What is Litecoin?
Litecoin is an open source, peer-to-peer cryptocurrency that was designed almost exactly like Bitcoin.
The primary differences with Litecoin versus bitcoin is the fact that Litecoin wants block production completed every 2 ½ minutes unlike Bitcoin’s 10 minute determination. And Litecoin uses scrypt within its algorithm which makes it more difficult to make attacks against the system.
Who is behind Litecoin?
Charlie Lee who had worked for Google developed the Litecoin system using the Bitcoin methods and adding what he considered to be a better method. By doing so, he made it more costly to run but also faster and safer.
How does Litecoin Work?
Litecoin works just like Bitcoin except for the 2 factors I explained in the opening of this post.
As Litecoin transactions occur, records must be logged into the digital system called the Blockchain, But these logs must be done by sophisticated computer systems. Those who own these systems can allow their computer to log these records into the Blockchain and as a reward for their time and service, they receive Litecoin.
But because of using scrypt in the algorithm, there is more power being used meaning miners must earn more on each blockchain completion.
So essentially, the Litecoin system via Blockchain is not controlled by any 1 entity but by many through Blockchain logs that cannot be altered after entered. It is all done using cryptography, hence cryptocurrency.
How can I buy Litecoin?
Buying Litecoin is actually not difficult.
You will first want to attain a “wallet.” The wallet is your own personal digital storage place for your cryptocurrency.
Each wallet has a private key and a public key. The private key is for you alone to manage your Litecoin while the public key is used to send and receive Litecoin or other digital currencies.
There are various types of wallets with different features. You can discover more on crypto wallets here on Investing Online.
At that point, you can purchase Litecoin from other people on marketplaces and they will send it to your wallet via the public key. Or, you can join any number of exchanges where you can purchase Litecoin and transfer to your wallet.
How can I trade Litecoin?
Trading Litecoin works the same way as buying Litecoin. You can trade 1 cryptocurrency for another via exchanges or you can trade peer-to-peer via many marketplaces.
As trades are made, miners use their systems to log the records and they are sealed to any changes.
So any buys or trades are dependent on the time it takes for a miner to log that record. Litecoin logs are usually quite fast
Naturally, miners are looking for the higher paying logs first.
How to choose a Litecoin Exchange?
Choosing a Litecoin exchange can be nerve racking for many who are just starting their Litecoin investment strategy.
Keep abreast of all our reviews here which can help you choose. But there are 3 properties you should consider when choosing a Litecoin exchange:
- Where you are – Regulations on cryptocurrency exchanges are still being developed. But some exchanges will not accept investors from certain areas.
- Payment method and fees – Some exchanges may accept pay systems like Paypal, Neteller and others. And others may only accept credit or debit cards. Plus, you want to look at fees incurred such as miner fees and conversion fees.
- The currency you want to purchase – Many exchanges carry Litecoin but if you are seeking another cryptocurrency, the exchange may not carry it.
Overall, Litecoin is not as difficult to buy and trade as it may seem.
If you have any questions, feel free to contact us and we can help you proceed. And research Investing Online as your questions may have an answer on our pages.