Litecoin Price Cracks $235 as Rally Extends Another 16 Percent

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The Litecoin price extended its rally on Thursday, rising 16 percent to briefly crack the $235 barrier and achieve its highest mark in a month.

Litecoin Price Rally Continues

Yesterday, the Litecoin price achieved the $200 mark and raised LTC/BTC to its highest value in nearly three years. Today, Litecoin’s bullish advance continued, and LTC rose as high as $236 on Bitfinex, notching its highest mark since Jan. 15.

At the time of writing, Litecoin was trading at $219 and boasted a market cap of $12.4 billion.

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LTC Price Chart

Litecoin’s trading volume remains relatively decentralized, with no single exchange accounting for more than 16 percent of global LTC trading volume. Notably, LTC volume has surged on South Korean exchange Upbit, from about $62 million on Wednesday to $237 million today. Fellow Seoul-based exchange Bithumb experienced a comparable increase, and the two exchanges — each of which currently prices Litecoin at a five percent premium — now account for a combined 16.5 percent of LTC’s daily trading volume.

litecoin price
Source: CoinMarketCap

Litecoin Community Builds Out Infrastructure

The continued rally appears to be predicated on the assumption that increased LTC payments infrastructure will enable Litecoin to become the de facto cryptocurrency of choice for everyday transactions.

As CCN reported, LitePay — a payment processing firm modeled after industry giant BitPay — plans to launch on Feb. 26. LitePay claims that its products will provide both merchants and consumers with the ability to seamlessly send and receive LTC payments.

Additionally, Coinbase rolled out an upgraded merchant processing platform on Wednesday, which enables merchants to begin accepting cryptocurrency payments directly into a user-controlled wallet. The platform is compatible with the four cryptocurrencies currently supported by Coinbase, including Litecoin.

However, Litecoin creator Charlie Lee reminded the community on Twitter that these are not the only major developments he believes Litecoin is slated to achieve this year. Hinting at insider information, he has also suggested that Litecoin will be added to a popular web wallet, be accepted at a “goods trading platform,” and feature in “one huge unexpected surprise.”

But though infrastructure is likely playing a central role in the present rally, it is not the only factor buttressing the Litecoin price. Continuing a trend that has become commonplace for the Bitcoin network, a developer has unveiled a plan to fork Litecoin and create “Litecoin Cash.” Prices often rise ahead of these forks, as all current coin-holders generally receive airdropped coins on the new blockchain.

That said, Lee and other leaders in the Litecoin community have called Litecoin Cash a “scam,” and it is unclear if Litecoin Cash will be a flash in the pan or prove to have staying power.

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$200: Litecoin Price Leaps 25% Ahead of LitePay Launch

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The Litecoin price leaped by nearly 30 percent on Tuesday in response to the announcement that payment processing startup LitePay would officially launch in less than two weeks. The rally enabled LTC/USD to crack the $200 barrier, and it raised LTC/BTC to its highest value in nearly three years.

Litecoin Price Leaps to $200

Litecoin is currently priced at $197 on Bitfinex, although premiums on other exchanges have hoisted its global average just above the $200 mark. Litecoin now has an $11.1 billion market cap, lifting it to fifth in the rankings.

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LTC Price Chart

Significantly, although Litecoin is still trading well below the peak USD value it set in mid-December, LTC/BTC is trading at .0227 BTC, its highest point since July 2015.

litecoin price
LTC/BTC Price Chart | Source: CoinMarketCap

Diverging from previous pumps, LTC trading volume is very evenly distributed across the world’s major exchanges. At 26 percent, OKEx accounts for the largest slice, while GDAX ranks second with 14 percent. South Korea-based Bithumb and Upbit each prices Litecoin at an eight percent premium over other exchanges, but their trading pairs only account for a combined 10 percent of global LTC volume.

litecoin price
Source: CoinMarketCap

LitePay Previews Feb. 26 Launch Date

Tuesday’s rally comes in direct response to the announcement that LitePay, a payment processing company modeled after industry stalwart BitPay, is scheduled to launch on Feb. 26. The company quietly made the announcement on Twitter on Monday, but word seems to have traveled slowly, given that the rally is just now taking off.

According to the San Francisco-based company’s website, LitePay will offer many of the same features as BitPay. Most notably, it will provide businesses with the ability to accept LTC payments that are settled in fiat currency. Additionally, it will issue Litecoin debit cards, which users can fund with LTC and use at virtually any retailer.

Since Litecoin markets itself as a payment-focused cryptocurrency, the establishment of LitePay’s infrastructure will greatly aid its utility for this use case.

However, another theory is that Litecoin’s bullish pivot could be tied to the announcement that a group of developers is going to fork the main Litecoin blockchain on Feb. 19 to create Litecoin Cash, airdropping coins to all wallet addresses that hold LTC at the time of the fork.

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Dark Web Users Ditch Bitcoin for Litecoin Due to Costly, Slow Transactions

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Slow transaction times and high fees are causing dark web users to favor Litecoin and, to a lesser extent, Dash, over bitcoin. A new report by Recorded Future, a threat intelligence company, has found that dark web criminals began turning away from bitcoin in 2017 because of slow processing and high fees.

Recorded Future analyzed 150 dark web message boards, marketplaces and illicit services and found Litecoin has become second most used coin after bitcoin, followed by Dash.

Bitcoin Economically Unfeasible

The analysis found that since 2017, bitcoin payments have become economically infeasible due to a tenfold increase in transaction cost that can account for as much as 30% of smaller payment amounts. The slowness of transactions was also cited.

One Russian dark web user released a statement advising vendors they had to find an alternative to bitcoin to keep his business.

The average transactions in the underground economy begin at between $50 and $300. Speed of payment is important on the dark web, as delays increase the risk of being cheated.

