As two of the most popular cryptocurrencies in the world, Litecoin and Bitcoin offer a number of similarities and differences that investors need to understand. While they both use the same underlying technology, there are important distinctions that can impact everything from transaction times to fees. In this article, we'll take a look at the top differences between Litecoin and Bitcoin.
Transaction Times
One of the key differences between Litecoin and Bitcoin is the amount of time it takes to process a transaction. Litecoin transactions can take just a few minutes to complete, while Bitcoin transactions can take upwards of 10 minutes. This makes Litecoin more suited for everyday transactions, while Bitcoin is better for large transactions.
Mining
Litecoin and Bitcoin also differ in the mining process. Litecoin uses a different mining algorithm called Scrypt, which is less demanding on processing power than Bitcoin's SHA-256 algorithm. This means that mining Litecoin is more accessible to everyday users and can be done with a less powerful computer.
Supply
Another key difference between the two cryptocurrencies is their total supply. While Bitcoin's total supply is capped at 21 million, Litecoin's is capped at 84 million. This means that Litecoin will have four times as many coins as Bitcoin, but each individual coin will be worth much less than a Bitcoin.
Fees
Litecoin also tends to have lower transaction fees than Bitcoin. This is largely due to the shorter processing times and less demanding mining algorithm. However, fees can vary depending on network demand, so it's always important to check before making a transaction.
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