Litecoin Is Another Cryptocurrency that You Can Buy, Do You Know How?
Litecoin is usually described as silver to bitcoin’s gold. It is currently the third biggest cryptocurrency following bitcoin by market cap, with Ripple currently in second place.
Litecoin was created as a bitcoin alternative to attack some of that cryptocurrency’s viewed inadequacies. It was created to be “lightweight” and more plentiful than bitcoin. Also, it uses scrypt as its proof-of-work algorithm, which is targeted to make it impervious to ASIC mining, though a number of companies say they are planning to launch scrypt ASIC miners sometime soon.
A total of 84 million litecoins can be produced on the network (in comparison with 21 million BTC), which was created to process blocks quicker than bitcoin.
Here are some key points you need to know before you buy litecoin:
Litecoin became an increasing magnet for speculators after bitcoin’s price hike in November 2013, but prices have since dropped in equivalent. You can anticipate the two cryptocurrencies prices to move in the same direction, although litecoin’s value is the lower of the two.
Seasoned bitcoin investors should have no issue adapting to litecoin, but beginners may not find it as easy, as the infrastructure is less concrete than that of bitcoin.
An alternative way of getting litecoins is by mining them using standard computing equipment.
Always do your own due diligence prior to investing funds, and do not risk amounts you can’t afford to lose.
If you know the risks and studied the market, there are many potential risks and problems that need to be addressed.
Purchasing litecoins is not as easy as buying bitcoins, but this isn’t surprising given the lesser-developed litecoin infrastructure. One of the easiest ways of purchasing litecoins is to purchase them with bitcoins – this approach is the fastest, and for most users it will be the least expensive option.
Anyone with a stash of bitcoins can simply use them to buy litecoins on a variety of exchanges:
Currently, one of the largest issues with litecoin is the lack of exchanges willing to deal with it.
There are roughly two dozen litecoin exchanges, but majority of them only permit BTC/LTC conversions, making the buying process complicated.
You may think the most frank way to purchase would be to buy litecoin via wire transfer using an exchange, but this can be a difficult and tedious process for many reasons. Some major bitcoin exchanges like BTC China do not deal with litecoin transactions at this moment.
Swiftness is the clearest advantage of using bitcoin to purchase litecoin. In theory, it should only take minutes, whereas international wire transfers can take days to clear and potentially encounter additional costs. The limited number of litecoin exchanges means that the majority of potential investors have to depend on international transfers.
A substitute is to buy bitcoin locally, forgoing the annoyance of wiring money abroad, and converting it into litecoin. The upside is that you will get your bitcoin quicker and possibly get a better price when you convert it, provided litecoin’s value keeps increasing. The downside? Purchasing bitcoin is more expensive if you are limited to the local market.
A lot of exchanges offer online litecoin wallets, but they are not know as a pretty solution. A lot of users want something more secure, such as cold offline wallets.
Fortunately, litecoin features built-in encryption that you can use to protect your wallet in only a few clicks.