Litecoin

Litecoin

 LTC

Litecoin (LTC) is a digital currency created in 2011 by Mr. Charlie Lee, a graduate of the Massachusetts Institute of Technology, as a replica of Bitcoin. It has many similarities with Bitcoin but was built to be better and more scalable. The initial aim of the Litecoin project was to address the concerns investors and developers had about Bitcoin. For example, there were many concerns about bitcoin being too centrally controlled and making mining difficult for firms that mine on a large scale. With Litecoin, these concerns were addressed and modified to be better.

Litecoin Exchange Rate

Since its "debut," the coin has become a multipurpose coin as it is mineable and even used for peer-to-peer payments. However, it failed when it was initially launched as enterprise miners were acquiring the lion's share of its mining. Litecoin has since improved on these shortcomings and become a better coin.

Understanding Litecoin (LTC)

One of the premier missions of the Litecoin project was to stop enterprise-sized miners from using encryption methods to gain control of the mining process. Unfortunately, this mission was not successfully done. Instead, the miners adapted to the changes made using Litecoin by creating specialized machines that ensured they were still in control of the mining process. In fact, their mining capacity continued to grow.

Litecoin uses the same miners as Bitcoin - the ASIC miners. They used mining software that makes blocks visible to the miners. These blocks contain transaction information that the miner needs. Once the block's information has been made visible to the miner, it will be verified, and the next block will be created. When this is done, the miner receives the reward as Litecoin (LTC).

Litecoin Maximum Supply

Like Bitcoin, Litecoin has a maximum supply that can be in circulation. However, its supply is designed to reduce over time to maintain the coin's value.

When the coin was released into circulation, there were about 150 pre-mined coins and a total of 84 million coins. This ensured newcomers were able to get the coins and trade with them.

Litecoin currently has a block generation time of 2.5 minutes. As of April 2022, it had over 14 million Litecoins (LTC) left to mine.

Litecoin Halving

As said earlier, there are lots of similarities between Litecoin and Bitcoin. One of these similarities is Halving. Halving is the process by which the reward of a block's hash is reduced while other necessary parts of block creation remain the same. The transaction information within each block remains the same, and the block creation process remains the same. With Halving, the Litecoin reward that miners get after validating each block is reduced by half the value of the previous reward. This process reduces the rate at which new coins are created.

Litecoin has had several halvings in the past. Here are the dates where Litecoin has halved:

  • 50 to 25 LTCs - Aug. 25, 2015
  • 25 to 12.5 LTCs - Aug. 5, 2019
  • 12.5 to 6.25 LTCs - Aug. 23, 2023 (expected)

Litecoin Hashing Algorithm

As much as Litecoin has mirror similarities with Bitcoin, it also has clear differences from it. One of such differences is in its hashing algorithm. Unlike Bitcoin, Litecoin uses a different hashing algorithm called Scrypt. Compared to Bitcoin's SHA-256, Scrypt requires a higher amount of memory. The cryptocurrency community initially rejected the Scrypt algorithm until 2011. In 2011, the Tenebrix project modified it to work with regular CPUs for mining.

Due to the large memory requirements for Scrypt, application-specific integrated circuits (ASICs) have also been difficult to develop. However, the ASIC-resistant setup was not long in living as the world's first Litecoin ASIC miner was released in 2016.

Litecoin Developments

Litecoin has experienced steady development since its release into the cryptocurrency market. It has moved from its initial mining ecosystem dominated by individual miners to a setup more advantageous to corporations. In this corporate setup, high-profile tech firms run the large mining pools. These firms account for the majority of the mining of Litecoin.

Compared to more popular coins, Litecoin's market capacity is much smaller. Nonetheless, it remains one of the most traded cryptocurrencies, maintaining a position among the top 30 cryptocurrencies on CoinMarketCap (a platform that tracks more than 18,000 cryptocurrencies). This indicates that it is still a popular cryptocurrency. However, it isn't as popular as Bitcoin and some newer coins.

How is Litecoin Different from Bitcoin?

There are clear differences in the administration of Litecoin and Bitcoin. Here are some of these differences:

  • There is a difference in the maximum supply capacity of Litecoin and Bitcoin. For Bitcoin, it has a supply capped at 21 million coins. On the other hand, Litecoin has a supply capped at 84 million coins.
  • Also, Bitcoin uses a different hashing algorithm from Litecoin. Bitcoin uses the SHA-256 hashing algorithm while Litecoin uses Scrypt. The present version of scrypt Litecoin is modified to generate more coins.
  • The distinction in these algorithms has implications on how these coins process transactions and the speed at which those transitions are processed. At the moment, Litecoin processes and confirms transactions four times faster than Bitcoin. However, Litecoin suffers more from this "speed lap" as the coin's security is endangered. This is because the algorithm does fewer verification rounds on transactions in the blocks.
  • Bitcoin takes roughly 10 minutes to confirm transactions. In contrast, Litecoin's confirmation time is 2.5 minutes, which is ideal for merchants who do not want or need super-secure transactions.
  • Bitcoin has a larger market capitalization than Litecoin. Although Litecoin has a significantly smaller market cap than bitcoin, it still ranks among the most traded cryptocurrencies.

