Trade Litecoin to BTC on Beaxy

Litecoin is an open-source peer-to-peer cryptocurrency that was created by Charlie Lee as a fork of Bitcoin’s codebase. LTC, the digital asset, is the native currency of the Litecoin network. LTC is commonly referred to as “the silver to bitcoin’s gold”. The block time was drastically reduced so that merchants could accept Litecoin without having to wait too long for the transaction to receive enough confirmations from the network. The supply was increased to prevent digital currency from becoming too scarce and unaffordable. The development of the Litecoin protocol and the digital asset is performed by Litecoin Core and is funded by the Litecoin Foundation. Litecoin Core and the Litecoin Foundation are separate entities that work closely together to move the project forward.
It often serves as a testnet for Bitcoin, implementing upgrades before they are deployed with Bitcoin. Litecoin uses Scrypt, a memory intensive proof of work consensus algorithm which enables mining with consumer-grade hardware such as GPUs. Scrypt was chosen due to its memory-intensive features that limit the use of AISIC miners.

Litecoin was seen to have some technological advantages over Bitcoin when it was first released as it was able to reliably confirm transactions at a faster rate. Blocks on the Litecoin blockchain are mined roughly every two and a half minutes. This allows users to initiate and receive transactions in minutes. Compared to remittance services like Western Union which can take days to complete a cross-border transaction.

To mine Litecoin, start by creating a Litecoin wallet. You will need this to receive the Litecoin you will earn from mining. Next, find the right hardware for your desired level of mining. You can choose between a Graphical Processing Unit (GPU) or an ASIC miner. It is important to consider the cost of electricity in your region. Once your hardware is installed you will need software to direct your mining equipment. Ensure that the software you choose to mine with is coming from a reputable organization. When both your mining hardware and software have been installed you can begin mining Litecoin blocks and earning LTC into the wallet that you set up.

Investment Risk Litecoin, like most digital assets, has very volatile price swings. The price of Litecoin can move significantly in a short timeframe. Increasing volatility is generally seen as an increase in the overall risk. Litecoin’s market is not as liquid of the stock market, whenever there is a large buy or sell for Litecoin, you can expect a large change in the price of the currency. Security Risk Litecoin has security risks that are both inherent to the protocol itself as well as security risks stemming from third parties. You must have the technical knowledge of how blockchains work in order to stay store your Litecoin holdings. The best practice for mitigating security risk is to store your Litecoin in an offline cold wallet. Regulatory Risk Litecoin has regulatory risks because it is a digital currency. The risk is the possibility that governments could regulate digital assets to the point that they are no longer practical. They also completely ban the use of digital currency. his is a risk as any such action taken by a powerful nation could negatively affect the value of the Litecoin network.