- 1 What is Litecoin?
- 2 Features of Litecoin
- 3 How Litecoin Works
- 4 Who is Charlie Lee, Founder of Litecoin?
- 5 What is Litecoin’s Technology?
- 6 How to Buy Litecoin?
- 7 Curious About Litecoin?
- 8 Litecoin Price Analysis
What is Litecoin?
Litecoin can be interpreted as decentralized money like Bitcoin. The only difference of Litecoin, on which no application has been developed, is that it uses CPU and GPU in mining and there is no mishap in the network. In this way, many developers have benefited from Litecoin’s software architecture.
Features of Litecoin
Having an Active Community
Litecoin is an easy to access community with forums, Telegram group, Reddit Page, Twitter users and IRC FreeNode network channels litecoin and litecoin-dev. In this way, your questions can be answered and you can contribute.
You can find resources and services about Litecoin on the Litecoin Wiki. You can also access the latest published statistics along with Litecoin Block Explorer Charts. In this way, you can perform your analysis in detail and accurately. Finally, you can access the source code on GitHub.
Being Open Source
Litecoin is known as software that can be accessed and used by everyone under the MIT/X11 license. We can say that this is an important part for many people to contribute to the Litecoin project. Also, it can be audited by anyone at any time.
Having a Blockchain Infrastructure
The Litecoin network can handle more trading volumes than its Bitcoin counterpart. Especially if we take into account more frequent blocking, Litecoin software processes more transactions without modification. In this way, sellers can receive payments more conveniently.
Encrypting your wallets ensures that your wallet is safe, so you can easily see your business details and balance. But to enter the wallet, you must enter your password correctly. This is a security measure that reduces the hacking of wallets.
Currently, miners earn a reward of 12.5 LTC per block and this reward remains the same for 4 years (840,000) blocks. The Litecoin network currently has a limit of 84 million LTC.
How Litecoin Works
To understand the working principle of Litecoin, it is first necessary to talk about the blockchain. Thanks to the blockchain, transaction details are stored in blocks and each block is linked by a chain. The information chain is located in Litecoin’s transaction ledger.
Blockchain is an open and distributed ledger that records transactions in an efficient, permanent and verifiable way. The ledger itself is programmed to perform transactions.
On the other hand, encryption techniques are used to keep the information in the blockchain network secure and user information is hidden outside the address. But with a detailed and meticulous study, it can be found out who he is.
Cryptocurrencies are also issued by users to make a profit. Miners, on the other hand, achieve the extraction process by solving mathematical problems. The coin, which initially has 25 LTC block rewards, halves every 4 years, and when it reaches 84 million, the extraction stops completely.
Who is Charlie Lee, Founder of Litecoin?
Charlie Lee launched the Litecoin network live in 2011. First caught by the idea that crypto money should be created after Bitcoin (BTC), Lee first became active in the Bitcoin community. After attempting to bring his idea to life, Lee took the source code of Bitcoin and made minor changes to it, allowing it to be tested by other people first. Thanks to this, many people have made the bugs in Litecoin noticed. As a result, Lee edited the Litecoin code and released it without any glitches. Lee designed Litecoin with the Scrypt algorithm, which is resistant to specialized mining equipment, increasing the total number of LTC mined to 84 million and the block extraction time to 2.5 minutes. Although he only dealt with this project at first,In 2016, he left the management of the Litecoin project by selling their LTCs. As a result, Litecoin’s price dropped drastically and Charlie Lee received a long-lasting backlash from the community.
What is Litecoin’s Technology?
Although Litecoin cheats Bitcoin’s proof-of-work (PoW) consensus algorithm, it uses the Scrypt algorithm for mining with minor modifications. Using Lee’s Scrypt algorithm with adjustable difficulty, he activated the algorithm to render specialized ASIC devices useless as a result of the high difficulty levels encountered in Bitcoin. Although this allowed Litecoin mining to be more democratic for a long time, as the difficulty levels rose over time, Litecoin’s mining challenge was met with ASIC devices compatible with the Scrypt algorithm. But this still made Litecoin mining more democratic than Bitcoin mining. In addition, Litecoin interacts with Cardano (ADA) on different networks,It allowed Litecoin to operate on the Cardano network and made possible mining activities between Litecoin and Cardano with a certain token. In this way, Litecoin has created an important infrastructure to interact on different networks.
