Things You Need To Know If You Are New To Cryptocurrency & Litecoin

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The first cryptocurrency to be created and launched was, Bitcoin in the year 2009, and following it, many other currencies were launched to be used as a medium of exchange in the electronic world.

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Cryptocurrency is the digital currency; it is a electronic unit that is used for making transactions online. Cryptocurrency isn’t recognized by any government or any regulatory authority; it is just created and is floating in the market, where the value of the currency increases or decreases based on various factors that exist in the digital world. The first cryptocurrency was launched in the year 2009, and this is known as Bitcoin. Following the attention that bitcoin gained, all the eyeballs focused on creating digital currencies to bring the related benefits to the users. We shall now study some transactional properties of a cryptocurrency to know about how will it revolutionize the possibilities that today technology offers to its users.

To increase the relevancy of its operations, all the cryptocurrencies are trying to improve their security and transparency. In this race among cryptocurrencies, some are able to handle the ups and downs while some are not able to even make its presence felt in the crypto market. NEO, on the other hand, has always found itself to be a tough competitor. There are some crypto which strive to be a bridge to connect different coins. To understand this concept better let us examine as to what is ICON? ICON ICX is a network that connects top performing tokens like Bitcoin, Neo, Ethereum, Ark and Qtum. NEO to BTC is a popular conversion among crypto enthusiasts.

 

The basics behind launching cryptocurrency

The bankers and other financial experts have all failed to understand what exactly a cryptocurrency is, and why has it been formulated. This puts people under more pressure of understanding the mechanism behind it, and taking action accordingly of buying a cryptocurrency or investing in it. Let’s first understand why was it launched and what are the basics behind it;

  • It is believed that cryptocurrencies will make transfer of funds easier. The transfer of these funds will be done with minimal processing fees, and that’s how the burden on the users will be reduced and people will be more relaxed.
  • It is believed that with the use of cryptocurrencies, the consumer won’t be charged twice and he will not pay for the same commodity twice as is done during cash payment system. While digital payment is enabled, there’s no double paying.
  • Cryptocurrency has no intrinsic value. It cannot be redeemed for any other commodity, and hence there’s exists no intrinsic value for this form of digital currency.
  • It doesn’t own any physical form, it is merely a currency in database. Just like our country’s currency, it cannot exchange hands, cannot be seen or felt, it is created digitally and it lies electronically.
  • The network including a digital currency is totally decentralized. It isn’t authorised by government and hence it is not determined by any central bank. It can only be transferred digitally.

 

Let’s Talk about Litecoin:

Litecoin was created in 2011 to fix some of the flaws associated with Bitcoin such as its failure to make transactions faster, complicated mining method and its scalability. There are many similarities between Bitcoin and Litecoin however, and it is often called the silver to Bitcoin’s gold. Here are some of the essentials you need to know before going ahead with Litecoin.

 

1. Litecoin offers much value

Litecoin is similar to Bitcoin. Although the blockchain technology has tremendous potential for improving many industries around the world, they have proven to be a great tool for transactions. Litecoin operating in a similar way to the fiat currency can be used to pay for all sorts of goods and services, and there are plenty of places where litecoins are accepted; from the shady networks of the dark web to jewellery, clothing and luxury car outlets. Having a really fast transaction speed, Litecoin is also great for transferring funds quickly to family, friends or business payments.

 

2. Mining advantage

Mining litecoins is not as expensive as Bitcoins and can be done with some older hardware by miners. Although litecoin uses the Proof-of-Work consensus model similar to Bitcoin, the latter uses SHA-256 hashing. Miners need the expensive ASIC hardware to mine Bitcoins which is beyond the reach of many newcomers. Litecoin blockchain uses a script algorithm which can be mined with GPU rigs that are well within reach regarding the cost of all miners, including the new ones.

 

3. Speed, scalability and security

One of the key goals that went into creating Litecoin was to improve on the transaction speed. Bitcoin blocks take about 10 minutes to confirm whereas Litecoin being four times faster takes only about 2.5 minutes. The scalability factor in Litecoin is also tremendously high. Bitcoin and Ethereum can only process a maximum of 7 and 15 transactions per second respectively. Litecoin, on the other hand, can do 56 transactions per second. Litecoin is also nearly impossible to hack unless someone controls over 51% of the network which would, in turn, take a tremendous amount of resources which is not worth the hack.

 

4. Offered on all exchanges

Litecoin is traded in over 80 exchanges with many offering Litecoin to Bitcoin Exchange. It can also be traded for a number of other cryptos such as Ethereum, Dash, Monero and others. It is also possible to Buy Litecoin with credit card on a number of exchanges and get litecoin for your respective currency.

 

5. As a long-term investment

Litecoin has plenty of advantages being one of the first altcoins to be created and been around for seven years. The Litecoin Price has seen variations from an all-time low of USD 1.7 to an all-time high of USD 360.66. Although volatility is the short-term nature of all crypto coins, in the long run, many of them who have a promising proposition make for great investment choices. Litecoin has a dedicated team of blockchain experts building the company and a wide community in its pack supporting it.

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