Litecoin is often termed to by its exchange abbreviation LTC, is one of the oldest crypto coins in the market, and was formulated as a direct result of a similar alternative what is known to be the pioneer of cryptocurrency: Bitcoin (BTC). Since that time this crypto has gained both market capitalization and popularity. It has been ranked among the ten most popular cryptocurrencies in the world for a long time. In this article, we will discuss 6 Litecoin facts that one needs to know before buying or investing in this crypto. So here are a few facts that may fall under the Litecoin news.
6 Litecoin Facts To Blow Your Mind
Litecoin is considered as one of the leading digital currencies in the world of cryptocurrency and in Pakistan Litecoin price of 1 coin is equal to 7,500 rupees. Now after the Litecoin explained segment, let us see 6 facts about Litecoin that may be unknown to many.
Many storage options
One good thing about Litecoin is the number of storage options that the users get. If you have plans for single day trade then you can always keep your Litecoin in your exchange wallet. However, these days keeping your cryptos in your exchange wallets is not considered safe as there are high privacy risks since there have been many breaches and high profile hacks in the last couple of years. One interesting thing is despite all these there is no shortage of Litecoin wallets for its users. This allows the Litecoin miners and users to hold Litecoin along with other digital currencies.
But if you plan to invest in Litecoin for a longer period of time then it would be best if you invest in hardware wallets as they are considered the safest options when compared to other forms of wallets. This is because it keeps your crypto assets offline which does not allow hackers to hack your private key and thus your cryptos are safe. But keep in mind, if you lose these hardware wallets then you lose the cryptos forever. There are no recovery options available.
One of the first crypto in the market
Litecoin might not be as famous as Bitcoin, still, it is one of the best cryptocurrency in the market and still is one the largest coins based on its market capitalization. Now you may wonder what is Litecoin worth? The total market capitalization of Litecoin is more than 17.5 million dollars. Litecoin, because of its massive popularity can be found in every trading exchange and also is one the most widely used and accepted crypto in the world. It is used for buying goods and services and is also used for investment purposes.
The working of Litecoin
The working of Litecoin is very similar to the working of its bigger brother: Bitcoin and is also inspired by Satoshi’s real Bitcoin protocol. Litecoin is said to be one of the earliest Bitcoin forks that were available. This means it is completely similar to Bitcoin and is very difficult to distinguish between them. Charlie Lee, Litecoin developed began with borrowing the initiation code from BItcoin and later upgraded it so that it efficiently cut down the 10 minute block approval time of Bitcoin.
Litecoin’s supply is finite
Supply remains one of the most important Litecoin facts. Technically for any commodity to have value there can not be an unlimited supply of it. Scarcity among other things escalates the price. Unlike the fiat currencies that can be printed by the central bank whenever they wish to which devalues the currency in that process, Litecoin is only formulated at set intervals and only when a block is completed.
Since these coins can only be formulated at set intervals this implies that there will only ever be a total of 84 million Litecoins that will be produced. The developers asserted that since Litecoin works 4 times faster than Bitcoin, it should produce coins 4 times more than Bitcoin.
One of the major problems that the users of Bitcoin faced was that of the transaction time. Bitcoin transaction time took nearly 10 minutes or even longer. This massive time gap annoyed many Bitcoin users. To these users, Litecoin came as a savior. It is because the transaction span of each Litecoin transaction takes 2.5 minutes which is much faster than that of Bitcoin.
In the digital currency table, there is a lot of competition, and Bitcoin stands at the top of this table and is uncatchable. But other coins witness jockeying for position. For example, Filecoin witnessed an increase of 42% at the starting of April 2021pusing down Litecoin to number 9. This type of stiff competition prevails in the market of cryptocurrency. The most interesting competition is Litecoin vs Ethereum where both stand best in their own niches.
Cryptocurrencies have evolved massively in the past years because of the huge success of Bitcoin and other similar digital currencies. Among them, Litecoin is one of the most trusted and respected coins and the Litecoin price prediction currently is always on the higher side for varied reasons. The reasons include the Litecoin facts that have been mentioned above.