Within the cryptocurrency market every time we have a greater number of digital currencies in which we can operate to obtain multiple profits. Although Bitcoin is still the cryptocurrency par excellence, at present, Litecoin has gained a greater prominence and more and more users are opting to work with this virtual currency.
Taking into account the characteristics that it presents and all the benefits that we can obtain thanks to this cryptocurrency, it is essential that we know everything that Litecoin offers us, since nowadays, we have a large number of tools and supports available, with which we can carry out our operations in the best possible way.
Knowing all this, in this guide that we have elaborated, we tell you all the aspects that you must know to the perfection of Litecoin so that, in the moment that you decide to work with this digital currency, you will do it with total security.
- 1 What is Litecoin?
- 2 How to buy Litecoin
- 3 How to invest in Litecoin?
- 4 Litecoin wallets
- 5 Litecoin mining
- 6 Conclusions
What is Litecoin?
To begin our analysis, the first thing we are going to do is put you in a situation, so that you know exactly what Litecoin is. As we have already mentioned, it is a cryptocurrency that we have available in the extensive list that we find in this market and was also one of the first that was launched in the sector, after the popularity that Bitcoin has been obtaining.
When has Litecoin born?
Specifically, Litecoin was created in October 2011 and since then, it has offered its financial services to users so that we can carry out the best operations.
As it happens with the majority of cryptocurrencies that we have available in this market, we must say that Litecoin is also based on the system that Bitcoin presents, which we know as blockchain or chain block, however, the creator of this digital currency, Charlie Lee, has endowed it with exclusive features, with the aim of improving what Bitcoin provides us.
Keep in mind that Lee, at the time he founded Litecoin, had been part of the financial sector for a while. At that time he was a student at the University of California who decided to enter this world as of 2010.
His financial knowledge and his desire to offer a better alternative to the public, made a year after starting his career, gave shape to Litecoin.
But it is true that it has always been based on the Bitcoin system, although it has never wanted to unseat it, rather, it created this digital currency so that it could coexist with the pioneer, providing to the users a cryptocurrency that presented improvements, both in the speed of execution of the operations, as in the security measures of the system, among other things.
What he did was include some changes and updates, to make Litecoin a unique cryptocurrency, always following the steps of the already known Bitcoin.
Actually, Litecoin is not only an exclusive cryptocurrency, it also has to be said that it has its own system, where we find a mathematical algorithm that allows us to carry out a large number of exchanges, as well as multiple transactions on a continuous basis.
One of the peculiarities of Litecoin is that it has a much lower cost than Bitcoin, almost bordering on the gratuity if we want to use this system. In short, Litecoin was created to be an independent cryptocurrency that is modeled on the Bitcoin system but with modifications to improve what was already known.
Since it appeared in 2011, it has been increasing its value and that is why in 2013, it reached its historic maximum, reaching a trillion dollars. Currently this price has changed a lot, since each Litecoin has an approximate value of 2.60 dollars, but remains constant.
Among the many modifications we can highlight Litecoin, we must say that, when operating with this system, we will not need as much memory in the device that we use for it and is working so that in the future, we can perform all the movements that we want using a mobile. In the same way, the management of our funds is not done by the system, but rather by leaving the responsibility to us, so we will know at all times what kind of movements we want to do.
One of the greatest advantages that Litecoin presents us with is that we do not have to pay commissions to carry out our operations and, in addition, we will be able to carry out multiple transactions since the system allows us to perform different actions at the same time and with greater speed, so the creation of the blocks is done in a much shorter time.
It is a system that has a network that is able to create a block in the chain every 2.5 minutes, which allows us to obtain many more blocks compared to Bitcoin. For this, it presents an open source software and also has a specific cryptographic protocol.
In addition, we can not forget to comment, that each Litecoin is divided into 100,000 smaller coins, which facilitates transactions and the creation of these blocks. Due to this well-defined system, currently around 84 million Litecoins are moving in the market and it is becoming increasingly popular within this sector.
How to buy Litecoin
After knowing a little more about Litecoin, it’s time for us to know what alternatives we have available to buy this cryptocurrency. We continue with our Litecoin review and we have realized that this digital currency has become one of the most profitable cryptocurrencies of 2017, for this reason, it is important that we know what we have to do, in order to acquire them.
In this matter, we must highlight 3 main ways, so, to buy Litecoins, we have the opportunity to do so through an exchange, we can also use ATMs or even, we have physical stores that offer these services. Undoubtedly, these are the three most popular paths that are used to acquire Litecoins and that is why we will explain each one in more detail.
Without a doubt, the most used way by users to buy Litecoin is to use an exchange. As we all know, these are exclusive places that we find in the network and that allow us to carry out exchanges with other cryptocurrencies or even with fiduciary currencies.
Although the exchanges are mainly used to perform these actions, many of them allow us to acquire Litecoins, paying the corresponding amount. In this matter, what we will have to do is go to the exchange portal and complete a registration and then, when we have verified our account, we have the opportunity to obtain those Litecoins we so much need.
