Litecoin is not only the silver to Bitcoin’s golden status, it is a major altcoins and the 10th largest digital asset by market capitalization.
In this article we take an overview of Litecoin, the 10th most valuable digital asset, its core areas of business, and - most importantly for prospective investors - the pros and cons which can help answer the question: Should You Buy Litecoin?
Litecoin (LTC) is one of the oldest cryptocurrencies on the market. It is categorized as a major altcoin by several analysts and experts. Unfortunately, Litecoin has been unable to test a fraction of the current trading price of Bitcoin.
Cryptocurrencies which were developed as a result of the success of Bitcoin, Litecoin and Dash, such as Binance Coin (BNB) and Ethereum (ETH) have all crossed the all-time high price of LTC.
Meanwhile, Ethereum, Binance Coin, Cardano (ADA), Tron (TRX), EOS.io (EOS) and Neo (NEO) all use smart contract capabilities to drive the price of their respective cryptocurrencies.
Stellar Lumens (XLM) and Ripple (XRP) are also using technological solutions to help bridge the gap in cross-border payments to increase prices.
Litecoin faces stiff competition from other cryptocurrencies that were also created solely with the primary aim of serving as a transactional currency. Dash, Dogecoin (DOGE) and Bitcoin Cash (BCH) have the same function as LTC; to serve as an option of payment for goods and services online.
In March 2021, the largest cryptocurrency asset management firm Grayscale purchased over 174.000 LTC. Approximately $30 million and partially explains why Litecoin’s price has soared in 2021.
This is why the crypto has returned an impressive 96.84% Year-to-Date. Inasmuch as such an investment must be celebrated, the future of cryptocurrencies largely remains unknown.
With the introduction of the central bank digital currencies (CBDC), will Litecoin survive? With more than 4,000 cryptocurrencies on the market which perform the same functions, is Litecoin a good investment in 2021?
Will the cryptocurrency be able to soar to new highs in the near future? And with the American Football team the Miami Dolphins announcing the coin as their official cryptocurrency, is it worth buying Litecoin?
Most importantly, for novice traders and investors - what are the pros and cons which can help answer the question; should I buy Litecoin?
- Litecoin at a Glance
- Pros of Buying Litecoin
- Cons of Buying Litecoin
- How to Buy Litecoin?
- Litecoin Price Prediction: What Are Analysts Saying About Litecoin?
- The Bottom Line - Should You Buy Litecoin?
Litecoin at a Glance
This section gives an overview of LTC, the beginnings of the digital asset, its founder and purpose for which it was created. We will also take an extensive look at the price performance of the cryptocurrency.
Former Google employee Charlie Lee, who later became an engineering director at Coinbase, released Litecoin via an open-source client on GitHub on 7th October 2011.
Created from the source code of the Bitcoin Core client, Litecoin differs from Bitcoin in several ways. Instead of following BTC’s SHA-256 algorithm, Lee decided to tackle the scalability problem associated with blockchain technology and chose SCRYPT.
After mining 150 coins, Lee released Litecoin to the general public. The network of Litecoin went live on 13th October 2011.
Litecoin has a website (it can be found here) which has tracked its many developments over the years.
What is Litecoin?
Litecoin was created primarily to serve as the silver to Bitcoin which is often considered as ‘crypto gold’.
Litecoin, like all cryptocurrencies, functions as a transactional currency and uses blockchain technology to execute transactions.
Litecoin was released under MIT/X11 license and it’s free from any censorship or government control.
Its ticker symbol is LTC.
Read More: What is Litecoin? A Beginner's Guide
Why Was Litecoin Created?
Litecoin was created with two primary purposes. The first aim was to provide a digital currency that can help conduct transactions easily and in a more efficient manner.
The second aim was to prioritize the speed and cost issues associated with blockchain so that it could be more easily adopted and integrated by well-established institutions as an option of payment for goods and services.
How Many Litecoin Are in Supply?
At the time of writing, Litecoin had a circulating supply of 66,752,415 LTC from a maximum supply of 84,000,000 LTC. 79% of coins are mined.
Litecoin Price Performance in 2013
Litecoin appeared on cryptocurrency exchanges on 29th September 2013 opening and closing at $2.55. The trade volume recorded for the day was $143.62. Since that day, traders and investors have experienced crypto booms which resulted in gains and bearish seasons which resulted in losses.
With impressive trade volumes towards the end of the year, Litecoin exchanged hands for $24.77 by the close of 2013. In the process, the digital asset returned 871.373% for investors.