How is Litecoin Used?

Due to its high liquidity, Litecoin is a cryptocurrency that is easier to trade than other cryptocurrencies. As a result, several crypto exchanges accept Litecoin, including Newegg, Sling TV, and even non-profits like the American Red Cross.

You can even make payments using LTC through digital currency applications like BitPay or CryptoPay. If you need to transact with people, you can opt for a peer-to-peer merchant like Binance.

LTC pros and cons

Advantages of Litecoin

The major advantage Litecoin has over cryptocurrency market leaders is its transaction speed. Litecoin, without any additional layers of technology added to its blockchain, is a faster and more affordable cryptocurrency than Bitcoin.

Litecoin also has low transaction costs. As of May 6, 2022, Litecoin transaction fees were approximately 0.06% per transaction, compared with Bitcoin's 3.92%.

Disadvantages of Litecoin

One of the major disadvantages Litecoin has had is its low investor affinity. The reason for this is not far-fetched. After divesting most of his Litecoin holdings due to a conflict of interest, Litecoin creator Charles Lee caused a bit of a panic among cryptocurrency investors, and many also withdrew their stakes in the coin. The CEO and co-founder of SeedOn has this to say, "Something that caught the investor's eye and had an impact on the investor's confidence is that in 2017, Charles Lee, Litecoin's founder, has sold his stake in Litecoin,"

A researcher at 21 Shares observes that the Lightning Network, while designed to have higher transaction throughput than bitcoin, has sped up Bitcoin transactions and has diminished Litecoin's use case as a faster payment network.

Additionally, newer cryptocurrencies offer faster transaction processing rates. For example, EOS has 4,000 TPS, XRP has 1,500 TPS, and Cardano has 257 TPS.

Will Litecoin Have a Future?

For now, no accurate assessment shows how the market will move or adjust to the demand of investors, traders, and the government. However, as the days go by, more cryptocurrencies are created. Each of these cryptocurrencies will build on the shortcomings of present coins and improve them.

Also, the cryptocurrency market is very volatile, and governments are doing everything to clamp down on digital currencies. Therefore, it is difficult to predict a future for Litecoin this way.

Is Litecoin Still a Good Investment?

With the unpredictability of the market, it is difficult to make a bold statement on how Litecoin will behave going forward. However, suppose you want to continue investing in Litecoin. In that case, it is advisable to get a professional advisor to help you determine if Litecoin is a good investment.

What Factors Affect Litecoin's Price?

There are several factors responsible for the volatility in the price of Litecoin in the market and at crypto exchanges. Some of them are:

Regulation

Digital currencies are decentralized currencies, meaning they are not regulated by a central authority. With Litecoin being unregulated, there is no authority to take measures to keep its price stable.

Supply

There are large amounts of Litecoins in circulation today. As a result, the coin's price can also be determined by the rate at which it enters the market.

Public perception

The price of Litecoin can also be affected by how the market views the coin and the market leaders like Bitcoin and ethereum.

Adoption

The price of Litecoin is also affected by the number of high-profile enterprises, investors and consumers that adopt it as a means of payment. Although it hasn't done much as a payment method, some businesses still view blockchain technology as a technology that can be adopted in the future.

What’s Better, Litecoin or Ethereum?

Litecoin was built basically as a payment method for P2P transactions. However, Ethereum is built as an ecosystem for other cryptographical technologies. Although it is built as a global virtual machine, it has a token called Ether (ETH) for transactions and payment methods. Ether is ranked as one of the top 5 valuable cryptocurrencies and has a larger trading volume when compared to Litecoin.

The better digital currency, however, will be based on your interest, needs, and goals.

How to Exchange Litecoin

If you buy Litecoin on a cryptocurrency exchange, you will usually see the price of litecoin expressed in US dollars. This means that you are selling your USD to purchase litecoin. Trading Litecoin on cryptocurrency exchanges functions on a basic principle - you sell when the price of Litecoin rises, and you buy when the price of Litecoin goes down.

To buy or sell Litecoin at the best deals, visit Swapzone, a cryptocurrency exchange aggregator that lists various exchange rates so you can select the best rates for transactions.

