Litecoin basics for new investors
Litecoin (LTC) is, in layman’s terms, money that works on a public platform that banks or companies cannot control. There are developers and investors supporting the network but the activities that work on it are all automated.
If you’re new to cryptocurrency, then you should know that the word decentralized refers to the most important element of a digital currency. It is a system designed to replace traditional banking with one that allows users to have full control over their savings.
The Litecoin network is backed by industries that seek to expand its features as a platform for payment and store of value. It is a fast, reliable, and cheap mode of payment for borderless trading. It can transfer funds between accounts easily and immediately in other services such as gambling websites like Bitcasino.
Similarities with Bitcoin
If you are familiar with the description above, then you may be thinking of how similar it is to Bitcoin, the top cryptocurrency in the industry. Litecoin is specifically designed to be a lighter version of Bitcoin. The goal was to keep the top currency’s best traits and continue with its original plan that is to replace traditional banking.
Just like Bitcoin, Litecoin runs on a distributed ledger technology (DLT) called a blockchain. It’s a network of data called blocks stored in nodes created and kept by miners. Their duties include giving the network the processing power it needs to fuel its algorithm which can do all of the work of a central bank but faster and cheaper.
Both networks are operated by the proof-of-work (PoW) protocol which rewards the first minor to complete a task. The incentives for a good job is a fixed amount of cryptocurrency. The incentives are halved for every 840,000 blocks made in the network.
The last similarity between the two is that their values are volatile. Litecoin’s price continues to rise as more users join the network and enrich its economy. If Bitcoin can be considered gold, then Litecoin is silver which people invest to profit from its secure market price in the future.
The difference that cryptocurrencies have with minerals is that the latter has a fixed price and people only profit from it because of inflation in their fiat. Crypto, on the other hand, continues to increase in value.
Other interesting notes about Litecoin
It is safe to assume that a company that accepts Bitcoin also supports Litecoin. One example of a great industry for Litecoin is crypto casino gaming in websites such as Bitcasino, where players can earn more of what they stake by simply playing games. Its price has risen high so it is also famous for institutional trading.
Litecoin’s creator and director of Litecoin Foundation, Charlie Lee, is active on social media. He shares blogs and updates about the crypto as well as the industry in general. He’ll be the best source of information for Litecoin investors and traders.