Bitcoin vs Litecoin: Similarities and differences Explained
Everyone who trade or use Bitcoin for shopping would surely want two things – minimum fees and fast transactions. Bitcoin, established in 2009, is at the top of currencies list and is widely used by people worldwide. Nevertheless, Bitcoin is not a cryptocurrency without a flow. With all numerous currencies emerging since then, only one crypto has managed to address the BTC downsides while preserving many of its best features – Litecoin.
Litecoin (LTC) and Bitcoin (BTC) are two of the most valuable and influential cryptocurrencies that are frequently opposed to one another. Litecoin is sometimes referred to as the "silver to Bitcoin's gold," a catchphrase to charm potential investors into diversifying their portfolio with LTC. Surely, both cryptocurrencies are prominent cryptocurrency market players and serve their role of substituting fiat money very well. However, a more in-depth examination of the similarities and differences between LTC and BTC can be helpful when choosing a cryptocurrency for a specific need. Let’s find out how different Bitcoin and Litecoin really are.
More on Bitcoin
Bitcoin, the initial decentralized cryptocurrency, is an asset that paved the way for all cryptocurrencies when it was firstly introduced in 2009. Its open-source software allows users all over the globe to manage BTC supply that cannot be tempered with by any government or central bank.
The Bitcoin software enables computers running it to manage a blockchain that records all transactions made with BTC by imposing a set of regulations. The Bitcoin blockchain is a comprehensive history of the network's transaction validated by nodes to ensure that each BTC cannot be copied or altered and that new coins cannot be created or used in a way that violates its regulations. Bitcoin is limited in coins, divisible, and transparent, which makes it a valuable option to eventually replace traditional currency.
More on Litecoin
Litecoin was created to appeal to BTC holders who seek to make transaction processing more efficient. To accomplish this goal, the Litecoin team copied the Bitcoin code and reduced the time it takes for new transaction blocks to be validated on the blockchain. To attract even more attention to LTC, Litecoin developed a set of new technologies such as the Lightning Network and Segregated Witness, which are now used on the Bitcoin blockchain. This approach takes Litecoin into the lead from other cryptos as it has always been positioned just as a Bitcoin “supplement” by functioning as a testnet for pilot Bitcoin features.
The Plisio cryptocurrency payment gateway presents a valuable proposition for small and medium-sized businesses seeking to transact with Bitcoin or Litecoin. By integrating the Plisio API into their website, merchants can conveniently sell their products or services online and receive payments in BTC or LTC. Moreover, with a minimal transaction fee of only 0.5%, Plisio ensures merchants enjoy the most cost-effective way of accepting crypto payments on the market.
Similar aspects of Bitcoin and Litecoin
Bitcoin and Litecoin, despite being different currencies, share many aspects. They are both decentralized cryptocurrencies, unlike fiat currencies such as the U.S. dollar or Euro, which rely on central banks for value, legitimacy, and circulation control. Cryptocurrencies, on the other hand, do not depend on centralized authorities but instead rely on the network integrity.
Additionally, Litecoin has several similarities to Bitcoin, including:
Transactions and storage. Investors view transactions made with Litecoin and Bitcoin as quite similar. They can be obtained through mining using a mining pool or purchased via a cryptocurrency exchange. They must be stored in a "wallet" and their prices are volatile over time.
Consensus mechanism. Another shared trait between the two cryptocurrencies is that they both operate on proof-of-work consensus mechanism. As previously stated, the mining process that allows for the creation of both currencies is similar.
What makes Bitcoin and Litecoin different?
Although Bitcoin and Litecoin share some similarities, they have some distinct differences as well. Here are the factors that set them apart.
Transaction Speed: While both cryptocurrencies have relatively fast transaction time, Litecoin has a shorter confirmation time of under 2.5 minutes compared to Bitcoin's average of less than 9 minutes.
Market Capitalization: Bitcoin has a larger market capitalization than Litecoin, with a value of around $544 billion compared to Litecoin's $6.7 billion.
Algorithms: Litecoin uses Scrypt while Bitcoin uses SHA-256. The two algorithms have different effects on mining new coins, with SHA-256 being more complex and requiring specialized hardware. This makes Litecoin more accessible for people who want to become miners.
Distribution: Bitcoin has a maximum limit of 19.3 million coins, while Litecoin can go up to 72.6 million coins.
Accessibility: The Bitcoin blockchain is more difficult to access than Litecoin's blockchain.
What coin works best for you?
Investing in BTC is a common starting point for cryptocurrency beginners due to its current top cryptocurrency status in the market. BTC can be purchased on various exchanges or accepted as a payment method through digital currency-based shopping.
Many investors are also interested in buying LTC due to its usability in routine transactions such as transaction speed and lesser fees. LTC can also be obtained through the same ways as Bitcoin. It is common for digital currency investors to diversify their crypto portfolio, hence investing in both LTC and BTC. However, it is crucial to be aware of scams and fraud in the digital currency market, as transactions with these coins are often irreversible. Before investing in either coin, it is important to assess the associated benefits and risks.
Get Started with BTC and Litecoin Now
If you are considering investing in Bitcoin or Litecoin, it is not necessary for you to buy these cryptocurrencies directly. Instead, you can start accepting them as payment for your business or services. This can be a great way to diversify your payment options and reach a wider customer base.
One of the best payment gateway options for businesses looking to accept cryptocurrency payments is Plisio. This payment gateway offers a range of business-oriented features, including low fees, easy integrations, and customized mass payout options.
With Plisio, you can accept payments in 18 different cryptocurrencies, including Bitcoin and Litecoin. In addition, Plisio offers 23 e-commerce plugin options, making it easy to integrate with your existing online store or platform, no matter what type of business you run.
Beyond its payment processing capabilities, Plisio also offers some useful bookkeeping tools for businesses looking to keep their finances organized. Plisio can help you enjoy a high degree of anonymity if you wish to avoid KYC procedures. So why not consider adding cryptocurrency payments to your business today and start exploring the many benefits that Plisio has to offer?
Please note that Plisio also offers you:
- Zen Cart
- Easy Digital Downloads
6 libraries for the most popular programming languages
19 cryptocurrencies and 12 blockchains
- Bitcoin (BTC)
- Ethereum (ETH)
- Ethereum Classic (ETC)
- Tron (TRX)
- Litecoin (LTC)
- Dash (DASH)
- DogeCoin (DOGE)
- Zcash (ZEC)
- Bitcoin Cash (BCH)
- Tether (USDT) ERC20 and TRX20 and BEP-20
- Shiba INU (SHIB) ERC-20
- BitTorrent (BTT) TRC-20
- Binance Coin(BNB) BEP-20
- Binance USD (BUSD) BEP-20
- USD Coin (USDC) ERC-20
- TrueUSD (TUSD) ERC-20
- Monero (XMR)