Ether Coin Vs Litecoin: Which Crypto Should You Invest In?

You can track the current rate of Litecoin in your app, too. When you are satisfied with the rate of the cryptocurrency, you click on the crypto you want and hit the “Buy” button. LiteBit offers multiple payment methods, like creditcard and SEPA payment. Vitalik Buterin believes that the blockchain and cryptocurrencies have more potential use cases than just being a payment system. He wants to create a global decentralized computer running on the blockchain.

• On the other hand, Litecoin’s block time is higher than Ether, i.e., 2 minutes 19 seconds.
• If you’re familiar with cryptocurrency at all, chances are that you’ve definitely heard of Bitcoin.
• Thus, the transaction fee on Ethereum’s network is higher when compared to that of Litecoin, and it’s often exacerbated by high gas fees.
• If you’re looking to transact, primarily, then Litecoin may be better for you.

Ethereum is a decentralized ledger that’s built on the blockchain. While Bitcoin is just a cryptocurrency, Ethereum is a platform that allows apps to be built on it called dApps and has a token of its own called Ether. The primary design of Litecoin is to handle peer-to-peer payments cheaply and quickly without the intervention of an external financial authority. On the other hand, Ethereum can handle more complex transactions and support the development of various applications. Litecoin followed Bitcoin in 2011, while Ethereum emerged in 2015. While Litecoin is a cryptocurrency, it’s important to note that Ethereum is a blockchain platform, with its native coin being Ether.

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You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

While Ethereum has no limit on token production, it’s rate of growth is limited to 4.5% each year. Ethereum’s proof-of-stake platform requires many miners to validate transactions and agree on the current state of the network. People will earn their stakes when they validate secure blocks and attest to the ones that currently exist. The practice allows equal opportunity for everyone to receive mining rewards.

Litecoin rate

Block time is another excellent variable that endeared people to Litecoin as a friendly coin to mine. Block time is the amount of time it takes for a single batch of tokens to be validated by the network nodes. The average block time in the Litecoin network is 2.5 minutes, while Bitcoin takes 10 minutes. In summary, you can process a Litecoin transaction at lower costs, four times faster, and at 3% energy requirements of a blockchain transaction. When it comes to making a buying decision, it is easy to choose a coin based on certain criteria, but history has shown us time and again that nothing in the cryptosphere is 100% certain. So where does that leave us in terms of whether you should pull the trigger on ETH or LTC?

Reproduction of this information, in whole or in part, is not permitted. Litecoin mining is done using the Proof of Work verification method. The PoW method requires individual miners to provide computing power to solve cryptographic problems. While Litecoin is set to remain with the Proof of Work method, Ethereum is shifting to a Proof of Stake method in 2022. The PoS method is a more energy-efficient consensus mechanism than PoW. As much as ETH is the designated cryptocurrency of the network, it makes more sense to refer to ETH as the fuel needed to operate anything on the network.

Smart contracts are programs stored on a blockchain that execute an action when certain conditions are met. This practice ensures all Ethereum transactions are safe and secure for the user. The average transaction fee for every transaction in Ethereum is $0.85.

With market cap in mind, Ethereum stands at $22.62 billion, or about five times that of Litecoin’s $4.5 billion at the time of writing. However, if you compare prices, then Ethereum is obviously significantly more expensive than Litecoin. According to some estimates, the average transaction fee for each ETH transaction is $0.85, while the LTC’s average transaction fee is $0.04. Thus, the transaction fee on Ethereum’s network is higher when compared to that of Litecoin, and it’s often exacerbated by high gas fees. The Ethereum platform’s main purpose is to act as a decentralized application platform. Its smart contracts can contain information, such as sets of rules or other agreements.

If you’re on a shared network, like the one at your workplace, ask your network administrator to run a scan across the network to weed out any infections. Completing the CAPTCHA proves to us that you’re a human and gives you access to our platform. We offer a 10-minute portfolio analysis and set up service to select users. By now, you’d be able to tell that Ethereum has a broader functionality that makes ETH all the more attractive to its investors. As always, do your own research by checking out various sources of information, from the best crypto news websites and the best crypto podcasts to longer reads such as the best books on crypto. Let’s take a look at both coins and see how they compare with each other.

