Revolut Cryptocurrency Wallet & Exchange For Modern Banking

Revolut banking is one of the latest financial sensations from the FinTech startup world.

Not only, they don’t exist on any high street, and keep their banking strictly to a mobile app; they have also recently joined the cryptocurrency frenzy.

Launched at the beginning of December, Revolut cryptocurrency wallet and exchange for modern banking allows customers to buy and store cryptocurrency.

Although it’s only the first phase of the cryptocurrency expansion, and there’s still a lot missing, Revolut is undoubtedly the first financial institution to build a bridge between traditional banking and cryptocurrency trading.

What Is Revolut Bank?

Revolut banking cryptocurrency

Revolut is a FinTech startup from the UK which accumulated over a million customers across Europe in less than three years since its launch.

One of the most recognisable features of Revolut is the inexistence of traditional bank branches. Instead, everything is based on a mobile app and customers can access support via phone or email.

But, the lack of bureaucracy and modern approach are not the most attractive feature of Revolut.

Creating an account with Revolut is more similar to creating a PayPal account then to filling up lengthy forms and never-ending conversations with a representative.

Revolut account is essentially an electronic wallet with a personal IBAN number and payment card which can be topped up and used for payments worldwide.

Recently, Revolut has applied for a European banking license, which will allow them to protect funds under the European Deposit Protection Scheme. The license should be granted mid-2018

The startup offers two choices for banking – free of charge and premium which comes with perks such as travel insurance, airport lounges and soon-to-come investment services.

Another significant advantage of Revolut are the attractive foreign exchange fees. The company tries to match the interbank fees as much as possible and charges only 0.5% of the transaction fees.

While the current customer base is mainly scattered around Europe, Revolut is planning an expansion to the US, Singapore, Hong Kong, Australia and New Zealand in early 2018.

Revolut Merges Mobile Banking with Cryptocurrency Trading

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Revolut launched cryptocurrency wallet and exchange

One of the Revolut’s newest features is cryptocurrency wallet and exchange.

The mobile banking startup is trying to erase the divide between old and new money, allowing customers to buy, sell, trade and hold Bitcoin, Ethereum and Litecoin alongside 25 world fiat currencies.

Customers can easily exchange their fiat currency for one of the digital currencies and both are stored at the same app without the need for a third-party involvement.

Currently, the coins cannot be transferred to an outside wallet, nor to the Revolut account.

So if you already own cryptocurrency, you won’t be able to transfer it to your Revolut wallet. Conversely, if you invest in crypto via Revolut, you cannot send your funds to an outside wallet.

This close loop system has been imposed due to compliance regulations, and caused somewhat of a backlash from customers who moved to Revolut banking purely because of the cryptocurrency feature.

All crypto funds are stored in an offline cold storage, meaning customers don’t actually have an access to their private key – both fiat and crypto are accessible through a PIN code.

Revolut security features are much stronger, though, the majority of cryptocurrency exchanges, so the likelihood of a hackers’ attack is also significantly lower.

The bank also promises the most competitive rates on crypto transactions, charging only flat, up-front 1.5% fee. On other platforms, these fees can go up to 10%.

Customers can purchase crypto with Revilut’s base currencies, hence there’s no need for additional foreign exchange fees if you want to buy in Dollars or Polish Zloty.

If you’re spending money through your Revolut account and you unexpectedly run out of fiat currency, Revolut will automatically transfer your crypto into the fiat account.

The Future of Revolut Cryptocurrency Banking

The Future of Revolut Cryptocurrency Banking

The first stage of Revolut incorporating cryptocurrency to their services is certainly not the last one.

Revolut’s CEO – Nikolay Storonsky – recently wrote:

“Despite being one of the hottest trends in the world right now, getting exposure to cryptocurrency has notoriously been time-consuming and expensive.”

While cryptocurrency is preparing to go mainstream and it might be seen as a distraction from the Revolut’s main business – Stronky feels that it will soon become a crucial part of everyday banking.

