Everything you need to know about Litecoin and what sets it apart from its older sister Bitcoin

The cryptocurrency market is facing the terrible bitcoin invasion these days and you are likely to see Bitcoin in your dreams as it has become the most famous currency around the world, and everyone loves it and favors it over all other currencies, but many prefer to invest outside Bitcoin for many reasons, including high price volatility and high value One currency. Let’s make room for other currencies and learn about one of the most interesting currencies these days is Litecoin.

Litecoin is said to depend on Bitcoin in one form or another, but it does have its strengths as well. How does it work? And how do we get and use them? How will its future be? Let’s get to know all that and more.

What is Litecoin?

LiteCoin is a peer-to-peer crypto-cryptocurrency, an open-source project that any developer can view and modify the source. Correct, encrypt and protect transfers made in the online payment system.

The LiteCoin system operates completely independently and is not under the authority of any central bank as it does in traditional currencies. The LiteCoin network is completely decentralized and relies on no one to supervise or monitor it.

The difference between Litecoin and Bitcoin

The two currencies are similar in many respects, and many observers describe Bitcoin as gold in cryptocurrency markets, to be litecoin as silver, which is exactly what the developers focused on when building LiteCoin to be compatible with Bitcoin, but there are fundamental differences between them:

  • Litecoin provides faster confirmation of transactions, as it processes a single block in a blockchain in two and a half minutes, while processing a block in Bitcoin requires ten minutes, which allows transactions and conversions to be processed and verified in less time, but is negative in some cases. No conversions are performed, resulting in the possibility of similar duplicate blocks.
  • Litecoin operates with a different cryptographic algorithm that is more complex than in Bitcoin, which results in greater memory consumption used to create new blocks.
  • Litecoin continues to create new currencies until it reaches 84 million Litecoin, which is four times the amount of Bitcoin, which is only 21 million Bitcoin.

Litecoin start

Was launched to Aatkoan on the seventh of October / October 2011 as a program open-source platform GitHub by Charlie Lee Charlie Lee former employee of Google , and this was a disaster for users of Bitcoin, because Aatkoan relies on Block Qin same technology, more quickly final and more, In addition to a stronger encryption algorithm and a simpler user interface.

Founder of Litecoin

Charlie Lee, an Ivorian-born African-Asian computer engineer known around the world as the founder of the Litecoin currency, has been general manager of the Litecoin Foundation since July 2013. He worked for Google for a while before he showed interest in cryptocurrencies and launched His famous currency.

Charlie Lee mined 150 litecoins before launching the new trading currency, and although Charlie believed in the success of his project and the flexibility of his currency against Bitcoin, he knew that Bitcoin competition was very difficult and might be impossible.

Price of Litecoin

Each litecoin is currently priced at about $ 120. It currently has a market capitalization of more than $ 7.5 billion, according to OnChainFX data. However, the maximum value that LiteCoin had reached at the end of 2017 was $ 375.29 per currency, gradually falling to $ 23.9 by the end of 2018. It has risen steadily since the beginning of 2019 until today, and to know the trading price of this currency at every moment just visit the website eToro.

The most important events that have affected Litecoin

Although cryptocurrencies such as Litecoin were originally intended to make online transactions faster, their value increases or decreases based on several market-related factors.

Although Litecoin lacks government support for ordinary currencies, its movement and volatility in the market has been a major attraction for investors in the past few months, but of course it is worth less than Bitcoin’s value of more than $ 11,000 today, so its market value is less than Its Bitcoin counterpart is also $ 196 billion.

But Litecoin has made many of the richest people in a short period. Like many other cryptocurrencies, their value in 2017 increased from $ 4 at the beginning of the year to more than $ 375 at the end, representing a profit of more than 9,000%.

Although its value is much lower than Bitcoin, it may not necessarily affect its value directly, but it can make it more popular over time, which in turn creates more opportunities and potential to increase value over time due to increased demand.

How do I get to Litecoin? And who accepts it?

You can easily own your LiteCoin, just download your LiteCoin wallet program, buy your LiteCoin balance by paying in another traditional or virtual currency. Then you’re ready to make transfers and pay with LiteCoin, and the number of stores and companies that accept Pay using this digital currency.

