Cryptocurrency can seem like a daunting concept. Over the past decade, interest in cryptocurrencies has increased exponentially. Bitcoin (BTC) has continued to be the main focus of this excitement.
After its release in 2009, BTC has remained the predominant name in the crypto sphere. Out of the thousands that exist, there are at least 20 other digital currencies: like Bitcoin Cash, Ethereum, and XRP, which are tracked and monitored by major financial institutions and news outlets.
Two of the best known are Bitcoin and Litecoin (LTC). In fact, Litecoin’s own developers have long stated that their intention is to create the “silver” to Bitcoin’s “gold.”
What is Bitcoin? What is Litecoin?
Bitcoin is the oldest cryptocurrency and has been the leader in the realm since 2009. Bitcoin and Litecoin have a lot in common. To be almost reductive, they are both cryptocurrencies. Where government-backed currencies like the U.S. Dollar or Turkish Lyra depend on political and legal instruments for value and legitimacy, cryptocurrencies rely solely on the cryptographic strength of the network. Demand dictates the value of these currencies, much like it does with local coin around the world.
Key Facts
- Bitcoin’s market cap (total value of all coins) is over $176 billion & Litecoin’s is under $5 billion: as of February 24, 2020.
- Litecoin can generate a greater number of coins than Bitcoin: 84 million to 21 million coins.
- Litecoin’s transaction speed is faster, but the difference does not impact the value or usability of the currency.
- Bitcoin and Litecoin use different cryptographic algorithms: Bitcoin uses the SHA-256 algorithm, and Litecoin uses Scrypt.
- Bitcoin’s median transaction fee is much higher than Litecoin’s at $0.257 USD (BTC) to $0.0027 USD (LTC)
Trading Cryptocurrencies
While Bitcoin remains the highest valued player in the cryptocurrency space (Bitcoin price in USD = $9.5 billion), others such as Ethereum, Ripple, and Litecoin are catching up. Each cryptocurrency has its differences, more important than the technology and fees behind them, are the partnerships and use cases for each that influence value.
Since these currencies are not tied to countries and traditional trading markets they can be traded at any time Monday through Sunday. As the market never closes traders are always able to capitalize on the most volatile market in the world.
Bitcoin does not receive as many updates to its protocols as some other digital currencies, while other systems like Litecoin are updated more regularly sparking interest and price movement. A number of factors around the world influence the crypto market. Meaning there is constant activity on the market that can be capitalized on.
With Olymp Trade, clients can trade these assets without having to hold them in a cryptocurrency wallet, drastically reducing the complications around profiting from them.
Conclusion
Cryptocurrencies like Bitcoin and Litecoin have revolutionized the way money moves around the world and trading possibilities. Originally, exchanges were the only sites that provided access to these assets, now trading platforms like Olymp Trade provide traders much easier ways to capitalize on the only 24-hour market.
To be successful, both fundamental and technical analysis are essential to profit from these assets. Take advantage and earn any time day or night with these decentralized currencies with Olymp Trade.