Revolut reported that during a week-long crypto beta test, 10,000 customers traded $1 million in cryptocurrency.

Currently, Revolut’s cryptocurrency feature seems more appealing to investors – who prefer the convenience of having everything in one place, rather that the anonymous and decentralised aspect of cryptocurrency.

Even though the Revolut cryptocurrency wallet and exchange for modern banking have not been welcomed as much by crypto-enthusiasts, those who are looking for a long term investment shouldn’t be disappointed.

Revolut banking will certainly keep on growing, and with cryptocurrency market facing the same trend, it seems like a perfect match and embracing cryptocurrency could lure FinTech early adopters to Revolut.

However, if you prefer traditional ways of investing in cryptocurrency, read our guide to the best cryptocurrency exchanges.

KeepKey Hardware Wallet Review

Cryptocurrency mania is well and truly underway – wherever you look, whatever you watch, and whatever you read – you are sure to hear a mention of this new type of digital money that is taking the world by storm.

When it comes to security, hardware wallets are deemed to be the most secure.

This is because, although they connect to a computer, the majority of them are immune to keylogging malware and once they are disconnected there is no way anyone can hack them.

Of course, you need to be careful not to lose it or get it stolen, but again, most offer a recovery function which means you can retrieve your bounty without too many problems.

In this KeepKey review, we will delve into its features, functions, as well as its pros and cons so you can make an educated decision whether it is a good option for you.

There is no doubt that KeepKey has one of the best reputations, as well as being one of the priciest options – but how deserved are these accolades?

KeepKey: Overview

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  • Name: KeepKey
  • Website: www.keepkey.com
  • Type: Hardware Wallet
  • Cryptocurrency: BTC, ETH, LTC, DOGE, NMC
  • Fiat Currency:
  • Price: €175/$199
  • Rating: 8.0/10.0

The KeepKey is one of the most expensive, but also the most advanced on the market.

Retailing at almost $200, it is at the top end of its class and offers users one of the most secure cryptocurrency storage solutions available.

When it comes to reputation, KeepKey has one of the best and the most consistent, but of course, not everyone can quite afford its rather steep price tag.

While there are great and similar equivalents on the market, KeepKey is most definitely worth the investment, especially if you hold a large amount of cryptocurrency.

It is a hardware wallet which securely stored Bitcoin, Ethereum, Litecoin, Dogecoin, Dash, and Namecoin.

It also offers the best security features to keep your coins safe from hackers and other cyber dangers.

It works by plugging into your computer, synchronising with the specially installed software and taking care of all private key generation, private key storage, and transaction signing.

Because it does not require an operating system internally, it is entirely immune from any malware or keyloggers that any nefarious third parties may want to send your way.

The KeepKey comes packaged in a plastic-wrapped, sealed box with a hologram sticker on it similar to TREZOR and the Ledger Nano S – you can see if it has been tampered with.

The device is sleek, and slim and enjoys a smart all-black design.

It is quite heavy to hold in your hand, but in the way that it is reassuring, rather than feeling cheap or cumbersome. Made from polycarbonate and an anodised aluminium case, it is sturdy and reliable should you be a little clumsy.

It just feels expensive, which is a big plus point for some particular types of consumer that want the very best looking and feeling item possible.

The instructions are included in the box (luckily, they are short and sweet), as well as the Micro-USB cable that you will need to plug it into your computer.

All in all, the packaging is great the device is nifty and well designed, and it gets pretty much full marks from me when it comes to appearances, and as we all know, first impressions count!

So, it looks good and comes in a beautiful box, but what about the more technical details? Let us take a look.

KeepKey: Cryptocurrency Stored

At the moment, the list of currencies that KeepKey supports is rather short and is only limited to Ethereum, Bitcoin, Dogecoin, Litecoin and Namecoin, although these are the most popular at the moment, so unless you are dealing in some pretty rare coins, you should be ok.

Who knows, perhaps in the future, KeepKey will expand their list of supported currencies, it could be a good idea when you consider the hefty price tag which is attached to the device.

