All You Need To Know About LITECOIN – Table Of Content
- Symbol and short form
- Key Person
- History, Creation & Development
- Mining Process and Requirements
- The growth of Price with Chart: Compared to GBP, EURO, USD and Naira.
- Litecoin Supply (Circulating and Total)
- How to Earn with Litecoin
- Crypto Currency Services
- Associated Risks
- Are CryptoCurrencies Legal & Taxed?
- On a Final Note
What Is LITECOIN?
Litecoin is a crypto Currency just like Bitcoin. It is a form of currency that is digitally transacted. In other words, it’s a medium of exchange, but designed for the purpose of exchanging digital information through a process of principles of cryptography. Cryptography is used to secure the transactions and to control the creation of new coins. All cryptocurrencies other than Bitcoin are generally called ‘altcoins’- so Litecoin is an altcoin.
All you need to know about Litecoin is; Litecoin is one of the largest altcoins in the crypto world. Litecoin began receiving media attention in late 2013 – reaching a market cap of $1 billion. And Litecoin is one of the crypto coins with the largest market capitalization in Coin market.
What Is The Symbol And Shortform Of LITECOIN?
The short-form of Litecoin is (LTC).
While the symbol is seen in the image below:
Who Is The Founder Of LITECOIN?
The key person in Litecoin is Charles Lee, the brother to Bobby Lee of the BTCChina
History Of LITECOIN
The history of Litecoin dates back to October 2013, Litecoin was released via an open-source client as at October 7, 2011 by the key personnel Charles Lee, a brother to Bobby Lee of BTCChina. The Litecoin network went live on same October 2011, with a fork of the Bitcoin Core client, with differences primarily by having a reduced block generation time of Two and a half minutes increased maximum number of coins, with a different hashing algorithm called scrypt and a slightly modified graphical user interface. In same October 2011, Litecoin was released and became the first successful cryptocurrency to use scrypt as its hash function rather than SHA-256. This gave the general public the ability to mine Litecoins without the purchase of specific hardware such as the ASIC machines used to mine Bitcoin.
Litecoin grew tremendously as at November 2013. Litecoin reached a $1 billion marketcap in November 2013. While as at August 16th, 2017. Its market capitalization was US$2,253,184,567 at around $42.94 per coin.
Litecoin, within the shortest possible time as at May 2017, Litecoin became the first of the top-5 crypto currencies to adopt Segregated Witness. (According to Coinmarket cap) Still in the same year, May, the first Lightning Network transaction was completed through Litecoin,
How To Mine LITECOIN
Litecoin is a minable crypto coin. Unlike Bitcoin and other coins that use SHA-256 POW, Litecoin uses the Scrypt hash protocol. These are the two major hashing functions, but several different kinds exists and are used by other crypto currencies such as Scrypt-N and x11. The different hashing functions were adopted to answer concerns with the SHA-256. Before, individuals were able to mine Bitcoin with their GPU’s, which require a large amount of energy. But as Bitcoin grew in popularity, ASIC SHA-256 machine were built which made GPU mining obsolete. Scrypt hashes require lots of memory, which GPU’s are already designed to handle and ASIC machines were not.
However, Scrypt mining require a lot of energy and eventually Scrypt-ASIC machines were designed to tackle this problem. Now Litecoin considered changing their proof-of-work function to avoid ASIC mining. Scrypt also thought that their proof-of-work is much more energy efficient than SHA-256. Bitcoin blocks are solved at a rate of one per ten minutes while Litecoin blocks are solved at a rate of one per two and half minutes.
Growth Of Price Of LITECOIN With Charts
You need to know that Litecoin have grown tremendously over the years; In terms of USD to LTC, you can argue that Litecoin is trading near its all-time highs. It is hovering within the $45.00 to $55.00 range at the moment, (October 7th 2017). But it has a history of sharp movements. There was a day in which Litecoin price increased more than100%.
Having said that, prices remained stable for much of 2014, 2015, and 2016. Then crypto currencies experienced a renaissance of sorts. Litecoin price prediction for 2018 was fairly downbeat in January and February, but then rumors started circulating that it would be freely traded on Coinbase and that changed everything.
Adding a Litecoin exchange was a spark that sent LTC prices soaring high. As soon as investors could buy Litecoin without the hassle of going through Bitcoin, it jacked up the price with more than 800%.
