Litecoin entered the digital space in 2011 and is called «digital silver». Litecoin is a peer-to-peer internet currency that includes almost zero-cost payments anywhere in the world. The coin was created by a former Google employee named Charlie Lee. Litecoin features faster transaction confirmation times and improved storage efficiency than the leading math-based currency. With solid industry support, trading volume and liquidity, Litecoin is a proven medium for commerce in addition to Bitcoin. The payment network is completely decentralized, it does not have an emission center and governing bodies. Like we’ve seen with Bitcoin, Litecoin will likely stay as one of the best cryptocurrencies on the market for years to come. In addition, Litecoin became the first altcoin to reach $1 billion. Traders can buy Litecoin on such exchanges as: Binance, Bitstamp, EXMO, WEX and others, as well as trade CFDs.
How Litecoin System Works
Litecoin is very similar in design to Bitcoin. The Litecoin blockchain is able to handle a higher volume of transactions than its counterpart Bitcoin. The network is able to handle more transactions without the need for software changes in the near future. As a result, traders receive quick confirmation. Since 2017, there has been an upward trend in value, despite the impressive age of this platform. It should be noted that this system was initially developed as an affordable alternative to bitcoin. To ensure the functioning and protection of the system, cryptographic methods are used. As written on the official website:
Litecoin is an open source program, available under the MIT / X11 license. The Litecoin network processes a block every 2.5 minutes, while Bitcoin does it every 10 minutes. According to the creator of Litecoin, this allows for faster confirmation of transactions. 84 million coins will be issued, each of which will be subdivided into 100,000,000 smaller units. This means that there will be four times more of them than in the case of Bitcoin, the total supply of which will be 21 million coins.
The main advantage of Litecoin is still the ability to process bulk transactions. Thanks to the Scrypt technology, the speed indicators are much higher and the use of this currency is primarily beneficial for sellers, since they will be able to receive transaction confirmation in the shortest possible time, which will have a positive effect on customer loyalty and the speed of trading processes. It is also worth noting the possibility of conducting cross-chain operations – making transactions between various cryptocurrencies using p2p technology. Key advantages of Litecoin:
- High speed of work – blocks are generated on average every 2.5 minutes, which allows faster confirmation of transactions;
- Increased emission – maximum number of coins in Litecoin is 84 million, four times that of bitcoin;
- Complete anonymity – it is impossible to trace the movement of money;
- Decentralized system – excludes the possibility of regulation of the financial system by government agencies or third parties.
Main Benefits of Litecoin CFDs
Like other cryptocurrencies, traders can trade on the rates of Litecoins on Forex markets. CFD allows you to speculate in both upward pricing and falling prices in many different markets, including crypto markets and Litecoin specifically. You can trade with one of the best CFDs brokers. You don’t need to own Litecoin, you can just trade at its price. Litecoin CFD trading enables you to go short on Litecoin as well as long, which means that your position will grow in value if litecoins price drops against the dollar. If you go short and litecoin price soars, you’d suffer a loss. The analysis of volatility in the crypto market gives an idea of when the sideways trend will end and in what direction the Litecoin rate will move. The high volatility of Litecoin provides a good opportunity to make a profit. CFD trading provides all the necessary tools, options, as well as functions for comfortable trading.