Popular pairs to convert Litecoin

Frequently asked questions

What is the Litecoin exchange rate?

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An exchange rate is the rate at which one cryptocurrency can be exchanged for another through a certain crypto exchange provider. Cryptocurrency exchange rates on Swapzone reflect current prices of crypto assets and are updated every 30 seconds for you to keep track of any market changes and fluctuations to profit when buying the dip or going with the best exchange rate and the lowest exchange fees. All cryptocurrency exchange providers have their own rates, which depends on supply and demand, mining rewards, costs and so on. See what else might affect the rate in our article on prices.

There are two types of exchange rates aggregated by Swapzone – fixed rates and floating rates. To receive the exact amount of crypto that is displayed at the beginning of the exchange and shield yourself against the market's volatility, opt for fixed-rate offers. If you're ready to take a risk and receive less or more than the sum displayed, go with floating-rate offers but bear in mind that floating rates may drastically change any second. You can refresh your memory on how to get the best exchange rate here.

Where to find the lowest transaction fees?

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Crypto transaction fees may vary depending on the network (Ethereum transaction fees tend to spike during the congestion on the network), your chosen cryptocurrency, an instant exchange provider as well as its transaction processing speed and internal policy. These fees may be relatively low but it’s crucial to know they may be imposed in the first place.

If you want to exchange cryptocurrency with the lowest fees, beware of the offers with a grey-colored “Transaction fees are not included” label displayed under the exchange rate. To avoid having to pay an unexpected amount of fees during the exchange, opt for those that do not have that label. Read our articles to learn more about how to exchange cryptocurrency with the lowest fees and find out which assets have the lowest transaction fees.

What is average transaction time?

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Transactions usually take from 5 to 30 minutes to be processed, especially if you choose currencies with speedy networks. However, there are several factors that may affect and slow down the exchange process, i.e. transaction volume, blockchain capacity, network updates, cryptocurrency itself and the capacity or chosen exchange platforms.

The processing may take longer due to the large transaction volume, congestion of the network, blockchain overload and market overload, technical issues or system failures, lack of liquidity or network maintenance.

The transaction may be also stuck if you forget to add a required Extra ID, mistake networks or use the wrong wallet for a chosen crypto asset. If you worry that the exchange processing is taking too long, please, contact us at [email protected] or via our live chat on the landing page.

How to choose a cryptocurrency wallet to store Litecoin?

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To exchange, buy, sell or trade cryptocurrency and store your crypto keys safely and securely, you need a crypto wallet. Choosing the best cryptocurrency wallet is a question of preference and need. To learn more, read our guide on how to choose the best cryptocurrency wallet for your needs.

There are several types of wallets for different crypto assets and tasks. Software wallets, or hot storage wallets, are connected to the Internet and come in many forms: Web, Desktop, Mobile or Browser Extensions. If you want to build a large crypto portfolio, you might want to look at multi currency wallets like Exodus, MetaMask, TrustWallet, Atomic or Guarda. If a coin or a token of your choice isn’t available there, you can always opt for a single-currency wallet that is usually designed by the project that launched the asset.

If you take safety and security matters seriously, go for hardware wallets, or cold storage wallets, like Ledger or Trezor, or even paper wallets. We strongly recommend you to do your research before creating a wallet: read the reviews to see what the community thinks, learn about the fees a particular wallet imposes for performing transactions, check out supported currencies and networks and see its security policy.

What is the best cryptocurrency exchange for beginners?

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There are loads of different crypto exchange services, with new platforms emerging every month. Exchange providers differ by supported currencies, liquidity providers, fees, customer support, user interface, level of privacy and anonymity and customer support, which makes it hard for beginners to understand which one to choose. To learn more about what these exchanges offer and how you can assess them, read our guide on how to choose the best exchange platform.

To navigate them through the field full of services, we conduct research and thorough analysis of the market & list both prominent and promising exchange providers, keeping in touch with their teams 24/7. We give you all the necessary data on the offers they provide as well as their brief history, KYC/AML policies, reliability and advantages, while also indicating their downsides so that you don’t have to do that yourself.

What is Swapzone?

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Swapzone is an instant non-custodial cryptocurrency exchange aggregator that helps users make an informed choice when exchanging crypto assets. To make this possible, we gather the information on the exchange providers, select the parameters for comparison, aggregate and sort available deals & give an option to make a swap through providers' APIs in the same interface with a common user flow for every exchange. Still have doubts? Here's 9 reasons why you should use Swapzone to exchange crypto.

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Learn how to exchange cryptocurrency with the lowest fees or zero fees as well as how to find the best crypto exchange rates and choose the safest cryptocurrency exchange provider.