What is Litecoin and why should you invest in it?

Let's understand in detail what Litecoin is, how it works, what are its main advantages and prospects
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The Litecoin cryptocurrency does not surprise with its dizzying popularity and price, like Bitcoin, but still has long been in the top ten in the ranking of digital assets. Today the market is moving towards a crisis due to a decrease in the price of military-technical cooperation, but this means of payment deserves full right to the attention of the investor.

Below is a complete review of Litecoin, including only relevant information.

What is Litecoin in simple words

Litecoin cryptocurrency is an alternative payment unit created according to the principles of cryptography and is a fork of Bitcoin. It has the properties of a typical digital asset:

• Information data about completed transactions is distributed according to blockchain principles;
• The system is decentralized - it functions without the intervention of the governing body or administration;
• The currency is not backed by GDP, securities or metals;
• Functions and is stored only in a virtual environment, has no material form;
• Has high volatility rates - the exchange rate changes several times during 1 quarter;
• Can be obtained through mining;
• Exchangeable for fiat currencies.

The last point is easiest to accomplish using the Matbi online exchanger. To do this, you first need to register on the site, send your Litecoin coins to your Litecoin wallet address in Matbi, then exchange them for rubles, and only then withdraw rubles to your bank card or e-wallet. The whole process usually takes no more than 15 minutes; it all depends on the quick confirmation of the transaction by miners. Litecoin can also be deposited here. To reliably protect user funds, Matby uses “cold” wallets. In addition to Litecoin, the service supports Bitcoin, Dash and Zcash.

Where can I find out the current Litecoin (LTC) rate?

The rate changes every minute. To find out how much Litecoin (LTC) is worth today, there are many websites, exchanges and trading platforms on the Internet. The price is influenced by both speculative and fundamental factors. Since the price of LiteKion depends on Bitcoin, respectively, these currencies are very similar. LTC is often ranked among the top five digital currencies.

In real time, you can track the value of the coin on the portal. The site presents the exchange rate in relation not only to the ruble, euro, but also to other cryptocurrencies. The graphs also provide detailed statistics on the volume of transactions, sales and purchases. The interactive table can be customized according to your requirements and the importance of the data.

To predict the dynamics of the fall and growth of a digital coin using a chart, you will definitely need analytical skills.

A cryptocurrency price forecast can be created based on technical or fundamental analysis. To technically analyze the dynamics of growth and decline, you need to study the asset chart presented on the site and use a variety of graphics tools.

The fundamental assessment is based on an analysis of the main news, events and statistics that are related to Litecoin.

An online Litecoin (LTC) price chart allows you to track the following data in real time:

• real rate;
• changes in the cost of LTC both for a single period and for all time;
• analysis of the volume of payments on major exchanges.

Drawing up a chart and an approximate forecast makes it clear to the user whether it is worth investing in digital currency now or whether it is better to wait for a certain time.

What is Litoshi

Most expensive assets are usually divided into fractional parts, which for convenience receive their own name - the principle is the same as for traditional monetary units. So, not every investor can and wants to purchase a whole btc and spend $6,000: rather, he will spend it on three or four satoshis - the components of this asset. Litoshi is the smallest part of one Litecoin coin. Each Litecoin is measured in litoshi

How many litoshi in 1 Litecoin

ltc has many components, and accordingly, the amount of litoshi is large: 100 million units in one coin alone. Accordingly, 1 litoshi is equal to 0.000.000.01 LTC.

Mining Litecoin

Mining - (from the English “mining” - mining) is the process of forming a new block in the blockchain system. Mining is necessary for the cryptocurrency architecture to continue to exist.

In the process of mining cryptocurrency, the miner directs the computing power of his equipment to select the correct hash function for the next block, after which he receives a monetary reward, which is distributed in a given amount.

It is noteworthy that each crypto-system has its own algorithm, which sets the tone for all subsequent emission. So, the Litecoin algorithm is called Scrypt.

