The major reason to get involved in Litecoin trading is that you can buy and sell Litecoins much more quickly than you can Bitcoins. Litecoin miners are awarded 25 Litecoins for every block they manage to mine. It is one of the top five cryptocurrencies available online.
Pros Of Litecoin
- Transactions of Litecoin are much faster than Bitcoin
- Runs on open source software
- Wallet encryption makes Litecoin safe from viruses
- Trading Litecoin includes verifiable transactions
Cons Of Litecoin
- Much lower value than Bitcoin
History Of Litecoin
Charley Lee, a former Google employee was the inventor of Litecoin. In October 2011 he released information about Litecoin trading on GitHub. It was a fork of the original Bitcoin core client. The main difference was that Litecoin had a decreased block generation time (2.5 minutes), the increased maximum number of coins, different hashing algorithm (scrypt, instead of SHA-256), and a slightly modified GUI. This meant that while it would end up having an overall lower value it would be easier to make Litecoin transactions, which in turn makes Litecoin trading easier.
While slightly less known than Bitcoin it moves faster and you can use it more quickly. The increased amount of Litecoins out there for trading would cause people to be able to have a fair chance to operate with them at reasonable prices. In 2013 people started to get really into Litecoin and its value went up 100% in under 24 hours.
Litecoin is much more difficult to mine than Bitcoin. But with that comes a higher level of security with Litecoin. This may make it one of the main ways to buy and sell things on the internet in the future, whether on a computer or through a trading app. Overall Litecoin was smart in basing itself on Bitcoin but positioning itself as a better way to complete online trading.
Development Of Litecoin
Litecoin was developed as an offshoot of Bitcoin. And for a while, Litecoin trading was tied to Bitcoin trading. That has since no longer become the case. Both Litecoin trading and Bitcoin trading are completely separate.
In 2013 Litecoin saw its value double literally overnight. Since then trading has stayed mostly high with some temporary downsides. Litecoin in 2017 became one of the first of the top 5 (by market cap) cryptocurrencies to adopt Segregated Witness. Later in May of the same year, the first Lightning Network transaction was completed through Litecoin, transferring 0.00000001 LTC from Zürich to San Francisco in under one second. That made Litecoin trading much faster than similar currencies.
This development practice has positioned Litecoin as one of the currencies to go to when you want to perform large scale transactions online. It runs on open-source software which helps people build transactions with Litecoin and manage Litecoin trading.
Eventually, there will be a total of 84 million Litecoins. That’s four times as much as what Bitcoin will eventually be offering. Currently, there are over 65 million Litecoins on the market, and the Litecoin prediction is that it will meet the maximum number of coins that can be mined in the next year or two.
The average number of Litecoin transactions per hour is around 1,400. It trades at between $40 and $50 per Litecoin – much less than Bitcoin. That said Litecoin trading is much faster than Bitcoin crypto trading and we could see an upswing in Litecoin usage. Roughly 24 blocks per hour of Litecoin are being produced. Merchants see much faster processing times on their Litecoin transactions than on similar Bitcoin transactions which makes Litecoin preferable to many of them.
Due to Litecoin’s use of the scrypt algorithm, FPGA and ASIC devices made for mining Litecoin are more complicated to create and more expensive to produce than they are for Bitcoin, which uses SHA-256.
Litecoin is an extremely secure cryptocurrency to use. It is far more complex than Bitcoin which makes it that much more secure. There are Litecoin wallets that you can use that will make Litecoin essentially virus-proof. Like most cryptocurrencies, Litecoin requires you to sign in and use a password to access it. That means that if you died or became incapacitated you have to make sure one of your loved ones has access to your passwords and login information otherwise your Litecoins will be lost forever.
Litecoin trading scams are very rare which is good for the owner of Litecoin and any merchants that accept it. Litecoin trading reviews are generally very positive which represents the level of security built into the Litecoin system. Ever since Litecoin went up 100% in 24 hours several years ago Litecoin trading has been fairly stable. It has avoided the huge swings that have affected Bitcoin. The Litecoin price prediction is that it will stay worth between $40 and $50 for the near future.
Like Bitcoin, it is primarily used to make purchases online. It is also traded by speculators but by no means as much as Bitcoin is. This makes the overall price of Litecoin much more stable in comparison to Bitcoin. People seem to have agreed on the general worth of Litecoin and that keeps the prices inline and prevents it from going up or down too quickly.