How to Buy Litecoin?
You can buy Litecoin either on the exchange or via non-exchange transactions. If you are going to buy from exchanges, you must first open an account on the exchange. After that, you can make purchases if you go through the verification processes. For non-exchange transactions, you need to transact through your wallets on different markets. To buy Litecoin, you can trade from exchanges such as Binance, Coinbase, Kraken, Gemini, BTCTürk and Paribu.
Buying Litecoin with a Credit Card
To buy Litecoin with a credit card, you must first click on the buy crypto on exchanges. Then you need to choose the payment method as the currency that enables your card and the crypto currency you will receive as Litecoin (LTC). After you confirm the details, you need to decide how much you will receive with the currency you will buy and confirm the first step of the transaction. In the second step, you need to write your credit card information and billing address. At this stage, you need to approve the transaction within the given time and move on to the next stage. In the next step, if you interact with the bank payment line and enter the code sent to you correctly, there is only one step left in your transaction. Finally, if the bank accepts the payment, you will receive a message from the exchange and you can see your LTCs in your wallet.
Buying Litecoin with Third Party Payment Tools
- Open an account in one of the payment instruments accepted by the cryptocurrency exchange (the third-party payment instrument must be compatible with the fiat currency you will be paying with).
- Verify your account after opening your payment instrument (Verification may take a few days).
- After the verification process in your payment tool is completed, transfer the fiat currency to your account and transfer it to your exchange account.
- After transferring the fiat currency you will pay to your account, click on the advanced part of the buy and sell section and select the Litecoin trading pair that you will pay from the trading pairs.
- After selecting the amount you will receive, enter the purchase order. After the order is executed, you can see your LTCs in your account.
Buying LTC with EFT/Money Transfer Transactions
To buy LTC via EFT/Remittance transactions, you must first go to the exchanges’ funds tab. Then, after introducing the bank account, you need to transfer funds to your exchange account. After the transfer of your funds is completed, you can buy on exchanges. After the exchange and the bank transfer your funds to your own exchange account, you can start trading LTC after receiving the notification e-mails.
Buying LTC on Binance
To buy Litecoin on Binance, you must first connect to your Binance account. But if you don’t have a Binance account, you need to open a Binance account first. To open the account, you must first write your name, surname, e-mail address and password. Then, after typing the requested information, you can log in to your exchange account. But in order to trade on the stock market, you need to pass the authentication part. Here, it asks you to upload certain documents and after you pass the first part of the verification stage, you can start trading Litecoin after your face is verified with the camera. In addition, we recommend that you perform security settings through your exchange account.Thus, it is easier to prevent your funds from falling into the hands of unwanted people, and you can easily transfer funds and withdraw funds whenever you want.
Buying LTC on Paribu
If you want to buy LTC in Turkish Lira only on the cryptocurrency exchange operating in Turkey, you can use Paribu for this purpose. First you need to open your account in Paribu and verify your identity. After opening your account in Paribu and verifying your identity, you can trade through the options allowed in Paribu.
Curious About Litecoin?
Is Litecoin a bubble?
It has been stated that all cryptocurrencies, including Litecoin, have ballooned repeatedly. But Litecoin, which has been in the top 20 by market cap since 2011, was hit in 2016 when Charlie Lee withdrew from the project. But stronger from the blow, Litecoin has become more attractive to investors. Especially considering the departure of one of the founders in crypto money projects was a fatal blow, it can be thought that Litecoin has evidence to show that it is not a bubble as a result of coming out stronger than a devastating blow. Especially considering that an uncertain future awaits us, we can say that balloon claims are too early at the moment.
