Bitcoin has dominated the world of Cryptocurrencies undoubtedly. Since its launch, investors have taken a deep interest in Bitcoin due to the plethora of benefits it provides. However, the fame of Bitcoin seems to vanish as more types of cryptocurrencies have landed in the market.
One such digital currency is “Litecoin” which has some similarities with Bitcoin but it offers more advantages over any other virtual currency.
Let's see which of these is better for retail investors by comparing the two. Check out who wins the fight between Bitcoin vs Litecoin.
What Are Cryptocurrencies?
Cryptocurrencies are digital or virtual money in the form of “coins” or “tokens”. It enables the storage and transaction of money safely through a decentralized platform that hides the details from both the sender and receiver sides. That’s how transactions are kept secure from the manipulation and control of hackers and powerful authorities.
Bitcoin is perceived as the leader in the world of cryptocurrencies, but various other cryptocurrencies are growing and expanding tremendously. For example- Litecoin, Dogecoin, Ripple, etc.
Difference Between Litecoin and Bitcoin
Both the currencies are decentralized cryptocurrencies that are not controlled by government authorities. They solely depend on the integrity of the network. The following points prove the similarity between the two:
Proof of work- Bitcoin and Litecoin work in the same ecosystem i.e., the mining process is the same when comes to generation, authentication, and addition of Blockchain.
Storage and transaction- the primary elements of transacting with Litecoin and Bitcoin are very alike. They can be purchased via mining trading sites. However, being a volatile form of currency, the price may vary as per the rules & regulations.
Despite being somewhat similar, both Litecoin and Bitcoin share a healthy amount of differences. This puts investors in great confusion when comes to picking any of these. Let’s know the differences:
Algorithms-Bitcoin uses the SHA-256 algorithm while Litecoin uses Scrypt. The former is more complex than the latter one. Scrypt-based cryptocurrencies are easily accessible and anyone can join this network.
Market capitalization: The market evaluation of Bitcoin was $1 trillion as of March 2021 which is 70 times larger than that of Litecoin that has only $13.7 billion market evaluation.
Distribution: Bitcoin won’t exceed over 21 million coins however Litecoin can reach 84 million coins. So, Litecoin has an advantage over Bitcoin when comes to distribution.
Transaction speed- Litecoin is much faster than Bitcoin. It takes only 2.5 minutes to get a block on Litecoin while Bitcoin requires at least 9-10 minutes.
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Is Bitcoin Better Than Litecoin?
1 Bitcoin (BTC) = 253.97 Litecoins (LTC)
For retail investors who require everyday purchases, Litecoin is far better than Bitcoin. On contrary, if you want to avail short-term benefits, nothing beats Bitcoin than any other Cryptocurrency.
How To Buy Litecoin?
You can start buying Litecoin (LTC) in few minutes, just follow the steps-
Step 1- Visit Litecoin.org and download Litecoin wallet.
Step 2- find exchange platforms to buy Litecoin. Bitfinex and Exmo are two popular services.
Step 3-start trading Litecoin. You can buy Litecoin and withdraw it into your digital wallet.
You can trade Litecoin through CFDs (contract for difference). When you engage in a contract with an exchange service provider, there’s an agreement between both parties. After discussion, the end price will be settled between the two.
Is Bitcoin a good investment? Not to mention, Bitcoin will always carry greater value in the world of cryptocurrencies. But from the technical and monetary aspects, it fails to provide enough advantages to savvy investors.
Talking about Litecoin, it is much faster and can be used for higher transactions easily. It has become the most trusted, recognized, and used digital payment network around the globe.
Expert advice would be to go with the premier option of investing in Litecoin.
Does this sound like a wise act and a good opportunity? Share your views in the comment box.