The prospect of having to wait up to 24 hours to confirm transactions, along with high payment fees, has rendered bitcoin payments unusable for many dark web users.

Also read: Litecoin to complement bitcoin as payments currency: founder Charlie Lee

Poll Finds No User Consensus

A poll of several hundred members on a criminal forum found there was no agreement on which coin to adopt.

The poll revealed the following coin preferences: Monero, 21.82%, Dash, 20.61%, Ether, 19.39%, Litecoin, 15.15%, bitcoin, 13.33% and Bitcoin Cash, 9.7%.

During the next 12 months, Recorded Future found bitcoin remained the most frequently used coin, followed by Litecoin. Thirty percent of vendors offering alternative payments were willing to accept Litecoin, while 20% were willing to accept Dash. Bitcoin Cash was the next most commonly accepted coin, accepted by 13% of vendors.

The analysis found Russians favored Litecoin while English speaking users favored Monero.

The analysis concluded that bitcoin will remain a main dark web payment method, but it will have a smaller market share. Litecoin and Dash will join bitcoin as an everyday payment method.

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Litecoin to Complement Bitcoin as Payments Currency: Founder Charlie Lee

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Cryptocurrency-fueled scams seem to keep Litecoin founder Charlie Lee up at night, based on a report in Business Insider. Lee, who is an alum of both Google and Coinbase, spoke about the speculative nature of bitcoin and other cryptocurrency investing, saying that it’s not “bad” but instead a “natural progression,” adding that he sees nothing wrong with it.

But Lee, who himself has had to fight off rumors of manipulating the price of Litecoin, pointed to pervasive scams in which participants are just in it for a quick buck. Lee is quoted as saying:

“It’s quite easy for a founder to pump a coin and make it seem like it’s the latest and greatest and it will cure world hunger, and the price can go up to $10 billion. And it’s easy for whoever did that to cash out.”

As a result, people will lose money, he warned, which saddens him. Lee also pointed to the rush of ICOs, many of which are behind white papers comprised of fancy tech jargon, promising the world and raising hundreds of millions of dollars in the process. “These coins will likely just go to zero,” he said.

Fellow blockchain veteran Vitalik Buterin of Ethereum recently pointed to the social good that is inherent in the genesis of blockchain and what the “crypto community” should be focused on. Like Buterin, Lee would like to see a shift in the focus to technology and advancing the industry.

Lee in December sold his entire Litecoin portfolio, with the exception of a handful of “collectibles,” to prevent what he said could be construed as a “conflict of interest.”

Blockchain Pioneers Echo the Sentiment

Lee is not the first cryptocurrency pioneer to call out the rise of scams in the space, including upcoming ICOs. Ethereum’s Buterin has similarly railed against the unscrupulous activity, most recently lauding the efforts of one Reddit user for publicly questioning an upcoming ICO’s claims of having a Buterin association, in response to which Buterin tweeted: “This is exactly the correct way to react to an ICO claiming my involvement.”

Meanwhile, Fellow Ethereum co-founder Joseph Lubin echoed those sentiments, having recently told CNBC that many upcoming ICOs that fit the bill as “copycat” projects, with no intentions of providing value to investors. Ripple chief Brad Garlinghouse went so far as to say that much of what’s unfolding among ICOs is fraud.

Litecoin & Bitcoin

Meanwhile, fraud wasn’t the only topic of discussion highlighted in the Business Insider article. Lee created Litecoin in 2011 in many ways to improve upon bitcoin, with a focus on greater scalability and speed. Litecoin, however, appears to be more a rival to XRP than it is to bitcoin.

“So my vision for litecoin has always been to complement bitcoin — to be the payments currency. Where bitcoin would be digital gold, litecoin would be silver. It’s more useful for payments. And bitcoin would be better for store of value,” he said.

He goes on to point out, however, that Litecoin is 4x faster than bitcoin for transactions. But thanks to a different POW algorithm, cryptocurrency miners can’t mine both coins, which removes a facet of the competition.

He points to the Lightning Network as the underlying technology that will advance the payments sector, adding that it’s not a panacea and won’t combat high fees tied to bitcoin. “So litecoin I think can find its own niche to help address payment fees,” said Lee.

Litecoin, the No. 6 cryptocurrency based on market cap, at $9.6 billion, is off by a double-digit percentage today alongside all of the top 10 digital coins.  Litecoin has advanced 650% since about July and is one of only a handful of cryptocurrencies that trade at Lee’s former employer Coinbase.

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Indian Bitcoin Exchange Zebpay Adds Litecoin Support

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On January 25, 2018, Zebpay, one of India’s most popular mobile-based cryptocurrency exchanges, announced the addition of Litecoin to its trading platform. In a blog post on its website, the company stated that the cryptocurrency is one of the several other tokens that are also scheduled to be added in the near future.

Litecoin, released in October 2011 by former Google employee, Charlie Lee, was introduced as a lighter alternative to bitcoin. It is one of the oldest cryptocurrencies currently on the market and has a market cap of close to $10 billion. In December 2017, Litecoin reached an all time high price of around $350.

Litecoin is the second cryptocurrency that has been added to Zebpay over the past few weeks. Earlier in January 2018, the company rolled out the ability for users to trade Bitcoin Cash (BCH).

Users of Zebpay that held any amount of bitcoin prior to the Bitcoin Cash hard fork on August 1, 2017 were also given an equivalent amount of BCH once the cryptocurrency was added to the platform. Some customers, however, were able to withdraw their Bitcoin Cash balances to their external wallets as early as November 2017. On December 14, Zebpay withdrew the option of sending the forked cryptocurrency to other wallets in favor of crediting the balance to its own trading platform once released. The company held up its end of the bargain once Bitcoin Cash trading became available through its mobile app though.