Litecoin Price Performance in 2014
Litecoin continued to experience growth by opening and closing at an improved price of $27.68 on 1st January 2014.
The cryptocurrency plunged and its trading price was cut into less than half at $12.81 by the end of March. 2014 was gradually developed into a bearish season for cryptocurrencies as LTC dropped further to $9.29 to end June.
With no recoveries in the months leading up to the end of the year, Litecoin further plummeted to new lows of $4.45 and $2.69 in September and December respectively. Litecoin shed 90.2818% of its price.
Litecoin Price Performance in 2015
2015 was a year of recovery for Litecoin. Litecoin opened and closed on 1st January 2015 at a trading price of $2.66. The crypto started trading in a range it had not tested in two years.
It closed 31st March 2015 at $1.66. The coin increased slightly in price to end June at $3.96. Unable to increase substantially in price, the cryptocurrency maintained its price towards the end of the year.
It closed the months of September and December at prices of $2.98 and $3.49 respectively. Litecoin returned 31.203% for investors.
Litecoin Price Performance in 2016
Litecoin maintained its price in 2016 with no substantial gains or losses. Litecoin opened and closed 1st January 2016 at $3.49 and by the end of March was exchanging hands for $3.22.
By the end of June, it had slightly increased to $4.23 but then dropped back to $3.83 to close out September. The silver of cryptocurrencies ended the last day of the year with a trading price of $4.42. Litecoin made gains of 26.6476%.
Litecoin Price Performance in 2017
With Bitcoin leading a crypto revolution, other altcoins such as Litecoin followed. 2017 has been dubbed one of the greatest runs the cryptocurrency market has ever witnessed.
Litecoin opened and closed 1st January 2017 at $4.54 and ended March with a trading price of $7.48. In the following months, Litecoin was on a rally which brought its price to $38.08 by the end of June.
The bulls were set and nothing could stop it as digital assets made gains despite a ban on cryptocurrencies by China.
Litecoin closed the months of September and December with prices of $54.80 and $224.34 respectively. Litecoin returned 4,841.41% and recorded its all-time high of $375.29 on 19th December 2017.
Litecoin Price Performance in 2018
The gains made by cryptocurrencies in 2017 led to their downfall in 2018. Japan followed China and banned cryptocurrency. On top of this, several financial news outlets started heavily reporting on the risks associated with cryptocurrencies.
This did not bode well for cryptocurrencies as many reached new lows all over again. LTC opened and closed at $251.81 in January. By the end of June, Litecoin was trading for a price per coin of $79.68.
Litecoin further plummeted to $32.18 on 31st December. Litecoin shed 87.2205% of its opening day price.
Litecoin Price Performance in 2019
Litecoin opened and closed at $33.56 on 1st January. It saw huge investor interest which saw it trade in the price ranges of 2017. Litecoin closed the months of September and December with prices of $55.82 and $41.59 respectively. Litecoin recovered 23.9273% of losses made in 2018.
Litecoin Price Performance in 2020 and 2021
After maintaining the price of $39.45 in January, what was about to happen to the financial market couldn’t have been predicted by anyone.
The coronavirus pandemic brought a market crash as most assets experienced new lows. Litecoin did not lose much and by the end of June had increased to $41.80.
Institutional investors and novice traders and investors brought renewed interest to cryptocurrencies. The distribution of the stimulus checks in the USA also played a huge role in new cryptocurrency investments. This saw Litecoin soar substantially to end 2020 with a price of $126.49.
In 2021, Litecoin has almost doubled in price and has brought great gains to investors.
Pros of Buying Litecoin
Litecoin has brought great returns to traders and investors in 2021. With that said, Litecoin was hit hard in some of the years leading up to the pandemic. So, what resurrected Litecoin’s performance? Was it extensive adoption by mainstream institutions? Or was it the fear of missing out?
At the time, the digital asset had a trading price of $193.45, a market capitalization of $13.02 billion and a circulating supply of 66,584,888 LTC.
At the time of writing, Litecoin has a price of $243.72 having gained 6.55% in the last 24 hours and a market capitalization of $16 billion. In less than a month, the overall valuation of the cryptocurrency has increased by 22.8879%.
What has caused such a price increment? What are the primary drivers behind the coin’s surge? What are the reasons to buy Litecoin? What are the pros you should consider before making an investment decision on Litecoin?