The main differences between Litecoin and Bitcoin mining

Litecoin was created as a fork of Bitcoin, but the process of working with blocks of these currencies is different for a number of reasons. First of all, due to the fact that the assets are based on different algorithms: SHA-256 for Bitcoin and Scrypt for Litecoin:

• In the Litecoin system, blocks are generated in 2.5 minutes, while Bitcoin takes almost 10 minutes;
• LTC can be mined on the CPU (central processing unit), and such mining will be most efficient. In the case of military-technical cooperation, a GPU is more suitable;
• The emission of cryptocurrency is several times larger than that of Bitcoin - 84,000,000 versus 21,000,000;
• The difficulty indicator is recalculated at different frequencies.

Comparative table of the main characteristics of Litecoin and Bitcoin mining
In general, BTC mining can be called more complex than the LTC mining process - it requires large financial and energy costs.

Litecoin Mining Basics

It's worth starting with the fact that you can collect LTC using processors - CPU and GPU. A budget option and a good alternative - in the same Bitcoin, such equipment is no longer considered powerful enough and useless.

Mining is not much different from working with other cryptocurrencies. You can do this yourself, but many miners already use pools.

A pool is a server that combines the computing power of the equipment of several participants for efficient coin mining. After the hash function is selected and the block is solved, the same server distributes the reward among the owners, taking into account the commission fee.

LTC Mining Stages

In order to start receiving litecoin, you need to create a wallet to store coins: it is through this email address that the mined money will be sent to you. You won't be able to get started without a wallet.

It also doesn’t hurt to choose a way of working, of which there are many:

• CPU and GPU processors or a mining farm created on their basis;
• ASIC miners are integrated installations created specifically for the mining of electronic currencies. For example, Antminer L3 for Litecoin;
• Cloudmining is a dubious, but viable option. Here you find a cloud mining service and rent computing power. The advantage is that you don’t need to buy your own equipment and spend money on its maintenance; you can regulate the amount of power needed. The downside is that many services are unreliable pyramid schemes.

If you decide to mine on your own equipment, it is worth downloading and installing a miner program, for example, GUI Miner.

Download and install GUI Miner scrypt

GUI Miner is Litecoin mining software created using the Scrypt protocol. This software is perfect for a beginner - it does not pose any danger to the computer, it is easy to use. The basic settings already include the main pools.

Step 1. Download the software on the official GitHUB website: https://github.com/Matoking/ScryptMiner-GUI Step 2. Unpack the file Step 3. Open the program Step 4. Select a pool Step 5. Let's start working

Nothing complicated. There are a couple of points: firstly, in order to work with pools, you must be registered with them; secondly, you need to install the latest drivers on the video card.

Mining with video cards

On GUI Miner you can work with both CPU and GPU - you need to switch the button in the settings. Users note that the process goes faster with video cards.

There are no special requirements here, the only thing is to select sufficiently powerful equipment, that is, a computer with a good graphics processor or even a farm. Tablets, laptops, netbooks and other computer-related things will not cope with the extraction of digital currencies and will most likely break.

Also be prepared to spend money on electricity - during mining it is consumed in large quantities.

Video card or ASIC – what to choose?

Mining Litecoin on video cards
As was written above, by 2022 there are only two ways left for truly profitable mining of Litecoin - assembling a farm on video cards and purchasing an ASIC.

Let's look at the first case first. Mining Litecoin, like any other coin, begins with purchasing equipment and calculating potential profit. Afterwards all that remains is to install the software and select a mining pool. Further processes take place automatically.

It is important to understand that only powerful video cards of at least six pieces are suitable.

It is recommended to purchase GPUs from AMD and Nvidia - starting from the RX560 and GTX1050ti, respectively.

The cost of a video card is directly proportional to the required quantity. Those. When buying an RX560, six is ​​not enough to break even; you need several times more. Older models run the risk of not paying off at all.

Don't forget about cooling and overclocking. Choose video cards with powerful fans and radiators, as well as the ability to increase power.

Litecoin calculator: calculate profit

Litecoin calculator
You can calculate your profits and use the Litecoin calculator on this website: whattomine.com.

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WhatToMine: detailed instructions for using the mining calculator

Based on the current level of complexity of the Litecoin network, the video card memory must be at least 8 GB GDDR5 type. Also, when assembling a farm, it is worth using a 256-bit bus, since it has greater performance compared to 128-bit.

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GPU farms are significantly inferior to ASIC miners. However, even in this case, you will have to shell out a large sum, because to get a profit, one IC is not enough.

