Litecoin is a cryptocurrency that allows you to send and receive funds on a peer-to-peer basis. Often referred to as the Silver to Bitcoin’s Gold, Litcoin is a much smaller cryptocurrency project in comparison to BTC. However, in terms of the end-to-end transaction process, it actually performs better. Notably, while Bitcoin transactions take 10 minutes to confirm, Litecoin takes just 2.5 minutes. Litecoin is also able to scale more transactions at 56 per second, compared to the 7 facilitated by Bitcoin.
With that being said, if you’re keen to invest in Litecoin for the future, we would suggest reading our guide on How to Buy, Sell & Trade Litecoin in 2021. Within it, we’ll show you the best exchanges and brokers to buy Litecoin, as well as what you need to look out for before joining a new platform. We’ll also give you the ins and outs of what Litecoin actually is, and why it could represent a good investment in the long-run.
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What is Litecoin?
Launched way back in 2011, Litecoin was one of the first cryptocurrency projects to compete with the status quo of Bitcoin. Its founder – Charlie Lee, wanted to create a blockchain protocol that carried the same characteristics of Bitcoin – such as a decentralized blockchain, a transparent network, peer-to-peer transactions, and high security, but make it better. As such, Lee performed a fork of the Bitcoin blockchain – meaning that it utilized the same underlying code, but with some key changes along the way.
Notably, Litecoin improved on how you buy Bitcoin with blockchain on two key fronts. Firstly, Litecoin transactions take just 2.5 minutes as opposed to the 10 minutes that Bitcoin requires. Secondly, Litecoin is also able to scale more transactions. While Bitcoin is limited to just 7 transactions per second, Litecoin is able to scale 56. On the flip side, this is still much lower in comparison to other cryptocurrency projects in the space, with the likes of Ripple able to scale 1,500 transactions per second.
Nevertheless, Litecoin has grown to exponential heights since its inception in 2011. When it was first launched on a tradable exchange in 2013, you could have purchased a single Litecoin for just $4.30. Fast forward to the crypto-craze of late 2018, and that very same Litecoin was worth $350. This represents a 2013-2018 increase of more than 8,000%. However – and much like the rest of the cryptocurrency arena, Litecoin is now worth just a fraction of its all-time high price.
In fact, at the time of writing Litecoin is worth just $44, illustrating a near-on 87% decrease from its previous glory. On the other hand, many would argue that this represents a good buying opportunity. In terms of the fundamentals, Litecoin operates in a similar nature to its industry counterparts, insofar that its underlying blockchain allows you to view historical transactions at the click of a button.
What are the Pros and Cons of Buying Litecoin?
- A great Bitcoin alternative for your cryptocurrency portfolio
- Transfer time of just a 2.5 minutes (Bitcoin takes 10 minutes)
- Up to 56 transactions per second (Bitcoin is just 7)
- Founder Charlie Lee is well respected in the blockchain space
- Multi-billion dollar market capitalization
- Fractionization allows you to buy as much or as little Litecoin as you like
- Ability to buy Litecoin with fiat currency – including debit/credit cards and e-wallets