Litecoin (LTC) and Bitcoin Cash (BCH) are two popular digital assets that present themselves as alternatives to Bitcoin (BTC). Litecoin is one of the oldest coins and was launched in 2011, just two years after Satoshi created BTC.
Litecoin uses a slightly dissimilar Proof of Work mining consensus mechanism than Bitcoin and it also has a short period for financial operations to be processed.
Bitcoin Cash was created to try and solve Bitcoin’s scaling problem (BTC’s inability to handle lots of transactions). Because of its large block size (more financial operations per 1 block, or grouping of transfers), Bitcoin Cash (BCH) is able to support more financial transfers than BTC.
Bitcoin Cash’s large blocks not only increase capacity but also reduce fees on the BCH ecosystem since transactions do not have to compete as much to be included in new blocks.
In this comparison of Bitcoin Cash vs. Litecoin, we will dive deep into the various elements that make a crypto project a worthwhile investment. We will examine items such as technology, market capitalization, utility, and traction.
With that said, let’s jump right into it.
What Is Bitcoin Cash?
Bitcoin Cash was launched in 2017 as an altcoin. It is also known as a “fork” of BTC in the cryptocurrency sphere. This coin appeared to solve Bitcoin’s problems as it gained popularity in the crypto community. BTC, which is based on a decentralized ledger system that is called a blockchain, can only process a maximum of seven transactions per second, making it less-than-ideal crypto for everyday transactions.
“Bitcoin cash is the version of Bitcoin that implemented an increase in the transaction capacity,” digital currency economist Alex de Vries told CNN Business.
He also added that the Bitcoin cash team aimed to raise Bitcoin’s block size limit of 1 MB every ten minutes — which translates to a maximum of seven transfers per second — to eight MB every 10 minutes. Bitcoin cash blocks can go up to 32 MB.
The team of Bitcoin cash, “wrote an update for the Bitcoin software which increased the transaction limit,” de Vries said, and thus, the new cryptocurrency was launched.
Bitcoin cash split in two in 2018, in a similar situation, creating another fork called BSV, which, with a market capitalization of nearly $6 billion, is presently ranked at number 32 on the top listings like Coin Market Cap.
Bitcoin Cash vs. Bitcoin: What Is the Difference?
For starters, Bitcoin Cash is not so popular among crypto fans. Bitcoin is the oldest and, by now, the biggest digital currency, with a $928,853,756,322 market cap. Bitcoin cash, on the other hand, just passed Litecoin to become No. 10 on the list of largest coins, with a market cap of nearly $22 bln.
Although both have 18.7 mln digital coins in the universe, demand is not nearly the same for Bitcoin cash as for Bitcoin. Right now Bitcoin price is nearly $ 49 467, and one coin of Bitcoin cash costs about $1 231.
According to CNN, Konstantin Anissimov, the Executive Director at the international CEX.IO exchange, shared his opinion about BCH. He said that Bitcoin Cash is one of the most strong and flexible digital assets in the whole industry today.
Bitcoin cash was designed to boast faster transfer speeds than Bitcoin. Alas, that did not exactly pan out the way its team expected. Bitcoin cash transaction confirmation times remain high due to several reasons. Moreover, bitcoin cash has a key advantage over bitcoin: It is cheaper to use.
Bitcoin transaction fees have spiked as high as $60 on average, as reported by Coindesk. According to info available on BitInfoCharts, Bitcoin cash’s average commission per one financial operation is quite low: 3.5 cents. Transaction fees apply any time you transfer coins, either to someone else as a payment or to your own wallet, de Vries said.
What Is Litecoin?
Litecoin is very different from Bitcoin Cash. Litecoin, also known as LTC, is a “lite” form of Bitcoin. Like Bitcoin, Litecoin is based on an open-source system. Litecoin differs from Bitcoin in aspects like faster block generation rate and use of Scrypt as a proof of work scheme.
Utilizing blockchain technology, Litecoin can be used to send money directly between individuals or businesses. This ensures that a public ledger of all transactions is recorded, and allows the currency to operate a decentralized payment system free from government control or censorship.
Alas, Litecoin has not currently been adopted by businesses or consumers as a method of payment. But, some see potential in blockchain technology and think this could become more widely adopted in the future.
