What is Litecoin?
A Beginner´s Guide to Buying, Selling, Using, and Mining Litecoin:
An In-Depth Litecoin Guide by True Poker
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While Bitcoin is a household name, it’s hardly the only game in town. In fact, many other cryptocurrency options are vastly superior to the world’s most popular blockchain asset, both technically and practically. Litecoin is a lot like Bitcoin except it’s significantly faster and cheaper to use.
What is Litecoin?
Litecoin is defined as a global decentralized currency based upon blockchain technology. This means that the currency is powered by a decentralized ledger platform where all transactions are recorded.
The currency, which was created in October 2011, but has since seen rapid growth in popularity, follows in a similar vein to Bitcoin. It is secured by a growing distribution network of machines, resulting in widespread, independent accountability.
All transactions that take place with the currency are recorded on the ledger, meaning users can immediately view, audit, and verify all activity that takes place. The Reddit definition of Litecoin points out that Litecoin blocks can be processed in just 2.5 minutes, beating out large competitors who have process times up to 10 minutes.
How Do I Buy Litecoin?
Like most other cryptocurrencies, Litecoin can be easily bought and sold on a number of cryptocurrency exchanges. It can be found on major exchanges like Coinbase and Kraken, but is also available on smaller, less popular exchanges. Users must always be sure that the exchange they use is secure and trusted–like all cryptocurrencies, Litecoin is not immune to hacking and theft.
In order to buy Litecoin, a user must first create an account and register with an exchange. Once the account is created, the user will fund the account, either directly with cash–think bank transfer, not bills deposited into an ATM–or with a credit card. The funds in the account can then be used to buy and sell Litecoin on an exchange, much in the same way one would buy or sell a stock on the NYSE through a trading account.
How Do I Turn Litecoin into Cash?
There are several different ways Litecoin can be turned into cash. A majority of the exchanges offer users the option to sell coins and receive direct fiat currency proceeds. From there the funds can be transferred back into a bank account (after they are converted, say to USD) where the money can be withdrawn from an ATM.
Another option is to convert the Litecoin into Bitcoin, and then withdraw the Bitcoin as dollars, euros, etc. Finally, those that want to cash out of their Litecoin positions can trade directly with a third party off of an exchange.
The Litecoins will be transferred from party A to party B, and party B will send party A fiat currency for the coins. As always, those that prefer the third method need to take extra precautions, as sometimes anonymity comes at a steep price.
How to Use Litecoin
The first step in using Litecoin is to create a cryptocurrency wallet. A wallet is the cryptocurrency equivalent of a bank account–think of a secure, locked vault in the basement of a bank.
In fact, one preferred wallet for storing and safeguarding Litecoin is LiteVault, a safe online web wallet that operates from a web browser. Wallets like LiteVault allow users to store and access their coins anywhere, giving them flexibility with when and where they want to use their coins.
Litecoin is unique from many currencies in that it has immensely practical, everyday uses. To be sure, its value is derived from its price. Those who want to invest and trade in cryptocurrencies would do well to pay attention to Litecoin.
However, it can also be used for more common things like buying clothes, apparel, food, and drinks. Some have even used Litecoin to purchase flights. There are a whole host of website that use cryptocurrencies like Litecoin as their preferred payment method.
On these sites, buyers can purchase goods directly from sellers–that is the key benefit of decentralized marketplaces. Middlemen are cut out, and what results is a transparent, easy to execute transaction.
One of Litecoin’s more unique uses is for poker. That’s right, Litecoin poker. This fascinating aspect of the currency’s history has grown in popularity over the past few years. Because Litecoin enjoys lower volatility, i.e. price fluctuations, than other cryptocurrencies, it is an excellent way for Litecoin poker players to make money with their card playing skills.
The growth of Litecoin poker and Litecoin poker sites has resulted in specific card games unique to the blockchain platform–don’t worry, classic games like Hold ‘Em and Omaha are also available.
Finally, Litecoin can be an excellent investment. The decentralized currency is not subject to exchange rate risk like traditional currencies are. Because Litecoin is a globally received coin, there is no need to convert from Litecoin to USD to the pound back to Litecoin. The currency’s flexibility allows users to invest wherever they are and with whoever they want.
What is Litecoin Mining?
Litecoin mining, like mining other cryptocurrencies, involves creating blocks on the blockchain ledger that contain transactions completed in Litecoin. The process, which can be done by joining a mining pool or going at it solo, can prove to be very rewarding for Litecoin miners. Miners can also download and use mining calculators, which determine how profitable a job or set of jobs can be.
How to Mine Litecoin
Litecoin miners must first have the necessary software to begin the process. Miners must be sure to use a scrypt algorithm rather than a hashing algorithm (as is the case with Bitcoin) but both coins use a Proof of Work protocol, meaning that blocks can be mined by solving complex math equations.
Transactions on the blockchain are grouped together into blocks which are then generated by miners who solve the math equation. Only one miner can solve each equation, and that miner receives the mining fee for the block. Then the whole process starts again.
Would-be miners must also make sure they have the necessary amounts of RAM–the system favors large amounts of RAM in order to work efficiently. Finally, those interested in mining Litecoin have the choice to mine with a group or pool, or they can mine alone. Sites like We Use Litecoins can be used to find Litecoin pools to join other miners.
How will Litecoin Scale?
One of the questions that has plagued cryptocurrency enthusiasts is how currencies will scale. Many admit that they don’t have a definite solution to the problem. Some are actually completely resistant to scaling the blockchain currencies, arguing that the upgrades will ruin the coins.
Others, however, in light of the spikes in prices, note how scalability is a vital aspect of cryptocurrencies’ survival. Litecoin is no exception. A quick glance of its price chart and market cap will show how quickly things can change.
Many have mentioned how Litecoin is almost at the necessary threshold to scale, noting how scaling it could give it distinct value over and against other cryptocurrencies. The addition of the Litecoin Lighting Network, making transactions far more rapid, has only increased the need for scaling options.
Litecoin has proven itself to be a dependable, quick, and flexible blockchain currency. Its widespread use across the globe and its rapidly growing platform have solidified its place as one of the premier cryptocurrencies. As it continues to grow, there is no doubt Litecoin will provide tremendous value to its users–whether by investing, purchasing usable goods, or having a little fun playing Litecoin poker.