Bitcoin or Litecoin – Which One to Choose?
Nowadays, many cryptocurrencies like Bitcoin, Litecoin, Ethereum, etc., exist. People are trading on various exchange platforms. Every digital currency has its value, and it is hard to choose the best one to trade until you know detailed comparisons between them. BTC is an old and popular virtual currency with great returns. On the other hand, Facebook’s Litecoin is also one of the leading and popular cryptocurrencies.
Many people get confused when it comes to bitcoinsystem and Litecoin. The following article will compare these two virtual assets and decide which one is perfect for trading. There are many parameters for comparison, and you need to go through them in detail. Consider your requirements and choose which one is perfect for you as per your requirements.
1. Transaction Speed
The word ‘Lite’ describes fast, which means that the transaction speed of Litecoin is high compared to Bitcoin. The validation process of transferring funds from one source to another is also quick. If anyone wants to send assets on a different side, using Litecoin will be highly recommended compared to BTC.
2. Transaction Fees
It is necessary to spend some money on trading the assets. If you want to transfer cryptocurrencies daily, then it is recommended to use Litecoin. The transaction fees of Bitcoin are quite high, which makes it less preferable. But when you want to trade assets once in a month or sometimes in a year, it is fine to prefer BTC. It is possible to transfer a large number of funds at the same time if you have Bitcoin.
Scalability is a parameter, which means that a person can make more transactions at the same time. But if we compare this point between these two digital currencies, they are improving with time and technology. The transaction fees of Litecoin is quite low, but more transfers at the same time with less cost is not possible. On the other hand, Bitcoin has a slow transaction speed, and it is quite challenging to make various transfers simultaneously.
4. Hash Rates
When it comes to the hash rates, it means we are talking about the security of the network. Making a secure transaction is a primary factor that everyone considers while trading in cryptocurrencies. The hash rate of the Bitcoin is 51% is high, and therefore, it is more secure to various cyberattacks.
On the other hand, Litecoin is not that safe as compared to BTC. Currently, it is becoming unprofitable, and the hash rate is also decreasing rapidly. Nowadays, a few people are investing less money in LTC.
Currently, the approximate price of the Bitcoin is $11767, and Litecoin is $62. If you are a beginner in trading, it will be better to invest less and get fewer profits. It will be challenging to afford a considerable loss by losing BTC. If you are an expert in trading and know all ups and downs happening in cryptocurrencies, you are ready to trade BTC assets. There is immense growth and winning if you know how to trade with Bitcoin.
Bitcoin can be purchased and sold by using blockchain. It is a network that stores many records in nodes. It is possible to transfer funds in any location across the globe with high transaction rates. The blocks in the network are used to make transactions, but it is a slow process.
It is necessary to have a superfast and robust computer system to make all the transfers. It can be quite expensive, and then, Litecoin is invented with Scrypt, which makes mining quick than BTC withing less transaction feed and speed.
7. Use of Cryptocurrency as Fiat Money
Many companies are there that accept payment in Litecoin due to low transaction fees and high speed. Instead of money, you can transfer it to another account. Despite the popularity of Bitcoin, it is considered only for trading and not for other transactions. If we talk about this parameter, then LTC wins over BTC. People love to have a better digital currency, secure, easy to transact, and without any additional fees.
8. Coin Limit
There is a coin limit in every digital currency, which means that no currency will produce further into the system. An individual can get funds only in the available limit. If we compare these virtual currencies, then BTC’s restriction is 21 million, and LTC is 84 million, which is quite high.
9. Block Rewards
This parameter is about rewards given to an individual at the time of mining for exploring the blocks. The reward gets halved every 210,000 and 840,000 blocks. The process is done every few minutes daily. The value of the rewards keeps on changing and given after a few years. The chances of getting higher rewards are in Litecoin instead of Bitcoin.
The number of blocks is higher in Litecoin than Bitcoin, which means that the mining process will also take more time. The parameter of profitability is a significant concern for many traders across the globe.
After comparison, there are not great profits in dealing with LTC assets. There are high chances of low security due to fewer miners. On the other hand, it is difficult to mine Bitcoin and has a higher price. Therefore, anyone trading BTC can get high price returns.
In the world of cryptocurrencies, there is a huge competition among various digital currencies. Due to many options, people are confused to choose the right one out of many. Both Litecoin and Bitcoin are high in demand. When it comes to choosing between them, then it depends on various parameters, that we have discussed above.
If anyone wants to trade in virtual currency, with low transaction fees and high speed, LTC is the best option. But if security is the main factor, the go with BTC as it takes too much time to mine, and the price is also high. The choice also depends on the trader, whether he is a beginner or an expert.