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July 12, 2018

What is Litecoin and how to make money with it

Litecoin is considered the silver of the cryptocoins, it was created after Bitcoin and has many improvements that promise to revolutionize the market.

Imagine if you could invest in a cryptocoin that has enormous potential for growth while it is still at a low value in the market. This is exactly what can happen with Litecoin and you can have a chance to profit from it.

There are experts eyeing the potential of this cryptocoin as an alternative to Bitcoin, some even think that it can quickly overcome it as an investment option.

The Litecoin creator

Charlie Lee - Criador do Bitcoin

Created by Charlie Lee, Litecoin is an Open Source project based on MIT licenses, which means the code can be read and improved by other software developers around the world.

Charlie is a former Google employee who created Litecoin based on Bitcoin, but with the idea of better algorithm to make the cryptocoin more efficient.

The history of Litecoin

Litecoin came to the network on October 13, 2011 and therefore about 2 years younger than Bitcoin, but brings innovations that make it much more interesting.

At its launch Litecoin was worth $ 8.50 (USD) and had a super growth over the years reaching $ 236 in February 2018.

Charlie's idea was to create a more abundant currency on the market with faster transactions and to use Bitcoin as a model. If Bitcoin is considered gold, the Litecoin should then be regarded as silver.

The Foundations of Litecoin Creation

Before creating Litecoin, Charlie Lee laid the groundwork on which this new cryptocurrency should be based to succeed where others failed:

1. Good name

At the time of choosing a name, Charlie had in mind that he should be easy to pronounce and remember. Litecoin is short, simple and similar to Bitcoin.

2. Brand and Marketing

Litecoin is a name that has a good appeal to make marketing disclosure, that is exactly what the creator had in mind to make the cryptocurrency popular.

3. Attract miners

At the beginning of its creation, a cryptocoin needs to be mined, and Litecoin was created to be attractive to miners without competing with Bitcoin mining

4. Fair launch

Charlie Lee thought of having a fair launch and make it possible for everyone to succeed with Litecoin, not mining something that would get himself rich.

5. Do not change what is not broken

This means that Bitcoin created by Satoshi Nakamoto is an example of something that is in the market and it works, so it is not wise to try to change what is already a success, so the good parts of Bitcoin served as a model for Litecoin's creation.

The advantages of Litecoin

Limited Quantity

Litecoin was created with a limit that allows the generation of 84 million units of the cryptocoin, that number is much superior to that of Bitcoin that was created with a limit of 21 million, there is a greater abundance of this new cryptocoin.

Faster transactions

Both Bitcoin and Litecoin use the blockchain technology to process and validate the transactions performed and Litecoin goes ahead with a great advantage related to the total time that leads to this validation.

Just 2 and a half minutes, this is the time it takes for a Litcoin transaction to be completed. Bitcoin takes about 10 minutes to perform the same task due to its greater complexity, which makes Litecoin much more efficient than its rival.

Simplicity of the algorithm

Simplicity of the algorithm is one of the advantages of Litcoin. The simpler the algorithm the less processing is needed and the faster it can work.

How to make money with Litecoin

Basically it is possible to make money with this cryptocurrency in the same way that you earn with Bitcoin, one of the advantages however is the lowest price.

Mining

Investing in mining is a good option as it is possible to gain on the long term from the sale after the valuation, or to win the in the short and medium term with operations (trading)

Trading

Many investors earn from day-to-day cryptocurrency operations, because of the volatility they are experiencing, prices vary greatly over a short period of time.

Long Term Sale

Buying and expecting to value in the long term is a strategy used by investors who diversify their cryptocurrency portfolios. By reviewing Litecoin's appraisal history you can see that your purchase has been a good deal.

Litecoin price variation

Litecoin price variation since 2013 - source https://coinmarketcap.com

Note in the graph the great appreciation over the years, investing in Litecoin has been a good deal since its inception and by 2018 the price still continues to rise.

Litecoin's Potential

In 2018, there is a strong chance that companies will adopt Litcoin as a form of payment, just as Bitcoin has done, and this will certainly make the currency gain a big boost and value even more in the market.

This can be enabled through the LitePay platform that is in beta and open for applications from February 2018 on the site: https://www.litepay.us.

Litecoin vs Bitcoin

Below a comparative table of the differences between the two cryptocurrencies:

Litecoin

Bitcoin

Creator

Charlie Lee

Satoshi Nakamoto

Processing

2.5 minutes

10 minutes

Total units

84 million

21 million

Type of transaction

Small

Big

Year of lauching

2011

2009

Transaction Log

Public

Public

CPU Mining

Yes

No longer used

GPU Mining

Yes

Yes

ASIC Mining

Yes

Yes

Conclusion

Litecoin was born from the idea of using the advantages of Bitcoin however with improvements that can be very useful for practical day to day applications such as payments and transactions that require faster and lower operating costs.

This cryptocoin has been very promising and in 2018 it will have more market acceptance and that could positively impact its valuation.

Follow the news and make the decision whether it is worth investing in Litecoins and how to manage the portfolio in the short and long term.

Books and stuff about Bitcoin

There are books of experts in the area of cryptocurrency. If you want to understand more about bitcoin it is worth checking the links below:

Litecoin

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