Importantly, though, Zebpay does not offer cryptocurrency to cryptocurrency pairings on its trading platform`. Converting between different digital currencies requires the user to first ‘sell’ their holdings for fiat equivalent, making the entire process susceptible to market volatility.

According to Zebpay’s November newsletter, the company will also be introducing Ripple and Ethereum to its exchange. Based on the time interval between the addition of Bitcoin Cash and Litecoin, it may only be a couple of months before all four digital currencies can be traded on the platform.

As of December 2017, Zebpay serves over 2 million users with that number expected to rise in the near future. Furthermore, the Zebpay mobile app has found great success on the Android and iOS marketplaces beating other finance applications owned by private sector banks in the country. It faces tough competition from other platform-agnostic exchanges, however, including the likes of Koinex and Coinsecure. The former supports other cryptocurrencies as well, including Golem, IOTA and OmiseGO.

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Litecoin vs Ethereum (Which One Is Better To Invest)

As the cryptocurrency craze is taking hold, savvy investors are always on the lookout for other opportunities to invest.

As the price of Bitcoin continues to climb, many are either finding it inaccessible or are concerned that its bubble will burst. Luckily, there are many other options out there and with more ICOs announced every day, investors have their pick of possible new paydays.

There are, however, two well-established cryptocurrencies that are worth your attention and these are Litecoin and Ethereum.

Enjoying a position amongst the world’s most famous crypto-coins, they both offer superb opportunities for investment, trading and mining.

But when it comes to Litecoin vs Ethereum, which is the best? What are the differences between them? And which one should you choose to include in your cryptocurrency portfolio?

Let us read on to find out more!

What Is Litecoin?

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Litecoin is a cryptocurrency which is loosely based on the concept of Bitcoin.

To date, it is not as valuable as Bitcoin, but its popularity is undoubtedly on an upwards trajectory. In 2017 alone, its value against the dollar shot up 7291% compared to Bitcoins 1731%. If it keeps going at the rate it is going; it is set to be one of the best investments in the cryptocurrency market.

Litecoin was created by an ex-Google employee called Charlie Lee who had the idea to create a lighter, and quicker version of Bitcoin. Litecoin was then launched in 2011 via an open-source client on GitHub.

It is mostly a fork on the Bitcoin Core Client, and Litecoin is often referred to as the “silver” to Bitcoins “gold”. Many say that Bitcoin is excellent for long-term holding and investing, whereas if you want to make lots of small transactions, Litecoin should be your crypto of choice.

What Is Ethereum?

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Ethereum is a little more technical in the way that it works.

While Litecoin works on the blockchain- an open source, a decentralised ledger of transactions, Ethereum utilises it differently. The simplest way of explaining Ethereum is that it is an open source software platform which uses blockchain technology to build and then roll out decentralised applications across the network.

Like Bitcoin, Ethereum is considered as a distributed public blockchain network. However, there are some significant differences between the two, the most important of which is that Ethereum has significantly different purposes and capabilities.

Rather than focusing on who owns what coin, and what transactions have been made, Ethereum concentrates on the running of a code related to a decentralised application. Ethereum is generated or mined by users working to earn them, rather than solving algorithms in the case of Bitcoin.

Ethereum is so much more than just a currency; it is an application development platform which provides endless possibilities for its users, including smart contracts. This is one of its biggest draws as its infrastructure reassures investors in its longevity.

Litecoin vs Ethereum: The Difference

The main difference between the two coins is the fact that Litecoin is transactional, whereas Ethereum has other uses.

In other words, Litecoin is strictly a currency that can be exchanged for goods and services, or traded with fiat currencies or other coins.

Ethereum also works in the same way as a cryptocurrency, but it also offers a network which is capable of providing crowdsourcing for other projects. Its infrastructure works by decentralising the management structure and by including something called a “smart contract” which is another word for a piece of software that runs the organisation.

Once a funding period can be created for a new organisation, and once the target has been met, further steps can be created, and proposals made. These are then voted on, and the number of votes which are allotted to each person is then linked to the number of coins which are contributed. The more coins that are given during funding, the more significant the number of votes that are offered.

When it comes to the cost of transactions, there are differences yet again.

In regards to Litecoin, the value of a transaction is pretty stable at around $0.04 per transaction. Ethereum, on the other hand, takes a slightly different approach to the matter and each transaction cost is calculated base on the complexity of the transaction, as well as the amount of bandwidth needed, and any applicable storage needs.

Litecoin is attractive to many investors because it has significantly more coins available to be mined than Ethereum.

There are a total of 84 million crypto tokens available to be mined which far exceeds other coins on the market. This is driving up interest in the currency and also suggests more longevity as well, which means the value of each coin could far surpass that of its competitors.

Ethereum and Litecoin are essentially like apples and oranges – both are edible fruits, but that is where the similarity ends.

Litecoin is perfect for those who want a replacement for fiat currency, whereas Ethereum is for those that are interested in the other functions that it possesses that far surpass the exchange of goods and services for coins.

Litecoin vs Ethereum: Difference In Mining

What is cryptocurrency mining

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If you want to “mine” Ethereum, you are going to need to get yourself what is known as an AWS EC2. Of course, if you’re going to do it the easy way, you can just purchase it through an exchange such as Binance or Coinbase, but if you want to do things correctly, be prepared to put a bit more work in.

As Ethereum has become more and more popular and more miners are joining the network, it means that it is becoming harder to solve the problems.

This has resulted in a situation where mining Ethereum is a little bit costly– unless you are intending on mining a considerable amount of coins, it probably won’t be worth it as the returns are low and the equipment you need to do so, is somewhat pricey.

That said, as the price of Ethereum continues to rise, it will reach a point where it is worth your while.

If you are still set on mining, you need to get yourself an AWS, and EC2 Console, and Ethereum wallet. Then you need to join a mining pool. Joining a mining pool means that you can efficiently pool your resources and mining efforts with other users and the divide up the rewards.

