Litecoin (LTC) is one of the more prominent cryptocurrencies available today. Litecoin was established in 2011 by an ex-Google employee Charlie Lee. He established it with the intention of eliminating some common errors associated with Bitcoin. In this post, we will find interesting info about Litecoin and also take a quick look at coin burning. Let’s get started.
Litecoin: All You Need To Know
What is Litecoin (LTC)?
Litecoin was developed by Charlie Lee in 2011. Even though Litecoin shares some basic features with Bitcoin (BTC), there are some differences. The production of Litecoin was designed to fix some bugs in Bitcoin, and this project was introduced as an enhanced version of BTC. LTC, which managed to catch big exits after its launch, is one of the leading cryptocurrencies in the current market.
Like Ethereum, BTC, and many other cryptocurrencies, Litecoin (LTC) is a decentralized and open-source cryptocurrency that is traded on a blockchain. Litecoin, which is the first altcoin forked from Bitcoin, has a market cap of $1 billion. It is a big factor in LTC’s popularity that it cuts less commission in Bitcoin and transfer transactions compared to coins that charge higher commissions.
Litecoin’s feature that distinguishes it from Bitcoin and other cryptocurrencies is that it has a very high storage facility, which provides a great advantage to both LTC and investors. Another difference from Bitcoin (traded with the help of platforms like bitlq) is that Litecoin creates blocks faster on the blockchain. The reason for LTC leaving BTC and another reason for its success in the project is the high block creation speed.
What are the differences between Litecoin and Bitcoin?
- Litecoin’s transaction speed is shorter than Bitcoin. In other words, while the formation time of each block is 10 minutes in Bitcoin transactions, this process takes place in as little as 2.5 minutes in Litecoin.
- It has been reported that 21 million units of Bitcoin (BTC) will be produced without reducing the total supply value from the first project stage to date. This affects the fact that over time, both mining and trading require high amounts of money. Litecoin (LTC), on the other hand, can be produced more easily than Bitcoin, at least for now, since 84 million units will be produced in total, which triggers the decrease in the price of the devices required for mining.
What are the Advantages of Litecoin (LTC)?
Litecoin, one of the altcoins, attracted the attention of many investors due to its high transaction speed and greatly affected the expansion of its user portfolio. Having this feature makes it more popular than other cryptocurrencies.
Although it has the same working principle as Bitcoin, Litecoin (LTC) mining is done with less cost and risk than BTC mining. One of the advantages of Litecoin is that transactions are carried out in a shorter time as the advantage of low cost. It takes 10 minutes for blocks to form in Bitcoin. This has had a significant impact on the launch of LTC and attracting investors’ attention. Because the formation of a block in LTC takes about 2.5 minutes on average.
Thanks to this different algorithm in mining transactions, the time for investors to approve their transactions has decreased considerably. Such a decrease in the speed of sending purchases and sales provides a great advantage to litecoin investors.
How is Litecoin mined?
Devices called “ASIC” are used in Litecoin mining. These devices used are especially produced for mining operations. When it was first introduced to the market, it could also be produced with graphics cards (GPU) of personal computers, since the digging power was not difficult. However, as in all cryptocurrencies in general, as the mining power is made difficult in LTC, it should be said that even though it is possible to produce Litecoin with a graphics card, the money to be earned is not a significant figure. For this reason, those who want to mine Litecoin should have ASIC devices.
Although Litecoin mining is more economical than Bitcoin mining, it should be known that ASIC devices consume a lot of electrical energy. In other words, if you make production by purchasing 1-2 devices, you will only start to meet the electricity costs with the digging power being more difficult in the future. For this reason, those who are considering mining should produce more ASIC devices.
How to buy Litecoin?
There are many Cryptocurrency exchanges for buying Litecoins. You can buy Litecoin from local exchanges, as well as from global exchanges with BTC, LTC and other supported cryptocurrencies. In some stock exchanges, you can also buy it by sending cash from the bank to the account of the relevant exchange.
1. Register on one of the cryptocurrency exchanges.
2. After completing the registration process, you must complete the account information and provide the information required by the exchange correctly.
3. The most important thing to know when registering with the stock market is that you need to open an account on the stock exchange in your own name, and when transferring money from the bank, you need to transfer money from a bank account in your own name.
Cryptocurrencies, which started with Bitcoin and are around 5000 in number today, continue to earn, while different operating models continue to show themselves in investment cryptocurrencies. Cryptocurrencies are produced in two different ways. PoS (Proof of Stake) method, namely “proof of stake” and PoW “(Proof of Work) or “proof of work”. There is no coin burning in cryptocurrencies (Bitcoin, Litecoin, Ethereum, Bitcoin Cash etc.) produced with proof of work. Because the total number of production of many of them is certain. However, there is a coin burning process in the sold cryptocurrencies produced with the PoW algorithm.
Why is coin burned?
Coin burning is a common operation in cryptocurrencies. The biggest reason for this is to retain the investor. Although coin burning is done in different ways, coin burning is a deflationary mechanism. Deflation is a situation in which market prices generally decline continuously over a period of time. This is also the case in the cryptocurrency market. When an X coin is in circulation too much in the market, the supply-demand balances begin to change. In order to prevent this, some of the existing cryptocurrencies are burned and the prices are aimed to rise again.
Theoretically, the less money is available, the higher its price will be, and in order to do this in practice, coin burning is done in cryptocurrencies. In fact, it is a situation that exists in all commercial areas. For example, the situation that caused the price of some vegetables to rise in the market in previous years was not different from this. Although the burning process was not applied to vegetables, the increase in prices proceeded in parallel with the withdrawal from the market. Although the purpose here is to transfer more money to the cashier of the person holding the vegetables, on the contrary, there is the logic of keeping the investor in the coin burning process.
Crypto money projects or project owners can transfer or withdraw any amount of tokens to the market as they wish. This is the logic behind the burning of BNB coins on Binance. In general, the main reason for all cryptocurrencies to enter the coin burning process after completing their ICO is to reduce the number of tokens in the market, as we mentioned above, and thus ensure the prices move upwards.
Coin burning is a process that can be done to increase security measures, unlike the reasons we have mentioned above. Coin burning is also done to avoid unwanted transactions or increase the security layer. Ripple charges for each transaction and burns these fees (XRP) in order to protect the system against DDoS attacks. It is a kind of coin burning process, but the purpose is different.
How to burn coins?
Coin burning, which is a frequently heard process in the crypto money market, is actually an extremely simple process. As it is known, there are wallets in cryptocurrencies and the addresses of the wallets are different from each other and have a unique structure. In the process of burning coins, they are not actually destroyed. The wallets used in coin burning are irreversible wallets, and the project owners send the coins they want to burn to these wallets. There are irrevocable addresses called “eater addresses” to prevent the use of cryptocurrencies. These are designed similarly to wallet codes, but the biggest feature of them is that the coins sent here are not refundable. The coin burning process is successfully completed by sending it to these addresses.
What are the benefits of coin burning?
Coins that project owners burn by sending them to wallets called eater addresses at certain time intervals actually provide benefits for both project owners and investors. So, what are the benefits of coin burning?
- Since the prices will rise steadily with the coin burning process, investors who hold it will not want to dispose of the coins as soon as possible, which will allow them to make more profit.
- Burning unsold tokens in ICO projects and in coins like Ripple (XRP) increases users’ trust.