Which cryptocurrency is better among Bitcoin or Litecoin?
Interest in cryptocurrencies has experienced ups and downs over the last few years, but during 2020, a sharp surge of investors is jumping into this world. The main focus is on Bitcoin, as it was the first digital currency after all, yet many other cryptos have appeared since its invention in 2009. A safe exchange like http://bitcoinxapp.com/, where your digital assets aren’t in danger of being stolen, is the greatest place to purchase that cryptocurrency.
Despite the intense competition between digital currencies, one non-Bitcoin cryptocurrency that has held its own against Bitcoin is Litecoin (LTC). It currently sits as the sixth-largest currency by market cap and functions almost like a companion to Bitcoin. At the same time, they share many similarities, but their fundamental differences make them significantly different investments. In this article, we explore how LTC differs from BTC and its potential advantages for investors.
What are the similarities between Litecoin and Bitcoin?
Bitcoin and Litecoin may have many similarities, but their decentralised nature ties them together. Cryptocurrencies such as these two don’t rely on any centralized authority. Below, we’ll explore how Bitcoin and Litecoin are similar, from underlying cryptographic protocols to investment potentials.
Transactions and Storage
The procedure for purchasing and selling Litecoin and Bitcoin is similar for investors. You can buy either of these Cryptocurrency equivalents with an exchange or even mining them using a mining machine. A cold or digital storage wallet is needed to keep each digital currency safe during transactions.
Even though their prices continue to be somewhat similar, they’ve shown over time that they’re both very volatile and remarkable types of digital currency. Factors that range from investment interest to government regulation also influence this.
Proof of Work
Among the significant differences between Litecoin and Bitcoin is their proof of job community. This essentially means the coding process for these digital currencies is highly similar. This incorporates producing, authenticating, and putting it into blockchain as a public ledger.
What are the differences between Litecoin and Bitcoin?
Litecoin and Bitcoin share some similarities, but you will also find some differences. Therefore, it is thus crucial to understand the distinctions between Litecoin and Bitcoin when determining which cryptocurrency is more suitable to mine.
Distribution
The difference between Litecoin and Bitcoin would be the number of coins each cryptocurrency can create. Here is precisely where Litecoin stands out as a whole. Litecoin can hold as many as 84 million coins, even though the Bitcoin network can not have more than twenty-one million. This might look like an enormous benefit for Litecoin theoretically; however, in practice, it may be of slight advantage because Litecoin and Bitcoin are infinitely divisible.
Algorithms
Probably the most vital technical distinction between the two cryptocurrencies is the various cryptographic algorithms they utilize. Bitcoin utilizes the famous SHA 256 algorithm, while Litecoin engages the modern Scrypt algorithm. The practical application of these distinct algorithms is based on their influence on the mining procedure for new coins. Lots of computing power is needed to verify transactions in Litecoin and Bitcoin. Many miners might utilize their computing power to check the transactions of various other people. In return, these miners are provided devices of the currency they’ve mined in return for their endeavours.
Market Cap
The market capitalization, the total dollar market worth of all the current coins, is one area where Litecoin and Bitcoin are drastically distinct. Bitcoin has a far greater value than Litecoin since its cost is much higher than that of every other electronic currency that can be obtained now.