This makes mining much easier, quicker, and cheaper than if you were doing it on your own.

When it comes to mining Ethereum, it is an expensive process. An hour of mining costs about $2.60 in expenses, whereas the gains for a day would be the same as the hourly rate.

Of course, we don’t know what will happen in the future, and as the cost rises, we will expect to see that the cost of mining becomes more tenable. If you want to get your hands on some Ethereum, the best way to do so is through a cryptocurrency exchange.

When it comes to mining Litecoin, it is a little more straightforward and cheaper, although it is still not for the fainthearted. You can mine Litecoin with a home computer, although getting some fancy equipment will increase your productivity. The good news is that it is easy to set up a mining operation and you will start to see the profits coming in pretty quickly.

First up you need to get your hands on a computer that will be specifically dedicated to mining. In crypto circles, this is known as “rig”. For it to be effective, you need a computer that has at least two graphics cards that need to be linked together in a custom setup.

You can purchase the equipment that you need online, or you can attempt to build your own, depending on how technologically minded and skilled you are.

You also need to consider that you will need system RAM equal to the graphics card RAM and you will need a specific cooling device for your mining machine, to ensure that it doesn’t burn out in a short space of time.

You could also consider using an ASIC Scrypt miner who is a specialist device that can significantly increase your mining capabilities, but remember that these can be quite pricey. You can get lower power versions which will allow you to save on electricity and operating costs.

If you decide to go for a Scrypt miner, you can also use it for other Scrypt based coins apart from Litecoin, meaning it is essentially multi-purpose.

You will also need to get a Litecoin wallet to store your haul in and consider joining a mining pool to increase your productivity through sharing the effort with other miners.

Remember, when you are mining either Litecoin or Ethereum that it is wise to keep checking your productivity and profitability. Be sure to monitor your electricity bills and the costs of replacing equipment as these can add up rather quickly. The moment that the exercise of mining starts costing you money with no return is the moment that you need to switch to buying and trading instead.

Litecoin vs Ethereum: Which One Is Better To Invest

Litecoin vs Ethereum Which One Is Better To Invest

There is a lot of debate around which coin is the best one to invest in and a lot comes down to personal preference.

Many people believe that Litecoin will one day replace Bitcoin, once its bubble bursts. Due to the fact it is significantly cheaper to make a transaction, and it takes a lot less time, it takes out a lot of the criticism that has surrounded Bitcoin.

Also, for now, the price is still at a level which is accessible to most and will, with any luck, offer a sound return on investment.

When it comes to Ethereum, one of the most significant selling points is that it is not just a cryptocurrency. It is considered as more stable than something that is just a currency because it has features and properties that far extend beyond monetary value.

Because it is used to develop and roll out applications via developers, it makes it more secure and less likely to disappear into thin air in a matter of months.

If you are looking to just invest in, or trade in small amounts then Litecoin is probably your best bet. If you want a cryptocurrency to use as a currency, then it is the best option due to its fast and low-cost transaction capabilities.

If you are looking to invest heavily in a coin and to keep it for a long time without enacting many transactions, then Ethereum is worth your attention. Also, if you are a developer or are interested in exploring the application based functions of it, then Ethereum is the one for you.

It comes down to personal preference, and to be honest, I cannot see either coin disappearing anytime soon, and both are on an upward trajectory regarding value. Instead of choosing between Litecoin vs Ethereum, you could decide to invest a bit in each of them and create a diverse portfolio.

Either way, both Ethereum and Litecoin are looking like equally sound investments, and if you have the assets and ability to invest in both, I would suggest you give it some serious consideration.

Remember that mining is probably not going to be particularly financially lucrative for you, so the best thing to do is fine a fiat-crypto or a crypto-crypto exchange where you can purchase your coins at market value, without having to pay expensive electricity or hardware costs.

See the best cryptocurrency exchanges for Litecoin and Ethereum.

How Does A Litecoin Mining Pool Work?

The cryptocurrency market is notoriously volatile.

But for Litecoin miners, there is still the possibility of making a steady income from digital currencies.

This article explains how a Litecoin mining pool works and discusses the prospects you have of earning a living from mining cryptocurrencies.

Mining cryptocurrency has become a lucrative occupation. At the time of writing, the price of Litecoin is $201.76 and has a strong chance of increasing over the course of the year. The more Litecoin increases in value, the more money Litecoin miners can make.

The digital mining community intents on elevating blockchain technology into the mainstream and provide a solution to the flaws of the current financial system.

Blockchain provides a secure means of trading and banking without being charged ludicrous fees imposed by governments and financial institutions.

However, investing in the hardware you need to successfully mine cryptocurrencies on a regular basis is an expensive business. Unless you have substantial financial backing, first-time miners typically have insufficient rigs to pack enough power to solve the algorithm.

The alternative option is to join a Litecoin mining pool. Altcoins based on scrypt currencies can be mined on regular PCs.

Litecoin is one of the leading cryptocurrencies on the market and has maintained a top five position in the cryptocurrency charts since hitting a record high in 2017.

According to CNBC, early adopters of the altcoin netted profits of almost 1,400 percent of their initial investment. Since then, the value of Litecoin has more than tripled.

The cryptocurrency has attracted additional interest recently after upgrading its technology and boosting transaction speeds. Hence, prospective miners entering into a new venture have plenty to feel confident about.

But what are mining pools, how do they work and what are your chances of earning a living from mining Litecoin?

What Is a Litecoin Mining Pool?

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Generating digital coins and making a profit is not easy.

The competition is very stiff, and it can take months to find a Bitcoin or Litecoin and create a hash.

Mining pools are a protocol that enables a group of miners to work together and increase your chances of getting a return from cryptocurrency mining much quicker. To earn money, you still need to know which mining pools are the most productive.

