The Litecoin belongs to the group of cryptocurrencies, these are means of exchange, like national currencies, however, cryptocurrencies lack an entity that controls them, this is known as decentralization, the Litecoin is known as one of the means of commerce that complement Bitcoin.
What is Litecoin?
It is one of the three most valued cryptocurrencies in the world, it is known by its abbreviation LTC, it is one of the decentralized virtual currencies, it is divided into units that have eight decimals and has a technical structure similar to that of Bitcoin.
This cryptocurrency was created by one of the former employees of Google, Charlie Lee in 2011 with the purpose of complementing Bitcoin, since Litecoin has the capacity to distribute 84 million in currency, that is, a quantity much greater than that of Bitcoin, which is 21 million units.
How does Litecoin work?
The functional structure of Litecoin is managed in a P2P network, better known as a peer-to-peer network; it is one of the most widely used methods for sharing digital information, regardless of the platform with which it is counted, software, location or time.
Like the Bitcoin platform, in the production through mining, the “hash” values are found, these create the block chains, each time 840 thousand blocks are obtained, the Litecoins emission rate is reduced by half , this is something that happens every 4 years or so.
The Litecoins can be exchanged for other cryptocurrencies or for centralized currencies such as Dollars, Euros, or others. It is a process carried out through purses, known as wallets, or virtual cryptocurrency exchangers.
Where can Litecoin be obtained?
There are three basic alternatives to obtain Litecoins, or invest in this cryptocurrency, the methods are:
- Litecoin Mining
- Purchase Litecoin
- Change of cryptocurrency
To mine is necessary a basic equipment, which has a Central Processing Unit (CPU) or a Graphics Processing Unit (GPU) that has greater capacity for calculating the codes that are required to create the blocks.
Minar consists of a decoding process, in which the team deciphers certain calculations with codes and patterns, which when resolved is rewarded with a bonus in monetary units, in this case Litecoins.
Buy Litecoins is possible through the exchange sites, these allow the user to operate in multiple currencies, that is to say that the procedure consists of a series of purchase transactions and / or exchange of currencies.
Obtaining Litecoins is also feasible through the exchange of the cryptocurrency, this transaction can be made in the purses, also known as wallets, one of the best known worldwide is Bittrex that has hundreds of the most used cryptocurrencies compatibility, and allows members make changes with these.
What is the profitability of Litecoin?
It was estimated in mid-2017 that the Litecoin had a circulation of more than 52 million, surpassing half of the planned issuance by the cryptocurrency designers. This shows a massive use, since the cryptocurrency was designed in 2011 and in less than a decade already has three quarters of the emission limit established.
Where to store the Litecoins?
There are multiple devices designed to store cryptocurrencies, from wallets, hardwares, or others. The wallets allow the user in most cases to exchange their cryptocurrencies for other virtual currencies, or centralized. The most used purses are:
- LoafWallet : the first portfolio designed for Litecoin, compatible with smartphones or computers that have an IOS or Android operating system.
- CoinPayments : a virtual wallet that allows users to make transactions of purchase, sale or exchange of cryptocurrencies.
- Cryptonator : is an online wallet that can be installed on the computer, it is one of the safest and simplest. It allows you to make and receive payments, execute exchanges and store cryptocurrencies.
The hardware devices are devices that store the cryptocurrency offline, that is, they remain disconnected from the Internet and store the currencies under a series of keys and security codes, in order to protect user privacy, as some of the wallets online they show detailed information about the operations carried out.
Advantages of using Litecoin
Using cryptocurrencies is one of the best economic investments that can be made, this is because the Litecoin, like all cryptocurrencies, is a decentralized digital currency, with an autonomy and universality that national currencies do not have. it is affected by no regulation, and its value is proportional to the utility it has. Therefore investing in Litecoin ensures good long-term results.