It can be difficult to select the best crypto for your portfolio between all the types of crypto popping up one day and disappearing the next.
Whether you’re starting to invest in crypto or a seasoned vet, one thing can be said for certain. Selecting your next crypto investment all falls down to crypto analysis.
If you’re buying crypto and can’t decide between Bitcoin and Litecoin, keep reading learn how they stack up against each other.
Bitcoin Crypto Analysis: An Overview
Bitcoin is a house-favorite simply due to all the people who suddenly became millionaires due to this cryptocurrency.
Bitcoin is open-source software that essentially allows its user base to manage a digital money supply. The attraction towards this is because the digital money supply is beyond the control of any central bank or one government.
How Bitcoin Works
Bitcoin’s design allows two users to send each other the cryptocurrency from anywhere in the world without a middle man taking a cut. It keeps its network decentralized and secure by regulating the supply of new Bitcoin released through mining.
Bitcoin miners use a Proof of Work (PoW) system to complete cryptographic puzzles that essentially make up the Bitcoin blockchain.
Once a miner discovers a block and every node verifies it, the miner gets a new Bitcoin as compensation. Of course, mining is much more difficult now, and most people simply buy and sell Bitcoin through brokers.
One of the reasons Bitcoin is so popular is because it has a limited supply of 21 million Bitcoin to ever be released into the network’s economy. After the first block of Bitcoin was mined and released, each subsequent block was cut in half every four years.
With that said, there has already been over 18 million Bitcoin mined as of late 2020.
Litecoin Crypto Analysis: An Overview
One of Bitcoin’s biggest contenders is Litecoin. Like Bitcoin, it’s an older form of cryptocurrency, and it first made its appearance in 2011.
When people got sucked into the Bitcoin hype and realized they could purchase crypto at a lower price, they started looking at Litecoin.
If you were to search back to 2011-2013, “How to buy litecoin” will likely come up as a top search during that time.
Litecoin was created to market towards merchants who wanted quicker transactions. Litecoin essentially copied how Bitcoin operates and made modifications to cut down the time to add new blocks to the blockchain.
Overall, Litecoin serves as a Bitcoin complement because it acts as test crypto for any new Bitcoin features.
How Litecoin Works
You must remember that Litecoin was born out of a desire to become an alternative for other payments like PayPal. Therefore, this cryptocurrency makes design choices that prioritize cheaper and faster transactions.
Like Bitcoin, Litecoin uses Proof of Work mining to keep its network decentralized and secure. However, it adds blocks much quicker than Bitcoin. Additionally, you can still mine Litecoin without hundreds of thousands of dollars of professional equipment.
Litecoin also has a limited maximum supply, but it’s about four times more than Bitcoin. As of now, there will only be 84 million Litecoin released.
Purchasing cryptocurrency can certainly feel like a gamble, even at the very best of times. However, you set yourself up for maximum success when you equip yourself with knowledge and conduct due diligence with in-depth crypto analysis.
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