Pros of Litecoin
- One of the best mean block times
- A coin cap of 84 million
- Low transaction fees
Cons of Litecoin
- Image suffered after Charlie Lee sold his coins
History – Where did Litecoin begin?
We cannot write a brief section on the history of Litecoin without mentioning the man who was the driving force behind its inception and ultimate birth. Charlie Lee created Litecoin in 2011 after forking from the original Bitcoin Core client. Lee created Litecoin because he saw an avenue for faster transaction times and blockchain generation times. Litecoin only takes 2.5 minutes to generate a block which is 4 times faster than its big brother Bitcoin.
Since the start of Litecoin, the crypto has been called the “silver” to Bitcoin’s “gold” or Bitcoin’s little brother. However, Litecoin has fast become a favourite for crypto miners as it doesn’t require an expensive rig to mine. Individuals can mine Litecoin with just their basic laptops and desktops without burning them out. With an exceptional block generation time and its ease of mining its no wonder that by the end of 2013 Litecoin had already reached a market cap of $1 billion.
Development – How was Litecoin developed?
Litecoin forked from the original Bitcoin Core client because Charlie Lee saw an opportunity to curate a cryptocurrency that is far superior at least in terms of its block generation time. Lee created a cryptocurrency that clears a transaction in 2.5 minutes adding the block into the blockchain, 4 times faster than its world-renowned relative Bitcoin. Litecoin is also fully decentralised, relying only on the cryptographic integrity of the network itself. Litecoin has fast become one of the safest and most efficient cryptocurrencies available to buy and trade.
Producing one of the most widely used cryptocurrencies in the world at the moment is undoubtedly down to the vision Lee had for the overall development of the currency. Lee himself has said that Litecoin is able to move faster than Bitcoin with its updates and ideas as it requires less general consensus. As such, it was unsurprising to see Litecoin hit the heights that it did in 2017. The market was booming and so was Litecoin who went from $30 to $350 in per coin valuation. While that spike didn’t last forever, the currency is still valued at a respectable $144 at the time of writing. Check out our XRP Ripple review to see how they did during this peak period.
Statistics & Major Facts – All you need to know before you buy Litecoin
Let’s take a look at some of the more important statistics and major facts of Litecoin to see where it currently stands in the market. Litecoin has a maximum supply of 84 million coins. This means that only a certain amount of Litecoin can be mined, it is a finite amount. At the time of writing, we found that a little under 66 million coins have been mined leaving around 18 million left. Analysts predict that the last Litecoin will be mined sometime around 2141, taking the halving rate into account which is every 840,000 blocks. To quantify that into years, you can expect a halving rate roughly every 4 years.
Litecoin uses the Scrypt algorithm which is why the cryptocurrency has such an impressive mean block time in comparison to its competitors. All in all, the overall value in Litecoin lies in its speed. Scrypt is there to provide the trade-off between memory and speed allowing Litecoin to confirm transactions much faster. Furthermore, because the process is less complex than the Bitcoin algorithm, users who buy Litecoin will have cheaper transaction fees. Check out our Ethereum Coin review to see what algorithm they are currently using.
Security, Features, Use Cases – The safety of Litecoin trading
So, what is the actual usability of Litecoin? Where does it shine where perhaps a bigger name like Bitcoin doesn’t? Litecoin trading doesn’t merely need to be an asset that you acquire and store to gain interest before being sold. In fact, the true purpose of Litecoin lies in its convenience for day to day purchases.
Those who buy Litecoin can use the crypto to purchase their daily essentials like their coffee and lunch or small items. That was always the goal of Charlie Lee. Due to the fact that Litecoin uses Scrypt as its algorithm, users of the crypto will experience a far shorter mean block time of 2.5 minutes. This means it only takes 2.5 for the block to be verified and added to the blockchain. All ending with you walking away with a coffee in your hand the transaction completed without any muss or fuss.
But is Litecoin safe to use? Are there any Litecoin trading scams? This is a commonly asked question by people who want to buy Litecoin. There is no simple answer on how your Litecoin is protected but there is a means for you to assuredly keep your coins out of the hands of hackers. And that is via a hardware wallet. A hardware wallet will store your Litecoin in a secure location that is not actually online. This way, it cannot be hacked at all. The downside to the hardware wallet is the fact that you will incur a cost of about $100. So, if you are dealing with a smaller amount of Litecoin this may not be a feasible option for you. All in all, while there may be Litecoin trading scams you can keep your coins safe with a hardware wallet.
