What is litecoin and how to make money on it?
Lightcoin is one of the most popular cryptocurrencies in the world, one of the first branches of bitcoin. How to get this popular digital currency and whether it is possible to get rich on it
Litecoin is one of the most popular cryptocurrencies in the world, ranked in the top 5 with a total value of $ 4.5 billion as of September 2019. This digital currency was created in October 2011 by Charles Lee on GitHub by bitcoin. In May 2017, litecoin switched to the SegWit protocol, which increased the plasticity of lightcoin blockchain transactions, which accelerated lightcoin transactions.
Technologically, lightcoin is similar to bitcoin, but the development of a new cryptocurrency was the first to use instant global payments and "atomic swaps", which provided lightcoin conversion to other cryptocurrencies and fast transactions. Litcoin is present in the list of currencies to buy / sell on many exchangers and currency exchanges, they can pay for goods and services around the world.
Information about the account holder in lightcoins and participants in the transaction is anonymous.
Features of lightcoin issuance
The release of lightcoins is limited by its function, because new cryptocurrencies are generated with a given system speed (about 15 minutes) and a limit on the size of the transaction file. At the dawn of lightcoin, the reward for miners for processing 1 block of operations with the coin was 50 litecoin, but the fee is periodically reduced by 2 times. As of September 2019, it was already 12.5 lightcoins. Thus, it is estimated that by 2020 75% of the potential lightcoins will be issued.
This also reduces the processing speed of transaction blocks every 840,000 blocks, about 2 times. The maximum number of cryptocurrencies that can be put into circulation is 84 million.
How to get lightcoins?
You can buy litecoin on currency exchanges and cryptocurrency exchangers or try to hire free litecoin or get this digital currency by registering on a lightcoin tap.
In addition, you can try to sell your goods and services for it, because litecoin is one of the most popular cryptocurrencies in the world and is used not only in the virtual world, but also for payments in the real economy.
What are litecoin taps?
Litecoin faucet is a popular way to get some free lightcoins without any investment or special IT equipment. To do this, you need to open an account on one of the cryptocurrency sites, and regularly perform certain operations on it, for example, follow the links or enter the numbers in the picture.
Litecoin faucet are motivated to attract and retain the maximum number of readers, as they sell advertising on this site to exchanges, digital currency exchangers and other companies interested in "cryptocurrency clients". To do this, sites share with visitors part of the advertising revenue, charging them for using the site popular cryptocurrency or part of it.
But the amount of such deductions is limited by the advertising budget of the litecoin tap, so the size of the bonus is small - as a rule, in 2019 they were enough only to pay for the services of the Internet provider. However, you can use several "fat" taps of litecoin, and if the rate of lightcoin goes up - the income can be hundreds of dollars a month.
One of the best litecoin instant withdrawal cranes in 2019 was moon litecoin.
Features of lightcoin mining
Unlike bitcoin, litecoin core is based on the scrypt function, which uses the standard SHA256 function as a subroutine. The cryptocurrency address code consists of 33 characters and starts with the number 3 or the letter L. After switching to SegWit in 2017, addresses starting with 3 began to correspond to the address with the letter M. Through a special converter you can convert lightcoin codes of these 2 types.
For each processed block, the miner now receives 12.5 lightcoins, while when creating a cryptocurrency, the amount of the reward was 50 litecoin - the amount of the bonus is reduced by 2 times every 840,000 blocks, which usually happens every 4 years.
The complexity of processing mining operations is set by the system and is selected in such a way that the block c data is generated two and a half minutes, which is much faster than the same bitcoin. The transaction is usually considered processed after 6 blocks, which takes about 15 minutes. The speed of operations has increased significantly since the introduction of the SegWit protocol in 2017.
Working on the scrypt function makes mining litecoin on the processor (CPU) or graphics editor (GPU) - a matter almost impossible, because the reward is only the miner who processed the operation first. Another thing is to work with integrated ASIC systems designed specifically for cryptocurrency mining. But the cost of such equipment is not small and can be thousands of dollars.
Another way to increase your chances of being the first to process a lightcoin transaction is connects to one of the many litecoin farms (pools). It is an association of miners with powerful equipment who share the proceeds of mining among their investors. You can become a partner of such a litecoin pool via the Internet by paying a fee for the lease of IT facilities. In addition to faster equipment, such cryptocurrency farms have advantages over self-mining due to the location of equipment in the most profitable places for mining (for example, in countries with cheap electricity), as well as experts who regularly select the most profitable for mining digital currencies.
