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What is Litecoin (LTC)?
Litecoin is a peer-to-peer virtual currency with no centralized authority. Individuals and institutions all over the world can use the Litecoin network to make instant, near-zero-cost payments. Bitcoin, Litecoin, and many other cryptocurrencies use the proof-of-work (PoW) algorithm to secure their networks. To put it simply, PoW requires one party to demonstrate to all other network participants that a certain amount of computational effort has been expended.
Litecoin is a cryptocurrency that was created two years after bitcoin by Charlie Lee, a former Google engineer. Litecoin is the ninth most valuable cryptocurrency by market capitalization.
It was a formidable rival to bitcoin at first. However, as the cryptocurrency market has become more crowded with new offerings in recent years, Litecoin’s popularity has declined.
Litecoin has always been seen as a reaction to bitcoin. In fact, when Lee announced the launch of Litecoin on a popular bitcoin forum, he referred to it as the lite version of Bitcoin. As a result, Litecoin shares many of the same features as bitcoin while also adapting and changing some other aspects that the development team felt could be improved.
Like all virtual currencies, Litecoin is a type of digital money. Litecoin can be used by both individuals and businesses to make purchases and transfer funds between accounts. Participants can use Litecoin to conduct transactions without the need for an intermediary such as a bank, credit card company, or payment processing service.
Why do traders use it in trading?
Litecoin can be used to pay people anywhere in the world without the need for an intermediary to process the transaction. Traders can be also Miners that are rewarded with Litecoin for participating in the mining process. A Litecoin halving is when the amount of Litecoin rewards given to miners for each block is cut in half and these rewards can be traded in cryptocurrency exchanges.