KeepKey: Privacy and Security

KeepKey Review- Privacy and Security

First of all, the KeepKey comes securely packaged.

Like other hardware wallets, it comes with a tamper-proof seal which means you can quickly and easily tell if someone has tried to access the device, or interfered with it in any way before you have received it.

It also comes with a pin facility, and as an extra precaution, you do not traditionally enter the pin. Instead, the pin grid displays random numbers on your browser application, and you click the corresponding numbers.

It displays each time differently, and this means even if you have keylogging software installed on your computer, hackers cannot identify the number.

The fact that the device is also an offline “cold” storage device is an extra layer of security. The device is not connected to the internet in any way, and this means that any data or information that is stored on it is completely safe from hackers.

Cold storage is by far the most secure method of keeping your cryptocurrency safe.

The KeepKey also offers users a 12-24 word seed which allows you to retrieve your wallet should the device itself be stolen, lost, or get broken.

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This is your one way of retrieving vital data so be sure to set it up correctly when initialising your device!

The KeepKey is as secure as say the TREZOR or Ledger Nano, and it offers pretty much the same security features meaning it is pretty much foolproof and impenetrable to third party attempts to violate it.

What this means for you is that you can relax a little when it comes to knowing that your coins are safe and sound.

KeepKey: Customer Support

Considering the KeepKey is pretty simple to use, there isn’t a whole lot of need for extensive customer support.

Of course, when you are paying almost $200 for a device, you do expect a certain level of service!

First stop for those looking for answers is their help centre. Here you can access how-to guides which contain lots of step by step articles.

Then you can check out the FAQ section, Resources, Troubleshooting or if you are just setting up the device for the first time, head to New KeepKey Start Here.

If you cannot find the answer to your question or query in the support section, then you can progress to contact a customer service agent directly.

All you need to do is fill out your name, email, and concise but precise details of the issue and a member of their team will get back to you.

KeepKey: How To Send and Receive Cryptocurrency

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You will be pleased to know that sending and receiving currency is very simple and straightforward with the KeepKey and much the same as with any other wallet.

All you need to do to send currency is to open the KeepKey client, enter your pin, click send, enter the details of the recipient and the amount you want to send, verify the amount on the device and confirm.

To receive, you need to access the client, click on “receive”, copy the receiving address, and click on confirm. Give the address to the person sending you funds and the currency will arrive in your account in due course.

KeepKey vs Ledger Nano S

KeepKey vs LedgerThe main difference between these two devices is, of course, the price tag.

The Nano sits at the lower end of the scale, while the KeepKey is at the pricier end. But which one is better?

Well its difficult to say as they both offer pretty similar features meaning that for someone starting out in the world of cryptocurrency, the Nano would be an excellent place to start, but if you can afford it, why not go for the Nano?

Both devices come highly recommended in online communities and other reviews, so it comes down to what you can afford and of course, your personal preference.

However, Ledger Nano S costs only €58/$65, and you can find out more in our Ledger Nano S review.

KeepKey vs TREZOR

KeepKey vs TREZORWhen it comes to comparing these two hardware wallets, the KeepKey comes out on top.

From the way it is packaged to its incredibly simple set up process, it emerges triumphant against the TREZOR.

While we don’t dislike the TREZOR, for us it doesn’t offer anything unique and minus points like its unnecessarily lengthy setup process, and instruction manual put us off.

We are also not a big fan of the TREZOR design – it looks cheaper and more boring, so again, the KeepKey comes out on top despite it being a little bit bulkier than the TREZOR.

TREZOR costs considerably less – €89/$99 and you can read more details in our TREZOR review.

