Crypto is most trending in youth these days but the main concern is related with choosing the correct crypto to invest in. Litecoin is one such cryptocurrency which was created thereby by 2011 by former Google engineer Charlie Lee, immediately after 2 years of the coming of Bitcoin. So, Litecoin was named after Bitcoin as its lower version.
Similarities Of Litecoin and Bitcoin
There are very many similarities between Litecoin and Bitcoin as:
1. Litecoin is a decentralised cryptocurrency which is also an open source global payment network and as Bitcoin, any governance is not required by central authority in it as well.
2. There is a fixed stock of Litecoins, with having supply of 84 million Litecoins and according to Investopedia report, about 16 million Litecoins by November 2021 are expected to be mined.
3. Creation of Litecoin is done by way of mining as well, by processing list of transactions based on Litecoins.
4. With each 2.5 minutes of Litecoins transactions around the globe, meaning thereby that ledger entry is maintained by way of Litecoin network by generating a new block.
5. The block is thereby verified by the mining software and is also made visible to miner.
6. Thereafter, the verification of the miner, next block enters the chain. This is thereby the record of each Litecoin transaction.
7. With each successful verification of the block, miner tends to earn 12.5 Litecoins.
Purpose Of Litecoin
Litecoin’s creation is with a motto of addressing the drawbacks of Bitcoins and competing with it as well. To this before thinking of investing or trading with Litecoin one should be aware of certain facts mentioned below:
• Rapid block generation rate of Litecoin, also faster transaction speed than that of Bitcoin, thereby assuring transaction every 2.5 minutes when compared with 10 minutes taken by Bitcoin.
• The higher side of total stock of Litecoin which is at 86 million, tends to make it healthy choice of investment.
• It could also be effectively used with comfort of purchasing goods in daily transactions and also for making payments in those areas where they are readily accepted.
• For sending money overseas instantly and in secured way, Litecoins are used.
• Transactions of Litecoins could be completed without intermediaries, thereby making the transaction fees less than Bitcoin and various other cryptocurrencies.
• Litecoins are build on Scrypt algorithm Proof of work (POW), thereby making it ASIC resistant and also making mining readily available to daily users. So this makes Litecoin more centralised.
Way Of Purchasing Litecoin Online On Crypto Exchanges
Litecoin although being ranked 18th, is a profitable choice amongst cryptocurrencies, having market cap of around Rs10 as on December 21, 2021. One can purchase Litecoin on a legal and recognised exchange as ZebPay by following the below mentioned steps:
• At first one should download the app and create an account, thereby filling the KYC Norms and also registering your phone number on it.
• Thereafter the bank account has to be linked for purchase of Litecoins or any crypto at first.
• Finally, after the purchase of crypto from exchange, it could be safely stored on exchange wallet by itself.
Therefore the decision of purchasing Litecoin or any other coin should be made only after completing the homework on the selected coin and also acknowledging its legacy.