Bitcoin and Litecoin markets behave according to supply and demand. The absence of intermediaries makes transactions quick and easy with, minimal fees, and eliminates third-party frauds. Both currencies represent global, digital payment methods with the purpose of making online financial transactions transparent and secure. Blockchain, which is a decentralized publicly distributed ledger, contains encrypted records of every transaction that has ever been made, thus contributing to data security.
These considerations make Bitcoin and Litecoin very attractive. Finally, another reason for the popularity of both cryptocurrencies is the potential of quick and easy profits that they bear. The past several years have shown investors a simple way to multiply wealth, causing constant growth in the number of followers. Bitcoin is the first blockchain-based cryptocurrency, so it stands apart from all other projects that have subsequently appeared.
As a result, altcoins often use different protocols and encryption algorithms, with Litecoin and Ethereum taking ranks among the most well-known. The key points that differentiate them from each other are mining algorithms, the block generation time, the total number of coins, transaction speed, market capitalization, and price differences.
Bitcoin, Ethereum, and Litecoin use different cryptographic algorithms, which influence how new coins are created. With SHA, the bigger the network, the higher the difficulty of finding a new block, and thus the higher energy consumption. Bitcoin mining requires the use of expensive mining devices called Application-Specific Integrated Circuits ASICs , which are expensive and consume a lot of energy.
As a result, standalone miners can no longer make profits, having to join mining pools. Scrypt, by contrast, was designed to allow anyone with a personal computer to mine Litecoin. With Litecoin, end-users still have a chance to get profits as standalone miners. Bitcoin and Litecoin are similar in terms of using a Proof of Work PoW consensus mechanism for mining.
The process of mining means using high-powered computers and special hardware to solve complex puzzles, necessary to validate transactions and generate new blocks. The first miner, or node, to confirm the block is rewarded with new coins.
The transactions are recorded on a public ledger, which is also stored by nodes. Ethereum blockchain has obviated the need for mining now that it has switched to the Proof of Stake consensus algorithm. The participants stake their coins in the system and everyone has a fair chance of getting a reward, depending on the size of the stake. Another way in which the three cryptocurrencies differ is the transaction speed. Bitcoin network can process just 4—5 transactions per second Transactions per second TPS is the number of transactions a blockchain network can process each second or the number o TPS on average, and 7 at maximum.
It takes approximately 10 minutes to create a new block. As for the Litecoin network, its speed is 56 TPS, and it takes 2. However, this improvement has a drawback in the form of the so-called orphaned blocks which occur when two miners produce blocks at the same time. Ethereum 2. Currently, its speed is 12—15 transactions per second on average, confirming blocks every 15 seconds.
One of the biggest issues of the Bitcoin network is related to the lack of scalability. The more users try to send funds over the network in a given moment of time, the more congested it becomes. As transaction fees are defined on the basis of an auction, those who make higher bids get their transactions confirmed. This leads to high network fees and longer confirmation times. Though Litecoin suggests much lower fees, it still has the same problem.
To speed up transaction time and lower transaction costs, Bitcoin and Litecoin have implemented some scalability improvements. Among them are SegWit , which increases the block size limit by pulling signature data from transactions, and the Lightning Network, which keeps the transaction data off the blockchain. Ethereum blockchain does not have this problem. Now that it has finally switched to PoS, the problem of scalability is no longer relevant for this network. Litecoin and Bitcoin have a preset coin limit on the amount miners receive for validating transactions.
Once they reach their supply limits, no new coins will be issued. According to a predefined protocol, the Bitcoin supply is limited to 21 million BTC to prevent inflation. On average, new Bitcoins are being mined per day. With Bitcoin halving occurring every four years, rewards for mining blocks have decreased significantly. After the last halving, in , miners got only 6. Litecoin has a limit of 84 million LTC.
The last Litecoin halving took place in , reducing the rewards to The next halving is expected in Unlike these two currencies, Ethereum has no final issuance cap. However, it has an annual minting limit of 18 million coins. With the transition to PoS, block rewards are no longer irrelevant.
In the prices of major cryptocurrencies increased immensely following another Bitcoin bull run. After a slight fall, the upward trend has continued. This growth led to the increase of the Bitcoin trade market. Litecoin has grown as well. Another integral difference between the three currencies is their market capitalization.
Litecoin is planning to partner with the M. On December 1, , Ethereum started its move to Ethereum 2. The transition will be realized in four phases, bringing some upgrades and improving the blockchain. Sharding, the layer-one solution, and Plasma, the layer-two solution, will be installed to solve the scalability issue. Bitcoin is likely to install scaling and privacy protocol upgrade Taproot, with the lightning network upgrade still growing.
Considering the past bullish trends of the market, we can see that Bitcoin has always led to the rise of other altcoins, whose values are often pegged to it. Now, it has continued to rise after breaking through the previous high. Bitcoin differs a lot from Ethereum and Litecoin.
Ethereum is a decentralized platform created for developing decentralized applications and smart contracts, fueled by gas fees. Bitcoin is a store of value and a form of payment for goods. Litecoin is used as a purely digital currency. After moving to the Proof of Stake algorithm, Ethereum can become a game-changer. But it will be difficult to overtake Bitcoin in terms of market cap. Besides, Bitcoin is turning into a store of value, called digital gold, because of a finite number of coins.
It has the biggest user base. To summarize, we can say that both Litecoin and Ethereum have a future, with each of them taking their place in the ecosystem; but neither of them will be able to overtake Bitcoin. The cryptocurrency market changes very fast, making it difficult for investors to choose the best investment options.