Bitcoin mining is performed by individual companies that compete against one another to determine the mathematical formula that seals a blockchain and bags the reward. Mining tokens is a bit like entering a race where the winner is rewarded with 12.5 bitcoins.

The profitability of Bitcoin mining has been exceptionally high since the leading cryptocurrencies rocketed in value throughout 2017.

Mining companies have subsequently invested thousands of pounds in developing high-performing computers solely dedicated to mining Bitcoin or altcoins such as Litecoin and Ethereum.

Subsequently, mining virtual coins has become very difficult for newcomers with a small rig.

Mining pools aim to provide a solution for professional and non-professional miners to make profits from mining virtual tokens. Litecoin mining pools offer an additional opportunity.

There is less competition in mining Litecoin compared to Bitcoin which means you are more likely to earn more rewards on a regular basis.

Mining pools are a conglomerate of miners that all use their resources to solve mathematical problems that create a blockchain and seal it with a hash.

The combined power of multiple computers provide miners with a rig that is better equipped to compete against established cryptocurrency exchanges. This is not possible for solo miners with a small set up.

Although there are multiple miners in one pool, sealing a blockchain is only rewarded with 12.5 bitcoin.

The reward is shared amongst all the miners in the pool on a proportional basis.

Percentages are worked out by the amount of hash power you contribute. Therefore, if you contribute 10TH to a 100TH mining pool, you get a 10% cut of 6.25 BTC.

Mining pools work slightly differently to traditional mining.

They are managed by a pool operator who runs pool software instead of a dedicated bitcoin client. The software allows the operator to perform hashes for the pool and verify how much work has been contributed by each member. Shares are then dished out proportionally.

Single Mining Pool vs Multi-Mining Pool

Single Mining Pool vs Multi-Mining Pool

Some mining pools focus on a single cryptocurrency whereas others mine for multiple altcoins.

Single mining pools focus on one particular coin 100% of the time. Multi-mining pools flit between various altcoins.

Pool operators use several factors to decide which is the most popular currency at any given moment in time, thus likely to return the most profits.

Multi-pool miners still only mine one coin at a time. The difference is they will flit from one altcoin to the next.

Pool operators analyse the market and speculate which altcoins are performing well. The decision of which coin to mine is based on the mining power of the network and the exchange rate of the cryptocurrency.

The ultimate goal of multi-mining pools is to make profits to be shared amongst the network of miners.

With proper management, multi-mining pools can quickly take control of a security network and increase the block time. However, the success rate depends on how difficult it is to adjust the algorithms and find the right mathematical formula that mines a large number of blocks in a short space of time.

Once multi-pool syndicates have mined an altcoin and sealed the blockchain they will typically sell the coin and convert it into BTC. However, this can have an adverse effect on the tokens as it depresses the supply of a particular cryptocurrency which ultimately lowers the price.

What Are The Mining Pool Rewards?

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What Are The Mining Pool Rewards

Every time a blockchain is completed, the mining company, individual or group that solves the algorithm is rewarded with 12.5 bitcoins.

This is then shared amongst the group by following with how much hash power and work you contributed to the network.

Before jumping into a mining pool, it is essential to assess how the share of payout is calculated – together with subscription fees which also need to be deducted.

It is important to understand how the distribution of shares is calculated, together with the pools success rate, before choosing a mining pool to join.

For newcomers, the crucial points to remember are that payments are divided in relation to a protocol known as a ‘proof of work.’

Mining is based on the principle of solving cryptographic puzzles, all of which are assigned a difficulty level which is essentially a measure of quality. Miners that provide a solution to the algorithm that is above the difficulty rating of the currency is awarded the blockchain.

Schemes within a mining pool vary. Although most pools focus on the number of shares a miner has contributed to the pool as ‘proof of work’, they also set difficulty ratings.

This enables pools to quantify how much miners are contributing to solve blocks and work out the processing power each member is contributing to the pool.

The most common method of dividing payments among pool members is the ‘Pay Per Share’ (PPS) model.

There are usually variations that put percentage limits on the number of shares that are paid out to any one person. Look out for mentions of equalised shared maximum (ESMPPS) or maximum pay per share (SMPPS).

Another factor to consider is how much the mining pool deducts for being a member. The values typically range from between 1-10%, but there are also some pools that don’t charge anything at all.

The Pros and Cons of Mining Pools

Solo mining is a slow process, and if you don’t have a robust ASIC bitcoin mining chips, it’s impossible to make a profit from mining cryptocurrencies. And bitcoin hardware can be costly.

Companies with financial backing have invested thousands of dollars in building rigs capable of mining tokens on a regular basis. Miners with a comparatively low ASIC is outpowered.

Unless you can successfully hash a blockchain, all your hard work and investment comes to nothing. Mining pools were envisaged to resolve this issue of the large companies monopolising the mining process.

Joining a mining pool, however, has both advantages and disadvantages:

The advantages of mining pools:

  • Increase your odds of earning from mining Litecoin and other altcoins
  • Part of a network of miners that can produce a rig with enough power to rival large companies
  • More computers on the network break down the complexity of solving mathematical problems
  • Work with professionals (a boon for newcomers who have yet to experience cryptocurrency algorithms)
  • Enhance your skills
  • Steady stream of income

Disadvantages of mining pools:

  • Rewards are shared so you receive lower earnings
  • Centralises mining which works against the philosophy behind cryptocurrencies

Litecoin Mining Pool vs Bitcoin Mining Pool

Bitcoin mining pools are well established now, and the hardware is better equipped than Litecoin.

Subsequently, ASICs designed to solve proof of work for Litecoin are scarce and difficult to find. This is likely to improve over time, however.

The saving grace for Litecoin miners is that blockchain uses a different proof of work than Bitcoin.

