When developers launched Litecoin in October 2011, the aim was to serve as a complement to Bitcoin. Being a new cryptocurrency, Litecoin developers could identify Bitcoin’s flop and create a solution to it, including solving its slow transaction rate. As a result, migrating from BTC to LTC is almost in the same circle; however, having both currencies in your investment portfolio is nothing far from the best decision.
Litecoin’s team are experienced cryptocurrency actors that launched the coin as an open-source currency. Therefore, Litecoin being a cheap currency with a fast rate, has become applicable for daily transactions.
Whether you are new to the cryptocurrency industry or just climbing the ladder, diversifying your investment portfolio should be prioritized. Hence, here is the information you need to know about BTC to LTC combinations.
The Similarities Between Litecoin and Bitcoin
Since Litecoin developers describe it as Bitcoin’s silver version, we expect close resemblance, even though Bitcoin remains the leading currency.
Both Litecoin and Bitcoin have the same codebase and follow a similar price fluctuation. It is valid that the price volatility rate varies; at the same time, volatility reflects the market demand and supply. The two cryptocurrencies can share similar price fluctuations since they have familiar enthusiasts, according to research. Some investors do not mind changing from BTC to LTC, while the experienced ones keep both in their portfolios. Hence, Litecoin serves as the perfect complement for Bitcoin.
Litecoin Foundation started its significant movement in 2018, after making the cryptocurrency partake of mainstream financial transactions through Germany’s WEG banking system. Litecoin provides an affordable chance to transact massive amounts, and little money since transferring a considerable part would incur a high fee on Bitcoin. Also, bitcoin’s high cost of mining, and extensive harsh mechanism, has led to its drawback of being a medium for daily transactions. Although Bitcoin is less scalable, Litecoin incorporates smart contracts into the blockchain ecosystem.
Bitcoin and Litecoin similarity is also in their developments, as they have similar original codes. Charlie Lee, the founder of Litecoin, created the currency, building in Bitcoin’s original code.
The similarity between Bitcoin and Litecoin may seem outrageous; it could be attainable due to the deliberate effort of Lee. However, Litecoin needs to bring something new to the table to attract more investors, aside from following Bitcoin. Developers not creating anything new from the first cryptocurrency may not encourage new investors to move from BTC to LTC or even keep both, despite being the best investment strategy.
According to the Evonax exchange, maximum security is possible through a trusted wallet.
“For security reasons, we will wait until your transfer to us is securely confirmed by the network, which is the industry standard for an irreversible transaction.
Once the confirmations are completed, the Bitcoins will be exchanged, and we will send the exchanged Litecoins to the wallet you provide.”
How Litecoin Hopes to Stay on Top of its Game
Litecoin uses a modern algorithm known as Scrypt, which provides easy accessibility for new miners, compared to the traditional algorithm known as SHA-256. In Scrypt, miners receive 25 Litecoin per block as an award for successful transaction validation. This equates to a 4:1 ratio of Litecoin and Bitcoin maximum supply, resulting from 84 million Litecoin production.
Lee announced the developers’ effort in making Litecoin value three billion dollars due to its shared code with Bitcoin. The currency needs to upgrade its market value to prevent a sudden crash.
Contrary to many other altcoins, Litecoin undergoes systematic development, which proves it is highly sustainable. As technology increases, we can expect a gradual growth of this currency. Also, Litecoin’s integration has helped it to receive massive support from the Crypto community. It has a wide range of support from developers, web casinos, exchanges, online and offline merchants.
These days, cheap coins attract investors with low socioeconomic status. Research shows that altcoins have received a massive number of participants since the beginning of 2021. However, experienced investors would realize migration may not be necessary since they can retain Bitcoin and Litecoin in their portfolios. Since the cryptocurrency price is highly volatile, this decision would help you stay at your top game and save you during the bearish periods. Therefore, the BTC to LTC trend is a result of market agitations.
During market agitations, insecurity threats increase, with many investors losing a considerable sum of digital coins to cyber criminals. Amidst this, an investor’s choice of wallet would serve as the most excellent investment.