✅ Lower Transaction Costs Due To Relatively Faster Scalability
Litecoin was created based on the same technological features of parent crypto Bitcoin. Fortunately, founder Charlie Lee recognized that Bitcoin’s primary issue was its slow transaction processing.
Not being able to process transactions in a relatively fast manner led to network congestion which resulted in high fees on the Bitcoin network. Because of this, Charlie Lee disregarded the SHA-256 proof-of-work algorithm employed by Bitcoin.
This is because Proof of Work demands the use of custom hardware solutions which are Application-Specific Integrated Circuits (ASICS). Instead, Litecoin uses the consensus algorithm SCRYPT.
The primary benefit of SCRYPT is that more users can confirm a transaction by using basic technological equipment. The normal central processing unit (CPU) and graphic processing units (GPU) in personal computers can be used to mine Litecoin.
The average time it takes for Litecoin to complete a transaction is 2 minutes 30 seconds. This is the same time required to mine a block. In comparison, Bitcoin’s average confirmation time is 13.95 minutes.
The first-mover of smart contracts and decentralized finance, Ethereum, has an average confirmation time of 13.11 minutes.
Litecoin can process 56 transactions per second while Bitcoin processes 4.6 transactions per second. Ethereum, despite the numerous decentralized finance applications running on its blockchain processes 10 to 15 transactions per second.
This is directly related to cost. With a relatively high transaction speed, Litecoin has an average cost of $0.039296. Bitcoin’s average transaction fee is $23.94 and Ethereum’s fee stands at $8.934.
Such lower fees make Litecoin a great choice for initiating and receiving transfers. Litecoin benefits users who have turned to cryptocurrency as a secure money transfer system.
✅ Litecoin Has an Impressive Daily Use Rate
One of the largest and authentic consumer and market trackers, Statista, conducted a study on the number of daily transactions by cryptocurrencies.
Litecoin was featured on a list which included Bitcoin, Monero, Ethereum Classic, Ripple, Chainlink, Ethereum, Bitcoin Cash, Dogecoin and Stellar.
The report detailed the transactions between the months of January and April 2021. The data confirmed the real world use cases which better explains the soaring of LTC in 2021.
As per data retrieved from Bit Info Charts, there were 4,420 average transactions per hour and 106,073 transactions in the last 24 hours. This explains the $4.8 billion in trade volume recorded on numerous cryptocurrency exchanges recently.
Such activity on LTC signifies trader and investor confidence in the asset. As metrics which define whether an asset will or will not be a good investment, having investor confidence certifies an asset as trading below its actual valuation which makes LTC an attractive investment for the near future.
✅ Litecoin Has a Finite Supply
In our last study on Litecoin, the digital asset had a circulating supply of 66,584,888 LTC. At the time of writing this report, LTC has a circulating supply of 66,752,415 LTC from a maximum supply of 84,000,000.
Since the first study, there has been a 0.25% increase in coins mined. In the not-so-distant future, all the LTC will be mined. This will lead to scarcity and scarcity is what has seen gold being used as a hedge against inflation for years.
What is currently propelling institutional investors to buy Bitcoin in huge volumes is scarcity. Once LTC becomes harder to purchase, holders of the asset determine the price they would like to sell the digital coin for.
Buyers seeking LTC would do everything in their capacity to get their hands on the coin. Once this happens, the laws of supply and demand would take effect on the market. Litecoin would therefore increase substantially in price.
✅ Partnerships and Adoptions
As far back as 2019, American Football team the Miami Dolphins announced Litecoin as their official cryptocurrency.
Creator and Managing Director of the Litecoin Foundation, Charlie Lee spoke on the partnership:
“This collaboration propels Litecoin in front of an audience of millions of people around the world at a time where adoption of cryptocurrencies continues to gain momentum and the ecosystem is able to support real world use cases in ways previously not possible. We see this as a powerful way to raise awareness and educate people about Litecoin and cryptocurrencies on a tremendous scale”.
Litecoin, through this partnership, has for the last three years been able to tap into a new market. It exposes the coin to in-game branding and advertising at the team’s stadium. Additionally, it’s included as an option of payment on the team’s online properties and digital content.
In late March 2021, PayPal announced the launch of its CRYPTO CHECKOUT SERVICE. The primary purpose for this service is to allow customers in the United States to use cryptocurrency holdings to pay for goods and services.
Among other cryptocurrencies, Litecoin was mentioned as a payment option which can help users pay for products on more than 29 million merchants on PayPal. Aside from this, Litecoin can be bought and sold on PayPal.
