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Which Digital Asset Is Right for You? Part 3: Litecoin

Estimated reading time: 2 minutes, 23 seconds

By now, just about everyone has heard of Bitcoin. You don’t have to be an institutional investor or someone in fintech to know the impact it’s made on the investing world. And it shares the spotlight with other popular cryptocurrencies like Ethereum, Ripple and Litecoin. Each of these appears to be carving their own unique path in the alternative asset landscape.

But the number of cryptocurrency investment choices is daunting to some, with investors often wondering which asset is right for their investment purposes. While Kingdom Trust can’t give advice on what you should invest in, we can provide some general information for your due diligence efforts.

LitecoinIn this third post introducing specific digital assets, we focus on Litecoin (LTC).

From a market cap perspective, Litecoin is consistently among the top ten cryptocurrencies. Like Bitcoin and Ethereum, it also runs on blockchain technology and has no physical tokens or notes to use as payment. It’s also procured by mining and is decentralized, with assets stored in wallets and traded on exchanges. In many ways, as one of its earliest spinoffs, Litecoin is extremely similar to Bitcoin. It’s really only a few lines of code away from Bitcoin.

Litecoin was created by former Google employee, Charlie Lee. The intent was to make cryptocurrency more accessible and level the playing field for all interested parties. Furthermore, Lee wanted Litecoin to be the “silver” to Bitcoin’s “gold.” He believed where Bitcoin was ideal for larger, more substantial transactions, Litecoin would be better for cheaper, everyday transactions.

In terms of use case, Litecoin may be among Bitcoin’s greatest rivals. But it was chiefly designed to complement, not replace, Bitcoin.

So, how is Litecoin different from Bitcoin?

  • Faster transactions: Transactions take just 2.5 minutes to complete, almost four times faster than Bitcoin’s over 9-minute transaction time.
  • Faster block generation: Litecoin block generation time of 2½ minutes is four times faster than Bitcoin’s 10-minute time.
  • More supply: The maximum supply of 84 million coins is four times that of Bitcoin’s hard cap of 21 million.
  • Scrypt algorithm: While Bitcoin uses the longstanding SHA-256 algorithm, Litecoin uses the less-complex Scrypt for its mining process.

For more information on Litecoin beyond this general introduction, consult a broker or dealer well-versed in digital assets.

As with any investment, cryptocurrency investments come with risk, including volatile price swings. Ensure you invest in assets and strategies you understand, and conduct proper due diligence on any potential investment.

Are you a fund manager, exchange or other institution looking for secure custody solutions for digital currency? If so, schedule a call with Business Development today. We look forward to working with you!

Or are you an individual investor considering your digital asset investment options? If so, contact Kingdom Trust Client Services today. We lead the way in digital asset custody and were the first in our industry to allow them to be held directly in an IRA. We are happy to walk you through the process from account opening to investment and beyond!

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