The cryptocurrency Litecoin appeared in 2011. Its founder is Charles Lee, a former Google developer. The main motive is to create a token that would be easier to mine (mining cryptocurrency is the creation of new coins by solving complex mathematical problems).
The basis for the creation of LTC was the bitcoin blockchain. Charles Lee adjusted the protocol to make it more difficult for users to create mining pools (grouping equipment to increase cryptocurrency mining potential).
Considering that Litecoin is essentially Bitcoin with minor changes, its distinctive features are in many ways similar to the first cryptocurrency:
- New coins are created using blocks. A user who solves a problem opens a new block and receives a reward in the form of a certain amount of Litecoin cryptocurrency. Every 840 00 blocks the premium is reduced (initially, users received 50 LTC for block mining).
- The security of the system is ensured by mathematical tasks. As in the Bitcoin network, miners solve problems to add new blocks and transactions to them. Over time, their complexity increases.
- Anonymity. LiteCoin, like bitcoin, allows you to work with digital money without revealing your identity. All transactions are recorded in a blockchain, but it is impossible to know who exactly sends funds.
- Inflationary model. Like Bitcoin, Litecoin has a limited total coin supply. This leads to the fact that over time the value of the token increases, as the demand for it will be higher, while the maximum supply remains unchanged.
- High transaction speed. Like the bitcoin network as well as other blockchains, Litecoin cryptocurrency is transferred between users in minutes (and sometimes seconds). Moreover, Litecoin has a higher speed, since the time to create each block is almost 4 times lower than in bitcoin.
The token is used for the following purposes:
- Payment for goods and services. The cryptocurrency can be used on a par with bitcoin and ether in transactions of online retailers or other organizations providing online services. Although the popularity of this token in online retail sales is not as high as that of bitcoin and ETH, it is found in some stores.
- Payment of wages or for the work of freelancers. Considering the speed of transactions, LTC can be used in business to pay remote employees.
- Speculative buying or portfolio creation. LTC cryptocurrency has almost the same value as BTC for traders and depositors. It can be found in a variety of portfolios.
- Since 2020, Litecoin has been used in the MimbleWimble network. After the launch of the main blockchain under this brand, Litecoin can be used for confidential transactions on the network.
Litecoin has already set all-time highs several times. The first time was at the end of 2017, when the cryptocurrency industry experienced its first boom. For the second time, the LTC price peaked in 2021.
The project continues to evolve, and a team is working on it. This provides some support for LTC. In addition, Litecoin, like bitcoin, acts as a means of payment. Despite the fact that its popularity is not as high as the first cryptocurrency, transactions conducted in the network and the demand for LTC increases its price from time to time.
The Litecoin cryptocurrency is also attractive because it has a lower entry threshold for mining. It is a kind of mini-Bitcoin. With almost the same characteristics of both cryptocurrencies, miners do not need to build expensive farms to mine this token.
Litecoin is of some interest to both traders and long-term investors. It is possible to buy Litecoin in 2021 at a price that is still far from its peak values. Accordingly, there is a possibility of reaching or even exceeding historical highs in the future.
Litecoin can become an aggressive instrument with good growth potential in portfolios.
It is also interesting and profitable enough to mine this coin.
When buying any cryptocurrency, it is important to pay attention not only to its value, but also to the future rate. It is recommended to be careful in choosing a trading platform. While there are many offers today on how to buy, withdraw, exchange, and even sell Litecoin cryptocurrency, not all of them are trustworthy.
Broex cryptocurrency platform
One of the most reliable offers is buying cryptocurrency on the Broex platform. This is a modern trading platform with a simple interface. You can buy tokens here in a few clicks.
Broex is registered on the territory of the European Union and has a license for financial activity. This makes the platform a safe and reliable partner for those who want to buy Litecoin cryptocurrency for rubles.
The advantages of buying tokens on the Broex platform include:
- Large selection of trading assets. More than 600 digital financial instruments are available on the platform, among which there are both popular tokens and less known coins. Thanks to the strategic cooperation with Binance, Broex users can send requests to the administration of the platform to add new currencies.
- Secure token storage. Broex is not only an opportunity to buy cryptocurrency, but also its safe storage. The wallet is located on servers disconnected from the Internet. Due to this, the risks of coins theft by hackers are reduced to zero.
- Creation of ready-made portfolios. Broex is also a solution for investors who are considering long-term investments in cryptocurrency. There are several automated strategies with different degrees of diversification and risk distribution.
- Convenience of purchase. To create a request, it is enough to select the direction of exchange and specify the volume of the coin to be bought.
- The high order speed ensures that the price remains unchanged at the time of the transaction.
Litecoin cryptocurrency is a promising financial instrument that can be used for both short-term speculation and for long-term investments. The growth in popularity of the token will ensure an increase in its value in the future.