What Do We Need to Know About LTC and Its History?
Launched in 2011 by former Google employee Charlie Lee, Litecoin is a fork of Bitcoin.
In the beginning, Litecoin was aimed to be more speedy and cheaper version of BTC. We can say that LTC is available for mining mostly on complex technical systems called ASICs.
Today, Lee sees these currencies as working together rather than against each other. Since the entire market cap of LTC is smaller than Bitcoin’s, there is less risk when trying out new software upgrades to Litecoin. In this way, Litecoin acts as something of a test network for its bigger, more established brother.
Bitcoin Cash vs. Litecoin: Current Prices and Key Numbers
Based on the Coin Market Cap data, at this moment, LTC is presently trading at $324.74, with a market cap of $21 691 884 820 that places it at #12 in the crypto market.
BCH’s price is $1 301.11 with a market cap of $24 444 417 408. It is in a top-10 list in the cryptocurrency sphere.
BCH’s all-time high was $4,355.62 (Dec 20, 2017), while LTC’s was $396.71 (May 10, 2021).
Bitcoin Cash is presently trading on 1 421 markets. In addition, BTC, Tether, and American dollar are its highest volume trading pairs.
Litecoin’s current active market pairs are up to 2 432, with the highest volume pairs being the same as BCH’s.
Litecoin vs. Bitcoin Cash: Maximum Block Size
Bitcoin Cash proponents created it with almost the sole purpose of increasing Bitcoin’s maximum block size.
Its block size is 8 MB, with the possibility of being stretched to a maximum of 32 MB. For its part, Litecoin’s inherent maximum block size is 1 MB.
However, this changed after the network incorporated SegWit – which made its hypothetical block size 4 MB.
Average Block Time
Block time is the amount of time a blockchain network takes to produce a new block of transactions and how long it takes for the transactions to be added to the blockchain.
On average, Litecoin’s average block time is 250 seconds, while Bitcoin Cash’s is 600 seconds. As you can see, Litecoin’s hands down faster than Bitcoin Cash.
Bitcoin Cash uses the SHA-256 hashing algorithm, which is the same one used by Bitcoin. SHA-256 is perceived to be thorough and hence particularly good for overall network security.
By contrast, Litecoin uses the Scrypt hashing algorithm. It is a fast and simple substitute to SHA-256.
Comparing Their Commissions
The average transaction fee for Bitcoin Cash is $0.005 (0.000014 BCH), while that for Litecoin transaction currently costs $0.018 (0.00019 LTC), as reported by Bitinfocharts. As you can see, Bitcoin Cash has lower fees than LTC.
Litecoin vs. Bitcoin Cash: Which Is Better?
To achieve mass adoption of cryptocurrencies, crypto developers should be able to tie the utility of their digital currencies to the day-to-day activities of the common people. This is what Bitcoin (BTC) is trying to achieve, to enable people to use crypto the same way they use cash. However, the success of Bitcoin proved to be its Achilles heel as its network is unable to cope up with its usage. The late 2017 and early 2018 BTC bull run is a glaring example of this weakness. Due to network traffic, the time to process transfers and transaction fees soared exponentially, leaving a lot of dissatisfied Bitcoin users.
At the same time, this was a breakthrough moment for alternative coins that scale better than Bitcoin. The increasing occurrence of these network congestion intensified the need to find an alternative to BTC. Bitcoin Cash and Litecoin have emerged as top alternatives as crypto electronic cash. Let us take a closer look at these BTC alternatives and determine for ourselves which one is better.
I Have Learned About These Currencies. What Is Next?
Hopefully, you have boosted your skills about these altcoins, Bitcoin Cash and Litecoin, popular among cryptocurrency fans. You should understand the difference between BCH and LTC, their ecosystems, technical differences between them, and their history.
Finally, you should be able to make a choice between them.
If you have followed the whole guideline, we are pretty sure that you have noticed: Litecoin and Bitcoin Cash have a lot in common. They both market themselves as faster alternatives to Bitcoin. Instead, they have opposite goals, and they offer different options.
Both Bitcoin Cash and Litecoin are serious contenders for the title of ‘a decentralized electronic cash system’.
