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The world of cryptocurrency attracts more and more users and they are looking for the most beneficial options for investments. People are interested in the most popular types of coins like bitcoin and ether, however today’s market is full of other opportunities that go far beyond these two currencies. LiteCoin is a growing and advantageous digital currency that becomes more popular with every passing day. In substantiation, the price for Litecoin has grown by 7,291% from the beginning of last year, while bitcoin increased by 1731%.
LiteCoin is a type of digital currency that was incepted in 2011. It utilizes the technology of blockchain to allow a public access to the transactions made inside of the network. Being a peer-to-peer cryptocurrency, litecoin is transferred between two individuals without any third parties like banks or any other financial services.
The key difference between litecoin and bitcoin is the hashing algorithm used to solve blocks in a chain and the quantity of coins received for the successful operations. All transactions are grouped together within a single block protected by a cryptographic code.
Miners (advanced computers) use their powers to solve mathematical issues of high complexity, sharing data with other members and looking for a collective solution. Due to the collective work, all transactions are verified within the network and approved as legitimate.
After the issue is solved, miners get awards for their work proportionate to the distribution they have made. The certain number of coins is divided between the members of the group and the most powerful of them receive the largest part.
As we have mentioned above, bitcoin and litecoin use different mining algorithms: bitcoin is based on a complicated SHA-256, while litecoin is based on a memory-intensive algorithm known as scrypt. These algorithms need different types of hardware, so be sure that you mind all specifications before you start your mining journey.
Like any other currencies, litecoin is stored in a special digital wallet. There are different types of them: software, online, hardware, and mobile apps. Wallets use passwords to verify all types of financial transactions you perform with your digital money.
Mining Litecoin on your own is a pretty complicated task that requires expensive equipment. Due to the deep field, it is almost impossible for an independent user to compete large mining corporations. Therefore, most users prefer to buy coins from the exchanges. Some of them offer to purchase coins for coins (like changing your bitcoins for litecoins) and the others allow purchasing coins for traditional currency (dollars). There are several websites where you can get litecoins:
LiveCoin is a trading platform that offers a wide range of different coins, including litecoin. Both beginners and experienced users benefit from this service to swap one type of digital currency to another.
CEX is a popular exchange website that allows users to get coins for cash. Customers claim that this service has low fees and high level of security. You will find litecoins among cryptocurrencies presented there.
HitBTC is known as an exchange with relatively low fees. This platform supports different trading options, including cryptocurrency for cryptocurrency and cryptocurrency for cash. Beginners will find this service useful since it provides an option of demo account, which allows you to view a trading process from within without a risk to damage your wallet.
Bitstamp is the sixth largest exchange on the web. It is considered as a beginner-friendly platform that provides helpful tools such as graphs, guides, and trading parameters.
Coinbase is one of the largest trading platforms available. It provides services to people from over 30 countries and offers a wide range of payment methods, such as buying coins with a credit/debit card, SEPA transfer, Interac Online and more.
LiteCoin is one of the most popular currencies that continues to move forward and become more and more influential player on the market. Purchasing litecoins may be a good investment if done wisely.