This means that Bitcoin miners cannot mine for Litecoin. And after Bitcoin, Litecoin is one of the most liquid cryptocurrencies that is most widely recognised.

The best Litecoin mining hardware at the time of writing is the Antminer L3+ or the Antminer S7.

The Future of Mining Pools

The Future of Mining Pools

Now the value of Bitcoin has increased exponentially, so has the competition of mining virtual currencies.

Without a significant amount of capital upfront, it is impossible to mine cryptocurrencies and make a return on your investment. Furthermore, as it becomes more difficult for participants to purchase new generation hardware, mining pools are the best option.

However, the more people that join mining pools, the less each member makes in profits. Mining pool operators will only allow a certain number of members into the group, but on the flipside, more groups will be established, and the competition between mining pools becomes even more frenzied.

Mining pools will also make the qualifying criteria for members more rigid.

Miners hoping to join with insufficient hash power and a lack of proven experience of solving hashes will be turned away. Miners hoping to profit from cryptocurrencies will, therefore, have to improve the amount of power they can contribute.

Companies with industrial-scale mining rigs will inevitably continue to dominate the crypto ecosystem and make it even more difficult for mining pools to compete. The only response will be to add more members to the pool which will ultimately result in a lower share of profits.

Furthermore, not all mining pools will be able to seal a sufficient amount of blocks and will earn their money by charging members higher rates to stay in business.

This will be a detriment to miners with small rigs that are hoping to make a return on their investment.

There are also predictions that traditional mining might be replaced by so-called smart mining pools based on the Ethereum smart contracts.

Before joining a mining pool, research forums and get the latest advice from active members.

Another danger is that miners will have to compete with tight profit margins. This fosters a mentality of winning short-term profits and sacrificing the long-term health of the ecosystem.

Cryptocoins will rise and fall in an already volatile market. We already see evidence of this in the multi-coin mining pools.

If you’ve already invested in mining hardware and not having any joy on your own, it is worth contemplating joining a Litecoin mining pool.

You will earn less for solving blocks, but you significantly increase your chances of making a steady flow of income – which is better than nothing.

Before you decide which pool to jump into, study the various schemes of Litecoin mining pools carefully and select an operator that is proving it can compete with cryptocurrency exchanges.

For more information, visit our Litecoin page.

How To Buy Litecoin (Using The Best Cryptocurrency Exchanges)

Did you know that there are quite literally hundreds of different cryptocurrencies in circulation at the moment?

With more and more appearing each day, the marketplace is becoming increasingly competitive.

Investors want to get rich as quick as possible and following the phenomenal success of Bitcoin, they are keeping their eyes peeled for the next big thing.

Litecoin is a name that has been shouted from many a rooftop, and while it hasn’t yet reached the dizzying heights of Bitcoin, it is one of the most well-known cryptocurrencies out there, and it is also the third largest coin after BTC regarding market capitalisation.

It works in pretty much the same way as Bitcoin, and units of Litecoin can be transferred across an online network to make payment in return for services, other currencies, or something else entirely.

Like every other cryptocurrency out there, Litecoin is not issued or controlled by a government, and it is decentralised.

All Litecoin transactions are processed every 2.5 minutes, the network creates a block (a ledger entry of every recent Litecoin transaction in the world), and when this block is mined, the miner receives the coin into their cryptocurrency wallet.

Litecoin is limited to a maximum of 84 million coins in circulation ever, and once they have all been mined, there is no way to create any more.

As its popularity and value soar, investing in Litecoin is a possibility that lots of avid crypto-enthusiasts are starting to explore.

If you are one of these people, then you are probably wondering how to buy Litecoin, so read on to find out more!

History of Litecoin

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Litecoin was released on an open source client on GitHub on October 7th, 2011.

Created by Charlie Lee, a former employee of Google, the network then went live a few days later on October 13th.

It was designed as a fork of the Bitcoin Core, but it was considered an improvement as its block generation time was considerably less at 2.5 minutes, compared to Bitcoins 10.

By November 2013, the value of Litecoin experienced a massive surge of around 100% in just 24 hours, and in the same month, it reached the $1 billion market capitalisation mark.

Towards the end of the month it had quadrupled, and by December it had reached $20 billion, and each coin was worth $371.

In May 2017 it had secured its place as one of the top-5 currencies by market cap, and in May of the same year, it participated in the first lightning network transaction where a fraction of a coin was transferred between Zurich and San Francisco in under a second.

Today it is one of the top cryptocurrencies in the world and offers a more accessible investment opportunity when compared to its bigger brother, Bitcoin.

Why Use Litecoin?

There are several reasons why you should consider investing in Litecoin.

Firstly, it is not as expensive or valuable as Bitcoin yet – meaning it is easier for you to purchase more coins for less money.

It is far more accessible for amateur traders and investors. What’s more – as its value is on an upward trajectory, it means it is a much more sound and reliable investment that is likely to offer you a big return.

Some say that Bitcoin is a bubble that will burst as its value is unsustainable, and for this reason, using Litecoin is a great alternative.

The other bonus of using Litecoin is the fact that its transaction times are significantly less than Bitcoin.

You can affect a transaction with Litecoin in just 2.5 minutes, whereas with Bitcoin the wait is ten minutes (up to a few hours).

In short, the Litecoin ledger is significantly more efficient and user-friendly.

Where Can You Buy Litecoin?

How To Buy Litecoin (Using The Best Cryptocurrency Exchanges)

You have two options when it comes to procuring Litecoin. You can invest significant time, effort and money into mining your own.

This requires expensive, dedicated computers and a lot of electricity to facilitate, and if you are mining small time, the costs can often outweigh the rewards you are reaping.

The second option is to purchase Litecoin. This can be done with fiat money or another cryptocurrency, but you need to utilise a specialist platform to do this.