For example, let's take Bitmain Antminer L3++ costing about $132 excluding delivery. Its hashrate is approximately 580 Mhash/s with a consumption of 880 W. Without taking into account the price of electricity, the daily income will be $0.90, and the annual income will be $326.86.

Profit from one ASIC
// Source: whattomine.com
It turns out that Bitmain Antminer L3++ will fight back for a little more than six months. We repeat - without taking into account the cost of electricity. And if we are not talking about industrial mining, but about home mining, then it is important to consider what voltage your sockets can produce.

As for video cards, a more or less acceptable mining rig will cost several times more, with a lower return on investment.

We recommend a video about Litecoin mining on Antminer L3+:

Mining litecoin on Antminer L3+

Advantages and disadvantages of video cards and ASICs

Mining on Asic
Pros and cons of both options:

Video cards:

a good home option for those who want to get acquainted with Litecoin mining. One of the advantages is the possibility of improving equipment and mining different cryptocurrencies.

However, there are many more disadvantages, especially when it comes to Litecoin mining. All setup is done independently and requires precision. The design is too large, consumes a lot of electricity, and the cost of assembly will cost a lot of money.

ASIC:

The advantages are a relatively low price with higher power, configuration is carried out by the manufacturer, the miner only has to connect the device. Also, ASIC does not take up much space.

At the same time, one of the advantages turns into a disadvantage - since the setup is done at the factory, you will be able to mine only the cryptocurrency for which the device is designed.

We must not forget that when choosing between a GPU and an ASIC farm, the cost of electricity plays a large role in your income. For example, in the case of a farm of 10 Nvidia GeForce GTX 1080 Ti, the approximate monthly energy consumption will be 2.1 MWh, and for ASIC this figure is approximately one and a half times less.

Main Similarities of Litecoin and Bitcoin

All cryptocurrencies are similar in technical parameters, and at the same time have a number of distinctive features. This also applies to the comparative characteristics of BTC and LTC: we have already talked about the difference between them, now we will look at the similarities.

• Both systems are decentralized - they do not have an administration or governing body;
• The issue of coins is limited - above you can see how many LTC and BTC coins there are;
• They work on the principles of blockchain technology, Litecoin and Bitcoin are anonymous: they do not require personal information during operation;
• They do not have the status of an official means of payment;
• Divided into component units (see Section “How many Litoshi in 1 Litecoin”).

How to start cloud mining Litecoins

You will need to select and enter into a contract. Typically this is done in five simple steps:

1. You register for the service. Registration takes little time and requires a minimum amount of information - e-mail, phone number, nickname.
2. Fill out your profile. Some companies ask users to provide personal information about themselves and also undergo identity verification.
3. Choose and pay for the contract.
4. Conduct analysis and mine. Mining starts, as a rule, the very next day, and after 24 hours from the moment of its launch, you can observe the first profits on your account. The services also offer similar statistics for analysis, a profitability calculator that takes into account real accruals to predict future profits.

Advantages of LTC over Bitcoin

Litecoin also has its advantages over its “big brother”:

• Characterized by fast transaction confirmation times;
• Mining is cheaper and more accessible than Bitcoin;
• Blocks are formed four times faster;
• High network throughput;
• The emission figure is impressive - 84,000,000;
• Transactions take no more than 10 minutes.

Disadvantages of Litecoin

And about the disadvantages:

• The cost of Litecoin is an order of magnitude lower than BTC or ETH;
• Mining may not pay off;
• It is highly dependent on the market situation and often changes its course; it is not as stable as military-technical cooperation;
• The main disadvantage is industrial mining - it leaves no room for competition;
• Like any other cryptocurrency, it can be hacked and stolen by hackers.

How to earn Litecoin

You can earn LTC in different ways. They all differ significantly in complexity, cost, and final payback, and a description of the Litecoin cryptocurrency would not be complete without this information.

Mining on your own equipment

A lot has been said in this article about mining with your own equipment. First of all, for this method you will have to spend a lot of money: an ASIC miner costs from $800-1000, an Nvidia and AMD video card, depending on the model, is about half the price, but in any case one of them is not enough. You also need to select the appropriate software from the list of mining programs.

Problems may arise with the placement of equipment and payment for maintenance - it produces a lot of heat and noise, and also consumes a large amount of electricity. And it takes up a lot of space.

