Litecoin is rated as one of the largest digital currencies in the world. It was created in 2011 by Charles Lee. It has grown in popularity as a result
Litecoin is rated as one of the largest digital currencies in the world. It was created in 2011 by Charles Lee. It has grown in popularity as a result of the need for alternative currency options for consumers across the world. This is a guide to what you should know about Litecoin.
How it works
This currency works like other standard currencies. Investors and traders have noted the potential in this currency, and this is the reason it is heavily traded by seasoned and beginner investors alike. This virtual currency can be used to purchase and sell services and products like food, electronics, clothing, and much more. Since it is used online, it is value is influenced by demand on the currency trading websites. Litecoins are either traded or mined.
Usually, Litecoin mining can be done by specialized hardware and computers. The main reasons for using such specialized equipment are:
It verifies transactions and secures the network
New Litecoins are rewarded to miners
Litecoin uses proof-of-work that makes mining an expensive process regarding both energy and money. To send Litecoins, transactions ought to be in a block. Moreover, miners are required to verify the transactions with proof-of-work. Computers solve mathematical equations and are rewarded as a result. Thus, the mining process is quite a daunting task. Statistically, odds of success are very low, and it can take you several days to earn a few coins.
Other than mining, this is another way of obtaining this cryptocurrency. Unless you have mined it, you have to purchase from one of the many exchanges online. Some of the places you can purchase Litecoin include Kraken, Vircurex, Bitfinex, BitBargain, and many others.
Although Litecoin is yet to reach the acceptance level of bitcoin, there are several merchants accepting this form of currency. Moreover, a good number of a freelancer can now be paid using this currency.
Why use it
Now that you understand what Litecoin is, there is a need to know why you should use it. Surely, it is not for every person, just like not all people use cryptocurrency. Just like bitcoin, it can have its problems. If it is not adopted, then chances of it getting used are unlikely.
Litecoins are designed to be used lower-end purchases as compared to Bitcoin. The fast transaction time and low fees make a compelling case for the Litecoin adoption by small businesses that what to leverage competitive advantage they find to make them less agile companies.