KeepKey: Setting Up Guide

So, to get your KeepKey up and running you need to follow these steps:

  1. Navigate to the keepkeywallet.com site and download the Chrome extension for your browser.
  2. Click install and allow the automatic installation of the extension.
  3. Navigate to the keepkeyproxy.com site and download the KeepKey Proxy Chrome app. This is also very simple, but it seems odd and a bit longwinded that you have to download them separately instead of them being combined.
  4. Once both installations, click on the KeepKey. You will see that there is only one button for clicking and this will initialise it and prompt you to name the device.
  5. Then you will be prompted to choose a pin from a scrambled keypad, similar to the design of the TREZOR.
  6. Then it is time to copy the 12-word recovery seed from the piece of paper provided, to the recovery seed card. Although 12 words are the default for KeepKey, it can be changed to 18, or 24 if required or desired.
  7. Once you have taken note of the seed, you need to press a button on the top right-hand side of the device and hold it down for two seconds. Once this is completed, a balance of zero will be shown on the screen, and this means that you are set up and ready to go.

Regarding setting up and initialising, the KeepKey was by far the easiest and the quickest. A completely seamless process from start to finish, it surpassed that of its competitors the Nano and TREZOR.

KeepKey: Why Should You Buy KeepKey?

KeepKey ReviewWhy Should You Buy KeepKey

For those that can afford to splash the cash or who are looking to make a significant investment in their cryptocurrency wallet, KeepKey is the best you are going to get.

It is the crème de la crème of the hardware wallet world, and you can tell from the quality of the device and its feel, that you get what you pay for.

That said, if you cannot afford it and have to plump for, say, the Nano, you are not going to be any worse off feature, or security wise.

It is simple to use, easy and painless to set up and it offers a smooth experience from start to finish.

It is easy to send and receive money, and its level of security is unsurpassed. This is a great product with a strong reputation and an awful lot of style.

If you are looking for a high-end product to keep your currencies safe, then I can thoroughly recommend the KeepKey for all of your cryptocurrency needs.

Check our guide to the best hardware wallets for a more detailed comparison of all hardware wallets.

‘Sell It Here’: Mike Novogratz Bearish After Litecoin Price Surge

mike novogratz bitcoin
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Legendary trader and prominent bitcoin bull Mike Novogratz said that he does not believe that the litecoin price will sustain its dramatic early-week rally and he would “sell it here.”

Speaking with CNBC, Novogratz — the founder of crypto hedge fund Galaxy Investment Partners — stated that although he believes bitcoin represents a buying opportunity for investors even after its fourth-quarter rally, he does not think that litecoin offers the same upside.

“I don’t think [the litecoin rally] has the same legs as bitcoin,” he said. “I’d sell it here” and buy bitcoin.

Over the course of the past week, the litecoin price has more than tripled, and on cryptocurrency exchange GDAX it briefly crossed $400. At present, the litecoin price is trading at a global average of $336, making it the fifth-largest cryptocurrency by total market cap.

litecoin price
Source: CoinMarketCap

Novogratz attributed the rally to an “agile promoter” — presumably Litecoin creator Charlie Lee, who has made several high-profile media appearances this week — and hype around lightning network technology, which is expected to be integrated into both Bitcoin and Litecoin.

Another theory is that Coinbase users, many of whom are new to the cryptocurrency markets, are buying litecoin because it appears “cheap” compared to bitcoin and ethereum, the other two cryptocurrencies offered on the brokerage platform.

Novogratz said that rallies such as litecoin’s are a byproduct of the industry’s “speculative mania,” as well as the fact that none of the protocols — not even Bitcoin — are ready for “prime time.”

“This is what a speculative mania feels like. We are in the middle of a speculative mania, and phase one of this whole decentralized revolution is just selling the story. None of these protocols are going to be ready for prime time for at least two to three years, so we’re selling the story of what the future is going to be,” he said.

Of course, Novogratz is quick to admit that his bets have been wrong before. Although he called bitcoin’s ascent to $10,000, he believed that achievement would trigger a selloff. Consequently, he sold some of his holdings, waiting to buy back in following a dip that never came.

“Cost me a fortune,” he said.

Featured image from Bloomberg.

