Are you interested in a Bitcoin (BTC) and Litecoin (LTC) comparison but don’t know where to start? If so, you aren’t alone in this matter.
These are two of the most well-known cryptos on the market, but because of many similarities, people face difficulties when choosing the better one for themselves. That’s why this article provides useful information about the Bitcoin vs Litecoin cryptocurrencies comparison.
Let’s get started.
What Is BTC?
Satoshi Nakamoto proposed and developed Bitcoin, the world’s first digital currency, between mid-2008 and early 2009. It is a decentralized cryptocurrency that facilitates instant payments through peer-to-peer technology. Bitcoin has the crypto world’s largest market capitalization of 850 billion USD at the moment.
What Is LTC?
Litecoin (LTC) is a cryptocurrency founded by Charles Lee in October 2011. It was presented at its launch as the “light version of Bitcoin.” It is essentially comparable to Bitcoin in terms of technical specifications. Litecoin has the 13th largest market capitalization of ten billion USD.
Bitcoin vs. Litecoin
Now take a closer look at the major differences between Bitcoin and Litecoin.
- Design and Purpose: The cryptos aim to create a source of exchanging and storing value by eliminating all third-party organizations, like banks and governmental authorities. LTC is a fork of BTC and was developed to overcome Bitcoin in terms of low transaction costs, quick transfers, and low power consumption.
- Working Algorithm: Another important difference between Litecoin and Bitcoin is their mining algorithms. While they are both Proofs of Work, Bitcoin employs the SHA-256 hashing method. Scrypt is a relatively new algorithm used by Litecoin. Scrypt runs on lower power consumption and is faster than BTC’s algorithm.
- Mining: Because of LTC’s Scrypt, it consumes low power and time for Litecoin mining and offers its users the ability to mine on their personal computers. On the other hand, Bitcoin mining requires a proper, high-cost hardware setup, which consumes a lot of power.
- Market Capitalization: This year went well for the overall crypto market. In April 2021, BTC recorded an all-time high market capitalization of one trillion USD and currently has the largest market capitalization of 850 billion USD. In May 2021, LTC recorded an all-time high market capitalization of 23 billion USD and currently has the 13th largest market capitalization of ten billion USD.
- Block Sizes: A block is processed every 2.5 minutes on the Litecoin network, compared to ten minutes on the Bitcoin network. As a result, Litecoin has a faster transaction speed than Bitcoin. When it comes to block rewards, the Litecoin network currently gives miners 12.5 coins for every block, while the Bitcoin network gives miners 6.25 BTC. Both cryptos limit their block size to 1MB.
- Transactions Every Second: Bitcoin processes only seven transactions per second, while LTC can process more than 50 transactions every second, almost eight times faster than BTC. Litecoin was established in part to improve transaction speeds, with a block being fully confirmed and added to the Litecoin network within an average of two and a half minutes.
- Network Transaction Fee: LTC offers way cheaper transaction fees in comparison with BTC. BTC has an average transaction fee of $7.56 for every transaction. It costs only $0.03 for every transaction on the LTC network, almost 250 times cheaper than BTC.
- Store of Value and Institutional Involvement: One of the key reasons Bitcoin is so much more successful than LTC and any other cryptocurrency is its status as a store of value on the market. Bitcoin is termed a “digital gold.” Institutions from all over the world have started investing their capital in BTC, and according to recent reports, around eight to ten percent of BTC is held by them. Elon Musk recently said that Tesla holds Bitcoin. LTC hasn’t gained so much popularity among institutions yet.
How to Automate Your Bitcoin and Litecoin Trades
Obolon9 provides a trader with a set of predesigned scenario-based trading tools (plus a configurable scenario) through an automated crypto trading system. It combines the best of both worlds through the flexibility of manual trading and the diligence and precision of programmed scenarios.
With these six simple steps, you can set up your first scenario on Obolon9.
- Name your scenario: Name your scenario according to your associated asset and purpose of trading.
- Choose a strategy: Select a trading strategy for your scenario. It might be one of the ready-to-use scenarios, your own custom one, or an imported one from TradingView (a social network of 15 million market participants from across the globe who utilize the best analytics, charts, and traders’ tools to keep track of the global crypto markets).
- Select a trading platform and crypto-asset: Select a crypto exchange and cryptocurrency pair you want to trade.
- Specify parameters: Fill in the rest of the asset parameters you wish to track in the scenario. Only when these factors are favorable will your scenario issue alerts/trades.
- Click on Save and Run: You’re done; after clicking this button your scenario is already functioning.
Bitcoin has been termed “digital gold” and holds status as a store of value. Litecoin has various advantages over Bitcoin, like low network fees, fast transaction speeds, and low power consumption, and it does not require any professional hardware for mining. Undoubtedly, both cryptos have huge growth potential and belong among the top 15 cryptos on the market. With all this information regarding Bitcoin vs Litecoin, it’s easier to make a decision on which crypto is best for you.