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Background: Litecoin vs Bitcoin
As cryptocurrency becomes more familiar for an increasing number of people, Litecoin and Bitcoin are beginning to enter the eyes of investors. Whereas, as top digital assets, there is always a great controversy between Litecoin vs Bitcoin: Is Litecoin a good investment or is Bitcoin better?
Founded in 2011 by Charlie Lee, Litecoin, also named LTC, is one of the top cryptocurrencies popular among crypto investors. It introduced a key technology that is widely used for Bitcoin and other cryptocurrencies.
For ordinary users, Litecoin is one of the most recognized cryptocurrencies in the entire market. It’s the so-called “silver cryptocurrency” while Bitcoin is the “gold”. Charlie Lee pointed out that Litecoin was not aiming to compete with digital gold, but to solve its existing problems and make digital assets faster, lighter and better.
Bitcoin (BTC) is the first currency to implement the concept of “secret currency”.
In 2008, Satoshi Nakamoto published the Bitcoin white paper Bitcoin: A Peer-to-Peer Electronic Cash System on the P2P Foundation website and stated his new vision for electronic money. Then Bitcoin was born. On January 3, 2009, the Bitcoin foundation block was created.
Bitcoin is an encrypted digital currency in the form of P2P and the peer-to-peer transaction represents a decentralized payment system.
The design based on cryptography allows only the real owner of Bitcoin can transfer or pay it. This also ensures the anonymity of currency ownership and circulating transactions. The biggest difference between Bitcoin and other cryptocurrencies stands in its limited total supply and scarcity.
Comparison: Bitcoin vs Litecoin
The term Litecoin originated from “lite coin” for it’s actually created as a lite version of Bitcoin. Both Litecoin and Bitcoin share the same pattern, but Litecoin is different from Bitcoin in many aspects, not only in technology.
|Token Name||Bitcoin (BTC)||Litecoin (LTC)|
|Market Cap||$686 billion||$11 billion|
|Circulating Supply||18,731,987 BTC||66,752,415 LTC|
|ROI(if purchased at the time of launch)||27029.43%||3827.56%|
First of all, the fundamental difference is certainly the token price and market performance. According to the chart of Litecoin vs Bitcoin, it’s evident that Bitcoin is better-known and enjoys a larger user base with a higher market cap.
Next we will give a brief description of Bitcoin vs Litecoin.
Coin Supply – Litecoin Emits a Larger Amount of Tokens
The key difference between Litecoin and Bitcoin is the total supply of coins. There is a specific coin limit in both Litecoin and Bitcoin and a reward for the number of blocks found in mining. The limit of Bitcoin is 21 million while Litecoin is 84 million. Once the cryptocurrency reaches this limit, it will stop emitting coins into the system.
Transaction Speed – Litecoin is Faster Than Bitcoin
Crypto investors all know that Litecoin executes transactions faster than Bitcoin as it generates blocks faster. The main figure is that Litecoin takes 2.5 minutes to generate a block, while Bitcoin takes 10 minutes. LTC shortens the block time by 75% which helps faster carry out transactions.
Encryption Algorithm – Litecoin Makes It Easier for Users to Mine Coins
Both Bitcoin and Litecoin adopt PoW (Proof of Work) algorithm in mining, helping to prevent attacks and abuses on the crypto networks. This algorithm will award users when they solve the problems in transaction certification and coin release with mining hardware.
However, the biggest technical difference between Litecoin and Bitcoin lies in their different encryption algorithms adopted- Bitcoin applies the SHA-256 algorithm while Litecoin uses Scrypt. These scripts affect the coin mining process.
SHA-256 is always considered more complex than Scrypt, but at the same time it allows more concurrent processing, which means Bitcoin miners are now able to mine coins with advanced methods, but meanwhile it’s almost inaccessible for ordinary users to mine Bitcoins. In contrast, the design of Scrypt makes the Scrypt-based cryptocurrencies more accessible to users who want to mine and purchase coins.
The adoption of SHA-256 is conducive to Bitcoin mining while Scrypt algorithm grants fast, random access to memory instead of processing capacity.
Another critical difference is that Scrypt algorithm can work in a less powerful computer which enables ordinary people to start mining Litecoin on personal computer, saving the cost of purchasing a mining computer and the time in learning.
Bitcoin Price History vs Litecoin Price History
With such a grand mission and great technology, how much is Bitcoin worth and how much is Litecoin? How high will Bitcoin go and how high will Litecoin be? Below we will give some details on the price history of both crypto assets and share some of their price predictions.
Bitcoin Price History
Let’s start from Bitcoin. Upon its creation, Bitcoin was worth less than 1 cent, and it has only risen by a few cents within a year.
On February 10, 2011, the growing interest of investors pushed the price of Bitcoin to 1 U.S. dollar, and that day was therefore called the “Dollar Parity Day.” In the next few years, Bitcoin was tepid. In December 2017, Bitcoin price reached a small peak at $16,000. In the following two years, its price has been fluctuating between $4000-11000.
Take a look at the chart below of Bitcoin price history. Entering 2021, Bitcoin has risen and broken through a new record high of over $64,000. The market has further demonstrated its anti-inflation and store of value. Although the price fell soon after May, investors are still bullish on Bitcoin.