There have been no major incursions into the Litecoin market by anyone looking to manipulate the price. Its faster conversion rate when used makes it a more convenient vehicle to use when shopping online than Bitcoin. That puts Litecoin at a good advantage to its more well-known counterpart. By building Litecoin off of the Bitcoin specs and not adding much new they have managed to keep things understandable which helps with overall security.
How To Trade Litecoin
When you want to buy Litecoin or sell it, your best and easiest bet is to go to Coinbase. This site trades all sorts of currencies at the current stated price. You can either use your credit card or direct wire transfer.
The downside to do this is that Coinbase is very worried about people using their site to launder money. Therefore, you will have to document to them who you are and provide verifying credentials. That means that there will always be a record of who you are and how much you have invested in Litecoin. You will also have to pay about 4% in fees if you use a credit card and a 1.49% fee if you exchange them through direct wire transfer.
A better and more anonymous way to trade Litecoin is to first go to LocalBitcoins. Here you can purchase Bitcoins anonymously and not leave a trail behind you. Then you can go to a crypto trading floor and trade in your Bitcoins for Litecoins without leaving any trail behind you. Remember to always use a reputable cryptocurrency trader. You don’t want to get hit with a cryptocurrency scam.
The best Litecoin trading is direct. Litecoin trading reviews tend to be fairly positive and there is not a lot of bad press about Litecoin trades going badly. Of course, when you trade crypto online you always have to be somewhat careful, but Litecoin does not seem to be the subject of many scams. The best Litecoin trading sites are the well-respected currency exchanges available online. Litecoin trading scams are very rare.
You are of course able to purchase Litecoin wherever you like. The main process is finding a Litecoin trader. Then make sure that the price they are asking for Litecoin is the current fair market value. Then give them your credit card information and they should transfer you many Litecoins fairly quickly. In this way, it is no different from buying anything else online.
The main thing is how to secure your Litecoins after purchase so that you can always access them but that no one else can. This is generally accomplished by moving your Litecoins to an external hard drive. Once it’s on that drive you can disconnect it from the Internet. Then only reconnect it when you want to buy or sell more Litecoins or make a Litecoin transaction. Once again you should probably leave your Litecoin login details and password with someone you trust just in case you die or for any other reason cannot access your Litecoins yourself when you need them.
Future Outlook Of Litecoin
Litecoin trading looks like it should remain fairly stable in the future. For a long time, its price was tied to Bitcoin. That is not the case any longer and Bitcoin dives should not affect your Litecoin all that much.
There have not been very many major events that have shaken Litecoin. Its value seems to be that, by it transactionality, people want to keep the price fairly stable. Sure, the difference between it being worth $40 or $50 is a bit shaky; it’s nowhere near at the levels of Bitcoin which go up and down by thousands of dollars a share.
Of course, no cryptocurrency is completely safe from outside events, but those types of events also affect real-world currencies. Litecoin looks to be about as safe a bet as you can find on the currency exchange markets. While it won’t make you rich, Litecoin seems like a fairly safe place for you to park your money.
Litecoin has a fairly solid reputation in the crypto community. People like using it to make trades. While Bitcoin is described as the “Gold” of the crypto community most people rank Litecoin as the “Silver.” In other words Litecoin has less value than Bitcoin but it is still looked at as a safe long term investment. You won’t get crazy price swings and it’s generally used to buy and sell services on the Internet. That positions itself well and is responsible for its excellent reputation. People tend to use it as a place to park money and not as an investment vehicle.
Litecoin isn’t a sexy investment. It’s not likely to shoot up in value and make you rich. But that’s why many people like Litecoin. It is a relatively safe way for people to buy and sell things online. Its value is generally stable these days, with a few up or down tics that affect every currency.
Buying and selling Litecoin is similar to Bitcoin. It was built on the back of Bitcoin and still shares many of its qualities. It is not built for complex or esoteric trading. It simply exists as a new form of currency. That’s not a bad thing as it is nice to have some level of stability in the crypto currency exchange market.
If you are looking for an investment that might shoot up in value you can find a different cryptocurrency. If you just want to buy and sell online and have no way for people to trace you than Litecoin allows you to do that as well as Bitcoin does but without the volatile swings in value associated with Bitcoin.