Crypto currency is also known as a digital currency. It uses a form of Blockchain technology to improve the security of the money. This is one of the main reasons it is such a valuable option for placing your money. There are all kinds of crypto currencies available, and Litecoin is one such crypto currency. Before you move forward with investing into the digital currency, you need to dive deeper into what Litecoin is and also how to buy Litecoin.
An Introduction to Litecoin
The best kinds of crypto currencies are designed to make an improvement over a former payment method. Bitcoin, which is the most popular crypto currencies, came about to improve the security of online payments. Litecoin split off of Bitcoin in order to cut down on currency generation time and improve the maximum financial trading. Litecoin split off of Bitcoin in 2011, and since the split, Litecoin has become one of the most profitable crypto currencies, which is why you need to know how to buy Litecoin.
Bitcoin and Litecoin
It is important to understand the difference between Bitcoin and Litecoin (and why Litecoin split off of Bitcoin). With a Bitcoin monetary transfer, it would take 10 minutes to process payments. Litecoin focused on improving this amount of time, so with a Litecoin Network payment it takes just 2 and a half minutes. A Litecoin script uses improved security measures. While Bitcoin is already safe and secure thanks to the Blockchain technology, Litecoin takes it to the next level with an improved asymptotically memory algorithm.
Litecoin has also adopted a form of security known as Segrageted Witness. With the improved security measures, Litecoin now can improve not only the security of financial transfers but slash transfer time as well. In 2017, it performed a monetary transfer from Zurich to San Francisco in under a fraction of one second. While you may not have the need to transfer money in under a second, Litecoin is a valuable investment thanks to the continued value growth of this digital currency.
Currently, as of November 16, 2018, the market trading cap on Litecoin within the United States is thousands of billions. There are over 58 billion Litecoin units in circulation, with a maximum supply limit of 84 billion. Many crypto currencies place trading limits on how many units are available at one time to help increase the potential value growth of the currency.
What Is Blockchain?
In order to understand any crypto currency you need to understand what Blockchain is. A crypto currency is basically nothing more than a series of secure numbers. Each unit has a combination to it. When you purchase the currency you are given the combination to the unit. In many ways it works like an extremely secure combination lock.
With Blockchain, once the first combination number is known it is necessary to move through this “block” down the chain to the next combination block. This combination must be opened before you can move down the chain to another block. So Blockchain security isn’t just a combination lock, it works like a combination lock, within a combination lock, within a combination lock (several times over). This makes Blockchain one of the most secure forms of financial trading in use.
Blockchain also makes it difficult to track where the money is coming from or who is making a purchase. Most crypto currencies that use Blockchain do have a digital ledger, so it’s possible to look back to see where the individual Blockchain units are being used, but it will not provide personal information on the user. This way, if you want to perform secure financial transfers that are nearly impossible to trace, a Blockchain crypto currency such as Litecoin is a valuable way to go.
What Is Litecoin’s Value?
This is an open ended question to answer. This is because a crypto currency is nothing. It is a series of digital encryption numbers. So when you’re buying or investing in it, you’re investing in a series of created numbers. It doesn’t physically exist and you can’t see it. The value of Litecoin, and all crypto currencies, is what someone else is willing to pay for it. So as long as there is a desire for Blockchain crypto currencies, it may increase in value.
However, if suddenly everyone stopped using the currency, it would be worthless. This makes crypto currencies both a high risk/high reward investment. It can dramatically increase in value, or it can be worthless. All that is why you should only invest in crypto currencies that are established and have a specific reason for existing. As Litecoin checks off both of these boxes, it is one of the more secure and stable digital currencies to consider investing in.
How Does It Work?
When looking into how to buy Litecoin, you need to know how it works. If you’ve used any other form of crypto currency, you should have an understanding already. The utilization of a digital currency is more or less the same from one to the next (although there are some variables to this, especially for crypto currencies designed for in-game play of certain video games).
Signing Up for a Digital Wallet
Before you buy any kind of crypto currency, you need to have a digital wallet to keep the money safe. Unlike money in your bank account, which is federally protected, if someone steals your crypto currency the money is completely gone. There isn’t anything you can do about it. This is one reason why crypto currencies use Blockchain technology to prevent others from breaking in and stealing the information. However, without a secure digital wallet it is all for nought.
Purchasing the Litecoin
After you have established a digital wallet, you can then make a purchase of the currency. When looking at how to buy Litecoin you will need to connect a bank account or credit card to the digital wallet. This way, money can be transferred from your account to the holder of the Litecoin units. When the transfer is complete, the Blockchain code is given to you and deposited into the digital wallet.
A digital wallet remains offline until it is needed. This way, by disconnecting from the Internet, it is not possible for an external entity to crack the Blockchain code of your currency. If you were to remain online with a connected digital wallet someone could, in theory, attempt to crack the code and steal your Litecoin.
How to Buy Litecoin
When looking at how to buy Litecoin you need to know a few basics. Once you’ve made the purchase, you shouldn’t have any problem making future purchases.
Signing Up for a Digital Wallet
There are several digital wallets out there. You may want to look for a digital wallet that also has an application available for your chosen mobile device. This way you can buy, and use, the digital currency wherever you might like. Coinbase, for example, is one such digital wallet, but it’s best if you head over to your app store and find one that fits your personal needs and then go from there.
Connect Your Form of Payment
After you have downloaded and signed up for the digital wallet, you now need to connect a form of payment. If you want to add your bank account, you must enter your routing and banking number. After you have added these, you can use your bank for buying the currency. You can also add a credit or debit card if you’d like.
The next step in how to buy Litecoin is to make the actual purchase. Open up your wallet and choose “Litecoin” as the desired crypto currency you want to purchase. As it is one of the more popular options out there, it will probably be listed near the top of any crypto currency library.
You will be shown the current going rate of the Litecoin. From here, select the number of units you’d like to purchase. You will be given a total price for the cost of these Litecoins. Accept the number price and submit your account information for payment. If you don’t submit and hold off, the cost of the Litecoins will change, as it fluctuates similar to stock prices. So when you are ready, submit the order and, once your money goes through, the Litecoin will transfer to your digital wallet.
In the world of crypto currencies, Bitcoin receives the majority of attention. However, there are several Blockchain currencies available you should consider. Litecoin is a split off of Bitcoin, so many of the features are similar. The main difference is the speed in which a monetary transfer takes place and some security measures. If you are interested in how to buy Litecoin, you will need to follow these steps of creating a digital wallet and making the purchase.
It isn’t a difficult process and may prove to be a valuable investment. Just make sure you understand how a Blockchain crypto currency works before deciding on if it is the right investment opportunity for you.