We will have to add the amount of cryptocurrencies we want to acquire and then include the payment. The usual in these cases is that we can pay the corresponding figure using our credit card, thanks, among other things, that many of the exchanges we know work with the system of Changelly.
Although we must also comment, we can do the same through a bank transfer or using online payment programs, as is the case of PayPal. Today, we have multiple exchanges available that allow us to perform this type of operation, but in the case of Litecoin, the most popular are Bittrex or Poloniex.
Exclusive physical stores
If the exchange option has not convinced us, we do not have to worry, since if we want to buy Litecoins, we can also do it by going to any physical store. In this matter, we have to say that this type of establishments can be found in a large number of places in the world, although we must bear in mind that at first, they were only able to work with Bitcoin.
However, due to the great acceptance that other cryptocurrencies have had, as is the case of Litecoin, now, we will also be able to obtain this digital currency in these stores. For this, we will need to have a wallet, where we can store these digital currencies and also have to present the corresponding documentation, in relation to our identity or place of residence.
Then, we will arrange to pay for the Litecoins that we want, being able to do it with other cryptocurrencies or even with cash.
The last way we have available to buy Litecoins are the ATMs. Sure you know these elements because they are common when we need to take money, but in this case, some ATMs already allow us to get the cryptocurrencies we need.
As with physical stores, there is a large number of ATMs scattered around various regions of the world, but also, in order to obtain our Litecoins, we need to do previously with a wallet, since it will be in this portfolio where we store all the cryptocurrencies that let’s go accumulating.
These ATMs began offering services with Bitcoins, however, little by little they have been including the possibility of buying other digital currencies, being the most usual in these cases Litecoin and Ethereum.
How to invest in Litecoin?
Due to all the characteristics that it presents, Litecoin has become a very profitable cryptocurrency, for this reason, not only is it necessary to make the purchase, it is also important that we invest in this digital currency, since we can get a large number of benefits.
In this matter, we can make our investments in different ways, or making use of an exchange, also carrying out the mining process or even taking into account Contracts for difference.
1. Investment with exchanges
Although the main function of the exchanges is to provide us services so that we can carry out the exchanges that we need, we must take into account that many of these supports also allow us to invest in Litecoins.
The reality is that it is one of the most common processes, since it is quite simple to carry out and the exchange that we have chosen will provide us with all the tools we need to make our operations a success.
Of course, we can not forget to create a wallet before making some kind of movement, since it is a fundamental element that most media require us to open to store our cryptocurrencies.
2. CFDs Investment
If you have been part of the financial market for some time, you have probably heard about Contracts for Difference (CFDs) on more than one occasion. They are very beneficial elements because they allow us to invest in a large number of assets without having to acquire them physically.
CFDs are very popular in markets such as stocks or commodities, but now, there are many supports that include the option to use them to work with cryptocurrencies.
The truth is that Contracts for difference we usually find them in financial brokers and also, they also offer us good tools so that we can invest in these digital currencies, directly from the market itself. This is also a very good option for users.
3. Investment by the mining process
Finally, we have to make reference to the mining process, of which, we will talk a little later. In this sense, it is necessary to comment that with this process the transactions are verified and the corresponding blocks are created and if the steps are carried out properly, the miners can obtain cryptocurrencies for it.
It is a somewhat more complicated option than the previous ones and, although gains are acquired, these are usually lower than those that can be achieved through the other two paths.
In order to carry out the vast majority of operations with cryptocurrencies, it is essential that we create a wallet, since it is the enabled element so that we can store all the digital currencies that we are getting. Without a doubt, the Litecoin wallets are essential pieces, because without them, we will not be able to make any movement about them.
In this sense, we have to say that there are many types of purses that have excellent tools for us to operate and also offer us very good services, however, we must take into account that, depending on the type of wallet that we believe, so we will have some advantages or other and that is why, if you are determined to work with Litecoin, you must know perfectly all that we are going to tell you next.
Desktop wallets: first, let’s focus on commenting on the main features of desktop wallets. As the name suggests, these wallets are installed directly on our PC, after having downloaded the corresponding application, with which, we know for sure that our funds will be safe, since we will store them outside the network and therefore, we will be exposed to a smaller number of risks.
It is true that we can use a large number of desk wallets today, but to work with Litecoins, the best are Electrum LTC and Litecoin Core.
Electrum LTC: electrum is a wallet that adapts to virtually any cryptocurrency, especially if we are referring to the main ones, such as Bitcoin, Ethereum or Litecoin. What this wallet does is offer users the necessary tools, to be able to operate with one digital currency or another, for this reason, a while ago, created the Electrum LTC.
It is a portfolio that is exclusively dedicated to providing a storage service for Litecoins, always offline, so we can not carry out our operations directly from the network. To use it, we need a computer that works with an appropriate operating system, such as Windows, Linux or Mac.
It is a wallet that has a great speed when executing operations and is also widely used. if we work with large amounts of cryptocurrencies.
