Litecoin (LTC) - what it is?

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Tokeneo
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2 min reading

In a cryptocurrency environment called digital silver, which fully refers to Bitcoin. Litecoin, which is one of the oldest and most popular cryptocurrency - in this article you will learn everything about it!

litecoin what it is

Litecoin - what is it?

Litecoin (LTC) is currently one of the oldest and most desirable cryptocurrencies. Litecoin was founded in 2011 and its creator is Charlie Lee, a programmer who has been involved in large projects such as Google, but also in the crypto industry, by creating Coinbase exchange. He is a person with great experience in this field, which translates into a well created project, gaining popularity and maintaining a good position for years.

Litecoin is considered to be Bitcoin's brother because he uses his source code. It is not created under such a large turnover as Bitcoin. The idea was to create a cryptocurrency, which can be used for small transactions and online payments.

What is diffrence between Litecoin (LTC) and Bitcoin (BTC)?

Although community consider both cryptocurrencies to be brothers, they are different. First of all, it is the creator. Bitcoin was created by Satoshi, i.e. a person or a group of people with an identity unknown until today. The creator of Litecoin is a person who is well known and respected in the community, with great experience in this field.

The maximum supply of Litecoin is 4 times higher than in the case of Bitcoin and amounts to as much as 84 million. The difference is also the time between mining a single block. In the case of Bitcoin, it is about 10 minutes. Litecoin has reduced this period to 2 minutes.

Read also: 3 mistakes made by beginner crypto investors

Litecoin halving - does it exist?

Just like in the case of Bitcoin, the mining reward for miners is also reduced from time to time, specifically every 840,000 LTC blocks. Also, as in the case of BTC, halving of Litecoin takes place every about 4 years.

The last halving took place in 2019, and the prize for the block was reduced from 25 LTC to 12.5 LTC. The next halving is expected to take place in 2023.

The purpose of halving is to give a cryptocurrency character that counteracts its inflation. Increasing mining difficulties is a way to counteract the extraction of the entire 84 million coins in too short a time.

How to mine Litecoin?

Like other cryptocurrencies based on Proof of Work algorithm, Litecoin can be mined. This is possible with special cryptocurrencies excavators, which, thanks to their computing power, allow for complex mathematical calculations. Thanks to them, it is possible to extract blocks for which miners are awarded the appropriate amount of 12.5 LTC (currently). After halving, this value will fall to 6.25 LTC.

Read also: How Does Bitcoin Mining Work?

A wallet for Litecoin - which one to choose?

Choosing the right place to store your cryptocurrencies is a very important thing. Currently there are many hot wallets available for Litecoin, operating on an application basis.

Invariably, the most reliable and safest place is the hardware wallets such as Ledger or Trezor. They give the greatest certainty that after transferring our cryptocurrencies to them, they will not fall victim of hackers.

Read also: Bitcoin wallets - how they work and which one is the best?

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