What is Litecoin and how does it work

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What is Litecoin and how does it work
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In the cryptocurrency industry, Litecoin (LTC) is one of the most well-known blockchain and digital assets.

The Litecoin Foundation is one of the organizations supporting Litecoin. The founder claims that Litecoin is a digital currency based on fast transaction confirmation times and cheap transaction costs. This is why people use Litecoin to pay for products and services.

Litecoin is also one of the earliest virtual currencies in existence, and it was formerly one of Bitcoin’s primary competitors. Litecoin (BCH) has surpassed Bitcoin (BTC), Ethereum (ETH), XRP, and Bitcoin Cash to become the fifth-largest cryptocurrency by market capitalization.

Who Invent Litecoin?

In 2011, Charlie Lee (a former Google employee) established the Litecoin currency. He was a great supporter of Bitcoin, but he felt he could improve it, so he created Litecoin.

Genesis-mining

How does Litecoin work

Litecoins are generated through the mining process. This implies going through a list of LTC transactions. The following points should assist you in comprehending how it works:

  • It is only available in limited quantities. The total number of units available is limited to 84 million.
  • A single block is created every 2.5 minutes at the moment.
  • A block is validated by mining software and made available to any miner who requests it.
  • A new block is added to the chain when a miner confirms a previous one.
  • The first miner to verify a block will receive 50 LTC. With time, the quantity of LTCs issued decreases.
  • Litecoin mining is simpler than mining other cryptocurrencies since it takes less computational power.

How to use Litecoin

To begin, you may purchase LTC on crypto exchanges like Binance or Coinbase. You will be able to open a wallet with these exchangers. You can buy as many LTC as you like by wire transfer after your account is set up. Viola! That’s all there is to it. And you don’t need to be a crypto miner to create your own coin.

Wherever LTC is accepted, Litecoin may be used to pay for products and services. According to Coin ATM Radar, there are around 50+ Crypto ATMs throughout the world that accept Litecoin.

Where to Buy Litecoin

Purchasing Litecoin using USDT is as easy as purchasing LTC with BTC. For all relevant actions, the procedure of obtaining a wallet and creating an exchange account is the same. The only difference is that in order to make the trade, users must have USDT or Tether currency in their wallets. The tether may be used to purchase and sell Litecoin on nearly every major exchange. Some of the exchanges that allow consumers to buy Litecoin with Tether include:

  • Binance
  • Bitstamp
  • HitBTC
  • WazirX
  • Poloniex

These exchanges have user-friendly interfaces for converting USDT to Litecoin at competitive rates. Users must enter their Tether and Litecoin wallet addresses and make the exchange to complete the transaction.

The difference between Litecoin and Bitcoin

Litecoin (LTC)

Founded in 2011

Former Google developer Charlie Lee designed it as a “lite version of Bitcoin” in response to Bitcoin. Litecoin’s creators have maintained for a long time that their goal is to build the “silver” to Bitcoin’s “gold.”

Litecoin has a maximum capacity of 84 million coins.

Bitcoin (BTC)

Founded in 2009

Bitcoin was the first cryptocurrency, and it remained relatively unknown for many years. It functions just like any other genuine cash. It may be used to purchase, sell, and exchange products, services, investments, and other items.

The maximum number of Bitcoins that will ever exist is 21 million.

Even though there is now over 16 million Bitcoin, it will be a long time until the total number of Bitcoin reaches 21 million!

Ledger Nano X - The secure hardware wallet

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