Two popular choices, Litecoin and Ethereum , were the first altcoins that rose to prominence during the early days of cryptocurrency, which likely explains their continued prominence. However, investors and crypto enthusiasts often face the challenging task of determining which coin is a better buy, or whether both will likely yield profits in the future. The money you put into cryptocurrencies is not safe from value fluctuations. There are, however, ways to select an investment platform that will keep your investments safe.

On the other hand, the average transaction fee for every transaction for Litecoin is meager, i.e., just $0.04 per transaction(much less than Ethereum’s transaction fee). To diversify your basket, you need to know which cryptocurrency to invest in. NerdWallet strives to keep its information accurate and up to date. This information LINK may be different than what you see when you visit a financial institution, service provider or specific product’s site.

Receive payments or deposit your own LTC to securely store and trade it with Kriptomat. Litecoin is a powerful speculative investment tool, so many customers buy and hold in the hopes of gaining massive profits. Equipped with this powerful resource, you’ll be able to buy, sell, send, deposit, and hold various cryptocurrencies on Kriptomat. However, as things stand, Ethereum is a project that has a lot of people interested as there is a need for a decentralised platform that can run different programs and dapps on it. More so, Ethereum is due to have a major upgrade to make its performance that much better.

The Scrypt algorithm Litecoin uses prevents miners from pooling together. This lack of centralization in the network means there is less chance of a hostile takeover by a group of miners who band together. This enables small transactions to process off of the main blockchain.

Its articles, interactive tools and other content are provided to you for free, as self-help tools and for informational purposes only. NerdWallet does not and cannot guarantee the accuracy or applicability of any information in regard to your individual circumstances. Examples are hypothetical, and we encourage you to seek personalized advice from qualified professionals regarding specific investment issues. Our estimates are based on past market performance, and past performance is not a guarantee of future performance.

Andy Rosen covers cryptocurrency investing and alternative assets for NerdWallet. He has more than 15 years of experience as a reporter and editor covering business, government, law enforcement and the intersection between money and ideas. In these roles, Andy has seen cryptocurrency develop from an experimental dark-web technology into an accepted part of the global financial system. There is no physical BTC token so you can think of Bitcoin as digital money.

Whereas Bitcoin is considered to be the first-generation blockchain, of blockchain 1.0, Ethereum is the second-generation blockchain (2.0). While Bitcoin serves as a digital currency and a store of value, Ethereum’s primary use goes beyond being a virtual currency and a store of value. Considered the world’s most programmable blockchain, Ethereum is a marketplace for global payments, games, and thousands of decentralized applications. Ethereum’s blockchain is faster, leading to faster transaction times and lower mining costs.

This is similar to calculating how much gasoline it would take to get a car from one place to another. When buy ethereum or litecoin send Ether tokens, they pay a gas fee to complete the transaction. Litecoin aims to make a faster, fairer, and cheaper version of Bitcoin. It has lower transaction fees than Bitcoin and it is up to four times faster to mine each block. Introduced in 2011 as part of a fork from Bitcoin, Litecoin, or LTC, is a cryptocurrency designed with technical features similar to Bitcoin. Since then, Litecoin has become a popular gateway into the crypto market, offering users faster transfers and more efficient mining.

The supply growth model still factors in a percentage loss rate to balance the number of coins lost over time. Like all traditional currencies, coins disappear from circulation due to death or carelessness. Ether works efficiently as the transactional token on the other BTC buy ethereum or litecoin operations hosted on the Ethereum network.

• When it comes to what can be done with the two different blockchains, Litecoin is still very basic and like Bitcoin in that it is for the transfer of value.
• Introduced in 2011 as part of a fork from Bitcoin, Litecoin, or LTC, is a cryptocurrency designed with technical features similar to Bitcoin.
• Litecoin offers faster transaction authorisations and better scalability other leading cryptocurrencies.
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• He has more than 15 years of experience as a reporter and editor covering business, government, law enforcement and the intersection between money and ideas.

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