We all know that assets are making hefty waves in the financial industry, also creating an impact in other areas of our lives. Although Bitcoin was the first cryptocurrency to receive mainstream adoption, ETH and Litecoin soon gained momentum.
If you plan to invest in cryptocurrency, we are pretty sure that you heard of Litecoin vs Ethereum comparison. They are the biggest altcoins in terms of market cap and influence.
We are on the cusp of a new financial future. Ether and Litecoin will likely achieve mainstream adoption.
Their positions show their important role in companies and the cryptocurrency community.
Litecoin and Ethereum are often compared. Let’s take a deeper dive into Litecoin vs Ethereum, and what differences the two offer.
What is Ethereum?
It is a blockchain that works like Bitcoin and gives an opportunity to create decentralized applications on it.
The miners verify transactions of blocks in the Ethereum system. They solve math problems and get rewarded for their work in ETH. They also check that entries on the blockchain follow its rules.
Many users incorrectly use the term Ethereum to describe both the currency and the network itself. Please, keep in mind that Ethereum is a system, the coin is ETH or Ether.
It is the second-largest digital currency by market capitalization, after Bitcoin. It is an alternative coin designed as a payment method for the Ethereum system.
It is aimed to facilitate the operating of ‘smart contracts’ without any delays, fraud, or third-party interference. This altcoin is one of the most trustworthy and used cryptocurrencies as many organizations around the globe now accept payments in Ethereum.
Ether can be utilized as a tradable currency. It can also be used to pay for items. However, Ether can be used to power certain features within dApps. For example, when creating a token on the ecosystem or using a smart contract the developer or user must pay the network in ETH.
The First Stages of ETH
An idea of Ethereum appeared in 2013. A young IT expert and coder called Vitalik Buterin thought that the community needed a secure system, and more functions than Bitcoin had. He was assured that integrating a programming language would give an opportunity to build apps.
This currency was produced in 2015, and more than 11.9 million ETH were available for its investors. It was the first example of an ICO in the crypto industry.
At this stage, each coin was worth less than $1. Not so long ago it set the highest price. It’s trading above $2,500 for the first time ever. Sounds great, right?
Ethereum gives an opportunity to create a smart contract, and transfer value between one another without third-party interference.
Smart contracts will transfer the asset automatically when the conditions of the contract are met. It is impossible to change smart contracts once they have been admitted. This system within the Ethereum network saves time and money.
Ethereum and ETH as a Payment Solution
Ethereum technology eliminates certain risks and allows to move funds across wallets instantly with a minimum cost.
Businesses wishing to accept payments in Ethers can do so quite easily by integrating an Ethereum payment gateway, which will enable them to accept these transactions.
With fewer intermediaries involved, operation costs are lower, which along with other benefits, make it a smart solution for companies. It helps millions of companies and websites to integrate Ethereum as a payment vehicle.
What Is Litecoin?
Litecoin is very different from Ethereum. It has much more in common with Bitcoin. Unlike with the Ethereum software platform, application development is not available there. So, its sole purpose is to be used as a payment solution.
What Do We Need to Know About Litecoin 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 a faster, and cheaper version of BTC. We can say that Litecoin is available for mining mostly on complex technical systems called ASICs.
Today, Lee sees these currencies (Bitcoin and Litecoin) as working together rather than against each other. Since the entire market cap of Litecoin 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.
Litecoin is an alternative cryptocurrency, a “lite” version of Bitcoin. This cryptocurrency is an open-source, peer-to-peer, and fully decentralized global payment system. Anyone can download the software code, join the network, and mine Litecoin.
Utilizing blockchain technology, Litecoin can be used to transfer money directly between individuals or firms. It provides security and quick verification for every transaction.
Litecoin vs Ethereum: Comparing Facts
Let’s pay close attention to their data. So, we will be able to compare these altcoins, their technologies, and prices.
And here are their key similarities:
• These altcoins can be bought on most major platforms;
• Transaction speed: they have quick, faster transactions than Bitcoin;
• They are open source and peer-to-peer systems;
• Litecoin and ETH currently use Proof of Work for mining, but Ethereum has a great chance to finally switch to Proof of Stake.
Litecoin vs Ethereum: Comparing Technologies
They both (Litecoin vs Ethereum) have very different blockchain systems. As already stated, Litecoin is a lite version of Bitcoin and its payment system. It is quicker and cheaper.
Meanwhile, Ethereum is a decentralized ecosystem with its own programming language. So, developers are able to make decentralized programs via smart contracts.
Both Litecoin and Ethereum have a faster transaction than BTC. For Litecoin it takes approximately 2.5 minutes, and Ethereum blockchain forms new blocks within 20 seconds.
Litecoin vs Ethereum: Their Prices
You have probably noticed a difference between their prices. The reason why is the total amount of money invested in each cryptocurrency. In addition, the total supply is also different.
The market cap ($247,644,753,115) and the price ($2,149.51) of ETH are currently much higher. LTC current price is $257.85 with $17,092,394,125 market cap.
If you want to compare these currencies, in this case, you can try CoinMarketCap by yourself. Here you will see all the relevant and up-to-date information about a cryptocurrency. This website gives you access to quick stats about a cryptocurrency’s price, volatility, percentage of the total market, and a lot of other useful details.
Litecoin vs Ethereum: Payment Methods
We can admit that Ether has a much faster block generation time, and it seems like Ethereum is a faster means of payment than Litecoin. But it is not true. Since Ethereum is a big ecosystem with different types of transactions occurring per second, the network can be overloaded more easily.
The Litecoin system keeps info about financial operations only. So, its users do have to wait for their transactions to be processed for so long. Alas, it will be slower than Ethereum if both of them have no overloads.
Yes, it makes sense to use Litecoin as a means of payment since the Ethereum system is used to make and boost potentially world-changing programs. It is a good idea to keep the network free for developers.
I Have Learned About These Currencies. What Is Next?
Hopefully, you have boosted your skills in these altcoins. You should understand the difference between Ethereum and Litecoin, their ecosystems, technical differences between them, and history.
Finally, you should be able to make a choice between Litecoin vs Ethereum.
If you have followed the whole guideline, we are pretty sure that you have noticed: it is not about Litecoin vs Ethereum, they are not in competition. Instead, they have opposite goals, and they offer different options. 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 Ethereum 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 need to know 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 (Litecoin or Ethereum), 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 and Ethereum?
Are you ready to make your first Litecoin or ETH purchase? We have a service, suitable for you. Take a look at NeuronEx. So, you will be able to get cryptocurrencies quickly and easily. Let’s dig in!
Is It Possible to Buy Litecoin and Ethereum 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 Litecoin and Ethereum purchases. You can gain coins at a good cost and almost zero fees.
And last but not least, as soon as you get Ethers or Litecoins, 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 cryptocurrencies all in one place.
No time for waiting. Sign up for free, and enjoy all tools available here.