How is Litecoin different from the most popular cryptocurrency – Bitcoin? What is the difference between these two cryptocurrencies? Read and find out!
Bitcoin is the first cryptocurrency in the world, which was presented in 2009 and launched by Satoshi Nakamoto. It is open source, meaning it can be modified and used by anyone. A lot of cryptocurrencies have already been presented with slightly modified versions of this code, however, they vary in levels of success and popularity.
In 2011, Litecoin was launched and it is known as the silver in the cryptocurrency market, while Bitcoin is the gold. After Bitcoin, Litecoin has the highest market capt when compared to other cryptocurrencies. So, what is the difference between these two cryptocurrencies? How is Litecoin different from the most popular cryptocurrency in the world – Bitcoin?
Without getting into technical details, we are going to say that there isn’t much of a difference between these two cryptocurrencies. The key differences include:
- The number of coins that can be created – The algorithm of Litecoin allow you to create 84 million Litecoins which is 4 times greater than that of Bitcoin.
- The rate which transactions are completed and confirmed – The algorithm of Bitcoin allows only one transaction to be added every 10 minutes to the public ledger. Litecoin, on the other side, has a better and faster rate of confirmation or one per 2.5 minutes. According to experts, this will help you to avoid one of the most common types of fraud that can happen in the cryptocurrency world and that is double spending.
- Slight difference in algorithms – Both cryptocurrencies use a so-called proof-of-work algorithm. Although Bitcoin utilizes the SHA256 hashing algorithm, Litcoin utilizes another or scrypt hashing algorithm. In practice, this makes Litecoin transactions smoother and more CPU-intensive.
We can conclude that Litecoin is in many ways and improved version of Bitcoin, with a less brand popularity and awareness. One of the reasons why the value of Litecoin has grown is because of its induction in Coinbase. If Coinbase is allowed in your country, it is really the best and fastest way to invest in Litecoins. Besides Coinbase, you can purchase Litecoins in the following exchanges Kraken, BTC-e, and Cryptsy. When it comes to storing your Litecoin investment, there are lots of wallet options you can use.
So, what do you think, which cryptocurrency is better? Bitcoin or Litecoin? Share your experience with us.