This exposes the cryptocurrency to more than 377 million PayPal users who trust the online payment service as a platform which can safely and securely hold their crypto.
In 2018, Skrill announced that holders of the wallet can instantly buy and sell cryptocurrencies. Litecoin is among the cryptocurrencies listed on Skrill’s website. Skrill has more than 40 million users in 30 countries.
This means many sceptics of cryptocurrencies now have an equal chance of experimenting with Litecoin on a safe and secure platform.
Transactions on these platforms have played an invaluable role in the daily trading volumes of Litecoin. As more people become open to the use of cryptocurrencies, volumes should appreciate and affect the price of Litecoin positively.
✅ Open-Source Platform Allows For Upgrades
Litecoin was forked from BTC’s Core Client. Ethereum, Tron, Cardano, EOS.io, NEO, Flow and Polkadot, among others, have improved on the possibilities of blockchain technology. Litecoin can be upgraded to compete with such cryptocurrencies through DeFi protocols and applications.
Additionally, as an open-source platform, Litecoin offers a flexibility that allows developers to implement modern software security patches continuously.
As hackers find new and improved ways of breaking into systems, Litecoin thrives on open-source to also keep it safe from the pitfalls associated with blockchain. This will help prevent large thefts of LTC worth millions of dollars.
✅ Less Vulnerable to Hacking Attempts
Bitcoin was followed by Litecoin and other cryptocurrencies such as Dash and later Ethereum. Bitcoin has had several problems with hacking and so has Ethereum in its earliest days which led to upgrades which resulted in Ethereum Classic.
Further to that, BTC and ETH still rely on proof of work which slows transactions. Ethereum launched a new network that is yet to achieve full functionality. As a result, the smart contracts platform still has a congested network. Unlike these blockchains, Litecoin’s SCRYPT algorithm processes transactions relatively faster.
Processing transactions quickly makes it difficult for hackers to attack the network. The result is LTC is less susceptible to fraud which has bolstered its adoption and usage rate.
Read Also: Could Litecoin Be A Millionaire-Maker Coin?
Cons of Buying Litecoin
As much as Litecoin has brought great returns to investors, it is not a perfect cryptocurrency. Litecoin may not be susceptible to hacking but like all digital assets, its price is affected by global news and market sentiments for cryptocurrencies.
Let us take a look at some of the negatives which can better answer the question, why you shouldn’t buy Litecoin?
❌ Infinite Competition from Other Cryptocurrencies
Litecoin faces competition from Bitcoin and other altcoins. This is because the main idea behind the creation of cryptocurrencies is to send and receive money over the internet without any intermediaries.
Bitcoin currently has two functions. It serves as a transactional currency and acts as a store of value. Ether, Tron, Cardano and EOS also serve two functions.
They can be used as transactional currencies, and, additionally, they are the primary cryptocurrencies which powers their respective networks for smart contracts and DAPPs.
Aside from these cryptocurrencies, Dogecoin, Bitcoin Cash and Dash play the same role as LTC. They are all adopted and integrated by merchants to allow users to pay for goods and services on online retail stores.
Bitcoin Cash has a relatively faster processing speed of up to 116 transactions per second. Meanwhile, Dash also commands 56 transactions per second like Litecoin. Moreover, they all offer relatively similar fees. Average transaction fee of LTC is $0.039296, Dash fee is $0.005754 and Bitcoin Cash is $0.006004.
That said, you can see that LTC is relatively more expensive than the two cryptocurrencies and they all have the same function.
This brings extensive competition to LTC. This could be the main reason why it has not been able to retest it’s all-time high price of $375.29 which was recorded on 19th December 2017.
❌ Question Marks around Leadership
In December 2017, founder Charlie Lee sold his holdings in Litecoin. He attributed his actions to conflict of interest. At the time, this raised questions as to the legitimacy and authenticity of the cryptocurrency if its creator had decided to let it go.
Coincidence as it may seem, he sold his holdings around the time LTC recorded its all-time high. Since that time, LTC has failed to get close to such highs. Bitcoin, Ethereum, Binance Coin and tradable tokens such as Compound, Maker and Yearn Finance have all recorded new all-time highs.
Although his actions did not do much to damage the valuation of Litecoin, it does raise questions as to the future of the cryptocurrency and its projects.
