Litecoin is a peer-to-peer cryptocurrency that allows non-zero costs and fast transactions among its members.
It is an open-source network that is completely decentralized. This implies that it requires no form of central authority. In other words, the decision-making authority is shared among its members. It also ensures that its members are empowered through the ability to control their financial activities.
Besides this, it also features faster confirmation of transactions. There is also improved storage efficiency than other leading math-based currencies. With the appropriate trade volume, support, and liquidity, Litecoin has established itself as a commercial medium that is complementary to Bitcoin.
Litecoin Blockchain
The Litecoin blockchain is built to handle a higher volume of transactions than its counterparts. Because of the frequent occurrence of block generation, the network allows more transactions without the need to modify the software in the future. For this reason, investors are offered faster confirmation times, with the ability to wait for more confirmations anytime they sell bigger ticket items.
Wallet Encryption
This ensures the security of your wallet and allows you to view your account balance and transactions. However, you are required to provide your password before you can access the litecoins. This ensures the protection of your coins from all forms of viruses and hackers. This also represents a way to verify transactions before they are completed. It is not only easy to use but also features a simple setup. For anyone who wishes to mix usability and security. We can also agree that having the right crypto trading app, including BitQT, enhances the overall user experience.
Litecoin Mining
It is important to verify the legitimacy of transactions. This is achieved through mining. This process involves complex mathematical computation. Miners are charged with the responsibility of carrying out this process – either individually or in groups (as in pool mining). They are rewarded for this immense effort. For Litecoin, miners are currently rewarded with 12.5 new Litecoins per block mined.
This is an amount that is often halved approximately every four years (that is, every 840,000 blocks). This implies that Litecoin is scheduled to create 84 million Litecoins. In comparison to Bitcoin, this is about 4 times as many units as Bitcoin.
Is Litecoin worth investing in?
Top-ranking cryptocurrencies have exploded into popularity in recent years – Litecoin is no exception. With a plethora of cryptocurrencies to choose from, it could prove difficult for investors to know where to begin from. Litecoin has a market capitalization of $11.6 billion and as a result, remains one of the 10 most valuable cryptocurrencies across the globe. This implies that Litecoin does not only have high visibility but also high liquidity.
On average, its trading volume has surpassed 2 million coins. The relevance of liquidity in investment cannot be ignored. It is not a strange fact that Litecoin and many other cryptocurrencies are highly liquid. Without sufficient liquidity, one single seller is capable of crashing the general price of a cryptocurrency. When it comes to liquidity, Litecoin investors have nothing to worry about.
Furthermore, in terms of the reliability of underlying software, investors can be assured that Litecoin is one of the oldest cryptos. Litecoin is an open-source network and is decentralized to ensure that every member contributes considerably to its development.
However, despite all its positive attributes, it faces strong competition from the likes of Bitcoin and Ethereum in terms of market size. Even though it is built as an alternative to Bitcoin, many investors see Ethereum as the actual alternative to Bitcoin. This hurts its reputation in the eyes of many crypto traders. As of the time of writing, Litecoin is lumped with other cryptocurrencies that make up the top 10 in terms of value aside from Ethereum and Bitcoin.
Conclusion
As the crypto market keeps expanding, several virtual currencies are growing in influence and recognition as well. For this reason, Litecoin is seen, by many, as a currency with so much potential in terms of security, liquidity, and many more. However, does this mean it has the potential to surpass the two high-ranking cryptocurrencies? Only time will tell!
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Litecoin: an open-source peer-to-peer digital currency