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Have you decided to invest in Bitcoin or Litecoin? You can do Robinhood at no cost!

Over the past decade, there have been a growing number of cryptocurrency ventures, each offering their own pros and cons. Chances are, most traders are familiar with Bitcoin and Litecoin. These 2 cryptocurrencies have separated themselves from the pack, offering great utility for investors.

While many people find it difficult to see the pros and cons of these coins, each offers different utility to investors. Whether it’s a store of value or a coin for micro-transactions, both are great options. It is important to understand the difference between these cryptocurrencies to make informed investment decisions.

What is Bitcoin?

Disclosure: eToro USA LLC; Investments are subject to market risk, including possible loss of capital.

Bitcoin is the world’s first decentralized, peer-to-peer open source cryptocurrency. Launched in 2009 by the alias Satoshi Nakamoto, Bitcoin was the pioneer of the movement known as decentralized finance (DeFi). There are many aspects to the inherent value of Bitcoin – the most important being supply and demand – in a manner similar to gold. Without the launch of Bitcoin, there would be no market for cryptocurrency.

The total supply of Bitcoin is set at a limit of 21 million coins. Bitcoin is verified through a Proof of Work (PoW) consensus mechanism where miners allocate computing power in exchange for BTC rewards.

Every 4 years there is what is called halving, where the amount of Bitcoin distributed as rewards is halved. This limits the rewards for minors who verify transactions. The total BTC supply will be mined by 2140.

What is Litecoin?

Litecoin is a cryptocurrency that was designed to provide fast and low cost payments. Launched in 2011 by former Google employee Charlie Lee, Litecoin has become one of the most widely used cryptocurrencies for micro-transactions.

Litecoin was created based on Bitcoin’s protocol, thus implementing a PoW consensus mechanism. A major difference between Litecoin and Bitcoin is the faster 2.5 minute block time.

Besides the relatively quick transaction times, the Litecoin network has very low transaction fees, which makes it ideal for peer-to-peer payments. As of January 2021, Litecoin is one of the most widely accepted cryptocurrencies, with over 2,000 merchants and stores accepting LTC.

Bitcoin vs Litecoin market capitalization

Bitcoin’s market cap is just over $ 1,000 billion. Litecoin, on the other hand, has a market capitalization of around $ 15 billion. This makes Bitcoin’s market capitalization roughly 67 times that of Litecoin. The outstanding supply of Bitcoin is currently over 18,000,000, while the outstanding supply of Litecoin is approximately 70,000,000.

Use case of Bitcoin against Litecoin

Bitcoin’s primary use case would be its store of value. Bitcoin can be compared to gold. It has a value that we create as a company. Bitcoin is widely known as the most fundamentally sound project in crypto, as it represents open source and peer-to-peer distribution. Bitcoin can also be used for different payment methods, although transaction times and slow fees are not ideal.

Litecoin is considered to be one of the most useful cryptocurrencies for micro-transactions, which makes it much easier for individuals to send payments. This is because the Litecoin network can confirm a block in 2.5 minutes, where Bitcoin blocks are mined roughly every 10 minutes. This makes Litecoin transactions 4 times faster than a Bitcoin transaction. Although these 2 coins have different uses, they are both extremely valuable.

Where to buy Bitcoin and Litecoin

You can buy BTC and LTC currently on an exchange like Coinbase, Webull, or eToro. A centralized exchange is a great way for individuals to start purchasing cryptocurrency on their computer or mobile device. Be sure to do your own research on the different exchanges to determine the different features available to investors.

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Coinbase is one of the largest cryptocurrency trading platforms on the internet. From Bitcoin to Litecoin or from Basic Attention Token to Chainlink, Coinbase makes it easy to buy and sell major cryptocurrency pairs.

You can even earn cryptocurrency rewards through Coinbase’s unique Coinbase Earn feature. More advanced traders will love the Coinbase Pro platform, which offers more order types and improved functionality.

While Coinbase doesn’t offer the most affordable prices or the lowest fees, its straightforward platform is fairly easy for complete newbies to learn in a single transaction.

Best for

  • New cryptocurrency traders
  • Cryptocurrency traders interested in major pairs
  • Cryptocurrency traders interested in a simple platform
Advantages

  • The simple platform is easy to use
  • Full mobile app mirrors desktop functionality
  • Coinbase Earn feature rewards you with crypto to learn more about available coins
The inconvenients

  • Higher fees than competitors

To start

securely via eToro website

Disclosure: eToro USA LLC; Investments are subject to market risk, including possible loss of capital.

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eToro, headquartered in Cyprus, England and Israel, has been providing currency products and other CFD derivatives to retail clients since 2007. A major advantage of eToro is its social trading operations, including OpenBook, which allows new customers to copy the best performing transactions from the platform. Its social trading features are top notch, but eToro is losing points for its lack of tradable currency pairs and underwhelming research and customer service features.

Best for

  • United States Based Cryptocurrency Traders
  • Social traders and copiers
  • Simple user interface
  • Community engagement and follow-up of other traders
Advantages

  • 25 cryptocurrencies
  • Extensive network of social trading features
  • Large customer base for new traders to emulate
The inconvenients

  • U.S. traders can only buy cryptocurrency

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Webull, founded in 2017, is a mobile app-based brokerage firm that offers commission-free equity and exchange-traded fund (ETF) transactions. It is regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).

Webull provides active traders with technical indicators, economic calendars, research agency ratings, margin trading and short selling. Webull’s trading platform is designed for intermediate and experienced traders, although novice traders can benefit as well.

Webull is widely regarded as one of the best Robinhood alternatives.

Best for

  • Active traders
  • Intermediate traders
Advantages

  • No fees to open and maintain an account
  • No account maintenance fees or software platform fees
  • Intuitive trading platform with technical and fundamental analysis tools

What has the most room for growth: Bitcoin or Litecoin?

Given the fundamentals of both cryptos, Bitcoin may have more room for growth. This is because there will never be another Bitcoin – it is the first cryptocurrency ever to be created. Without Bitcoin, the blockchain industry would have little institutional adoption or general appeal. Litecoin offers great utility, although there is the possibility that other projects will come forward that will further improve block times and transaction fees.

Considering the market capitalization of Bitcoin and Litecoin, Litecoin may have more room for growth. Indeed, for the price of Bitcoin to double, the market capitalization would have to exceed $ 2 trillion. This is not completely unrealistic, although it may take some time. The market cap of $ 15 billion in Litecoins makes it easier for the coin to double in price.

Current cryptocurrency prices

At the time of writing this article, the current market capitalization of the entire cryptocurrency market is around $ 2.5 trillion. As more companies begin to embrace blockchain technology, market sentiment has never been so optimistic. Bitcoin’s price movements over the next few weeks will have a big impact on the market in the short term.

Which is better: Bitcoin or Litecoin?

It’s unclear which asset will provide a higher rate of return, although when it comes to project fundamentals, Bitcoin and Litecoin are both great options.

If you are looking to invest in the pinnacle of DeFi, widely regarded as the industry’s store of value, Bitcoin could be a great investment for you. If you want to do microtransactions with cryptocurrency, Litecoin may be a great option for you.

Benzinga has developed a specific methodology for classifying cryptocurrency exchanges and tools. We prioritized platforms based on offers, prices and promotions, customer service, mobile app, user experience and benefits, and security. To see a full breakdown of our methodology, please visit our Cryptocurrency Methodology page.


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