How do I store my Litecoins that I bought Litecoin?
You can store your Litecoins in both your exchange accounts and digital wallets. If you are going to trade frequently, exchanges can be used as a good custody tool. But if you’re going to keep it as a long-term investment, we recommend downloading a secure Litecoin wallet that’s compatible with your device. Then, for higher security, transferring all your LTCs to your cold wallet would be the best solution for your investment.
Can I sell and cash out my Litecoins immediately?
It is very easy to sell your LTCs and turn them into cash through exchanges. To perform this operation, you need to go to the sell crypto section of the exchanges and choose the amount you want to sell. After placing the post-sale order, you can easily withdraw cash from exchanges through different applications.
How is Litecoin produced? How to earn Litecoin?
Litecoin, like Bitcoin, is produced by mining activities. But Litecoin mining differs from Bitcoin mining in that it only mines Litecoin via CPU and GPU. Also, Bitcoin’s total supply cap is 21 million, while Litecoin’s is 84 million.
Litecoin is earned in several different ways: through exchanges and payments. For payments, first of all, Litecoin digital wallet and corresponding payment infrastructure are needed. After setting up the payment infrastructure, you can request Litecoin from customers for their transactions.
There are several different ways to earn in stock trading: trading Litecoin and exchanging different cryptocurrencies for Litecoin. First, to trade Litecoin, you need to deposit a certain amount of money and get Litecoin. You can then increase the amount of Litecoin you have as you sell as the prices rise and then buy as they fall. The other method is to exchange different cryptocurrencies for Litecoin. First, you need to have a certain amount of Litecoin in hand. Afterwards, you have to look at different cryptocurrencies and exchange them with Litecoin. Finally, in order to increase the LTCs in your hand, you need to sell when the value of the crypto money you buy increases as LTC. As long as these transactions are carried out, you can easily increase the amount of LTC you have.
How is Litecoin price determined?
Litecoin price is first determined by the developments in the market. If the usage rate is increasing in the market, if firms are investing more in Litecoin, prices will increase. But the declines as a result of bad statements by certain people about Litecoin and overvaluation will naturally decrease. Afterwards, the halving processes in mining activities and the ever-increasing mining costs will have an increasing effect on the prices.
Where did the name Litecoin come from?
Litecoin was named Litecoin by Charlie Lee as it stands for Bitcoin Lite. Thus, Litecoin implies the lightweight version of Bitcoin.
Litecoin Price Analysis
According to data from Coinbase, the price of Litecoin is currently hovering around 159 folar. When we look at the volume, which is the first indicator, the 1-month chart shows us that the sales are more than the purchases. When we look at the second indicator, the RSI indicator, the recent rise from 18 levels to 40 levels may be one of the developments that make us smile. We can say that Stochastic RSI, which is used in trading strategies, is in the overbought region. Moreover, we can say that it is above the 200, 100 and 50-day exponential moving average price levels. Therefore, we can expect some decrease. When we look at the MACD levels, we can say that in the long run, the short line is preparing to cross the long line.
Looking at the Fibonacci line, Litecoin can drop as low as $152, then $159.6, $164.56, $170.89, $175.86, $182.19, $200.46, $230.03, $259.6, and finally to $277.88, which is set as the upper limit. It shows you can reach it.
When Litecoin comes to the resistance supports, we can say that the monthly resistance is $413.91 and the monthly support is now 117.58. Weekly resistance is currently at $176.38 while support is at $163.7. But when we come to the daily support resistance levels, we can say that the resistance levels are at $182.25 and the support level is currently at $160.25.
When we look at the last 1-month chart, we can say that when we apply Bollinger bands on the LTCUSD chart, the lowest level can rise to $ 153.11 and the highest level to $ 164.34.
In other words, Litecoin can break the $413.91 resistance at the end of the year in the long run, but we can say that it must first exceed $182.25.
Price analysis is not investment advice, we wish you good luck.