Litecoin is the smaller brother of the most known cryptocurrency in the world called Bitcoin. A cryptocurrency is a digital currency, which is going to replace the traditional one. It applies the encryption methods to control the generation of currency units and confirm the movements of funds. Most of the cryptocurrencies work aside from the central banks and other intermediaries.
Litecoin is an online network that individuals and organizations can use to submit funds from one individual to another. This type of cryptocurrency is peer-to-peer. The network does not work with the physical currencies (those are dollars, Euros, etc.) A unit of account in this system is called a litecoin. The abbreviation is LTC. It is possible to purchase and sell litecoins for the traditional currencies at many various exchanges available online. Litecoin’s hashing algorithm and quicker verification times make it unique and quite efficient.
How to mine Litecoin? First of all, this process is carried out by specialized computers and hardware. It has two main functions:
Providing the network’s safety and confirmation of transactions.
Paying out new litecoins as rewards to lucky miners.
If you wonder about the ways to buy Litecoin, mind that you should have a location to keep it first. A Litecoin wallet is called Litecoin Core. One can get it for free. Keep the wallet on your desktop for higher convenience. Mind that the installation process downloads the full blockchain as well. Check whether there is enough disk space on your computer. An alternative is Electrum-LTC. It is a lighter version for the desktop. If you decide to get something like Exodus or Jaxx, they can keep the coins of different types. Loafwallet is another alternative, offered by the man who created Litecoin.
Trezor or Ledger Nano is the hardware versions of the places to keep litecoins. Liteaddress is a paper wallet – yes, they exist!
The Process of Purchasing Litecoin
How to buy Litecoin? The process of purchasing Litecoin reminds of the process of buying bitcoin. The majority of basic exchanges now trade in exchange for a write transfer or debit/credit card payment. Bitfinex, Bitstamp, Coinbase, and Poloniex are the possible liquid Litecoin exchanges.
At the same time, the major part of Litecoin buys is made via Bitcoin. You may try Shapeshift as well. CoinDesk’s Litecoin network data may provide you with the history, prices, and Litecoin to USD data.
The current Litecoin value on the market is $156,50 (18%).
Litecoin vs. Bitcoin
One of the best ways to understand the Litecoin stock, price, value, and approaches to mining is through comparing it with the most popular cryptocurrency – Bitcoin.
The primary difference is that Litecoin can verify transactions quicker than Bitcoin. Here are the implications:
- Litecoin can cope with a greater amount of transactions because of the more rapid creation of blocks.
- The drawback is that the Litecoin blockchain will be proportionately greater than Bitcoin’s blockchain, having more orphaned blocks.
- The quicker block time of Litecoin minimizes the threat of double-spending
- A merchant who waited at least for a couple of verifications would require just 5 more minutes. In case of Bitcoin, it may take up to ten minutes.
What Is Litecoin Blockchain?
Litecoin spreads such job as securing and monitoring money supply across a network of miners. They assemble the latest transactions into a single huge chain made of blocks – blockchain. The blocks are very difficult to create. That is how one can be sure only one blockchain exist. Miners should come up with a cryptographic hash of the block that meets particular requirements. To do so, it is important to attempt estimating many blocks until the miner is lucky to discover one that really works. Every miner who succeeds with that mission automatically wins 25 newly minted litecoins.
The complexity of the criteria depends on the frequency of the appearance of the new block. It raises the level of competition between the participating miners. Today, their amount has reached 4,159,491.
Litecoin Mining: Worth or Not?
Litecoin mining can be profitable, but it is necessary to choose terms and conditions wisely. Initially, it was possible to benefit from Litecoin mining with the CPUs and GPUs. Nowadays, it is possible only via special hardware known as ASICs. It is a quicker and more efficient method. After comparing CPU, GPU, and ASIC, it is possible to conclude that the cost of the first two significantly exceeds the rewards. They are not worth your time and money.
As for the ASIC hardware, there are several things to consider if you plan to choose this option as the Litecoin miner:
- Power usage: No need to invest more in electricity than one can earn in litecoins.
- Insufficient resale value: You will not be able to refit ASIC for other purposes other than mining litecoins easily.
- Delivery procrastination: This type of mining hardware can arrive months after the initial purchase.
- Network issues: It is important to predict how the problem with network might progress soon.
Anyway, it is critical to observe official Litecoin price history and conduct in-depth personal research before making a final decision.