Thinking about investing in Litecoin but don’t know where to get started? This article will tell you everything you need to know.
With nearly 9,000 virtual currencies in existence, the cryptocurrency field is getting bigger and bigger. Obviously, Bitcoin and Ethereum are far ahead of the competition, but a couple of other cryptos are gradually making their way towards the top. Litecoin is one of them. According to surveys, it is the 10th most used virtual investment currency in the world.
Litecoin is a virtual currency used primarily in the online trading industry. Like other cryptocurrencies, Litecoin is not managed by any financial institution. It is for investment purposes rather than currency for commercial transactions of any kind.
Charles Lee created Litecoin in October 2011, making it among the oldest cryptocurrencies. No wonder it is now in 10th place in the ranking of the most used cryptocurrencies on the market.
Litecoin is directly derived from Bitcoin. The currency attracts both individual investors and large companies like Google, who has been offering a tool for converting Litecoin into a traditional currency for a few years.
Currently, Litecoin is one of the strongest cryptocurrencies on the market and has generated more than $13 billion since the beginning of 2012.
On the trading market, Litecoin is better known as LTC. The community is very active, guaranteeing it a certain stability in the market. The Litecoin situation is stable both this year and the next according to the experts' forecasts.
Litecoin tokens come from mining. The number of tokens to be mined remains limited as with the majority of cryptocurrencies. The maximum amount of Litecoin that can be injected into the market is 84 million.
According to research, Litecoin will increase in value over the next few years - certainly not enough to rival Bitcoin, but a positive for any future investment plans.
The value of Litecoin is very low compared to Bitcoin and Ethereum. One Bitcoin equals about 2,090 euros, while 1 Litecoin is worth only 145.22 euros.
Litecoin is a virtual currency injected into the market in the form of tokens. As a reminder, the number of tokens created is limited to 84 million. Note that to date, only 57 million LTC tokens are actually available.
LTC works with a Scrypt algorithm that facilitates mining. To create new tokens, Litecoin obeys the principles of proof provisioning.
1.The litecoin blockchain
As with all virtual currencies, Litecoin requires blockchain software to operate. Each transaction goes through different stages before reaching its recipient.
The blockchain refers to the various steps crypto transactions pass through before reaching the final recipient.
A Litecoin transaction thus starts with a computer. Tokens are sent to a block that must wait for a certain number of crypto-currencies before reaching the network. Once it has passed through the network, the transaction is complete.
These blockchains are public and completely decentralized. Litecoin copies the way Bitcoin and so many other cryptocurrencies work.
Litecoin is open source, unlike some virtual currencies. This makes it easy to access and allows for more transactions and investments. Note that Litecoin mining is also easier.
Litecoin's major strength lies in its simplicity and speed. An LTC transaction takes an average of 2 minutes to cross the Blockchains. For other cryptos, that time is doubled or even tripled. LTC is also a virtual currency that is within the reach of everyone.
Interested in investing in Litecoin? Here's what you need to know to get started.
1 - Choose a good trading platform
To buy Litecoin, you must go through a trading platform. Litecoin is relatively popular in the market, so sites that offer it are not hard to find.
There are a few things to consider when choosing your trading platform. The first is a good understanding of how the chosen platform works.
Remember that Litecoin trading is not without costs. Commissions usually vary in number and price depending on the trading platform. Therefore, you should compare the fees before opening your account. To avoid additional fees for currency exchange, opt for sites that enable you to invest in different currencies.
Check out the best crypto platforms of the moment here.
2- Create your investment account
Once you have found the perfect platform, create your investment account. All you have to do is fill out a form to become a member.
3- Fund your account
After opening the account, you have to fund it. On some sites, you can do this by transfer, even from an online bank account: PayPal, Skrill, etc. Generally, there is no threshold or ceiling to respect.
When your account is funded, you can now buy Litecoin. Choose the investment portfolio you are most interested in from the list of broker results.
A word of advice: Litecoin is an investment made to last. So before you invest, consider choosing a Litecoin wallet or wallet to hold your tokens. On trading sites, you can open one with not problem.
Wallets are not free. The fees depend on the model and functionality of the wallet. You can choose between online models or physical keys.
On some platforms, you have the option of using investment levers on your LTC investments. This will allow you to increase the income from your investment.
2- How to mine Litecoin ?
You can also invest in Litecoin by creating new tokens of this crypto. To do this, you need to resort to mining. How does that work? Find out below:
Litecoin mining is all about math. It's about solving math equations in order to release new tokens. You will have to look for the solution to the formulas at the top of the block
Litecoin mining is certainly easy, but you will need powerful hardware to find and earn the new tokens. Note that the cryptographic equations and formulas are difficult on a computer with a standard server. For this reason, LTC mining professionals prefer specific PCs.
To increase your chances of getting the tokens, you can join a "mining pool". The help of a group of miners specialized in Litecoin mining is recommended. The more people you have working on the formulas, the faster you will be. This means you'll have a better chance of finding new tokens.
You can find pool mining platforms online. Choose the one which has the best reputation and the best visibility. Opt for the site that proposes the best revenue.
For novices, Cloud Mining is the way to go. This technique is less cumbersome and faster. These sites enable you to mine Litecoin without investing in hardware. You can take part in a mining session with an ordinary computer and hope to find new tokens.
There is a huge chance of success in Litecoin mining. And for good reason, there are still over 20 million new tokens to be injected into the market. Note that by mining, you reduce the transaction costs of your investment.
Need advice on investing in Litecoin? Check out Yann's YouTube channel for advice from a trusted professional.
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