What is LTC?

Litecoin (LTC) is hailed as the “digital silver” to Bitcoin's “digital gold,” representing a pioneering cryptocurrency that continues to captivate the trading world with its unique features. So, what exactly is it？

What is Litecoin？

Litecoin (LTC) is a peer-to-peer digital cryptocurrency founded by Charlie Lee (a former Google employee) in 2011. This currency shares many similarities with Bitcoin and is based on the source code of Bitcoin.

Litecoin primarily targets small transactions, making it more efficient for everyday use. In contrast, Bitcoin is more often used as a store of value for long-term investment purposes. Compared to Bitcoin, Litecoin has a much higher market value cap and a faster mining process. This means that while Litecoin's transaction volume is generally smaller, its transaction speed is faster, and its price is lower.

Like Bitcoin, Litecoin is a form of digital currency. Litecoin utilizes blockchain technology, allowing for the direct transfer of funds between individuals or businesses. This ensures a publicly available ledger that records all transactions, enabling a decentralized payment system to operate without government control or censorship.

As a cryptocurrency, Litecoin operates on an open-source blockchain network. It uses the Scrypt algorithm for block validation, which is different from Bitcoin's SHA-256 algorithm. Lee deliberately chose Scrypt because it can resist the custom hardware used to mine Bitcoin, thus opening up the mining process to a wider audience. Additionally, Litecoin has a more flexible block resolution, generating a block every 2.5 minutes, four times faster than Bitcoin, which contributes to its faster transaction times.

Reference: https://skilling.com/row/cn/blog/crypto-trading/ltc-litecoin/#/

Litecoin History

Litecoin was released through an open-source client on GitHub on October 7, 2011. The current (as of June 26, 2014) client version is Litecoin v0.8.7.2.

Other clients have also been released.

Recently, Litecoin has been reported in the news as an alternative to Bitcoin.

On April 30, 2013, the world's largest Bitcoin exchange, Mt.Gox, announced a temporary delay in its plans to support Litecoin (litecoin) trading. Mt.Gox stated that it had planned to launch a platform supporting Litecoin trading within the past two weeks, but the plan was delayed due to a massive DDOS attack on the website.

On July 3, 2013, Mt.Gox introduced the API for LTC trading today, preparing for the official launch. In November of the same year, Litecoin's market value increased to one billion US dollars.

On February 24, 2014, Mt.Gox ceased operations at 10:30 p.m. and subsequently filed for bankruptcy.

On June 24, 2014, online wallet service provider Hive added support for Litecoin. Hive has always emphasized user experience and has also developed a feature to find nearby people for users to find companions who use Hive services nearby.

In May 2017, Litecoin became one of the top five cryptocurrencies by market capitalization.

On September 13, 2021, Global Telecom released a press release stating that Walmart announced a partnership with Litecoin, and users could choose Litecoin as the settlement currency when shopping online at Walmart on October 1. Media outlets including Reuters and CNBC subsequently reposted it, and Walmart later clarified that it was fake news.

Source: Wikipedia: https://wikipedia.org/

How does Litecoin work？

Litecoin involves the process of creating and transferring digital currency using open-source cryptographic protocols. It utilizes blockchain technology to maintain a distributed public ledger of all transactions.

YouTube Link:https://www.youtube.com/watch？v=jfKfGcaxox0#/

What is Blockchain？

A blockchain is a shared digital ledger containing records of all Litecoin transactions. The most recent digital cryptocurrency transactions are grouped by miners into “blocks.” These blocks are then securely encrypted and linked to the existing blockchain. Similar blockchain technology is applied to many different digital cryptocurrencies, including Litecoin and Bitcoin.

What is Mining？

Mining is the process of securely adding each block to the existing blockchain using mining software. After securely adding a block, new units of digital cryptocurrency are released. Miners can then inject these units back into the market.

What are the Differences Between Litecoin and Bitcoin？

Litecoin and Bitcoin share many similarities but also have some subtle differences, including:

Transaction Speed:

Litecoin requires a more complex mining technique and generates blocks at a speed over four times faster than Bitcoin. This significantly speeds up Litecoin's handling of financial transactions, allowing for a greater number of transactions within the same time frame.