Litecoin Core: it is the main wallet of the market to work with Litecoins, since all the tools it offers are based on this famous cryptocurrency. It provides a large number of facilities to make our operations a real success, considering that once again, we must download an application that will be installed on our desktop, and storage will always be offline.
It is a totally private digital wallet, which has good security measures to verify all transactions made through this system.
Hardware Wallets: the other type of wallets that we have available is the one known as hardware. According to experts in the market, these types of portfolios are the safest there are, since they are not connected to the Internet and all the movements that we carry out will be done offline.
These are physical devices, similar to a USB, where we can store our cryptocurrencies, keeping in mind that all the keys that we have to use, will be private, so it is very difficult for them to be hacked. Among other wallets of this type, the most popular to work with are Litecoin Ledger Nano S and Trezor.
Ledger Nano S: if there is a famous and widely used hardware wallet, that is Ledger Nano S, since it is quite complete and has a large number of tools so that we can operate with Litecoins. In addition, it also allows us to carry out actions with multiple cryptocurrencies and presents excellent security measures.
The system creates the own private keys that we will have to use to be able to carry out the operations and these codes, like the digital currencies, are also stored outside the network.
Another thing that we should highlight about this wallet is that, to validate the transactions, we must verify them in advance and confirm them at the time they are going to be made.
Trezor: it is another hardware wallet widely used by users. This has many features similar to the previous one and that is why it presents good security measures and also allows us to operate with a large number of cryptocurrencies.
Although we could highlight many things about Trezor, one of its great particularities is that it was the first portfolio of this type that had its own screen where we can consult all the information we need.
Wallets for mobile devices
The last type of wallet we are going to refer to is the one that is enabled to work through our mobile devices. These are digital portfolios that have become popular in recent times, due to the advancement of new technologies.
Without a doubt, it is one of the most useful wallets, since it allows us to carry out our operations and control them, from any time and place. Logically, the storage system will be destined in our device and in this matter, we find several wallets that can be compatible with the iOS or Android system.
Jaxx: it is one of the best-known mobile device wallets, since it was one of the first to be launched on the market. Among other things, it is quite Jaxx because it is fully compatible with both operating systems, iOS and Android, although it must be said that the best tools are on the iPhone and iPad.
It is an open source digital portfolio and also allows us to carry out different payments, so we have several options available to work with cryptocurrencies. In any case, it is recommended that we use Jaxx only if we are going to operate with small quantities.
Litecoin Wallet: this wallet for mobile devices has become very popular for a long time, however, now it has a minor role because it only offers us the possibility of working with Android system. In any case, it must be said that the tools it provides and the storage services are quite complete.
As with Jaxx, this portfolio is ideal for operating with small amounts of cryptocurrencies.
LoafWallet: If Litecoin Wallet is the wallet for Android, LoafWallet is going to be for the Apple system, offering us good tools that are compatible with that operating system. It is one of the most easy-to-use portfolios for mobile devices and, likewise, it is not advisable to work with it if we are going to store large quantities of Litecoins or other digital currency.
We can not finish our guide without mentioning Litecoin mining, or what is the same, the mining process that must be carried out to work with this cryptocurrency. As we all know, this process is fundamental if we want to enter this sector, since the miners are in charge of verifying the transactions and creating the corresponding blocks.
In this matter, we must be clear that miners are suitable devices to carry out this type of activity and that is why, if we want to dedicate ourselves to mining, we will need specific elements.
In this case, the first thing we have to have is a good computer with an adequate CPU, although if we are going to work with Litecoins, it is recommended that we directly do the mining using a GPU of great power.
It is a graphic card that allows deciphering the codes at a higher speed and are often used also for video games. In the case of mining Litecoins, we will need to have certain computer skills, since it is not a process that can be learned from one day to the next, although we also have to say that, nowadays, there are many courses and tutorials that are going to explain all the steps we must take.
If you allow us advice, to mine Litecoins with a GPU, the ideal one is the Ati 280 model, since it is a high quality graphic card.
The mining process has a series of simple steps. First, we must create a portfolio and then choose the specific hardware. Once we have done it, remember to have a powerful computer and install the best software to carry out this process, although there are many available, one of the easiest to use is SourceForge.
When we have all these elements, we will configure our GPU and then, we can start to mine quickly and we will obtain very good results.
After having carefully analyzed the Litecoin cryptocurrency, we fully understand that it has positioned itself as one of the best digital currencies in the market. It offers us a greater speed and improvements in the system and has a good value in the sector.
Also, we have available multiple tools and supports to carry out our operations in the most appropriate way, bearing in mind that we can achieve a large number of profits. Security is also another important point that must be highlighted and that is why we are sure that working with Litecoin will be quite profitable and advantageous.
For all professionals and those interested in cryptocurrencies who want good support, we must say that Litecoin has many options to continue growing and offering good results. As an alternative to the main references of the market is a very good possibility to be taken into account and that may surprise in the process of use.