For those of you who have been in the blockchain and crypto world and for a long time, you must be familiar with the term litecoin and how to get litecoin.
However, this term may be a little unfamiliar for beginners. Well, in this article, we will fully discuss Litecoin and how to get it.
What is Litecoin?
Litecoin (LTC) is one type of crypto under the MIT/X11 license. It can also be said that Litecoin is a modification of the bitcoin that already existed.
Litecoin is an open blockchain network (open-source) and decentralized or has no central authority. Like bitcoin and other crypto assets, Litecoin is a digital asset that can be used as an investment option.
Litecoin can also be used in transactions without needing a third party with a peer-to-peer system.
Referring to its history, LTC was first launched in 2011. The creator of Litecoin is Charlie Lee, an alumnus of the Massachusetts Institute of Technology (MIT).
Lee was still a Google employee until he finally created Litecoin. In 2013, Lee decided to leave Google and chose to work at Coinbase—one of the world’s leading crypto platforms.
However, Lee is currently known to have left Coinbase and is starting to focus entirely on Litecoin. Lee introduced Litecoin, intending to develop a version of bitcoin to be one that is both faster and cheaper.
As a result, Litecoin has become popular in the crypto market since it was first launched. Litecoin’s market cap reached $1 billion in just two years of its release.
How Does Litecoin Work?
The way Litecoin works is the same as the conventional currency system. This means you can store it in your account, make transfers, and buy and sell transactions, but everything is done online.
In addition, this crypto asset also has a circulation limit, which is 84 million LTC. Please note that every 2.5 minutes, the litecoin network will generate a block, which is a ledger entry of all the latest LTC transactions worldwide, and that is where the value comes from.
The blocks are verified by software for mining and can be seen by anyone who wants to see them. When a miner verifies, the block will enter a list/entry, a record of every Litecoin transaction ever made. On the other hand, the Litecoin protocol also uses a different consensus mechanism under the name “scrypt.”
What is Litecoin’s Function?
Like digital assets in general, litecoin can be used by investors as an investment instrument that will provide profits.
The Litecoin network itself offers instant payments at almost zero fees. With litecoin, as with other crypto assets, investors can use it without needing help from other parties or intermediaries.
Differences between Litecoin with Other Crypto Assets
As mentioned above, litecoin is a modified form of the bitcoin code, and the two certainly have several differences. Here are some of the differences between Litecoin and other crypto assets:
- Litecoin transactions are faster because the block time difference is 2.5 minutes. Meanwhile, bitcoin is known every 10 minutes. Litecoin uses the scrypt mining distribution method, which is considered fairer than SHA-256 on Bitcoin.
- Litecoin has more coins than Bitcoin, supplying 84 million LTC, while bitcoin is only 21 million BTC. This adds to the digital scarcity of LTC tokens and increases market liquidity.
How to Get Litecoin
For beginners, how to get several methods can do Litecoin. Here are some of them.
- Mining Litecoin
Mining is one way to get Litecoin. This way, you have to solve the block verification algorithm problem through the proof-of-work (POW) or scrypt mechanism.
In this case, there are two ways of mining: Private Rig Mining and Cloud Mining. For every problem successfully solved, you will later get a reward in the form of several Litecoins.
It is important to remember that the total LTC in the crypto market is only 84 million, so the more Litecoins you get, the more complicated it will be to solve new problems later.
- Buy Litecoin
The following way to get Litecoin is to buy it through existing crypto-asset platforms. This exchange or buying and selling method is also the easiest way to try.
Even so, make sure you get this Litecoin on a trusted platform, Indodax. As is known, Indodax is the largest marketplace or platform for buying and selling crypto assets in Indonesia.
With more than five (5) million verified members on this platform, you can buy and sell crypto assets, including Litecoin, here. For information, as of today, Wednesday (29/6), the price of Litecoin on the Indodax market is IDR 786,000.
In addition, you can also download the Indodax application (Indodax Official Mobile App) to get all access to your online trading needs.
Also, check out other recent reviews regarding digital crypto assets only at Indodax Academy.