When Bitcoin was released in 2009, developers made their own cryptocurrencies to act as alternatives and competitors to it. Charlie Lee, a former Google software engineer, made one of these currencies, Litecoin, in 2011.
Made to improve upon the initial design of Bitcoin in terms of overall speed and functionality, Litecoin is a consistently purchased cryptocurrency. To learn why you should invest in it, keep on reading this Casino Days article.
How Litecoin works
Litecoin uses a decentralised blockchain to enable secure transactions without needing a third party. It utilises a proof-of-work consensus mechanism like Bitcoin where miners compete to finish a mathematical equation and upload blocks to the blockchain.
When you transact using LTC, the network validates the data and the miner verifies it. Afterwards, the details of the transaction are stored in the block with limited storage capacity. Once the limit is reached, the miner adds the new block to the blockchain by including the hash of the previous block to it. This process makes the data immutable and continues the chain of blocks.
Whoever finishes first receives an incentive worth 12.5 LTC.
Benefits of Litecoin
Now that you’re aware of how Litecoin works, know the features that make its network and token below:
Secure
The Litecoin system is secure because of ‘hash’ codes that serve as the block’s fingerprint to prove its content has been validated and verified.
Additionally, Litecoin miners include the hash of the previous block in the current block so changing it will require tampering with the hash of the previous block and so on. In short, hashes are what connects every block in the blockchain, making it immutable.
Fast
One of the best things about the Litecoin token is its faster transaction speed compared to Bitcoin. Thanks to Litecoin’s own mining algorithm, Scrypt, you can get a 2.5-minute transaction speed, which is nearly half of Bitcoin’s speed of 4.6 minutes. This lessens the risk of the coin’s price changing from the time it was sent to once it’s received.
Higher Supply Cap
Currently, Litecoin has a circulating supply of 69 million LTC which is still far from its maximum supply cap of 84 million LTC, so you won’t have to worry about increasing fees for a long time.
Decentralised
One of the best features of Litecoin is it’s decentralised, meaning banks and governments will not stand in the way of your Litecoin transactions. As a result, you can expect faster and cheaper processes for any and all of your Litecoin-related purchasing or selling activities. And since Litecoin’s supply is limited and independent from any central body, its chances of inflation is low.
Available in most crypto exchanges
Since it’s one of the most popular cryptocurrencies in the world, you can buy LTC in most exchanges around the world.
High market capitalisation
Currently, Litecoin ranks as the 18th largest coin in the world with a market capitalisation of $11 billion. This makes it one of the safest coins to invest in since it already has a large circulating supply and an established user base.
Accepted by a lot of companies
Litecoin can function as more than just an investment, it’s also a way to buy goods and services. From buying gift cards to buying more cryptocurrencies, Litecoin can give you a lot of incredible purchases.
To experience something enjoyable with your LTCs, here are a few companies where you can use your coins:
- Travala – This is a travel company that allows you to travel to 210 countries, and stay in 567,928 hotels that are nearby 82,311 incredible tourist destinations.
- eGifter – eGifter is a digital card company that offers gift cards for a wide variety of brands.
- Casino Days – Here at Casino Days, you can play up to 2,000 casino games from slots and table games to live games.
- Paypal – This is an online payment platform that lets you buy crypto and use it to pay for transactions, aside from processing fiat payments.
- RE/MAX – RE/MAX is a real estate company that allows you to purchase/rent properties using your Litecoin cryptocurrencies.
Affordable transaction fees
Compared to other cryptocurrencies, Litecoin offers affordable transaction fees averaging at $0.03 to $0.04. This means you can save more cryptocurrencies when making transactions like sending coins to another person and depositing to your online casino wallet.
Best crypto exchanges to buy Litecoin
Below are some highly trusted crypto exchanges to help you start your investment journey. Each has its own benefits, so be sure to choose which one best fits your needs and trading skill level.
Coinbase
Coinbase is an ideal place for beginners to start their investment journey. This is all thanks to their incredibly helpful cryptocurrency learning modules, highly accessible interface, quick transaction process and 5,200 supported tokens. Plus, it’s the largest US-based cryptocurrency exchange in the world so you can trust that they follow strict regulations that ensure your safety and security as an investor.
Binance.US
For high-rolling investors, Binance.US offers you remarkable benefits. If you’ve traded a minimum of $50,000 in cryptocurrencies within a month, Binance.US will give you discounts. It can also offer you a wide collection of tokens thanks to the available 50+ cryptocurrencies available in the exchange.
Gemini
Regardless of your trading skill, Gemini gives you a highly-accessible system that offers 48 diverse token options, including Litecoin. Additionally, this exchange offers an application that lets you use your account as a debit/credit card and gain interest the more you use it.
Kraken
Since Kraken began its operations in 2011, it has become a trusted crypto exchange by many investors. Its strong security features, relatively lower exchange fees and accessibility to all levels of crypto users makes it an ideal option for you to consider when choosing where to purchase Litecoin.