What is litecoin and how is it rivaling bitcoin?

You cannot fail to have noticed all the attention that bitcoin has been getting over recent months. The cryptocurrency was riding high on the crest of a wave. Then it was said to be just a fad that was on its way out. In recent weeks the tide seems to be turning again with bitcoin undergoing something of a resurgence.

You could be forgiven for thinking that bitcoin is the only cryptocurrency out there. But, you would be wrong; there are several. Litecoin is a cryptocurrency that was created two years after bitcoin. It has also recently spiked in value from $4 to $325. Although the value has decreased since the spike.

What is the litecoin story?

The founding of litecoin was nowhere near as mysterious as the introduction of bitcoin. The founder of litecoin is Charlie Lee, a well-known believer in cryptocurrencies who at one time worked as an engineer for Google. Lee has been vocal in advocating litecoin as a currency, and has taken part in many promotional opportunities. This is very different from the sometimes cloak and dagger world of bitcoin.

What is litecoin?

In essence, litecoin is a cryptocurrency that is similar to bitcoin. It can be used to complete secure transactions without the need to disclose names or bank details. This means that people can make purchases from sites which support litecoin and make the most of litecoin gambling options online. One major difference is that litecoin transactions are a lot faster than those involving bitcoin.

Why has litecoin been rising in price?

Some of the spike in price that litecoin has recently achieved has been accredited to the success of bitcoin. This success has brought cryptocurrencies to the fore. Given the fact that the litecoin story also has more transparency, and that it’s faster to use than bitcoin, it’s easy to see why its price spiked.

How to buy litecoin

There are several ways in which you can buy litecoin. Two of the most popular are to buy from an exchange and to take part in a direct trade. There are advantages and disadvantages to both of these options.

Pros and cons of an exchange

Pros

  • Straightforward to use.
  • Easy access to a range of cryptocurrencies.
  • The work is done for you.

Cons

  • Can crash if demand is high.
  • May be subject to hacking and security breaches.

Pros and cons of direct trade

Pros

  • More control over the process.
  • Control over the litecoin at all times.

Cons

  • You do all of the work.
  • Limited number of trade platforms available.

Is buying a good idea?

You can see that you have options when it comes to buying litecoin; but is buying the right thing to do? Since it’s spike, the price of litecoin has fallen somewhat. Some of the future of this cryptocurrency will inevitably dovetail with the performance of bitcoin. Interestingly, litecoin creator Lee stated that he did not believe it’s price would ever rise much above the $325 spike. Only time will tell if this is the case.