Litecoin Price History
According to the Litecoin price history on CoinMarketCap, the price of Litecoin was going comparatively steadily from its birth in 2011 to the end of November 2017. It also fluctuates during this period, but not greatly. At the end of 2013, Litecoin’s price rose up to $33, then was volatile until it went around $10 in 2014. At the end of 2014, it went back to $2 again.
Until the end of 2017, the price of Litecoin continued to rise, not very fast, but stable — from $4 to $70 in several months. This uptrend has had a positive impact on the popularity of cryptocurrencies and has once again been active among investors.
Since hitting a record high in 2017, Litecoin has set its first highest price in 2021, over $400, which could be a signal of an upward trend, then it fell from the peak. But the price still remains fluctuating around the new high, even indicates a potential rising tendency.
Coming with the FED plan of increasing interest rate in 2022, Bitcoin price may meet a roadblock in a sort-term. But as the top mainstream cryptocurrency, Bitcoin is expected to go high in the next few years even top $1 million, even there have been several big crashes.
The increasing popularity of digital assets will also bring Litecoin a brighter future. Restoring its due performance in 2021, Litecoin re-come into investors’ notice, with a transaction cost ranging from $365 to $450. As it’s steadily gaining more attention, LTC obtained increasing acceptability of the majority of users compared with other newcomers. It’s projected that Litecoin’s price may climb to a really high level, approaching $600 by the end of 2022, and continue to rise up to $900. But if the bear overwhelms the market, the price may fall to $500, even lower $450.
How to Buy Litecoin?
Litecoin is one of the most widely used cryptocurrencies, thus many mainstream crypto exchanges including Huobi Global, Binance, Coinbase Pro, and OKEx support its buying/selling and trading service. Users can purchase LTC with USD, EUR and other fiat currencies, or even buy it with other digital assets.
Before investing in this token, there is always a big concern for investors–how to buy Litecoin and where can I buy it? It is easy. But the process may be different as there are various ways to buy LTC.
By Credit/debit Card
Most users prefer to use debit or credit cards to pay for Litecoin and it’s supported in many exchanges. To complete this purchase, investors will have to choose a reliable exchange and open an account first.
Before initiating a Buy order in the account, some exchanges may require to activate the Litecoin wallet and complete the KYC verification. Complete all these steps, fill in the order details, it’s necessary to add card information. The final step should be email confirmation and wait for the tokens.
Buying Litecoin with credit/debit card might be the easiest way for crypto novices. Be aware of that this method charges a service fee, diverse by platforms.
Users can also purchase Litecoin by PayPal. Same with card purchase, get ready by creating an account on an exchange that accepts PayPal, preparing the personal identification in case that it requests to verify your account. Next is to make your purchase by PayPal.
Keep in mind that PayPal transaction is secure and fast, but it does not yet support direct sending and receiving of Litecoin. Another point is that PayPal account sometimes might be frozen for security concerns.
With Other Cryptocurrencies
Generally, crypto exchanges will list Litecoin and as well its trading pairs, such as LTC/USDT, LTC/BTC. Investors can buy LTC with the crypto assets held on these exchanges by placing a buying order.
For instance, a user holds BTC in an exchange account, to buy LTC with BTC, he/she needs to:
-Log in the exchange account and go to the trading page
-Choose LTC/BTC trading pair
-Enter the order details (amount and price) and click Buy
After the order is executed, LTC coins will show in the account.
How to Buy Bitcoin?
Like Litecoin, traders now can buy Bitcoin by their credit/debit card, as well as by PayPal. In addition, investors can also make a Bitcoin purchase via a peer-to-peer trading platform. This kind of platform provides a peer-to-peer market to help match Bitcoin holders with those who want to buy Bitcoin. Both buyers and sellers agree on prices and use its hosting service to execute transactions.
It is an ideal choice for investors who always keep away from centralized exchange, but not a channel to get the best price. In addition, it’s easy to be exposed to scammers as the market is opened to everyone.
Is Litecoin a good Investment or Is Bitcoin a good Investment?
When you get here, you may want to know is Bitcoin a good investment, or is Litecoin a good investment compared to Bitcoin. Enjoying a longer history, Bitcoins seems to have a larger number of backers, a greater return on investment, and a potential to reach an ATH again. With 18 million of coins mined, it is approaching the maximum limit of 21 million. The remaining coins are expected to have higher value.
While Litecoin confirms transactions much faster and charges cheaper service fees. This may be the first choice for novice investors. Litecoin is more adaptable to this market with drastic price changes. Therefore, even Bitcoin seems to have always been the first choice for crypto investors, Litecoin has been gradually catching up with it in the past two years and attracting more and more investors.
Actually, it does not matter that is Litecoin a good Investment or is Bitcoin a good investment. The Crypto market is always volatile. As long as you allocate the funds rationally, take the risk control reasonably, and predict the market direction correctly, it will always bring a good return.
As Charlie Lee pointed that Litecoin and Bitcoin will together solve the transaction needs of the future world. Bitcoin will always be known to the outside world, but Litecoin also has its pros, especially in minor, faster, and cheaper transactions. In a world that is beginning to embrace cryptocurrencies, there is room for both of them.
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