Of the mining farms that work with lightcoin, we can mention: Carnth's, Dlunch, Litecoin.tw, Qhor and others.
How to buy lightcoins?
You can buy litecoin on a cryptocurrency exchange or currency exchange. The latter is the easiest way to buy lightcoin due to easy registration and high speed transactions. In addition, litecoin exchangers often offer to issue an online litecoin wallet absolutely free of charge and withdraw cryptocurrency in a way convenient for you. Among the best exchanges for lightcoin exchange are WmExpress, 365Cash, F-Change, 24PayBank and others.
If you want to buy litecoin at the best rate - litecoin exchanges, where buyers and sellers place their offers, will be the best way for you. After all, the ability to purchase lightcoin directly from the seller will avoid unnecessary markups on the rate of litecoin.
However, it should be borne in mind that the cryptocurrency exchange may impose additional requirements on the parties to the transaction, for example, to place on the account a few hundred USD as a reserve to ensure transactions. Binance, Kuna, EXMO, Bitfinex and others are among the most popular exchanges in our country that trade in lightcoin.
In addition, you can also search for sellers and buyers of litecoin yourself on cryptocurrency forums. In this case, you do not have to pay any additional fees to the intermediary or reserve money on deposit, which makes this type of transaction attractive. However, this case is time consuming and you can always run into a scammer, instead of a decent counterparty.
It is worth noting that transactions with lightcoin using bank cards are not very popular due to fears of the possibility of chargeback (cancellation of the transaction by the payment system), while "roll back" the transaction with lightcoins themselves will not work due to blockchain.
Where to watch lightcoin courses?
The price of litecoin is quite variable and prone to significant fluctuations. So, in November 2013, the litecoin price doubled during the day. In April 2017, after the introduction of the SegWit protocol, the lightcoin exchange rate increased more than 10 times to $ 50. The maximum value of the litecoin rate of $ 366 was recorded in December 2017, while in September 2019 the price was $ 70 per 1 lightcoin.
Therefore, before buying a cryptocurrency for investment - read the litecoin forecasts and news, so as not to buy lightcoin in a downward trend. There are many such sites on the Internet, such as fxclub, coingecko.com, tradingview.com and others.
How to create a litecoin wallet?
To buy, sell, hire or connect to a tap, you need a lightcoin wallet. Based on your wishes, you can choose one of the following types:
You can open an e-wallet on a cryptocurrency site, such as a currency exchange, and work with it through a browser (Internet Explorer). As a rule, this procedure is free and takes only 5-10 minutes. But this type of wallet, unfortunately, is not the most reliable, because it is prone to hacking by hackers. Therefore, an online litecoin wallet should not be used to store large sums. Among the most popular online wallets are MyEtherWallet, Blockchain, Lumi, Holy, Coinfy, Bitgo and others.
Desktop wallet litecoin is a special program for installation on a PC or laptop. Such programs are more reliable than their online counterparts, but there is a risk of losing the cryptocurrency account if you have a hard drive or you lose the keys to access the account.
The litecoin mobile wallet resembles a full-fledged version adapted to the communicator, and has the same advantages and disadvantages as desktop applications.
Cold wallet litecoin is a flash drive (from Ledger, Trezor, KeepKey, etc.), which stores data on cryptocurrency. This method of storing digital currency is considered the most reliable, as the hardware wallet does not have direct access to the network, and therefore - can not be hacked by hackers. But you will have to spend extra time and constantly transfer cryptocurrency from cold to electronic / desktop wallet and back to carry out transactions with lightcoin.
The paper wallet is a sheet of paper the size of a banknote with keys to access the cryptocurrency in the form of a QR-code, and its characteristics resemble working with a cold wallet.
How not to fall for the tricks of criminals?
Litecoin is one of the most popular digital currencies in the world, so it is prone to hacker attacks and deception. Therefore, to protect your savings in lightcoins from attackers, you must:
- Carefully study the information about the lightcoin exchanger, exchange, pool or tap before you start transactions with it
- view specialized forums on the experience of other users with the above counterparties or other parties to the agreement
- do not transfer money for lightcoins in advance, but use escrow accounts and smart contracts
- use cold wallets to save large sums in litcoin
- do not invest in cryptocurrency pyramids