There are many platforms on the market that facilitate the buying, selling, trading and exchanging of cryptocurrencies and fiat currencies.

However, knowing which one to go for will depend on the way you want to pay (with fiat currency, or cryptocurrency), how much you want to buy, and of course, what you want to do with it.

Here we have brought together a few examples of the different types of exchange where you can purchase Litecoin, so you can do your research and decide for yourself, which is the best option for you.

Buy Litecoin With a Credit Card

Most people, particularly beginners and those just finding their feet in the crypto-crowd, often prefer to pay with a credit card.

This is by far the most simple and straightforward way, particularly if you do not hold any existing cryptocurrency coins.

The following are platforms where you can purchase Litecoin by using your credit or debit card:

Coinbase

If you want to buy Litecoin with a credit or debit card, then shopping with Coinbase is the best option for you.

It is by far, the easiest way to purchase Litecoins with a credit card and it is available to clients in the US, Canada, Europe, the UK, Singapore, and Australia.

Fees are around the 3.99% mark when buying with a credit card.

Located in San Francisco, Coinbase predominantly broker exchanges between Bitcoin, Bitcoin Cash Ethereum, Litecoin and fiat currencies.

It was founded in 2011 by Brian Armstrong and Fred Ersham and by 2014 they had reached over 1 million users.

By January 2017 they were given a BitLicense from the New York State DFS meaning they are one of the few exchanges allowed to operate in the city.

A few months later, they were also given the ok to offer trading in Ethereum and Litecoin.

They have been a bit controversial in recent months, particularly in America as on November 29th, 2017, Coinbase was ordered by the IRS to report all users that have bought, sold, sent, or received any figure over $20,000 in a year, through their accounts.

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While some people believed this went against the core principles of cryptocurrency, others praised their compliance with national regulations.

By the end of the year, the Coinbase app was the most downloaded app on the Apple Store.

For more details, read our Coinbase review.

BitPanda

This is an Austrian crypto-brokerage service which allows customers from most EU countries to purchase Litecoin with a credit or debit card, Skrill or SEPA transfers.

For any individuals who are resident in the EU, the fact that you can pay via SEPA transfer is a big plus.

The company is quite new in comparison to some of the other names on the list, and it was formed back in 2014, but it has since become one of the most trusted names in the market.

While its exchange rate is a little higher than some other alternatives, it’s not the most expensive you will find.

BitPanda is also quite stringent when it comes to verifying your identity.

If you are looking for an anonymous platform, then this is not the one for you as you need to submit an ID form and take part in a video chat verification to verify your account and secure a higher transaction limit.

Read more in our BitPanda review.

Buy Litecoin with Cryptocurrency

For those cryptocurrency fiends who already hold a portfolio of coins, there are several ways of purchasing your Litecoin by using your existing coins.

By taking fiat currency out of the equation, you can enjoy higher levels of anonymity, as well as the feeling of liberation from not using centralised and government-controlled fiat currencies.

Binance

Based in China, Binance broke into the top five best cryptocurrency exchanges after attracting 3 million customers in just five months.

With such a high surge in trading volumes over a short period, Binance is clearly trusted by professional traders and are expected to be a leader in the crypto community.

The company also has significant trade factors that make them an attractive proposition:

  • quick transactions
  • low-interest rates
  • excellent user ratings
  • token based model
  • trader-friendly exchanges
  • easy-to-use website

Contributing to their reliability is the company’s expertise. The Binance team includes former employees of Bloomberg, Morgan Stanley and Blockchain.info.

The company’s infrastructure comfortably handles 20 million logins simultaneously plus 1.4 million trades per second.

The only downside is that Binance is a crypto-only exchange and does not accept fiat currency deposits.

This digital exchange outfit is, therefore, no use to newcomers but arguably the best option once cryptocurrency is part of your investment portfolio.

Another plus with reviewers is the company’s competitive referral system and their excellent 24/7 customer support team which is available in multiple languages.

Read more in our Binance review.

CEX.IO

This platform was founded back in 2013, and at its inception, it was the first cloud mining provider.

It has since evolved to become a multifunctional cryptocurrency exchange, and it has well more than half a million regular users.

The beauty of this site is that you can purchase your Litecoin, trade your Litecoin, and sell your Litecoin across multiple different platforms including the website, mobile app, and REST API.

As well as Litecoin, you can dabble in Bitcoin, Ether, Ripple, BTC, Dash, Zcash and Bitcoin Gold.

You can also choose to trade with USD, EUR, GBP and RUB so you have pretty much covered all buying options.

When it comes to security levels, CEX.IO is considered as one of the most secure around because they possess a PCI DSS certificate (Level 2).

This means that they satisfy some pretty stringent security criteria when it comes to storage, processing, and the transmission of sensitive data such as card details.

They also apply AML and KYC procedures and policies to their clients and offers two-factor authentication via Google Authentication, or via SMS/telephone call.

Changelly

Changelly is one of the quickest ways in which you can buy Litecoin in exchange for Bitcoin.

All you need to do is input the amount of Litecoin that you will be given an LTC address. Then you will be advised how much BTC you are required to send to fulfil your order, and then you just need to do the transaction.

Once the BTC has been sent, you will find the LTC appear in your wallet in a matter of moments.

This platform offers a wide range of cryptocurrencies, but it doesn’t provide any conversion to, or from, fiat currencies.

Launched as a start-up in 2013, it has undergone several transformations over the years, finally being launched with a new look in April 2017.

Changelly also offers widgets for publishers that can be integrated into their websites, as well as providing API for merchants which allows them to exchange digital currencies directly, as well as providing crypto wallets and payment providers to their customers.

Why Should I Invest In Litecoin?

Why Should I Invest In Litecoin

You should invest in Litecoin because many believe it is a more improved version of Bitcoin.