❌ May Go Bust If Heavy Regulation Sets In
On Friday, 16th April 2021, the central bank of Turkey announced a ban of cryptocurrencies as an option of payment for goods and services. This was followed by reports of the United States Treasury Department tackling financial institutions on the use of digital assets as an instrument for money laundering.
As per data retrieved from CoinMarketCap, during the weekend of 16th to 18th April 2021, such news has been attributed to a substantial drop in LTC’s price.
LTC opened on 16th April with a price of $286.28 and closed at $310.61. Since that day, Litecoin has shed gains and traded at a new low of $212.03 on 23rd April. In the process, LTC lost 31.7375% of its price in a 7-day period.
Bans and negative news always affect the prices of coins. Litecoin also plummeted in price in 2018 after Japan followed China into banning the use of cryptocurrencies.
If heavy regulation sets into cryptocurrencies to deter citizens from patronizing its usage, Litecoin along with other digital assets could go bust and leave investors with huge losses.
Because of the risks associated with Litecoin it would be wise to diversify your risk. To do this, you can hold LTC and other cryptocurrencies along with low risk assets such as bonds, metals, commodities and stocks. This would help balance any loss you may incur in the future.
How to Buy Litecoin?
After reading this article on the pros and cons of Litecoin, you may want to experiment with trading and investing.
eToro is the brokerage we recommend. eToro is a platform where you can store your coins in a safe and secure manner.
Follow the steps below and buy your first LTC.
Step One is SIGN UP with your credentials (full name, email and address and phone number).
Step Two is to VERIFY YOUR ACCOUNT. As part of the Knowing Your Customer (KYC) process, users are expected to upload documents to prove their identity (for example, a government-issued identification card which has all your credentials as well as your signature).
Additionally, an internet bill, credit or bank statement less than 6 months old are also required to confirm your billing address. This helps prevent identity, credit and debit card fraud.
Step Three is DEPOSIT FUNDS in USD, EUR or GBP. This plays an integral role in facilitating the purchase of LTC.
Step Four is NAVIGATE to LITECOIN. Purchase LTC and it would be processed and added to your account.
Litecoin Price Prediction: What Are Analysts Saying About Litecoin?
Several experts and analysts have conducted fundamental and technical analysis on the future of Litecoin. Let us take a look at what analysts across several online financial websites are forecasting for Litecoin.
DigitalCoin predicts Litecoin may have a trading price of $360.87 by the end of 2021, $444.92 in 2022, $510.09 in 2023, $598.7 in 2024, $741.59 in 2025, $839.52 in 2027 and $1,132.08 in 2028.
Prime XBT predicts Litecoin may reach a potential low of $75 and a high of $1,250 by the end of 2021. Analysts on the website further predict a low of $325 and high of $2,500 to close out 2022. Moreover, the platform foresees a bearish outlook of the cryptocurrency market in 2023 where Litecoin LTC will valued at a potential low and high of $200 and $1,000 respectively. Also, the analysts believe Litecoin could trade at a potential low of $500 and high of $10,000 from 2024 to 2025.
WalletInvestor predicts that the price of Litecoin could valued at $255.579 by the end of 2021. WalletInvestor further predicts Litecoin may have a price of $272.876 (2022), $294.546 (2023), $304.519 (2024) and $320.638 (2025).
The Economy Forecast Agency, predicts Litecoin could have a trading price of $309 by the end of 2021. Long Forecast further predicts Litecoin to have a price of $217 in 2022, $160 in 2023 and $139 in 2024 and increase to $270 by the end of 2025.
Analyst Skerdian Meta of FX Leaders predicts Litecoin to have a trading price of $350 to $400 by the end of June. The analyst further predicts Litecoin to have a price of $500 to $600 by the end of 2021. Meta also foresees a huge leap in price in the range of $1,000 to $2,000 from 2022 to 2024.
Such prices would be bolstered by drivers such as another wave of coronavirus, technical pullback, safe haven retreat, hawkish central banks, USD reversal, positive risk sentiment, economic recovery, tighter monetary policies and higher bond yields.
Anisa Batabyal of CoinSwitch predicts Litecoin may rise and give a tough competition to other cryptocurrencies and have a price of $600 by the end of 2021. She further predicts Litecoin to reach $900 between 2022 and 2023. Litecoin may reach $1,200 by the end of 2025.
Coin Price Forecast predicts Litecoin could reach $582 by the end of 2021. Their analysts further forecast a price of $689 (2022), $722 (2023), $844 (2024) and $822 (2025).