How To Trade – Things to keep in mind before you buy Litecoin
As Litecoin has continued to grow in popularity and usability, it’s no surprise that more and more people are looking to buy Litecoin. This facilitates more opportunity for those who are looking to trade Litecoin as well. Before you jump straight into Litecoin trading you will need to find yourself a reliable trading platform. At TradersBest.com we have analysed and reviewed a number of different online brokerage firms that give you the options to buy and sell cryptocurrencies online. Take a look at our site and run through some of the reviews to find some of the best Litecoin trading sites.
Aside from that, you will need to keep a watchful eye on the market to ascertain when the best time is for you to buy Litecoin. It can be tricky to know when to do the best Litecoin trading. At the moment one Litecoin is valued at $144. While this is not as high as its $350 peak, it is still a fairly high value compared to its mean averages over the past couple of years. Try to gauge when the best time to buy Litecoin is, research whether there are any expected spikes in value coming up and check up on the overall stability of the currency itself.
Once you have done the necessary research it is then time for you to buy Litecoin. There are a couple of exceptional online Litecoin trading platforms for South African residents to choose from that allow you to buy crypto online. Some of the best Litecoin trading sites include Coinbase, Binance, eToro and Robinhood. There are many others for you to choose from, the choice is in your hands. After you have found a platform that tickles your fancy, you will need to create an account with your personal and financial details. After which you will likely be sent a verification email which you will need to confirm.
These trading platforms are usually very secure, but be sure to check out our reviews to see what we said about the overall security of each of these sites. If you have a specific payment method you use or need the platform to cover the bank you are with then you will need a Litecoin trading platform that offers a stout range of payment methods.
Remember, researching the current stability or instability of Litecoin is absolutely essential to you getting the best value out of your purchase. Buying at a time where the crypto is peaking may be unwise unless it is projected to keep rising. It can be a fickle market when it wants to be, so make sure to give yourself the best tools to facilitate successful and fruitful Litecoin trading.
Future Outlook – What does the future hold for Litecoin?
As you can see from some of the facts we have pointed out, Litecoin has experienced a couple of peaks and troughs since its 2011 start which makes a Litecoin price prediction very difficult. Which can make it tough to know when to do the best Litecoin trading. From stabilising at $30 to peaking at $350 and going back down to the current Litecoin price of $144 it can be difficult to gauge when it will settle for an indefinite period of time. While our Bitcoin review and our Bitcoin Cash review show that Litecoin is unlikely ever going to surpass its more impressive sibling, it is still worth buying.
There are a number of different analyses on the future of Litecoin trading to contend with. Litecoin has hit a strong peak towards the start of 2021 but according to most reports will steadily decline through to the end of 2022 before slowly but steadily increasing until 2025. It is nearly impossible for these Litecoin trading reviews to hit the nail on the head with these predictions which is why we stress the importance of staying on top of the market yourself as well. Pick your times to buy Litecoin and pick when it would be wise to cash out. Remember any Litecoin prediction you read could be wrong so try to stick to your own intuition as well as blending that with the resources available to you.
Reputation and Customer Feedback – What is the general consensus?
Litecoin has built a strong reputation, especially from crypto enthusiasts, for staying true to its decentralised outlook and remaining a stalwart in the crypto markets. The speed at which transactions are completed and blocks added to the blockchain have further endeared the cryptocurrency to more people who use it. That is why you will find so many positive Litecoin trading reviews.
There was a misunderstanding that occurred when Charlie Lee sold his stack of Litecoins when the market was peaking in 2017. Many crypto loyalists called him out for being greedy when in reality it was to better serve the crypto. It was always a conflict of interest for Charlie to own coins so by selling off his coins he could focus on which direction their team should go. He even donated the money he made from selling his Litecoin to the Litecoin Foundation, where he is on the board of directors, and to Massachusetts Institute of Technology’s Digital Currency Initiative.
Overall Conclusion – Our thoughts on Litecoin trading
That brings us to the end of our look at Litecoin trading and the currency itself. When you really stop to assess the overall quality of the crypto there is a lot to like about it. In the eyes of Charlie Lee, Litecoin aims to be the payment method of choice when it comes to day to day transactions. This is a realistic dream as the mean block time is incredibly efficient, making day to day purchases a reality.
What it really comes down to is the stability of the crypto which we have seen has ebbed and flowed at times. For the most part, Litecoin has remained quite stable since its drop off in 2017 after the market spike which leads us to believe that it is a safer bet than a lot of other cryptocurrencies. However, this is in no way financial advice suggesting that you buy Litecoin, as we have seen anything can happen in crypto markets so it’s always best for you to stay on top of the market yourself. If you are looking to buy crypto online then we suggest taking a look at our Binance Coin review.