Banking and Finance

Bitcoin vs. Litecoin: How Do They Compare?

Experts predict the global cryptocurrency market could be worth as much as $2.73 billion by 2025. Therefore, it’s no surprise many people are seeing this as an excellent investment opportunity, and two of the most popular currencies are Bitcoin and Litecoin.

But, you may be wondering, what is Bitcoin, what is Litecoin, and what are their pros and cons? In essence, both Bitcoin and Litecoin are cryptocurrencies, and they have some similarities. However, there are also differences you should take into account before making an investment.

Read on for a Bitcoin vs. Litecoin comparison.

Distribution

The Bitcoin network has a distribution limit of 21 million tokens, which is in stark contrast to Litecoin which can accommodate a maximum of 84 million tokens. At first viewing, this seems like Litecoin has a considerable advantage as it should be easier to pay in small amounts. However, it is not quite that simple.

Both currencies are divisible by much larger amounts, and you can still make small payments using Bitcoin if that is your preferred cryptocurrency.

Ease of Transaction

It is straightforward to carry out transactions with both Bitcoin and Litecoin. But, Litecoin has a significantly faster transaction speed, which could make it an optimal choice for many buyers and sellers. In particular, merchants will likely prefer to be paid in Litecoin as they will receive their currency more quickly.

You can learn more about how to buy Litecoin before using it to make purchases.

Coin Value

Before you invest in crypto, you’ll want to know what each coin is worth, and this is where there is another large difference between the two currencies. Bitcoin has been around a long time and is worth many times the value of Litecoin. Therefore, you can expect to pay a lot more if you buy Bitcoin.

However, there is also a difference in the fees, with Bitcoin charging a much higher amount per transaction. If you have a smaller investment budget, Litecoin could be the better choice.

Market Cap

To get a more rounded view of your options before you purchase cryptocurrency, it can be helpful to consider the market cap. Again, as Bitcoin is the biggest cryptocurrency, it has a higher market cap than Litecoin. But, this doesn’t mean you shouldn’t consider adding Litecoin to your investment portfolio.

Bitcoin vs. Litecoin Summary

The Bitcoin vs. Litecoin debate continues to rumble on, but there are advantages to buying both currencies. Although Bitcoin is worth considerably more, Litecoin has a much faster transaction time. You could also prefer Litecoin’s higher distribution figures. However, maybe the greater market cap of Bitcoin could be more appealing.

Whatever your choice, by investing in the right cryptocurrency, you could be on your way to making a significant amount of money!

If you’ve enjoyed reading this article, be sure to check out more great posts in our Business and Technology categories before you go.

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