There are some that say the Bitcoin bubble is going to burst, and there is no doubt that due to the massive increase in its value, it has become very inaccessible or many.

There is an argument to be had that the fact it is worth so much, means that there is a chance it could be difficult to make any real, or substantial gains at this stage, therefore it might be best to look elsewhere.

When it comes to high processing times, and a winning concept, Litecoin has it covered.

The fact that it is much cheaper (for now) than Bitcoin, is just the cherry on the cake and I would advise everyone to include Litecoin in their portfolio because I firmly believe that the future holds great things for this unassuming, Bitcoin alternative.

Understanding how to buy Litecoin and how to start investing in the silver to Bitcoin gold is just the beginning.

The next step is getting yourself a reliable cryptocurrency wallet, such as Ledger Nano S, and taking care of the safety of your coins!

Litecoin Price Jumps 25% as Founder Lee Remains Upbeat

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Litecoin price posted one of the biggest gains today, jumping from $236.76 at the start of the day to a high of $305.66 around noon Saturday (UTC), marking a 29% gain, before sliding back to $290.08 at the time of this report. With a market valuation of $15.85 billion, Litecoin is the fifth largest crypto by market cap behind fourth-place Cardano, with $28 billion.

One Day Price

Today’s high was well below the $370.78 Litecoin hit on Dec. 19 amidst the fourth quarter market rally. Litecoin creator Charlie Lee liquidated his LTC holdings shortly thereafter, claiming he wanted to remove his personal influence on Litecoin’s performance.

The price fell to $218.62 on Dec. 22, then embarked on an up and down journey.

The altcoin was briefly overtaken today by Tron, a blockchain-based entertainment platform with more than 300,000 active users in terms of market valuation.

Charlie Lee Encouraged

Lee reaffirmed that he was not concerned with the short-term price trend of Litecoin, because other indicators showed that Litecoin was a more active blockchain network than its competition.

He said he cared very little about market cap rank and more about the number transactions. He said people need to actually use Litecoin, and the price will follow.

5-Day Price

Lee said Litecoin is doing very well in terms of growth in usage, comparing its growth in the past year to that of other coins.

“Let’s not let price distract us from what’s actually important,” he said.

Whether Litecoin can take over Cardano remains uncertain, he said. but if it can sustain its current momentum, this could be a possibility in the mid-term.

1 Month Price

Lee revealed on Dec. 20 that he had liquidated his entire LTC balance and donated it to the Litecoin Foundation, although that does not mean he is abandoning development of the fifth-largest cryptocurrency. He said he liquidated his holdings because he exerted so much influence within the community and had the ability to move the markets through his public comments on Twitter and other public platforms.

All Time Price

Also read: ‘Conflict of interest’: Litecoin creator Charlie Lee sells his entire LTC balance

Mixed Response

Lee’s announcement received a mixed response, with some community members praising him for his “sacrifice” and others questioning whether his lack of “skin in the game” will actually make him less-invested in Litecoin’s long-term success.

Mike Novogratz, the billionaire manager of $500 million crypto hedge fund Galaxy Investment Partners, questioned whether it was a good move, stating on Twitter that he would be worried if Ethereum co-founders Vitalik Buterin or Joseph Lubin liquidated their ether balances.

Novogratz did, however, attributed Litecoin’s early December rally to an “agile promoter” — presumably Lee, who has made several high-profile media appearances this week.

Click here for a real-time Litecoin price chart.

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‘Conflict of Interest’: Litecoin Creator Charlie Lee Sells Entire LTC Balance

Charlie Lee Litecoin
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Litecoin creator Charlie Lee revealed on Wednesday that he had liquidated his entire LTC balance and donated it to the Litecoin Foundation, although that does not mean he is abandoning development of the fifth-largest cryptocurrency.

Charlie Lee Sells Entire LTC Balance

Early Thursday morning, Lee announced on Reddit that he had sold his entire LTC balance and donated the proceeds to further the development of the cryptocurrency that he originally created in 2011 and now develops full-time.

He did this, he said, not because he no longer believed in litecoin or because he believed the price was in a bubble but rather because he exerted so much influence within the community and had the ability to move the markets through his public comments on Twitter and other public platforms.

“Over the past year, I try to stay away from price related tweets, but it’s hard because price is such an important aspect of Litecoin growth. And whenever I tweet about Litecoin price or even just good or bads news, I get accused of doing it for personal benefit,” he said. “So in a sense, it is conflict of interest for me to hold LTC and tweet about it because I have so much influence…And there will always be a doubt on whether any of my actions were to further my own personal wealth above the success of Litecoin and crypto-currency in general.”

Lee added that, since he no longer relied on his LTC holdings for financial security, he believed that selling his coins was the right thing to do and will allow him to focus on the success of the project without the perception that he has a direct financial incentive tied to its day-to-day movements.

“This is definitely a weird feeling, but also somehow refreshing. Don’t worry. I’m not quitting Litecoin. I will still spend all my time working on Litecoin. When Litecoin succeeds, I will still be rewarded in lots of different ways, just not directly via ownership of coins. I now believe this is the best way for me to continue to oversee Litecoin’s growth,” he said.

Mixed Response from LTC Community

However, Lee’s announcement received a mixed response, with some community members praising him for his “sacrifice” and others questioning whether his lack of “skin in the game” will actually make him less-invested in litecoin’s long-term success.

Mike Novogratz, the billionaire manager of $500 million crypto hedge fund Galaxy Investment Partners, questioned whether it was a good move, stating on Twitter that he would be worried if Ethereum co-founders Vitalik Buterin or Joseph Lubin liquidated their ether balances.

“I think it’s extremely bullish!” Lee replied.

Write to Josiah Wilmoth at josiah.wilmoth(at)cryptocoinsnews.com.

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