Want to be at the forefront of one of the best decentralized and worldwide currencies? Now is your chance! Litecoin is starting to gain a lot of traction, putting it up there with big-name crypto brands like Bitcoin and Dogecoin.
Buying cryptocurrencies is a bit different than exchanging dollar bills at the local credit union. Everything involving crypto transactions takes place online, but what is Litecoin? Let’s take a closer look at this up-and-coming cryptocurrency and how to buy Litecoin!
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What is Litecoin?
Cryptocurrency is increasingly popular these days. Nearly everyone has heard of Bitcoin, but the other crypto coins aren’t all as popular as Bitcoin, including Litecoin. In general, crypto is binary data that is used as a medium of exchange. In other words, it is a digital currency that can be used to purchase items.
Litecoin is a cryptocurrency just like Bitcoin, though they have their differences. Litecoin is known as a peer-to-peer (P2P) currency, and it allows instant payments to take place anywhere in the world.
Litecoin is fully decentralized, and mathematics secures the network so that individuals who own Litecoin control their own finances. According to the Litecoin website, this crypto is complementary to Bitcoin, meaning they pair well together in a portfolio.
How does Litecoin work?
There are people who mine Litecoin, which is similar to the way gold, silver, and copper are mined regularly. However, the mining of Litecoin takes place via computers rather than physically out in the world. A miner will often use software to complete simplex mathematical equations, often with an automated service, to receive Litecoins.
Pros of Litecoin
Litecoin has the benefit of being much cheaper than Bitcoin. While Bitcoin has a price point of around $40,000 on a good day for one Bitcoin, Litecoin only costs about $150 per coin. As such, it is much cheaper to buy Litecoins than Bitcoins.
Smart contracts are programs stored on a blockchain that run when specific conditions are met. For example, if you want to mine Litecoin but only when it is under $150 per coin, then a smart contract can make that happen by setting those parameters for you.
One of the main reasons why the blockchain is well-loved is the fact that it is not run by a government agency or company. It is run and operated by and for consumers themselves. The coin is mined directly from the source by buyers instead of being mined through a business that will then sell the coin to buyers.
Technology is improving more and more as time goes on. Everything is evolving in terms of efficiency, including the technology involved when mining Litecoin.
Cons of Litecoin
Since cryptocurrencies are so new, there are many people out there who try to scam those who are just starting to enter the industry and familiarize themselves with the concept of crypto. Be careful of people who try to sell you crypto in unofficial ways as they could be trying to hack your account or fool you into buying fake crypto.
The prices of crypto rise and fall all the time, just like they do for regular stocks. However, crypto is much more volatile than any other type of stock in the market. This makes investing in crypto a lot riskier as we have no idea what is going to happen in terms of crypto in years to come. There is not enough history behind crypto to support whether prices will go up or down over time.
Blockchains require a lot of energy and various pieces of equipment. At the end of the day, it is very expensive to mine Litecoins on blockchains.
Four steps for buying Litecoin
Ready to start using cryptocurrencies and take advantage of the perks of Litecoin? Well, you might still be wondering, “How do you actually buy Litecoin?” We have you covered! Looking to buy, sell and earn cryptocurrencies like Bitcoin and Ethereum? Sign up for the MoneyLion Crypto waitlist!
In the meantime, here are four steps to follow when buying Litecoin.
1. Decide which platform to buy on
There are many different types of cryptocurrencies out there, and unfortunately, they are not all sold on the same exchange platforms. If you are looking to buy specific crypto, you’ll need to make sure it is available on the exchange that you use.
If you want to get updates about which coins are on which exchanges, MoneyLion Crypto can help you out. All of the different exchanges are known as digital wallets, and they will store your cryptocurrencies for you. They tend to be very secure but make sure you never share any of your passwords with anyone for added security.
2. Set up your account
Creating your investment account should be easy and straightforward. You may need to wait a few days to actually buy and sell different coins after you establish an account, but don’t worry. The waiting periods aren’t usually that long, and your time will come!
3. Figure out how many coins you want to buy
The golden question is, “How many Litecoins should you buy?” In order to answer this question, it can help to ask yourself a few more questions. For starters, do you want to spend all of your money on Litecoin or do you want to diversify and purchase other coins as well?
Look into the answer to the question, “Does Litecoin have a lot of potential?” It might be worth investing in Litecoin on its own or diversifying altogether, but the answer will fully depend on the findings of your research.
At the end of the day, it is important that you make a well-informed decision based on what you believe to be true and learn through researching. Make a decision with your own best interest in mind.
4. Buy, buy, buy
Once you have decided that you want to buy Litecoin and you know how many coins you want to buy, follow through and make the purchase. Depending on the exchange you buy through, you’ll either buy Litecoin with a credit card, a debit card, or via direct withdrawals from your bank account.
You can let the crypto sit in your investment account and let it grow a sizable return for you. Or you could also research what you can buy with Litecoin and make a purchase using your cryptocurrency instead.
Litecoin for the win
Litecoin is still in the beginning stages of its lifecycle. There are many people who believe that the price for one Litecoin is going to skyrocket over the next few years and in decades to come. And if you buy a few coins now, then they could be worth a decent amount of money in the future.
Does Litecoin use blockchain?
Yes, Litecoin uses blockchain technology as a decentralized public ledger.
Is Litecoin a good investment?
It is currently one of the most popular cryptocurrencies on the market.
How many Litecoins are left?
There are currently 84 million Litecoins that have yet to be mined. The price of each Litecoin will fluctuate a lot as the number of Litecoins yet to be mined slowly goes down. Use MoneyLion Crypto to buy and sell your Litecoins!