How LiteCoin Works

Litecoin is a network through which peer-to-peer payments and money transfers can be made, meaning that they do not require the presence of an intermediary third party, and are not subject to any authority or government they control, making them decentralized, which is one of the main reasons people convert from currencies. Traditional to cryptocurrencies.

Litecoin does not deal with physical or paper currency as in traditional currencies such as the dollar and the euro. Rather, it uses virtual currency as in all competing currencies. LiteCoin is denoted by the symbol Ł or LTC, which you will see in the currency bulletins. Your Litecoin balance or sell it at the daily exchange rate and against any traditional currency you own.

What is Blockchain’s blockchain?

Litecoin works with the same blockchain technology as Bitcoin, which is the public record in which all conversions are recorded in addition to all new coins that have been mined, and consists of a large number of blocks, each block includes all the contents of the preceding block and so on until we reach the first block and all the blocks and their links are secured by a strong encryption system.

When a conversion is made, Blockchain records and verifies the process by typing and encrypting the entire process details.

How is Litecoin mining?

New Coins are produced from Litecoin frequently and continuously. The new currency production process is called Mining and is simply a record-keeping service for all transfers. This is done by producing one new block and verifying it and adding it to Blockchain.

Litecoin miners compete to complete a process called Hashing in which the new block is created as quickly as possible before others, a very difficult process that requires processing a lot of information and transactions accurately so that those who produce a new block eventually get 25 new litecoin.

The number of Litecoin currencies currently in circulation is approximately 62.5 million Litecoin, which is about 75% of the total predetermined total of 84 million, but the reward for mining will be halved, which will become 12.5 Litecoin by the eighth month of 2019, then the number will be Litecoin has reached 72.7 million or 86.5% of the total.

Is mining litecoin profitable?

Litecoin trading generates more profits than mining, says a group of cryptocurrents, because the gear you must buy to start mining is very expensive and your profit may not be guaranteed because of the many risks you may face:

  • The difficulty of entering the mining network in light of the large and growing number of prospectors with powerful equipment that you can not keep up with, all this will reduce the likelihood of profit, knowing that the profits of mining Litecoin will be halved in mid-2019.
  • Difficult to sell mining gear If you decide to stop mining or make little profit, the gear required for the mining process is often qualitative and assembled especially, and the possibility of using it for other purposes is very difficult.
  • The large delay in shipping the mining equipment upon request, many people stated that they ordered their equipment and could not receive it until several months later, which could cause you to lose a lot.
  • The high energy consumption required by the mining process, often your electricity bill will be larger than you earn from litecoin mining, so be careful of that.

As a result, trading Litecoin, ie buying it when the exchange rate falls against the dollar, for example, then selling Litecoinatec when it rises is more enjoyable and profitable than mining, and certainly less expensive.

Trading in the Lite Coin Market

Trading in the LiteCoin market is legal and safe, and the popularity of trading has increased significantly in recent years, but when trading LiteCoin you should pay attention to several important points:

  • Because of the new era of cryptocurrencies in general, and Litecoin in particular, so it is very difficult to predict future prices, all because of the small valuation range that is less than three years compared to the age of the dollar, which is more than 200 years.
  • Major global changes, or even a change in the law of a major country such as China or the United States, can reduce demand for Litecoin, which will lead to the deterioration of cryptocurrency exchange rates in general and Litecoin in particular.
  • Everything in the Litecoin markets is not regulated. Trading is disorganized and the risk in Litecoin is great, but understanding the crypto logic and caution can make you rich at a speed that you cannot absorb.
  • Cryptocurrencies, especially Litecoin, are influenced by the law of supply and demand.

The future of Litecoin

The year 2019 will be a breakthrough for litecoin, because as mentioned, the number of mined coins will be halved, resulting in supply shortages, an increase in demand and a noticeable rise in litecoin prices, and 2020 will see a decrease in the number of new Bitcoin coins, which will also affect prices of all cryptocurrencies.

When LiteCoin was first launched, it was just one of a handful of cryptocurrencies, and the number swelled to over 1,300 cryptocurrencies, with new cryptocurrencies continuing to be released every day.

However, Litecoin has been able to obtain its name and proved its presence in this great sea of ​​cryptocurrencies. They chose litecoin.

Despite the low market value of Litecoin, it has augmented its position as one of the most important cryptocurrencies currently and does not seem to be going down or going away anytime soon, but its rival for large currencies such as Bitcoin, Ethereum and Ripple remain difficult and impossible.