Hey, LocalBitcoins family. My name is Vilade, and today we are not talking about Bitcoin. But an altcoin that you can also use as a payment method when you are buying and selling Bitcoin on LocalBitcoins. And that altcoin is Litecoin. After watching this video, you will understand what Litecoin is, and how you can trade it against Bitcoin on LocalBitcoins. (upbeat music) On LocalBitcoins, it is possible to trade Bitcoin against many other cryptocurrencies, and Litecoin is just one of many.
Now, before I start to tell you more about Litecoin, there’s a confession I have to make. I’m not a financial advisor. I just didn’t take that course. So, please remember everything I say in this video is not any kind of investment or trading advice. I’m not telling you to invest or trade Litecoin, but if you decide to do that, make sure to do your own thorough research before you put your own money in it.
Now, after that confession, I feel so much lighter. So if we can dive deep into Litecoin and see what it’s all about. Now Litecoin is the oldest cryptocurrency after Bitcoin. And it’s been around all the way since 2011. So you might have heard about it before. Like Bitcoin, Litecoin is a digital peer-to-peer currency. Now we know Bitcoin is digital gold and Litecoin is sometimes called digital silver. A kind of lighter version of Bitcoin. This comparison kind of makes sense since the creator of Litecoin Charlie Lee wanted to make Litecoin transactions faster than Bitcoin transactions.
You could also think of Litecoin as Bitcoin’s little brother. Now, as you know, brothers usually have a few years of the age difference. Bitcoin was born in 2008 and Litecoin was born in 2011. So in a way, all this makes perfect sense. But it’s not just because Litecoin and Bitcoin also share the same source code. So that’s a bit like cryptocurrency gig terminology for having the same parents.
Both Litecoin and Bitcoin use proof-of-work as their consensus algorithm which means that the maintenance of both the Bitcoins and Litecoins blockchains is done by mining hardware. There’s one major difference though. Bitcoin uses a different hashing algorithm than Litecoin which has an effect on what kind of mining hardware can be used to mine these coins.
Now you may have heard about Bitcoin halving. And if you haven’t, we have a link to a blog article where we explain what the Bitcoin halvings are. Now Litecoin also has its own block halving. Litecoin is a proof-of-work blockchain. Now Litecoins enter into circulation through a mining process, just like Bitcoin. And as is the case with Bitcoin, the amount of Litecoin in the market grows all the time while the supply is decreasing.
Litecoins maximum supply is 84 million which is four times more than Bitcoin’s maximum supply. Litecoin halvings happen every four years, just like Bitcoins. And the last halving happened in August 2019. Now, what makes Litecoins so light? I mean, where does this name come from? Did they just name it Litecoin because it sounded funny? Well, not just. A new Litecoin block is mined every two and a half minutes with Bitcoin, mining a block takes roughly 10 minutes.
This means that Litecoin transactions move four times faster than Bitcoin transactions and makes that coin lighter, simple, right? Well, now you might ask why wouldn’t Bitcoin change its code so that the currency would be faster and why not even make it lighter and faster, even lighter and even faster than Litecoin? Well, being lighter comes with a trade-off and the trade-off is security.
If it’s easier and faster to mine a block, it also means that it’s also easier for a malicious actor to reorganize the blocks in the blockchain. And oops, is that your blockchain and the funds on that blockchain are not safe anymore. Now, Litecoin was a very popular altcoin in the previous cryptocurrency bull market of 2017. But now in 2021, it has many more competitors and its success is not by any means certain in the future.
Okay, so how trade Litecoin this digital silver, on LocalBitcoins? Well, it’s made incredibly simple. Litecoin has actually been part of the altcoin payment methods of ours for a very long time for those who want to trade between Litecoin and Bitcoin. If you want to own some Litecoin and you already have Bitcoin. You can create a sale ad and state in your ad that you accept Litecoin as a payment method.
Also if you have Litecoin and you want to get more of that shiny orange digital gold coin also known as Bitcoin. You can create a buy ad and state in your ad that you’re willing to pay in Litecoin. You can also browse through the existing ads other users have left and see if they accept Litecoin as a payment method. One important thing about Litecoin unfortunately, we don’t currently support it natively. This means that to store Litecoin, you need to have your own Litecoin wallet. Now, that was all I wanted to tell you today about Litecoin.
So I got a question for you. What do you think about Litecoin? Do you think it’s digital silver, or do you think it’s digital something else? Do you think Litecoin has a bright future ahead of it? And some they couldn’t maybe even overthrow its big brother, Bitcoin. What do you think? Let us know down below in the comments. And so if you like this video, make sure to hit the like button.
Read More: 5 best cryptocurrency to invest 2021