Litecoin vs. Bitcoin: Which is Better by Rate

Bitcoin is what everyone thinks about when they turn to the cryptocurrency market. However, it is unlikely that Bitcoin will rise in price as much as cryptocurrencies with a smaller capitalization. Here’s why an investor should pay attention to a lesser-known cryptocurrency – Litecoin.

What Litecoin and Bitcoin Have In Common

They are very alike. This is mainly because Litecoin obtained the bitcoin code. Main traits include mining, supply cap, and charge award decline every four years. Both coins have risen significantly.

However, there are some variations between cryptocurrencies, and that is why investing in one of them may turn out to be profitable in  future.

Transaction speed

The first essential contrast between the two coins is the difference in action activity:

• litecoin is leader in this parameter – transactions with cryptocurrency are verified much faster;
• block generation in the bitcoin network takes about 10 minutes, in litecoin, a new block appears every 2.5 minutes. Thus, Litecoin is a convenient coin for users conducting transactions.

Mining Algorithm

To check the blocks in both cases, mining is used; however, the developers’ approaches to it are different. Bitcoin uses the SHA-256 algorithm, which makes it harder to find new blocks. Currently, the profitable mining of SHA-256 cryptocurrency requires professional equipment and ASIC miners. It is also considered overly complex, which is why very few individuals have succeeded in mining bitcoin. BTC is usually mined by large companies that can provide equipment, operation, and maintenance costs. On the other hand, Litecoin uses a simplified Scrypt algorithm that allows it to be mined on ordinary PCs with an Internet connection. It also reduces energy consumption.

Which cryptocurrency is better to buy in the long term?

Litecoin is technologically based on bitcoin, but the cryptocurrency has maintained to overcome some disadvantages of its older brother and become better. This will ensure that interest in it will grow in the future when investors begin to realize the advantages of ltc to btc exchange rate:

1. Developers continue to penetrate new partnerships that are vital to cryptocurrency’s future success;
2. they signal legitimacy and faith in the project;
3. Another important reason why Litecoin is the preferred financing in the extended time is that its current price is relatively low and its potential income is high.

By purchasing one LTC for about $ 50, you can earn $ 300 or more, while the maximum risk is limited to the initial investment. To buy 1 BTC, you will have to invest about $ 6,500, while it is unlikely that Bitcoin will rise in price as much as cryptocurrencies with a smaller capitalization. It is better to invest money in an asset with minimal risk and the highest potential income. Speculation in the cryptocurrency exchange carries an essential level of risk and is not proper for all investors.

This article should not be seen as a recommendation/call to action. Each trader is obliged to independently assess the risks, taking into account their financial position.