Looking deeper into Litecoin

If you've been running your CoinPot faucets, you'll have started accumulating a bunch of different cryptocurrencies besides Bitcoin. One of these is Litecoin. So you have a better idea of the universe you're immersing yourself into, let's go over the basics. For starters, Litecoin was meant to be a more-usable alternative to Bitcoin. Differences in its blockchain mean it's got quicker transaction times and also make it harder to mine on an industrial scale, like happened with Bitcoin in China until recently. As a result, a whole lot more desktop mining has occurred and the profits have accrued in smaller numbers to far more people. There are benefits and drawbacks to this approach. The main benefit to restricting industrial mining is that it redistributes the mining fees to a greater number of people, who by owning it have an incentive to use it as currency. This is one of the reasons Litecoin has a large enough market cap to be worth discussing at all. The main drawback is that the higher number of people using smaller amounts of it makes it a whole lot more stable than Bitcoin. This isn't a drawback if you aren't a day trader, but if you are a day trader, you probably don't need to be fussing around with Litecoin a whole bunch. Once you can move your litoshis off CoinPot into a crypto exchange, the best thing to be done with them is to turn them into something else, probably Etherium, which will have wild swings.

However, prepare for some good old-fashioned economic inequality: there are now Litecoin ASIC Scrypt miners out there, and the inequality in mining will result in greater price swings in the long term. But for now, it's cheap and stable, and probably about to stay that way with one of Litecoin's main developers making news for alleged insider trading. Litecoin is not a currency I recommend having a long-term hold position on. The most I can say for it is that its low transaction fees mean it's probably worth sending it from CoinPot to KuCoin (or wherever) before you turn it into a better daytrading currency.

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