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Ethereum, Litecoin Prices Headline $20 Billion Altcoin Rally

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The cryptocurrency markets achieved another comprehensive advance on Tuesday, but — breaking from recent norms — the bitcoin price was not leading the rally. That honor belonged to the ethereum price and litecoin price, each of whom surged to all-time highs and helped catalyze a record day for the altcoin markets.

Cryptocurrencies More Valuable Than Alibaba

Nevertheless, bitcoin did make a slight advance and coupled with the $20 billion altcoin rally, the total cryptocurrency market cap soared from $444.3 billion to $467.8 billion.

litecoin price
Source: CoinMarketCap

This, incidentally, makes the combined value of all cryptocurrencies worth more than Chinese technology conglomerate Alibaba, whose founder, Jack Ma recently said that bitcoin is “not for me.”

litecoin price
Source: Yahoo Finance

Bitcoin Posts Minor Advance as Futures Launch on CBOE

The bitcoin price rallied after U.S. exchange CBOE launched regulated bitcoin futures contracts on Sunday, but the most prominent cryptocurrency’s performance was a bit more tepid during the first full day of trading. After briefly rising above $17,500, the bitcoin price settled down to a present value of $16,906. This represents a daily increase of one percent and translates into a $283 billion market cap. January futures, meanwhile, were priced at $17,730 at the time of writing.

bitcoin price
Bitcoin Price Chart | Source: CoinMarketCap

Notably, bitcoin futures trading currently represents little more than a blip in the market. While CBOE’s $50 million in first-day volume was respectable for a nascent asset class, it pales in comparison to the $12 billion in trades that bitcoin exchanges processed during the same period.

Ethereum Price Leaps to $550

Although ethereum has been in a sustained uptrend throughout the year, it has been unable to match bitcoin’s gains during the fourth quarter. Consequently, it has gradually lost market share, and at one point its corner of the market dropped below 10 percent.

ethereum price
Ethereum Price Chart | Source: CoinMarketCap

Tuesday brought investors a welcome change. The ethereum price leaped by 16 percent, punching through the $500 barrier and briefly extending as high as $553 — a new record — before ebbing back to a present value of $540. Ethereum now has a market cap of $52.1 billion, raising its market share to 11 percent.

Litecoin Price Headlines $20 Billion Altcoin Rally

More than three-quarters of the top 100 cryptocurrencies rose against the dollar on Tuesday, including every coin and token within the top 10. Many of these gains constituted double-digit percentage increases, which was all the more impressive considering that bitcoin only rose one percent.

litecoin price
Source: CoinMarketCap

The bitcoin cash price rose nearly seven percent, bringing the third-largest cryptocurrency back close to the $1,500 mark, but its performance was eclipsed by the new fourth-largest cryptocurrency: litecoin.

Just days ago, litecoin was trading in the bottom half of the top 10, but it has assembled a breathtaking rally since the weekend. In the past day alone, the litecoin price has soared more than 58 percent to a new all-time high of $260. Litecoin now has a market cap of $14.1 billion, placing it ahead of both IOTA and ripple in the rankings.

litecoin price
Source: CoinMarketCap

Despite losing a spot in the rankings, IOTA did post a double-digit percentage increase for the day, rising more than 13 percent to $4.90. Ripple, meanwhile, increased 11 percent to $0.275. The dash price climbed by 10 percent, bringing it within striking distance of $800, and monero posted a similar movement to bring its price near $300. Next to litecoin, the NEM price returned the best performance of any top 10 coin or token, leaping by 27 percent to $0.546. Bitcoin gold, however, rounded out the top 10 with an increase of just two percent.

Featured image from Shutterstock.

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Litecoin Price Spikes 82% in a Single Day to Hit $300, Surpasses IOTA

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The Litecoin price has achieved $300, as it surpassed IOTA with a $15 billion market cap, to become the fourth largest cryptocurrency in the world behind Bitcoin Cash.

Ari Paul, a prominent bitcoin analyst and the co-founder of Blocktower Capital, noted that the market cap of Litecoin has surpassed the entire cryptocurrency market valuation 15 months ago.