As at today, October 7th, 2017. Here are the ruling rate of Litecoin to major fiats.
GBP (1 LTC = £39.73760732)
EURO (1 LTC = €44.14999497)
USD (1 LTC = $51.80723140)
NAIRA (1 LTC = ₦18,462.50)
LITECOIN SUPPLY (CIRCULATING AND TOTAL) Today October 6th, 2017
Market Cap, Volume (24h), Circulating Supply and Max Supply
How To Trade, Earn And Invest in LITECOIN
You need to know that there are many ways to earn with Litecoin; there are also many trading platforms where one can trade Litecoin.
To earn with Litecoin;
- One can buy and Hold the coin (To hold means to buy at a cheaper rate and wait for price to increase, then, one can sell and make some gains)
- One can also buy and exchange with local currency, whence, dollar rate fluctuate against ones local currency, then one will make some gains too.
- One can also contribute with Litecoin on a peer to peer donation platform like MMM China and earn some percentages. etc.
There are many trading platforms supporting Litecoin and it’s pairing with other coins, these include but not limited to:
LITECOIN CRYPTOCURRENCY SERVICES
To get information and monitor cryptocurrencies, there are avenues and websites offering such services. For instance;
CoinMarketcap is a very convenient and excellent way to check on the market capitalisation, price, available supply and volume of crypto currencies.
Reddit is a great way to stay in touch with the community and follow trends.
CoinWarz is a website for miners. This site can help miners determine which coin is most profitable to mine given their hash rate, power consumption, and the going rate of the coins when sold for Bitcoins. You can even view each coins current and past difficulty.
Liteshack gives visitors the avenue to view the network hash rate of many different coins across six different hashing algorithms. They even provided a graph of the network’s hash rate so you can detect trends or signs that the general public is either gaining or losing interest in a particular coin.
Associated Risks To Consider When Investing in LITECOIN
THE RISK OF INVESTING IN CRYPTOCURRENCIES
First and foremost, be aware that this is a hugely speculative investment. There are a host of cryptocoin vulnerabilities that you need to be aware of. Hackers have gained unauthorized access to digital wallets and cryptocurrency exchanges. As recently as 2016, more than $50 million in Ethereum was stolen from investors in a fund known as the DAO.
Also, cryptocurrency market prices are often highly volatile. The DAO hack previously mentioned caused the price of the cryptocurrency, Ethereum, to tumble, leading to a violent market correction. Such events can be notoriously hard to predict and following the pulse of the digital currency community can be a daunting task to any investor.
ARE CRYPTOCURRENCIES LEGAL & TAXED?
In the United States, the IRS has ruled that Bitcoin is to be treated as property for tax purposes, making Bitcoin subject to capital gains tax. The Financial Crimes Enforcement Network (FinCEN) has issued guidelines for Cryptocurrencies. The issued guidelines contain an important caveat for Bitcoin miners: it warns that anyone creating Bitcoins and exchanging them for fiat currency are not necessarily beyond the reach of the law. It states “A person that creates units of convertible virtual currency and sells those units to another person for real currency or its equivalent is engaged in transmission to another location and is a money transmitter.”
Miners seem to fall into this category, which could theoretically make them liable for MTB classification. This is a bone of contention for Bitcoin miners, who have asked for clarification. This issue has not been publicly addressed in a court of law to date.
While cryptocurrencies are legal in most countries, Iceland and Vietnam being an exception – Iceland mainly due to their freeze on foreign exchange, they are not free from regulations and restrictions. China has banned financial institutions from handling bitcoins and Russia, while saying cryptocurrency is legal, has made it illegal to purchase goods with any currency other than Russian currency.
ON A FINAL NOTE
Investing, Earning and Trading in CryptoCurrency may have the potential for a rewarding return. But I can tell you from experience when you see such volatility, press coverage and your neighbors start giving you advice on when to buy and sell, it’s probably a good idea to pump the breaks.
Investing in Crypto and trading is a very new market. It requires specialized knowledge that may be inscrutable to the uninitiated. Rampant growth has led to volatility. And while it may seem attractive to invest in digital currencies, this brand new field does have some instability to consider before investing. As with any new investment, be sure you weigh the risk and reward so you can make the right choice for your situation.