When you look more closely, you will see that Bitcoin Cash has the upper hand in terms of market position, price, liquidity, and even usability. Its zero-confirmation transactions feature means more merchants can adopt it, comparing with Litecoin.
It seems too that the Bitcoin Cash ecosystem is more resilient in terms of security. Going by price alone, BCH is more popular for miners than LTC.
Also, its edge over LTC will likely hold on in the coming year. Based on this info, we will leave the choice of whether to invest in one over to you. So, they can both live side by side, and they both can be a part of your portfolio.
Key Things That You Should Remember Before Investing
The first thing you should know is that all investments will have their pros and cons. Despite the exciting functionality both of these coins offer, the technology and the cryptocurrency industry are new and volatile. You should prepare for extreme volatility in this ecosystem. Just imagine that altcoins have a chance to surge up to 40-50% in a single day.
You should not get upset if things are harder at the beginning. You will boost your skills and will be able to build your own investment strategy over time if you put some effort into it.
Unfortunately, most people do not do this and they put themselves in a dangerous situation.
When someone is alone with no accountability or guidance, they tend to struggle to find ideas and lack credible information. In uncertainty, when finding relevant sources is uneasy, they might resort to watching and mimicking other, presumably better informed, investors’ decisions. And it leads to huge mistakes. In other words, they often make the same mistakes over and over again. Simply put, this is not a good recipe for success. Without any research, they do not have a financial strategy and have a great chance to lose their funds, even storing BCH or Litecoin.
Before you make your first transaction, please, you should research background info on each cryptocurrency on their websites, threads on Reddit, and other social media platforms. Yes, it will take a lot of time and it is nearly impossible to compare digital assets correctly. But it is really worth it.
In order to check out everything you want to find out about the coin, you have to do hours of research and pay close attention to free resources that will help you with this.
If you have found a cryptocurrency that suits your strategy (LTC or BCH), it is time to make your first step towards investing. We have a solution that will definitely help you below.
Where Can You Buy Litecoin or BCH?
Are you ready to make your first Litecoin or Bitcoin Cash purchase? We have a service, suitable for you. Take a look at NeuronEx. So, you will be able to get cryptocurrencies quickly and easily. Find out everything you need to know about this platform.
Is It Possible to Buy These Altcoins on NeuronEx?
Yes, you can. This is a platform designed for financial transactions: for crypto to fiat and crypto to crypto exchange. You will be able to convert coins quickly and securely right here.
It has a user-friendly interface and its useful tools make the purchasing process smoother than ever before.
Moreover, it offers a great range of payment methods. Among 200 means of payment, there are credit and debit cards, and bank transfers.
As a great plus, NeuronEx also has an app accessible for Android and iOS customers. When it comes to mobility and convenience, it is incredibly popular among users. Track currencies, use a converter and manage your budget all in one place.
How Can I Make a Transaction?
It is quite simple: you may use a converter, available here. Sign up for free, choose the most suitable type from the list of payment methods, and make your first financial transaction.
As a great plus, we have no hidden commission for LTC and BCH purchases. You can gain coins at a good cost and almost zero fees.
NeuronEx platform supports not only Litecoin but also:
But that is not all. Our team is working hard to implement new coins. So, the best is yet to come. EOS, Bitcoin SV, Tether (EURT, USD, CNHT, XAUT) are coming soon. In addition, Bitcoin cash is coming soon.
And last but not least, as soon as you get Bitcoin Cash or Litecoin, you need a place to store your funds no matter if you prefer trading or HODLing money.
Simply put, once you have gained a coin on an exchange, you will need a safe place to store your holdings. Using an online wallet, instead of storing your crypto digital coins with an exchange, gives you greater control over your virtual funds.
These wallets provide users with a digital solution for securely storing money and managing digital coins. These online wallets allow users to send and receive coins, store and spend, and also trade cryptocurrencies.
So, you should also try an online wallet, accessible on NeuronEx.
It is a great place to store your money safely and securely. You will be able to access and manage your portfolio in a real-time mode and control your digital assets. Make transactions anonymously, convert and send money all in one place.
We hope that our article will be helpful for you. By now, you know about BCH and Litecoin, and the difference between them (Litecoin vs. Bitcoin Cash). So, you should keep in mind everything that we have mentioned above.
That is all for now, stay tuned for more great content!