitcoin community member and a Google alumnus. In June 2011, Lee made his first post on BitcoinTalk as coulee and has been active in the forum ever since. Lee subsequently launched Tenebrix, a cryptocurrency-mining program that tapped idle CPUs within the mining community.
After facing criticism for promoting cryptocurrencies and giving cryptocurrency advice, the founder decided to sell his entire stake in Litecoin. The move came after some people accused him of promoting the coin to benefit himself and profiting off the price movements.
He mentioned how it was a “conflict of interest” and that he had too much influence over the price of litecoin from his promotions. Some people would take the founder selling his share as a good sign, and he is doing it to avoid that conflict. On the other hand, others will say that he only did it to cash out and benefit off of the creation of it in the first place.
Interested in Buying Litecoin? Here’s How to Get Started
These are just a few of the things you should think about if you are considering buying Litecoin. Most cryptocurrencies, including litecoin, are volatile and can make significant price changes in a short amount of time. Before buying any cryptocurrency, it’s critical to do your due diligence and understand what you are investing in.
Like Bitcoin, Litecoin has a finite quantity, with the number of coins being 84 million. This means that once the coins have been mined, there will never be another. As a result, Litecoin will be the most useful coin in the crypto world, with no risk of oversupply. This is why the cryptocurrency is easy to use. Besides its ease of use, Litecoin also has a limited supply.
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