Litecoin vs Bitcoin: Choose the Best One For You

As there are more than 23000 cryptocurrencies in existence today, it becomes really hard to decide which one is worth your money and time. However, there are two assets in the crypto space that are familiar to everyone. These are Litecoin and Bitcoin. 
If Bitcoin is considered as digital gold, Litecoin is often referred to as silver. In this guide we’ll compare two of the most popular digital assets and see their key features that make them significantly different as an investment and trading asset. So let's dive in!

Overview on Litecoin and Bitcoin

If somebody asks you about the most popular cryptocurrencies - Bitcoin and Litecoin will be in the list. Both utilize blockchain technology to enable financial transactions, however, there are several important differences between them.

Bitcoin (BTC) is the original cryptocurrency, a decentralized digital form of money. Its goal was originally described as “an electronic payment system based on cryptographic proof instead of trust.” It was created to give people a secure way to use their funds without a centralized financial institution or any other third-party. If you want to know more about BTC - use our beginners-friendly guide.

Litecoin (LTC) was created in 2011. Like BTC, it is an open-source global payment network without central governance. The creator Charlie Lee was delighted with Bitcoin that's why they have many similarities.
Litecoin shares BTC’s code, mimics and the same block reward structure. Ultimately they both act as payment currencies and offer users an alternative form of digital payment solution which can be utilized to purchase goods or services efficiently.

Litecoin's advantages

• Faster processing speeds
• Lower transaction fees
• Miners get more coins as a reward
• More secure type of cryptography
• LTC is cheaper per coin than BTC, which helped create silver and gold nicknames and the relationship between the two crypto assets.

Litecoin's disadvantages

• LTC has faster processing speeds but much lower market cap than Bitcoin. That's why it can be difficult to find vendors who accept the asset
• The cost of mining technology is higher than BTC's. As a result, there are fewer miners which affects the supply of cryptocurrency
• The mining technology of LTC is more centralized than BTC’s

Litecoin Vs Bitcoin: What Are The Key Differences?

Bitcoin vs Litecoin Transaction Speed

The first thing that makes these two cryptocurrencies different is their transaction speed. 
Litecoin is much faster: its transactions take approximately 2.5 minutes on average to 10 minutes for Bitcoin per blockchain confirmation.

Image Source: BitInfoCharts

BTC can handle approximately 5-7 transactions per second, LTC - 56 transactions per second. 
This crypto asset got its name due to being a more lite version of Bitcoin due to these attributes.

Bitcoin vs Litecoin Transaction Fees

The next point to compare is Bitcoin and Litecoin transaction fees.
Both Litecoin and Bitcoin charge fees for transactions but the first comes with much lower fees. For example, the average Litecoin transaction fee currently stands at 0.007 LTC, while the average BTC transaction fee is around 2.5 USD.

Image Source: BitInfoCharts

Bitcoin vs Litecoin Security Features

One of the most important things that makes any cryptocurrency valuable is its security. Bitcoin and Litecoin both provide a variety of security features that protect users from hackers attack. Firstly, both cryptocurrencies use strong cryptography to process financial transactions, so all data is stored securely inside the blockchain. 
Moreover, each platform utilizes high levels of authentication protocols, making them impervious to external attacks and helping to prevent any hackers attacks to user accounts.
Each of these networks has its own set of rules regarding fraudulent activity that acts as an additional layer of protection for users.

It is clear that both Bitcoin and Litecoin offer robust methods to keep their users safe.

Bitcoin vs Litecoin Mining

Litecoin mining and Bitcoin mining are two different processes, though they may sound similar. 
On the one hand, BTC mining requires more computing power due to its complex algorithms.
On the other hand, Litecoin generally requires fewer resources and gives more coins as a reward per block.

Image Source: BitInfoCharts

If you care about decentralization, you need to know that Bitcoin is slightly less centralized in that respect relative to Litecoin because of its mining algorithm.

Bitcoin vs Litecoin Developments & Roadmap

Bitcoin and Litecoin both have undergone significant developments over the years and are constantly innovating to keep pace with the ever-growing cryptocurrency market.

Bitcoin is introducing a host of new features, including enhancements to scalability, lower fees, better privacy, and improved transaction speeds. 
Meanwhile, Litecoin has been leading the way with 'Lightning Network' technology that enables near-instant transactions and low fees - making it the perfect currency for everyday transactions. Both currencies also continue to invest in research and development, working on their blockchains to maintain a competitive edge against emerging cryptocurrencies. As such, we can expect future developments will see these two coins continuing to provide value at different levels - with Bitcoin as an investment asset and Litecoin as a payment network.

Where to Buy & Sell Litecoin and Bitcoin

If you want to become a crypto investor, you need to store how to buy your first asset safely. There are several ways to do it:
-Buy LTC and BTC via a Reputable Exchange

Various crypto exchanges such as Coinbase, Kraken and Binance are offering to buy crypto assets with a bank card.

It should be mentioned that the largest exchanges are often centralized and may restrict trading activities and lock your funds anytime. So exchanges definitely are not a go-to for your long-term holdings.

-Buy LTC and BTC right from your Wallet

Many digital wallets today offer great functionality and have an in-built purchase option. It allows you to avoid fees for transferring funds into your wallet from exchanges and any additional friction in the buy-store journey.

Also in many wallets you can find such features:

• Buy and sell option
• Asset statistics in Portfolio
• Full transaction history tabs
• Сustomizable commissions for sending coins

See the example from Arctic Wallet down below.

Source: Arctic Wallet App

Bottom Line

While Bitcoin and Litecoin have their advantages and disadvantages, it is not possible to say which is "better currency". Each currency has its own unique set of features, advantages, and roadmaps for development. The choice will depend on your individual needs, you need to pay attention to the factors that are most important to you.

One thing is clear - cryptocurrency’s meteoric rise over the last few years has forever changed the way money moves around the world.