What is Litecoin? Although it has similarities to Bitcoin, there are differences as well, especially in the number of units a miner gets in a block transaction. Interested in buying Litecoin as an investment? Find out what Litecoin is and its differences to other cryptocurrencies below!
Find Out What Litecoin Is Before Buying
What Is Litecoin?
People who are just starting their venture into cryptocurrencies may have done so because of Bitcoin’s rise to fame. However, it is not the only cryptocurrency on the market right now. Litecoin or LTC, a de-centralized peer-to-peer Internet currency and open-source project is one of the oldest, largest and most used cryptocurrencies in the world. Like Bitcoin, it uses blockchain technology to process transactions.
Who Buys Litecoin?
Individuals who would like to venture into alternative investments invest in Litecoin despite its unpredictability. As with any cryptocurrency investment, you’re taking a risk when choosing to invest. It’s important to take a look at the pros and cons of Lifecoin before investing to see if it meets your risk tolerance and fits your portfolio.
Where To Buy and Secure Litecoin
When making an exchange with Litecoin, make sure you channel your transaction through a secured site or app. You can exchange your Litecoin with trusted companies like Kraken, Coinbase, 247 Exchange, Bittrex, and Quadrigacx. However, it is inadvisable to store your Litecoin in these exchange centers. Should the exchange go offline, you won’t be able to recover your lost Litecoin. Instead, store them in an electrum wallet.
When To Use Litecoin For Purchases
Several websites have already begun to accept Litecoin as a legitimate mode of payment. You can use your Litecoin to pay at Bitcoin Shop, book flights at Cheap Air, buy electronic devices and gadgets at Bitroad and even purchase cosmetics online through Nuciya. A few years ago, auto dealer Benz and Beamer sold a Tesla P85 worth $90,000 at that time for 5,447 Litecoins.
Why Choose Litecoin Over Other Cryptocurrencies?
Although it uses the same blockchain technology as Bitcoin to process transactions, it can produce 4 times as many currencies. Processing a block only takes Litecoin 2.5 minutes compared to Bitcoin’s 10 minutes. This allows Litecoin to produce 84 million units as opposed to Bitcoin’s 21 million.
How Can Litecoin Be Protected From Hacking?
Aside from knowing what Litecoin is, you also need to know how to keep your Internet money safe from hackers. That’s why it’s important to look for a secured wallet for your Litecoin. Wallet encryption allows you to manipulate your money but will prompt you for your password should you decide to use your Litecoin for payment.
All investments have ups and downs, benefits and risks as well as advantages and disadvantages. Cryptocurrency is all the rage right now. Before diving right into the fray, however, you need to know more about Litecoin, Bitcoin or whatever cryptocurrency you would like to invest in.
Share your thoughts on Litecoin and other Internet currencies in the comments section below.