But you don’t depend on anyone and don’t risk anything, and a gadget that has become unnecessary can later be sold at the original price: the demand for equipment is so great that there is a shortage on the market.

Cloud mining

Cloud mining, unlike “home” mining, is considered very dangerous. Its main principle is this: you find a service that provides this service, select an algorithm and the amount of power you need, pay for it and receive it for rent for a certain period - most often for at least 1 month.

In this case, the client does not need to do anything: just withdraw the profit. On some cloud mining services, pools must be selected and configured manually. But it's not that difficult. The main risk associated with cloud mining is that these services are difficult to verify. Perhaps they have no office, no mining installations, and their entire activity is a fragile pyramid. For this reason, inexperienced investors are advised to be cautious.

Cranes

Faucets are sites that pay money for performing certain actions: subscribing to communities on social networks, watching advertisements, entering captchas, and the like.

It makes no sense to count on big profits in this area. In addition, there is a minimum withdrawal threshold. In order to get, say, 500 rubles, you need to watch ads around the clock.

Litecoin faucets are unpopular and infrequent.

If you want to buy Litecoin, be sure to read our article on how and where you can buy litecoin profitably.

Blacklist of scam projects

According to approximate data, pseudo-cloud mining occupies up to 80% of this segment of the cryptocurrency market.

A short list of pseudo-cloud mining companies.

Prospects for further development of Litecoin

Litecoin was created a long time ago - much earlier than the more popular Ethereum - but never reached a significant price. Of course, this does not mean that he has no prospects.

Sensitive to changes in the market, LTC is experiencing a slight crisis with a decrease in price and capitalization volume. After this period ends, the situation promises to return to normal.

You should not expect the price of the coin to reach the same scale as the cue ball. But positive user reviews and a good place in the ratings will allow it to remain in the middle line for a long time and be a convenient tool for investment.

Where can I buy Litecoin (LTC) at a favorable rate?

Even though Litecoin is not as popular a digital currency as Bitcoin, it is not difficult to buy. There are a huge number of services for selling cryptocurrency on the Internet.

Popular trading platforms.

1. Exchanger. You can purchase digital currency on the Internet at an exchanger using a convenient payment system. There is also the option of using Internet banking or a bank card. These convenient methods help you quickly make a transfer. Sometimes, you may need to pay a small commission.
2. Exchange. On any platform you can buy LTC in the pair that you need. But it is worth paying attention to the fact that purchasing in this way requires mandatory registration. You also need to undergo verification, which is much more difficult and time-consuming than buying currency at exchange offices.

In large cities of Ukraine and Russia there are real exchangers where it is possible to buy digital coins for cash.

List of Litecoin wallets

There are four ways to store Litecoin. The range of wallets is as follows:

• Online wallets - on websites or built into browsers. Not very reliable, but convenient option;
• Desktop - heavy software that is installed on a computer and functions offline. It is almost impossible to hack;
• Paper - a coupon with a randomly generated key and code. Not the most convenient option;
• Hardware wallets are small storage devices, something like a USB flash drive. The most expensive, but also the most reliable option.

Popular litecoin wallets:

• Ledger Nano S is a hardware model from a French manufacturer. It costs $1000 (maybe less or more, depending on the store), but is worth the price. Because it is universal, suitable for most currencies;
• Exodus is a desktop version with a user-friendly interface that even a beginner can understand. Pros: free installation;
• Jaxx is an online wallet that is fast and convenient. There is a smartphone app that allows you to track your balance and exchange rate anywhere.

At this point, the article about what Litecoin is in simple words comes to an end. Thank you for your attention!

Litecoin (LTC) to Euro rate today

LTCEUR rate from TradingView

Today Litecoin is a relevant and popular cryptocurrency. The payment network helps sell modern currencies, regardless of country and region. The commission will be minimal. The exchange rate against the euro is 114.56. It is worth noting that it is constantly changing, so you need to monitor it in real time on the sites.

It is quite easy to track changes in the price of cryptocurrency using charts. The longer the time period you take, the more accurately you can make a forecast for the dynamics of growth or decline.

Annual dynamics show that Litecoin is constantly increasing. This currency has become even more attractive to investors.