Currency Quantity:

Both Bitcoin and Litecoin have finite circulating currency quantities. Bitcoin's available currency quantity is 21 million, while Litecoin's available currency quantity is 84 million, which is more than four times that of Bitcoin.

Market Value:

Litecoin's market value is significantly lower than Bitcoin's but is still one of the most traded digital cryptocurrencies.

Algorithm:

Miners must successfully solve hash functions to add new units of digital cryptocurrency to the blockchain. Litecoin and Bitcoin use different mining algorithms, with Litecoin using the Scrypt hash function and Bitcoin using the SHA-256 hash function. The Litecoin development team initially chose the Scrypt function to avoid ASIC-based miners dominating the mining work. This provided an opportunity for CPU and GPU miners to compete. The Scrypt mining algorithm requires more memory resources and was not initially suitable for ASIC miners, thus providing more opportunities for CPU and GPU miners. However, over time, more and more ASIC miners gradually began using the Scrypt algorithm. As a result, CPU and GPU miners no longer have effective mining tools due to their low computing power, while ASICs generate hashes far beyond many per second.

How to Trade Litecoin

When you buy Litecoin in a transaction, its price is usually denominated in US dollars. In other words, you need to exchange US dollars for Litecoin. If Litecoin's price rises, you can sell it for a profit because it can be exchanged for more US dollars than when you bought it. If you're ready to sell during a price decline, you'll incur a loss.

On the CMC Markets forex trading platform, you can trade Litecoin through a CFD account. This allows you to predict price movements without actually purchasing the cryptocurrency. You don't need to own Litecoin. Instead, the price of the position you establish will increase or decrease based on the price movements of Litecoin against the US dollar.

CFD accounts are leveraged products. This means you need to pay a percentage of the total trade amount as an opening deposit. You don't need to directly purchase all assets at once. Instead, you can access larger amounts through an initial deposit. Leveraged trading amplifies returns or losses as they are based on the total position amount.

CFDs are a popular choice for cryptocurrency trading for the following reasons:

Leverage:

CFDs allow leveraged trading, meaning traders can open positions larger than their initial investment.

Shorting:

With CFDs, you can profit from falling markets by “going short,” i.e., selling CFDs when you anticipate the underlying asset's price will fall.

No Ownership:

When trading CFDs, you don't own the underlying asset (in this case, Litecoin). This means you can avoid many of the complications associated with owning cryptocurrencies.

Regulated Brokers:

CFD brokers like Skilling are usually regulated, providing additional protection for traders.

However, it's important to note that CFD trading carries risks, and it's essential to understand these risks before starting to trade.

FAQs

What is Litecoin (LTC)？

Litecoin (LTC) is a peer-to-peer cryptocurrency created by Charlie Lee in 2011. It's often referred to as the silver to Bitcoin's gold. Its development aimed to improve upon Bitcoin's technology, providing faster transaction times and a different hashing algorithm.

How does Litecoin (LTC) differ from Bitcoin (BTC)？

While Litecoin (LTC) is based on Bitcoin's open-source codebase, it has several key differences. Firstly, Litecoin's block generation time is approximately 2.5 minutes, compared to Bitcoin's 10 minutes, resulting in faster transaction confirmations. Secondly, Litecoin uses the Scrypt hash algorithm instead of Bitcoin's SHA-256.

How does Litecoin (LTC) operate？

Like Bitcoin, Litecoin (LTC) operates on a decentralized network. It uses blockchain technology to maintain a publicly available ledger of all transactions. Litecoin is now created through a process called “mining,” where powerful computers compete to solve complex mathematical problems. The first to solve the problem can add a new block to the blockchain and receive a certain amount of Litecoin as a reward.

Is Litecoin (LTC) a good investment？

As with any investment, whether Litecoin is a good investment depends on many factors, including your financial goals, risk tolerance, and market conditions. While Litecoin has shown significant growth since its inception, it's important to remember that the value of cryptocurrencies can be highly volatile.

How can I buy Litecoin (LTC)？

Litecoin can be purchased on various cryptocurrency exchanges or through regulated CFD providers like Skilling.