“Litecoin is now worth more than the entire cryptocurrency market just 15 months ago,” said Paul.

$10 Billion Market Cap Milestone

Earlier today, Litecoin creator and former Coinbase executive Charlie Lee revealed that the market cap of Litecoin surpassed the $10 billion mark, and has recorded a 4,000 percent increase in value year-to-date.

Since then, within less than 24 hours since the market valuation of Litecoin surpassed $10 billion, it achieved $15 billion, peaking to $230.

While a single major event did not trigger the price of Litecoin to increase by nearly 80 percent within a 24-hour span, many analysts believe that the recent surge in the price of Litecoin was caused by an overall increase in interest and demand for the cryptocurrency market from the traditional finance sector.

Given that Litecoin is a cheaper and a more currency-like alternative to bitcoin due to its lower fees and faster confirmation times, it is likely that the strong performance of bitcoin over the past three months has impacted the short to mid-term price trend of Litecoin positively.

Still, despite today’s strong rally, Lee emphasized that investors should approach Litecoin and any other cryptocurrency in the market with caution, as any currency could experience a major correction in value.

“Sorry to spoil the party, but I need to reign in the excitement a bit… Buying LTC is extremely risky. I expect us to have a multi-year bear market like the one we just had where LTC dropped 90% in value ($48 to $4). So if you can’t handle LTC dropping to $20, don’t buy,” said Lee.

He added that every bull run in the cryptocurrency market has been followed by a bear cycle, and hence, the latest 76 percent surge in the price of Litecoin could lead to a major correction in the short-term.

Lee said:

“Every crypto bull run I’ve seen has been followed by a bear cycle. The market needs time to consolidate. That’s just my experience from 7 years of watching this space. How low and how long it will be is TBD. People need to be aware of this possibility and invest responsibly.”

Litecoin Trading Not Centralized in South Korea

Considering all of the variables and recent events, it is optimistic that the trading of Litecoin is not heavily centralized in Litecoin, as Bitcoin Cash was in November. GDAX, the flagship trading platform of Coinbase, processed more than $1 billion in Litecoin trades over the past 24 hours. That is, almost half of the daily trading volume of GDAX at $2.25 billion being allocated to Litecoin.

Due to the zero-fee system of major cryptocurrency exchanges in the industry, the South Korean cryptocurrency exchange market has had a negative reputation, as zero-fee trading leaves exchanges vulnerable against bot and wash trading.

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The Difference Between Litecoin and Bitcoin

The world of cryptocurrency has been taken over, in a majority, by Bitcoin and Ethereum. These two are what comes to everyone’s mind while mentioning virtual currency.

However, a lot has changed since 2008 and the invention of Bitcoin. More cryptocurrencies have started appearing, all with improvements over the original one.

One of them is the lesser-known offspring of Bitcoin — Litecoin. Which can process transactions much quicker than Bitcoin and there’s significantly more of them than Bitcoins.

So what is the difference between Litecoin and Bitcoin? Does Litecoin have a chance of outrunning the first cryptocurrency ever invented and becoming a number one?

What Is Litecoin

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Both Litecoin and Bitcoin are incredibly similar. Both are decentralised electronic currency, meaning they aren’t linked in any way to big banks and traditional banking system as we know it.

Litecoin’s code is open-source, meaning anyone can access it and is free to modify it. It also works on a shared peer-to-peer network, leaving behind a record of transactions that can be viewed by anyone who’s a member of the system.

While traditional currency supplies always fluctuate, e.g. US Dollars or Euro, both Bitcoin and Litecoin will reach a finite and the amount won’t increase.

Circulation of Bitcoin will be capped at 21 mln and Litecoin at 84 mln.

Litecoin was first introduced in 2011 by a former Google employee — Charlie Lee — via an open-source platform GitHub. Lee has recently left Coinbase, one of the most popular Bitcoin wallets.

