Litecoin is one of the most primitive crypto-assets created just after Bitcoin. It’s a digital asset that intends to possess the fundamentals of Bitcoin, built to be faster and more efficient than Bitcoin. Interestingly, the mining process is also much faster with a higher upper limit of LTC coins than BTC. Litecoin is used to transfer funds using blockchain technology and makes sure that every transaction is recorded.
The native token of the Litecoin platform, LTC is said to be the most undervalued asset in the crypto space. As the asset is yet to attain half of the target set for the LTC in 2022 and while the BTC is trending within a very small bracket, the trading pairs are expected to go on a rise. And hence LTC/BTC is expected to regain their lost positions and form a new ATH beyond 0.001 BTC very soon.
Litecoin In Brief
Litecoin was founded by a Google engineer, Charlie Lee in 2011, two years after Bitcoin. And since its inception, the asset had become a very strong competitor for Bitcoin, possessing similar qualities but with faster transaction speed. Woefully, as the crypto market advanced the competitors for Bitcoin swelled and Litecoin was left behind.
The prime objective to create the cryptocurrency was to introduce a lite version of Bitcoin, having similar features but with a better transaction speed. Moreover, the asset intends to be a transferable asset more than a store of value, where-in the individuals or the institutions can use LTC for purchases and transfer funds between the accounts.
How Does Litecoin Work?
Very much similar to Bitcoin, Litecoin is also a peer-to-peer digital currency that is not governed by any central authority. It offers instant, secure payments at a much affordable cost than Bitcoin. Litecoin also works on the same Proof-of-Work(PoW) consensus mechanism which includes the Nodes or the computers within the network to solve complex mathematical problems to validate the transactions and add them to the blockchain.
Litecoin uses improved hash functions to carry out the PoW called Scrypt algorithm which is more secure and safe than Bitcoin’s SHA-256. It not only requires computational power but also checks the system memory for the operation. The block within the Litecoin blockchain is first verified by the mining software and later is made visible for the participant called Miner. The miner further verifies the block that is added to the blockchain which is a record of every Litecoin transaction.
The miners do receive rewards to carry out this process. The miner who validates the block at the earliest receives 12.5 LTC that he can either HODL or else sell in the open market. Similar to Bitcoin, Litecoin rewards are also halved every 4 years. Starting with 50 LTC as rewards, a couple of halving events took place in 2015 and 2019 which halved the rewards from 50 to 25 and later from 25 to 12.5LTC. The next halving is scheduled for August 2023, wherein the rewards will be further halved to 6.25.
Additional Read: Litecoin Price Prediction
Will LTC/BTC Hit 0.01 BTC in 2022?
The LTC/BTC pair was pretty strong during its inception as both assets were equivalently very strong. And hence the pair traded at its peak of 0.05 BTC which remains its ATH. However, as the crypto market advanced, many new assets entered the market and Litecoin failed to keep up its glory against them. And eventually, the asset remained within the narrow braces, while Bitcoin went on to trade close to $70K.
This impacted the LTC/BTC pair to a larger extent and hence the pair began to form constant lower lows. The 2017-18 bull run uplifted the pair to some extent but failed to reach closer to the ATH. However, while in 2021, when most of the crypto assets paired with USDT leaped long to reach new heights, LTC/BTC pair bottomed hard throughout the year and maintains a similar trend with the beginning of 2022.
The Litecoin and Bitcoin with the USD or USDT pair, are currently consolidating without recording notable gains. And hence this may be the time when the asset paired with BTC may leap long. At the press time, LTC/BTC is priced at 0.003194 BTC with the buying volume slowly being built on the platform. Continuing with a similar trend, the pair may attempt to eliminate yet another zero by the end of 2022.
Factors Affecting LTC/BTC Price Today
Bitcoin Price Variation in Open Market
As mentioned above, Bitcoin’s consolidation within a very narrow range could deeply impact the LTC/BTC pair. Experienced traders and veterans usually prefer to swap their BTC with the other altcoins. And when the BTC price against USD is plunging, the assets paired with BTC rally high.
Similar to Bitcoin, Litecoin’s supply is also limited but much more than Bitcoin. While Bitcoin’s upper limit of total supply is around 21 million, Litecoin’s is around 84 million. And hence the scarcity within the platform usually uplifts the asset price.
Secured Network with Lower Transaction Fees & TPS
Litecoin inculcates a more secure algorithm than Bitcoin and hence the transactions are pretty much faster at negligible costs. While the TPS on Litecoin is only 56 which is good compared to that of Bitcoin, but is very less in contrast with the emerging blockchains like Solana, Cardano, Polkadot, etc.
Where & How to buy LTC/BTC
Litecoin is among the primitive crypto assets in the market and is widely available for trade on almost all platforms. Yet, the LTC/BTC pair is available for trade here in CoinDCX too, but with some additional features also. We are India’s first crypto Unicorn and most trusted cryptocurrency exchange with a huge user base of more than 7.5 million.
We offer a smooth, hassle-free trade at just a single touch on our CoinDCX app which is loaded with a wide variety of different cryptocurrencies and multiple features. If you have still not downloaded the App, it’s the best time to do so. A new upgraded version of the ‘CoinDCX Pro App Update’ is on its way.
To buy an LTC/BTC pair, just download the mobile app and register yourself with your personal and bank information. Also do not forget to complete the KYC process for smooth withdrawals. Further, fund your wallet and purchase Bitcoin initially. Later search for an LTC/BTC trading pair and swap your BTC with LTC. And done!!
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