With all the hype around this industry, many people are wondering if they should invest in Bitcoin, Litecoin, or Ethereum. New currencies are brought to the market every month, so there is no guarantee that they will remain popular. Still, all the currencies compared in this article have a strong user base, experienced developing teams, and are available on most exchanges.
BTC has high prospects, as more investors are interested in it every day. If Bitcoin solves its scalability problem, transactions will be fast and cheap, making the currency more attractive than any other altcoin. However, due to its limited supply, Bitcoin will not be able to serve the whole world. It can only support about million users. Similarly, Litecoin attracted attention after a meme compared the cryptocurrency to characters in Dragon Ball Z , a comparison that caught on like wildfire.
This chart, from BitInfoCharts , shows how Ethereum and Litecoin have exploded in terms of transactions per day. The original. This includes the blockchain, the public ledger that enables communities to share a decentralized cryptocurrency without fear of doubling over on transactions. Introduced in by then year-old Vitalik Buterin, on the surface Ethereum seems a lot like Bitcoin. This allows for ambitious sets of instructions; insurance firm AXA has experimented with smart contracts that trigger a payment request if a flight is delayed by two or more hours.
Created by Charlie Lee, a former director of engineering at Coinbase, Litecoin is all about transfer speed improvements. Litecoin, on the other hand, uses Scrypt, which demands memory instead of processor resources. That stops these giant setups from easily switching to Litecoin.
This excitement has many people wanting to invest in the Coin and keep it for its value to tise on the technological advances it is making. So, in essence, Litecoin is what it is and there will not be much change there other than perhaps a bigger push towards paying with crypto — this would make the coin rise in value and make it a good investment.
But Ethereum is a coin with a lot of potential that many people are identifying and want to be a part of. Both of these coins are very well established in the cryptocurrency space, and are known to be good projects, doing good things with solid teams. This is often the first step in looking at the potential a project has for investing, and they both pass the test. When it comes to the better one to invest in, it does come down to preference at the moment because both have their values and their reasons to grow in price.
Ethereum is at a key stage now where its impending upgrade has many people excited about the possibilities of the future. Litecoin is also a coin that could become really sought after if people do start making a bigger move to spending cryptocurrencies. The likes of Bitocin failed as a currency because it was too slow and expensive whereas Litecoin handles these issues well.
If you would like to get started trading both Litecoin and Ethereum, it is very easy to do with PrimeXBT — an award winning cryptocurrency trading platform. To begin, you can click here to sign up and within minutes you can start buying and trading Litecoin and Ethereum.
PrimeXBT takes only a few minutes to register and to buy your first bit of Bitcoin which can be traded for LTC or ETH and then you will also have access to a vast suite of professional and easy to use trading tools. Comparing different coins like this has immense value for investors as they can understand the differences in coins and which will suit them better as investment tools. There will be future articles that come along like: Bitcoin vs Ripple, Bitcoin vs Litecoin, Litecoin vs Ertereum, so keep an eye out for them.
The two coins are very different and serve different purposes. They are both very good coins and it would be hard to say that one is better than the other. Litecoin is a good investment as it is a coin that has a place in our continually evolving digital architecture. Many feel that cryptocurrencies will be the cash of tomorrow, and LTC is ready to be that cash. Ethereum is a good investment because it is the best example of a cryptocurrency that has proven potential. We have seen it operate as a platform for decentralised apps and we know it is building to a place that the world is heading.
Litecoin is faster than Bitcoin in terms of transaction times, but it is not faster than Ethereum. However, Ethereum has been known to suffer from a crowded network which slows it down drastically. It is about personal preference here.
At the moment, there is a lot more excitement around the potential of Ethereum, but there is a lot than can be said for investing in Ethereum or Litecoin for a more long term view to making money. Investing in or trading gold or other metals can be risky and lead to a complete loss of capital. This guide should not be considered investment advice, and investing in gold CFDs is done at your own risk. The information provided does not constitute, in any way, a solicitation or inducement to buy or sell cryptocurrencies, derivatives, foreign exchange products, CFDs, securities, and similar products.
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Bitcoin continues to make great leaps forward, breaking new all-time highs through a couple of weeks, but the coin has…. If you have been around the cryptocurrency market for even a short amount of time, certain words pop up again…. Bitcoin, Ethereum, and other cryptocurrencies are the talk of finance once again, and everyone wants to own a piece of…. Reading Time: 5 min. Concepts When looking at the difference between Ethereum and Litecoin, it is important to delve into the different concepts that make them up.
Transactions Transacting with Litecoin and Etherteum looks very different. Limit Again, the difference between the token and what they are used for shapes the different concepts. Capabilities 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. Litecoin vs Ethereum: Conclusion Both of these coins are very well established in the cryptocurrency space, and are known to be good projects, doing good things with solid teams.
The answer is both. Each of these has merits and demerits. And it can give you certain advantages. It will make your investment safer, reduce the risks, and increase your chances of getting a better return in the near future. This has been a guide to Ethereum vs Litecoin. Here we discuss the top differences between Ethereum and Litecoin along with infographics and comparison table. You may also have a look at the following articles for gaining further knowledge —.
Free Investment Banking Course. Login details for this Free course will be emailed to you. Forgot Password? Article by Sayantan Mukhopadhyay. Difference Between Ethereum vs Litecoin Ethereum is an open-ended blockchain platform that operates on the basis of numerous systematic algorithm calculations where Ether functional currency operates gets traded while Litecoin was invented as a cryptocurrency with an intention to initiate easy transactions between parties and to remove the presence of ambiguities and enhance efficiencies and that too at a lower rate.
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