Litecoin: Should you buy it?
One of the best things about technology is that it was able to pave the way for cryptocurrencies which became known as valuable digital assets. Aside from Bitcoin and Ethereum, there are several other coins that have proven to be a practical way of making transactions. One of these is Litecoin.
Litecoin is created for the purpose of having another asset like Bitcoin but without its loopholes. Though its value may not be as massive as BTC’s, its potential is undeniably strong as it makes its own waves on the crypto market. With that, it is no longer surprising to know that there are several uses for it now, including for shopping and sports betting Japan sites.
In case you aren’t that familiar with it yet, here are a few things you should learn more about Litecoin and what makes it a promising asset:
What is Litecoin (LTC)?
Litecoin, released in 2011, is one of the earliest altcoins in the industry. This popular asset was developed by Charlie Lee who is an MIT graduate and a computer scientist. His primary objective for inventing this was to make a nice spinoff to Bitcoin Gold but would be silver instead. Just as he had wished, Litecoin gained traction among crypto investors who avoid using Bitcoin (BTC) or Ethereum (ETH).
All LTC transactions are also recorded on the blockchain, much as other cryptocurrencies. It is clear that LTC’s worth is lower than BTC’s when it comes to value but it keeps growing at an almost similar rate.
Despite their notable differences, LTC and BTC also have a lot in common. As a result, some people think that the reason why Litecoin was called such was that it works as a less-powerful variant of Bitcoin.
How it works
LTC was created with Scrypt, a memory-intensive hashing technique that Lee used for this asset. By using this hashing algorithm, Lee aimed to make Litecoin and the network as accessible as possible. He also used such to make mining more transparent and democratic.
One of the impressive factors about LTC is that its Scrypt hashing method eliminated the need for expensive hardware or machinery while mining the coin. As a result, miners began to prefer mining Litecoin because they could do it on their laptops and desktop PCs.
Miners receive a set amount of LTC, known as a block reward, for each block created on the Litecoin blockchain. The block reward gradually decreases over time by 50% increments, a procedure called halving which is quite similar to Bitcoin. The time between halvings was increased to make up for Litecoin’s quicker block time. Litecoin’s block reward halving occurs every 840,000 blocks, as opposed to bitcoin’s every 210,000 blocks.
How it’s mined
ASIC mining machines that are pre-installed with mining software can be used to mine Litecoin. On the contrary, if you’re mining using a central processing unit (CPU) or graphical processing unit (GPU), you’ll have to pick your own program while keeping security in mind.
There are several risks of malware that could be included in a software product. With that, you have to learn how to check each software carefully so as not to fall into crypto scams. You should also settle on your preferred equipment and whether or not you are going to mine solo or in a pool.
If you mine by yourself, there’s a chance that you could spend a long time without finding a block. In case you do, you can keep the entire 25 Litecoin plus fees. Keep in mind that you can only do it if you have a lot of hash power (multiple ASICs).
As an open-source global payment network, it can be said that the reason why Litecoin was made was for it to enable almost zero-cost fees for its transactions. It also aims to be a great alternative to Bitcoin. The asset is also focused on being easily storable in various wallets.
It can be said that LTC works as an easier currency to use, especially when it comes to small transactions. This is the reason why many online sites like Sportsbet have also incorporated it among their payment methods.
What makes Litecoin more interesting is how it manages to introduce several features that were later implemented in the Bitcoin network. These features help the network accommodate more transactions while maintaining privacy. Here are some of the notable features you can take note of:
- SegWit → SegWit makes use of the limited storage space by separating the digital signature data for each transaction outside of the cryptocurrency. It was created to address the scalability concerns of Bitcoin, and Litecoin implemented it in 2017.
- Lightning Network → The Lightning Network is a scaling solution that essentially adds a new layer on top of the blockchain of crypto, where transactions happen quickly and fees are extremely low.
- MimbleWimble → The MimbleWimble protocol, which supports a cryptocurrency’s blockchain, is a modified implementation of the PoW algorithm. It improves privacy and distorts traceability by preventing the identification of specific inputs and outputs connected to transactions. This was first used by Bitcoin in 2020.
What sets it apart from Bitcoin
Despite having several similarities, there are also notable differences between Bitcoin and Litecoin. Some of them are:
- Litecoin reduces its rewards to miners by half every 840,000 blocks, whereas Bitcoin halves its rewards to miners by half every 210,000 blocks.
- Litecoin’s transaction confirmation time is approximately 2.5 minutes, compared to Bitcoin’s average transaction confirmation time of about 10 minutes. Due to Litecoin’s faster block production, the network can support more transactions.
- Compared to Bitcoin’s 21 million, Litecoin has a supply of 84 million coins, of which over 70 million have been mined and are now in use.
- The PoW method on the Bitcoin network is powered by the SHA-256 hashing function, whereas Litecoin was designed to use the Scrypt hashing algorithm.
Advantages of using Litecoin
There are several advantages that come with using Litecoin. Among them are:
- Security → LTC is decentralised, which means it is not controlled by central authorities like banks. This means that you can expect safe and secure network procedures despite its lack of management. Charlie Lee also assured its users that the network is secure from attacks.
- Anonymity → If you’re using LTC to bet on Sportsbet or any other site, you will appreciate the fact that it allows you to bet anonymously. By doing so, you can be confident about the fact that none of your personal information is put at risk since they are not required per transaction you make. Also, your transactions won’t be reflected on your bank accounts because of the asset’s decentralised nature.
- Fast block approval time → LTC is a well-known BTC fork that can process more transactions per second than the popular asset. It takes only approximately two and a half minutes to mine LTC, compared to about ten minutes for BTC. This also boasts of more affordable transaction fees.
Disadvantages of using Litecoin
As promising as it gets, there are also a handful of disadvantages you need to consider about Litecoin. Some of them include:
- The development of crypto is not the same as when it started.
- Litecoin is no longer included in the top 5 coins by market cap as it had already dropped from it. Still, it remains in the top 10.
- Most people don’t see it as an effective alternative to Bitcoin since there are other promising emerging coins in the industry.
Can you bet with Litecoin?
You can use Litecoin to place online bets. In case you haven’t tried it before, here are some simple steps on how you can deposit and withdraw it to and from your Sportsbet account.
How to deposit
- Buy LTC from a reputable exchange → Trading fiat for Litecoin or buying it through a cryptocurrency exchange are two of the simplest ways to get it. Since there are several exchanges online, it’s always important to check the reputation of their preferred exchange.
- Deposit LTC funds on your Sportsbet account → After purchasing LTC and having it securely transferred to your crypto wallet, sign in to Sportsbet and make a deposit using LTCs. Visit your account, click the deposit option, and then select LTC.
How to withdraw
- Click withdraw and choose LTC → While logged in to your account, click the withdraw button and then select LTC. Choose your LTC e-wallet as the intended receiver when transferring the rewards.
- Cash out → Although this step is not required, you have the choice to either cash out your LTCs right away or let them sit on your account. Either way, you’ll be able to take advantage of the winnings from the games you played with it.
Is it worth investing in?
By learning more about the said asset, you may have gotten a better idea about what the coin is and what it’s all about. By seeing both the good and bad in the asset, it’s up to you to decide whether you would want to place your money in it or not. What matters most is that you don’t impulsively dive into its hype by learning more about it first before using it for your bets.