What is Litecoin?

Cryptocurrencies such as Litecoin (LTC), Bitcoin (BTC), and Ethereum (ETH) have become increasingly popular with investors and brokers, and the Blockchain technology that underpins them has also been gaining momentum in the trading world. These digital currencies offer lucrative trading opportunities and can be traded at many leading online brokers. UFX’s Cryptocurrencies trading platform provides market participants with a variety of trading tools, as well as advanced and professional charts that help you make better-informed trading decisions.

What is Litecoin

Blockchain is a disruptive technology used to store and share all transactions executed across a network. This distributed ledger includes public, shared, and verified data that cannot be modified. A blockchain is created when different blocks of transactions are linked together using cryptography, ensuring the integrity and security of the ledger. This technique is used to check the authenticity and privacy of every transaction, as well as the identity of all participants.

Litecoin is a completely decentralised virtual currency that enables users around the world to exchange money instantly with very low commission rates. Like all cryptocurrencies, Litecoin transactions do not require the involvement of intermediaries such as traditional banks or financial institutions.

This cryptocurrency, which is currently considered the 5th most popular virtual coin, was developed and launched by Charles Lee in October 2011. 2017 saw spectacular success for the digital asset, with Litecoin prices rising more than 1,400%.  In September, the LTC reached its highest value ever when it crossed the $85 level.

Litecoin is often compared to its famous predecessor, Bitcoin. Both currencies were created from the same source code and they are both peer-to-peer networks. In fact, some analysts believe Litecoin can ultimately outperform its sister altcoin. Sometimes referred to as the “silver to Bitcoin’s gold”, Litecoin is emerging as the preferred payment method for online shopping, on account of its faster transactions.

Litecoin was originally developed with the intention of creating a “lighter Bitcoin” in terms of block size and transaction costs. The transaction confirmation time for Litecoin is 4 times faster than that of Bitcoin. Litecoin takes around 2-and-a-half minutes while the average time for Bitcoin is 10 minutes. Litecoin also has the capacity for more cryptocurrency units than Bitcoin, with the network containing 84 million coins compared to Bitcoin’s 21 million units.

Bitcoin may still be the current king of cryptocurrencies, but it appears more users are turning to its rivals to make payments.

 

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