The new cryptocurrency is often compared to what silver is to gold. In this sense, Litecoin is like silver to Bitcoin’s gold. It’s trading at less than Bitcoin, but there’s more of it.

Above all, Litecoin wasn’t supposed to replace Bitcoin but rather compliment it and offer an alternative.

Litecoin gained popularity because of its differences from Bitcoin. For instance, a Litecoin transaction takes only 2.5 minutes to process while Bitcoin transactions can take up to ten minutes to complete.

Both Litecoin and Bitcoin are built on blockchain technology, but one of the crucial differences is how Litecoin is secured.
Litecoin uses a ‘scrypt’ for computing the proof-of-work hashes.

It’s built into Litecoin and makes it incredibly hard to replicate or steal. The technology requires a huge amount of memory to infiltrate, which results in a far too expensive process to virtually counterfeit.

What Is Litecoin Mining

Just like Bitcoin — Litecoin is generated by mining. For miners and enthusiasts though, Litecoin holds different proof-of-work algorithm.

Yes, it’s time for hashes and algorithms….

Bitcoin uses a hashing algorithm, which involves calculations that can be accelerated in the mining process. Bitcoin mining also requires a raw processing power. Hence you might be familiar with pictures of large databases, full of computers and cables.

Thus, if you have enough computer power, you can quickly solve the transactions and generate new Bitcoins.

Litecoin, on the other hand, uses the above mentioned scrypt algorithm, otherwise known as s-crypt or script. It’s more memory intensive and requires not only the raw power but also computer memory to confirm transactions.

Scrypt incorporates the original Bitcoin algorithm, but it uses both the computer power and memory for mining.

What does it mean?

In the early stages of Bitcoin, everyone was able to mine transactions using regular computers (CPUs), gradually improving to more powerful gaming computers (GPUs).

By nature, the competition in cryptocurrency kept on rising. Hence there was a need for new, more profitable way of mining.

The only lucrative way of mining, accounting for electricity and mining equipment, is through the use of Application Specific Integrated Circuit (ASIC). These are expensive machines, built specifically for mining and won’t be able to be used to anything else.

As you can imagine, only a few could afford ASICs. Hence long term mining would be limited to an exclusive circle. Mining with the use of ASICs in counter-meaning in a decentralised world of cryptocurrency. It leads to a less decentralised network, which becomes worrisome.

And this is precisely what Lee wanted to avoid — he desired to make Litecoin a cryptocurrency that would be available to anyone.

Therefore he created Litecoin with a more memory intensive mining algorithm, making it less efficient for ASICs and more accessible to everyone.

The Difference Between Litecoin and Bitcoin

difference between litecoin and bitecoinOne of the most significant differences between these two currencies is the algorithm mentioned above and the way they’re mined.

But Litecoin can also confirm transactions much faster than Bitcoin. Litecoin transaction can be processed in as little as 2.5 minutes. In comparison, Bitcoin transactions take up to 10 minutes.

It’s important to remember that the cryptocurrency transactions are instant — it’s the confirmation of them that requires time.

The key transactional differences:

#1 Litecoin can handle a higher volume of transactions due to its faster block generation. For Bitcoin to match this, it would require a significant update in a code that everyone is using on the Bitcoin network.

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#2 The higher volume of transactions means that Litecoin blockchain is larger than Bitcoins, with more orphaned blocks.

#3 The faster block time reduces the risk of cyber attacks, especially the threat of double spending.

#4 It encourages business to accept Litecoin as they don’t have to wait as long to confirm the transaction. If one Bitcoin transaction takes 10mins to approve, in the meantime there can be four Litecoin transactions confirmed.

How to Buy Litecoin

Litecoin explainedAfter few years of ups and downs, Litecoin has finally reached its all-time peak. The value of Litecoin increased by 1,000% in the last 90 days alone and currently stands at over $60.

Depending on each exchange, you have a choice of different methods of payment — from a credit card to Skrill.

So how can you invest in Litecoin?

