Litecoin has been widely accepted as a useful asset for microtransactions, making it much easier for individuals to send payments without extremely high fees. Litecoin transactions have the ability to be 4 times faster than a Bitcoin transaction, making Litecoin a widely used cryptocurrency around the world for point-of-sale payments.
What is Litecoin?
Litecoin (LTC) is a cryptocurrency that was designed to provide fast, secure and low-cost payments for microtransactions; primarily point-of-sale payments. Launched in 2011 by former Google (NASDAQ: GOOGL) employee Charlie Lee, Litecoin quickly became recognized as a useful crypto for peer-to-peer payments.
Similar to Bitcoin, Litecoin was built as an open-source blockchain protocol. This means that there is no central control of the coin –– all transactions are managed by a peer-to-peer network. What makes Litecoin special is how fast payments can take with such small fees. This is because of the block verification time, the amount of time it takes to verify a transaction. The Litecoin network can confirm a block in 2.5 minutes, where Bitcoin blocks are mined about every 10 minutes.
Litecoin is run by the proof-of-work (PoW) consensus mechanism, which uses computing power to verify transactions. Many new projects have been moving away from PoW and implementing proof-of-stake (PoS). This mechanism is much more environmentally friendly and allows for improved scaling.
Litecoin Market Position
The market cap of LTC as of September 2021 is around $10 billion with a circulating supply of 66,000,000. One Litecoin no costs about $155 一 claiming its rank as the No. 16 cryptocurrency by market cap.
From the previous year’s high of $64 in September 2020, Litecoin has seen a 250% growth in value.
Jane Kane Bull Case for Litecoin
Jane Kane is the editor-in-chief at Liteforex, who also provides coverage on emerging crypto markets. Kane discusses an interesting point about how the Litecoin Foundation has a 9.9% share in the German WEG bank, which was given to the foundation as a donation from the Swiss blockchain company TokenPay.
This means that together they have a 20% share in the conservative German bank, mainly invested in by real estate investors. Kane states that Litecoin can thus be recognized in the long term as a possible cryptocurrency for buying real estate in Germany.
If this news comes to fruition –– and it’s not fake –– then LTC may see huge gains in the next 12 months. This is as long as the cryptocurrency markets remain bullish, however, as altcoins typically follow the price action of Bitcoin.
Luke Conway Bear Case for Litecoin
Luke Conway is a blockchain analyst and reporter who discussed the recent fake press release from Global Newswire that claimed Walmart (NYSE: WMT) had a partnership with the Litecoin Foundation. This fake press release was followed by a tweet from the official Litecoin Twitter account that was deleted just a few minutes later. This led the price of Litecoin to climb as much as 26% as news spread across social media, which then fell sharply back to the previous range. Another fake press release of this magnitude could diminish the reputation Litecoin has worked so hard to build.
Where to Buy Litecoin
You can buy LTC currently on Coinbase (NASDAQ: COIN) and Gemini. A centralized exchange like Coinbase or Gemini is a great way for individuals to start buying cryptocurrency on their computer or mobile device. Make sure to always do your own research before buying cryptocurrency.
Coinbase is one of the Internet’s largest cryptocurrency trading platforms. From Bitcoin to Litecoin or Basic Attention Token to Chainlink, Coinbase makes it exceptionally simple to buy and sell major cryptocurrency pairs.
You can even earn cryptocurrency rewards through Coinbase’s unique Coinbase Earn feature. More advanced traders will love the Coinbase Pro platform, which offers more order types and enhanced functionality.
Though Coinbase doesn’t offer the most affordable pricing or the lowest fees, its simple platform is easy enough for complete beginners to master in as little as a single trade.
- New cryptocurrency traders
- Cryptocurrency traders interested in major pairs
- Cryptocurrency traders interested in a simple platform
- Simple platform is easy to operate
- Comprehensive mobile app mirrors desktop functionality
- Coinbase Earn feature rewards you with crypto for learning about available coins
- Higher fees than competitors
Gemini is a cryptocurrency exchange and custodian that offers investors access to 26 coins and tokens. Founded in the US, Gemini is expanding globally, in particular into Europe and Asia. Offerings include both major cryptocurrency projects like Bitcoin and Ethereum, and smaller altcoins like Orchid and 0x.
Gemini is 1 of the only brokers with multiple platform options based on skill level. New investors will love the streamlined interface of Gemini’s mobile and web apps, while advanced investors might appreciate all the tools that come with ActiveTrader.
In addition to a host of platform choices, Gemini users also have access to insured hot wallets to store tokens without worrying about digital asset theft. Learn more about what Gemini can do for you in our review.
- New investors looking for a simple mobile and web app
- Experienced investors who need a more advanced platform with more tools
- Users looking for a 1-stop-shop to buy, sell and store all of their coins
- Easy and quick signups — can get started in as little as a few minutes
- Multitude of platforms to accommodate traders of all skill levels
- Hot wallets include insurance to protect your from theft and hacking attempts
- Charges both a commission and a convenience fee for users buying and selling through the desktop or mobile app
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