Nowadays, users of cryptocurrency have a fairly wide choice of digital money to trade with. Of course, Bitcoin is the undisputed leader in this list; however, there are still many other alternative options to choose from. Among them, Litecoin is a great alternative to the most popular cryptocurrency which is gaining momentum. What Litecoin is, what features this crypto has, and what advantages and drawbacks of Litecoin are – all this information will be discussed in the post below.
What’s Special about Litecoin?
Cryptocurrency Litecoin (LTC) is similar to Bitcoin. Its units are created and function on the basis of the block system, just as Bitcoin. Litecoin is considered to be the largest and most successful digital currency after Bitcoin. Being a decentralized payment network, Litecoin is controlled by all its participants. Creation of Litecoin and Bitecoin blocks takes place in the same way. The only difference is associated with the hashing algorithm. For LTC scrypt is applied, while Bitcoin implies using SHA-256.
Litecoin has an open source code. The operation of the network is dependent and controlled by all its participants through a network protocol launched on all computers of the peer-to-peer network. This crypto has a limit of 84 million coins, with more than 50 million Litecoin units being already in operation.
Litecoin is sometimes used by companies to give away coins as bonuses to promote their platform. This tactic was first introduced by Bitcoin casinos to attract new players. To this day online Bitcoin casinos give out the most generous bonuses. But they come with various terms and conditions. So make sure to check all the small print before you commit to collecting these bonuses.
Faucets are another type of bonuses used by non-gambling platforms. These bonuses are more straightforward, but they offer fewer coins as a result. All you’ll have to do to receive the coins, in this case, is perform a set of tasks. It can be something simple like posting a promotional link on your social media to more complex tasks.
Every cryptocurrency type has its own benefits and features. Litecoin is not an exception.
- High transaction speed – Thanks to the new scrypt algorithm, the processing speed of the block has significantly increased. The average speed of creating the block is about 2.5 minutes. This is several times higher than that of Bitcoin. This allows you to significantly reduce the time of the transaction.
- Ease of use – It is much more convenient to use LTC for both sellers and buyers.
- Cross-transaction operations are possible – The p2p technology makes it possible to perform cross-transaction operations, that is, transactions using different digital currencies.
- Full anonymity – LTC provides full anonymity of transactions, which makes this digital currency attractive to users.
- No external influence – The decentralized principle completely excludes the possibility of regulation and management of this cryptocurrency by any individuals or government structures.
All the disadvantages of LTC are applicable to other cryptocurrencies. However, they do not prevent people from buying cryptocurrency unites and earn money on trading.
- No legislation – The main drawback is the uncertainty of status and the lack of rules of circulation and use of crypto-currencies, fixed at the legislative level of different countries. This hinders the growth of popularity and capitalization since there is still a risk of a ban on the use of cryptocurrency. While this issue is not resolved, we should not expect stability in this market.
- High volatility – Despite the possibility of a good earnings on the change in rates, high volatility still does not play in favor of Litecoin. The sharp increase in its value in late 2017 and early 2018 was followed by a slow decline during the first half of 2018, with periodic bursts of exchange value.
It is everyone’s business to decide what cryptocurrency to buy and trade with. However, based on the benefits of Litecoin, it is one of worthy options to choose.