What Will Litecoin Be Worth in 5 Years? (2026)
Coin Price Forecast predicts Litecoin to have a price of $956 within the next 5 years.
What Will Litecoin By Worth In 2030?
Don't Miss: Litecoin Price Prediction for 2025 and 2030
The Bottom Line ─ Should You Buy Litecoin?
Litecoin is definitely worth buying when it comes to investing in the crypto market. It still has a long way to go. Right now, it is barely halfway to its true potential in price and value.
Experts at Coin Price Forecast, WalletInvestor, CoinSwitch, Digital Coin, FX Leaders and Prime XBT have made bullish predictions for Litecoin in the near future. As per their forecasts, Litecoin is a buy.
On 12th April, it was announced that London-based ETC Group will list a physical Litecoin exchange-traded commodity on Deutsche Boerse’s Xetra market on 14th April. It will be trading under the ticker ELTC.
As per information retrieved from CoinDesk:
“The new “ETC Group Physical Litecoin ETC” product will be a central counterparty cleared exchange-traded product (ETP) and will track the price of the litecoin cryptocurrency”.
In the early days of April 2021, CoinShares launched a new physically backed Litecoin exchange-traded product (ETP) on the Swiss SIX exchange. It is listed under the ticker LITE. CoinShares markets itself as the largest digital asset investment house in Europe and has more than $4 billion in assets under management.
Such listings on some of the greatest exchanges in the world signal the interest of market experts in the cryptocurrency. Activity could contribute to huge trade volumes which would reflect in the asset’s price.
Litecoin is faster than major cryptocurrencies. If developers of the crypto decide to make use of its open-source platform, Litecoin’s overall market valuation would see a huge leap in the near future.
Making the necessary upgrades could introduce decentralized applications and protocols. This will ensure that the valuation of the cryptocurrency would not be solely dependent on supply and demand, adoption and integrations as a transactional currency.
You can consider the Litecoin digital asset a good investment for your portfolio because of the huge potential it promises.
Check Out: Is Litecoin a Good Investment?
eToro – Best Platform to Buy Litecoin
eToro have proven themselves trustworthy within the crypto industry over many years – we recommend you try them out.
Virtual currencies are highly volatile. Your capital is at risk.
Should I Buy Litecoin 2021?
Litecoin has returned 96.84% in less than 6 months in 2021. Based on that, as well as price forecasts by experts and analysts, Litecoin is a buy. Based on the predictions of such analysts, buying Litecoin below $270 can bring you gains. Most analysts forecast a minimum trading price of $300 by the end of 2021.
Can Litecoin Overtake Bitcoin?
Based on historical data and trading prices of the two cryptocurrencies, it is not impossible but it would be extremely difficult for Litecoin LTC to overtake Bitcoin BTC.
This is because Litecoin is not the first-mover of cryptocurrency and blockchain technology. Bitcoin is the most popular cryptocurrency.
Unlike LTC, which primarily functions as a transactional currency, Bitcoin is also seen as a store of value. The current reserve risk of BTC is 0.008. Such a figure is relatively low. It means that many HODLers (long term holders of the cryptocurrency) are still holding on to their coins.
What this should tell you as a trader or investor is that confidence in the asset by holders far outweighs its current trading price.
Because of this, analysts conclude that BTC has not reached its real valuation. There is hope backed by fundamental and technical analysis that the price will soar substantially to new all-time highs in the near future.
Is Litecoin Better Than Bitcoin?
Litecoin is better than Bitcoin in a single area and is called scalability. However, from an investment perspective, Litecoin is not better than Bitcoin.
Litecoin employs the SCRYPT algorithm while Bitcoin employs its longstanding SHA-256 algorithm. The SCRYPT algorithm gives Litecoin a processing advantage over Bitcoin. Litecoin can process 56 transactions per second while Bitcoin can process 4.6 transactions per second. And since scalability is linked with fees, LTC fees are relatively lower than Bitcoin.
With an eye on long term investment, BTCs maximum supply of 21 million is relatively lower than LTCs maximum supply of 84 million. BTC is also seen as a store of value and when all coins are mined, the real value of the Bitcoin may trade at 10,000 times the price of Litecoin.
What Can I Buy With Litecoin?
Litecoin is accepted by millions of merchants globally. Using PayPal’s Crypto Checkout feature, you can also pay for goods and services with LTC.
Other areas where your LTC could be useful are popular gaming websites, travel agencies and numerous IT firms which list the cryptocurrency as a payment option.