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Litecoin vs. Ethereum: What Are the Differences?

Are you interested in learning more about cryptocurrency? Do you get confused about the different coins available today?

The total value of the world’s cryptocurrency market is more than 3 trillion US dollars.

Ethereum and Litecoin are two investment options in the crypto space. Here’s a handy comparison of Litecoin vs. Ethereum to help you understand the differences.

What Is Litecoin?

Litecoin is a peer-to-peer cryptocurrency launched to increase flexibility and transaction speed. It complements Bitcoin. It’s one of the first altcoins created from the Bitcoin open-source code.

It operates on the Lightning Network. It can mine up to four times faster than Bitcoin, which means transactions settle faster.

It’s often referred to as the silver to Bitcoin’s gold. Litecoin has a limit of 84 million coins vs. Bitcoins 24 million.

One of the most important Litecoin tips to understand is how the Litecoin price is lower than in the past. Many investors still believe it still has value. 

Litecoin vs. Ethereum (Ether)

Ethereum is commonly used to refer to both the blockchain and the cryptocurrency Ether (ETH). 

Both Ethereum (ETH) and Litecoin (LTE) are well-established currencies traded actively in the cryptocurrency market. They represent a large portion of the market.

When comparing the two, it helps to look at their differences.

History

In 2011, the creation of Litecoin occurred. It’s a fork of the Bitcoin blockchain. It’s similar to Bitcoin in many ways. Ethereum is a blockchain platform designed in 2015. Ether is the cryptocurrency of the platform.

Fees and Scarcity

Fees or gas used for trading ETH are much higher than the fees for trading LTE. Litecoin has a limited supply of coins in existence, while Ethereum has no cap.

Purpose

Litecoin functions as a currency, similar to Bitcoin. Ethereum can work as a medium of exchange, but its primary purpose is the decentralized application platform where users can carry out activities.

Both Litecoin and Ethereum can transact faster than Bitcoin, which is advantageous. Ethereum is quicker.

Ethereum Guide

Smart contracts are the main feature of the Ethereum space. Users use the token Ether to transact contracts and other applications built on the platform.

One of the most important Ethereum tips is how it attracts the attention of developers. They see the potential of the platform to host applications. It’s also captured the attention of investors who can see the coin’s future value.

The functionality of Ethereum gives it a distinct advantage over Litecoin. Many developers think we’ve only scratched the surface of the possibilities for the Ethereum network. The technology is still in its early days.

Currently, Ethereum is considering a switch from miners to validators. This would be a change from proof of work mining to proof of stake consensus, which uses fewer resources.

Comparing Cryptocurrencies Takes Research

Understanding the differences between Litecoin vs. Ethereum gives you a better perspective of the crypto space. You’ll be happy you did your research before you made any investment decisions.

Did you find this article helpful? If so, be sure to check out more cryptocurrency news on the Business or Tech tabs.

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