As far as cryptocurrencies are concerned, Litecoin and Bitcoin have become two of the most traded sources in the world. As things currently stand, Bitcoin experiences the higher rate of transaction, with almost $11 billion USD traded every day, but considering the age of this form of crypto, it’s understandable why Litecoin has yet to catch up – although estimates are predicting a rapid increase in popularity throughout 2023 and 2024. As these coins look set to go head to head, it’s a good idea to understand which one may be worth investing in for the near future.
An Introduction to LTC and BTC
When it was first introduced, Litecoin offered a major advantage over Bitcoin as a leaner, faster alternative which many traders quickly came to appreciate. The Lightning Network payment protocol was launched back in 2018 as a result of significant advances in layer-2 technologies for Bitcoin, and this certainly changed the state of play.
As a result, Bitcoin’s speed and transaction costs have become more comparable to Litecoin’s. Although Litecoin has been upgraded to the Lightning Network, its transaction fees still remain a fraction of what Bitcoin’s are on average – meaning huge savings for repeat traders (just look at the current LTC to USD exchange rate).
The block time of Litecoin is 150 seconds, versus Bitcoin’s 600 seconds, which gives it a faster transaction rate (of roughly 75%). As a result, Litecoin is capable of processing almost 60 transactions per second, compared with under 10 transactions per second for Bitcoin.
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Uses and Functionality
In addition to being used as investment tools, Bitcoin and Litecoin are decentralized currencies that can be used for buying a wide variety of products and services. This similar is becoming fairly standard across the board for cryptocurrencies, however, and so this may not be a pro or a con in the near future.
Another similarity between these two forms of crypto is the fact that they are both widely recognized and were among the first digital currencies to find themselves accepted by the traditional cryptocurrency community. Consequently, they are accepted as payment by a wide range of merchants around the world – although Bitcoin has a much easier level of access via dedicated ATMs.
The coins look similar at first glance, but once you dig deeper into their features, functions, and historical prices, it becomes clearer that they are both fairly unique in nature.
Heavy Vs Lite
Within the industry, many traders have come to define both types of currency as Heavy and Light (or Lite). Bitcoin is considered by many to be the true GOAT, being the first globally acknowledged form of cryptocurrency and carrying a lot of weight behind the name. As a result, many traders trust Bitcoin over LTC, even if they do end up experiencing slower block times and pricier transactions.
On the other side of the ‘coin’, LTC is cheaper to invest in, has a quicker block time, a lower transaction rate in the form of fees, and is considered by many to be an up-and-comer. One major drawback however is that the sheer versatility of Bitcoin is lacking by Litecoin. Many put this down to the branding behind Bitcoin, however, and these same individuals expect LTC to gradually grow until it equals, or rivals Bitcoin on a global scale.
One thing that can be said for both coins is that their rate of growth is expected to climb well beyond 2025, with possibly minor interruptions taking place as markets decline.
Challenges Faced by Traders
Another important factor to consider is that although LTC and BTC can be stored within the same software, including within the same wallet – they cannot be interchanged for one another. This hurdle can be inconvenient at times, but considering that there are so many other ways to pay, trade, and transfer, it’s a fairly minor complaint.
It’s worth noting that there are also exclusive wallets available that are specifically aimed at users of both types of coin, but the vast majority of traders will want a wallet that can look after multiple currencies simultaneously. That being said, the option to have a dedicated wallet can be appealing, especially to avoid confusion, and so the choice is really up to the user when it comes to deciding between these types of crypto.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