Step 1 — Get a Litecoin wallet

Just like with Bitcoin — before you start investing, you should first get a wallet to store your future Litecoins. Some of the most popular wallets online are Exodus or Jaxx. If you’re looking for more security, you have a choice of hardware wallets like TREZOR or Ledger.

Step 2 — Find a Litecoin exchange

This is where it can get a bit tricky. One of the most significant issues with buying Litecoins is the lack of cryptocurrency exchanges that trade it.

If you want to invest in Bitcoin, all you have to do is go to the exchange and trade it with your USD or EUR. However, if you ‘re going to buy Litecoin, most exchanges trade it for Bitcoin.

So one of the most straightforward options is to buy Bitcoins and then exchange them to Litecoins on an exchange, e.g. Poloniex or ShapeShift.

If you want to buy Litecoin directly, two exchanges currently offer to buy Litecoins directly:

Coinbase — you can buy up to $500 worth of Litecoins using your credit card; if you verify your identity, the limit goes higher

BitPanda — it’s probably one of the best exchanges for Europeans as it’s based in Austria. Hence you can trade in EUR; trading requires identity verification, and the buying limit is 600 Euro.

Step 3 — Buy Litecoins and withdraw it from your wallet

Once you decide on an exchange, open an account and buy Litecoins. Never leave coins in an exchange, and you risk losing them if the exchange gets hacked or shuts down.

Make sure you withdraw them to your wallet!

The Future of Litecoin

One crucial factor of Litecoin is that we are all aware of the Litecoin’s vision. Unlike the founder of Bitcoin (Satoshi Nakamoto), Charlie Lee is publicly known and heavily involved in the cryptocurrency community as well as the development of Litecoin.

At some point, Bitcoin might require more direction and leadership of someone who could take it to the next level and upgrade.

Very recently, in May 2017, Lee supported adding an upgrade to Litecoin — Segregated Witness (SegWit). It’s a transaction data format that requires less storage space, hence allows for more transaction and records to be stored in.

Litecoin itself doesn’t have problems with space, but the SegWig upgrade will allow adding more innovations like Lightning Network (LN).

Adding LN to the existing technology will quickly settle the transactions, meaning not all of them would have to go through public ledger.

What’s interesting is that the SegWit upgrade applies to both Bitcoin and Litecoin. However, Bitcoin requires a 95% support from the network to introduce an update, while Litecoin only asks for 75%.

There is an existing bridge between Bitcoin and Litecoin, but the implementation of the LN will allow trading both BTC and LTC instantaneously and without a risk.

Even if a merchant doesn’t accept Litecoin, and you only have in your wallet LTC, you can send the money, and they will be instantly converted to BTC.

Which Is Better: Litecoin or Bitcoin?

What is better Bitcoin or Litecoin

Until recently, Litecoin was just a shadow of Bitcoin, and nobody was thinking about it seriously.

But there’s one significant benefit of having a vocal leader — it encourages a technological progress within the network and offers a guidance during a major disagreement. It also indicates more trust and security.

Much of Litecoin’s advancements came from its founder, and he’s still a pushing force behind its growth. He’s very clear on wanting to take a turn in Litecoin existence and perhaps even outrun Bitcoin.

Bitcoin, on the other hand, is much slower when it comes to implementing new technologies. With Nakamoto never been identified as a real person, the network will always carry a certain negative aura.

And it’s in our nature to always turn into innovations that have a more comprehensive safety net.

Whether Litecoin will reach the sky-high price of Bitcoin, it’s questionable. Probably not in the foreseeable future. But with Bitcoin’s capacity decreasing — that might turn around in the future.

What is Litecoin in a nutshell?

Quite possibly the future of cryptocurrency and Bitcoin’s biggest contender. However, let’s not forget that Litecoin already has its contender — Ripple — and will have to step up the game not to lose on outdated technology.

If you’re interested in cryptocurrency and investing — stay on your toes — Charlie Lee definitely won’t drop Litecoin’s ball and you don’t want to miss that and Litecoin becoming an increasingly good investment.