Litecoin is one of 900 plus known digital currencies or cryptocurrencies in the global market. It is a peer-to-peer cryptocurrency that makes instant payment possible to anyone anywhere in the world, at a near-zero transaction fee.
As true of all other digital currencies, it is fully decentralized; that means there is no central control body or authority controlling its creation and distribution. It is an open source software project that was released by Charles Lee, a former employee at Google, on October 13, 2011. It was stated that its purpose was to improve on other proof-of-work currencies by means of few small but powerful tweaks.
It was released under the famous MIT/X11 license. The interesting thing about this license is the power it gives its users to run, adjust and duplicate the software. It also gives its users the option of distributing it.
Litecoin is known to be the first cryptocurrency to use the Scrypt algorithm in its proof-of-work scheme. Many were looking forward for Scrypt to be able to break the dominance of specialized hardware over mining rewards. What happened though was that Scrypt proved to be unsuccessful at taking out specialized hardware, and the hardware even got better. The good thing with Scrypt though is that it offers advantage of merged mining. It is where Scrypt-run cryptocurrencies can be mined together, increasing the potential dividends and computational efficiency of mining them.
Because of its decentralized nature, individuals who choose it can embrace the financial freedom it affords as everyone will be able to control their finances. It offers a faster transaction time when compared to some other kinds of digital currencies and better storage efficiency than the traditional paper currency that we all know. Litecoin is also being accepted by many independent businesses in different fields such as electronics, hosting, apparel, and advertising. Its wide spread acceptance though is lower due to its minor innovations and lack of first-mover advantage.
When compared to other cryptocurrencies, it boasts the ability to handle deals or transactions of higher volume at once. There is no fear of whether the software will be modified in the future as the blockchain that powers Litecoin support more transactions at the same time. Litecoin also has a large pool of available coins. It is expected that a total of eighty-four million LTC (Litecoin's abbreviated currency) will be mined over Litecoin’s mining cycle. It is also considered as a low-risk investment. Isn’t that amazing?
- Not as vulnerable to spam attacks like some other digital currencies - on a set number of transaction outputs, there is a transaction fee (minimal) levied; other digital currencies place small transaction fees per kB of the transaction
- Handle more transactions at the same time - creates newer blocks or transactions about four times faster than the famous Bitcoin block
- Provides much value for less payment
- Faster transaction confirmation time
- Higher scalability
- Not user-friendly
- Not too proactive with development
- Price resiliency
How to Buy:
One of the easiest ways of buying LTC is to simply purchase them with BitCoins. This method is also the fastest and claimed by most users to be the cheapest.
The following are the exchanges where you can easily buy LTC in a few steps.
Also worth to note that there are exchanges where you can buy LTC with Euros, Dollars, and Rubles. BTC-e, Bitfinex, Crypto-Trade and Kraken are among those that sell LTC for fiat currencies. The downside of this is that the availability of this kind of service depends on your location.
Ever heard the saying that ‘Plan for the worst and hope for the best’? That is a simple rule of trading with Litecoins. If you are a first timer, do not invest all your life’s savings in it immediately. Some have found out that for the first time, they should invest only what they can afford to lose. As time goes on, you can increase your stake in it gradually.
Another thing is to study the market very well and not too heavily rely on what the guesses might be. Before investing, try to do your homework, so to speak. You can contact experts and those already in the business to know when best to invest and for analysis of market trends.
If you do not love the cryptocurrency world, succeeding might not be easy. Make sure that the motivating factor should be because you have a strong belief in the concepts as well as the future prospects of Litecoin, and not just because others are doing it.
And always identify some common mistakes made by others as well as yourself with the aim of learning from them. The truth is that Litecoin has a very bright future and only the shrewd can benefit from it. Remember, it is not a get-rich-quick scheme.
Some exchanges offer online wallets for Litecoin. Please note though that these wallets being offered are not that good. You may want something more secure, like cold offline wallets. Good thing Litecoin features built-in encryption that can be used to protect your wallet.
The choice of Litecoin wallets is less compared with the giant BitCoin. Plenty of users choose the official Litecoin-Qt desktop client. There have been a few reports about syncing issues with it though. Electrum also offers a wallet (for OS X, Linux, and Windows) using a 12-word security passphrase (or seed) to protect your account.
For longer-term cold storage (most secured), you can use Litecoin Paper Wallet. There is also a credit card quality 'paper wallet' card from Crypto Coin Wallet Cards which you can opt to use.