Which is a better investment option, Bitcoin or Litecoin?

This is a subjective question with a lot of underlying factors. When a customer is about to buy a vehicle, they have at least three different choices in the same price range. Similarly, when we talk about litecoin and bitcoin, various aspects of the two have to be taken into the picture.

What makes it a better investment option, a lot of underlying factors play a crucial role. Apart from what currency is trading at what price, things like the back-end stability, the part of different governments considering them legal or an illegal tender, and the illicit trade share over the dark web can also play a vital role.

This article will discuss all the possible reasons that can affect a trader’s decision while considering any of the two cryptocurrencies as an investment option.

Which cryptocurrency holds the bigger market cap?

Bitcoin is worth more than a trillion dollars, while Litecoin is worth ten billion dollars. Its all-time high was recorded in 2020. Litecoin being late in terms of appearing in the market and the presence of Bitcoin as a Goliath can be the reasons why Litecoin holds a tiny call as compared o Bitcoin. This does not mean that Bitcoin is a better investment option. This is one of the factors that can affect the decision.

Which cryptocurrency is better in terms of transaction speed?

Bitcoin takes ten minutes to generate a new block on the blockchain, while Ltiecoin can do more than 50 transactions per second. To put it into comparison, in ten minutes, Bitcoin has already completed more than 33,000 transactions. This is more than the transactions of Ethereium and Bitcoin added and put together. Again, This cannot be the deciding factor as to where to invest.

Which cryptocurrency has more users?

In terms of data, the blockchain data of litecoin is more than 40GB, where each transaction is not more than 100 Bytes, a data of 40 GB is enormous.

The users of Bitcoin in terms of wallet holders surpassed 60 million a few days back. These are not very competitive metrics, but it is evident. Even if th prices are higher, bitcoin has almost similar users as litecoin. The price difference is there, and there is no second thought to that.

Which cryptocurrency is better at security?

The most significant difference between bitcoin and bitcoin is their difference in the security algorithms they use. Bitcoin uses the infamous SHA-256 security algo, while litecoin uses a new security technology called scrypt.

The technology is new and faster, but the SHA algorithm is more traditional, putting out a 256-bit long code each transaction happens.

The whole point of using a security algorithm is to keep theft and hackers at bay. While Bitcoin may be using traditionally strong techniques, Litecoin is working with technology’s evolution, working with new technologies like scrypt.

What is the difference between bitcoin and litecoin in terms of technology?

Bitcoin and litecoin both use blockchain technology as the spine of their respective systems. Blockchain technology was introduced with bitcoin so that the cryptocurrency could maintain a transparent online ledger.

Litecoin, like a lot of other cryptocurrencies, integrated itself with blockchain technology to survive on its own.

The core technology remains the same in both. However, there are differences in both that later reflect in terms of faster or slower transaction rate, less or more secure coin in terms of security algorithms used, and many more things.

Which cryptocurrency is more susceptible to volatility?

The market of Bitcoin has seen a recent upsurge since 2020 and has also been a witness of a billion-dollar push in investments by none other than tech mogul Elon Musk. Bitcoin is currently traded at %57.098, while Litecoin is traded at a mere 225 dollars. Bitcoin has seen an upsurge that can not be considered normal It is already the costliest crypto stock the market can ever see.

Litecoin, on the other hand, is seeing a steady rise, but it is slower compared to Bitcoin. Since bitcoin is trading at high costs, traders are looking at it as a hedge investment instead of a cryptocurrency.

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The high risk of losing money is not that high when the trader is trading with one of the three trading accounts the broker offers.

Bottom Line:

Bitcoin and Litecoin both are good in terms of investment, and The difference lies in the capital the trader is holding. If a trader is looking at trading in bitcoin with money rather than leverage or CFDs, it is more than clear that he is heavily backed-up in the capital.

In such a case, the trade can invest that sum of money in different market sectors. with investments in one single place, the chances of it growing take a dip as compared to multiple sector-investment

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