Cryptocurrency is a hot topic among investors as almost everyone wants to have their share and earn profit. As the pioneer digital currency, Bitcoin is out of reach for many people because of its staggering price that stands at around $58000.
People are now discovering other altcoins to invest. Ethereum and Litecoin are prevalent among the masses. The basic concept of these both altcoins is similar. However, some stark differences between the two digital currencies set them apart from each other.
Keep reading to find out which one of these is better.
Ethereum operates based on systematic algorithms that are available on an open-ended blockchain platform. The currency on Ethereum is called “Ether”; traders can use the platform to trade ether. On top of that, Ethereum can be used to store confidential data like medical records.
Litecoin is a cryptocurrency itself. The main reason for its initiation was the idea of laidback transactions among parties at low rates. The transfer of Litecoin is peer to peer and there are no central authorities involved.
The main difference between Ethereum and Litecoin is that Ethereum is a blockchain-oriented platform used to trade ether meanwhile Litecoin is a cryptocurrency that needs a platform to be traded.
Moreover, Ethereum was invented in 2015 whereas Litecoin has been around since Bitcoin. But, Ethereum has been more successful than Litecoin.
Pros of Litecoin
The transactional fee for Litecoin is around $0.04, which is almost half of Ethereum. Therefore, it is cheaper to perform bulk transactions for Litecoin. Traders can use auto-trading platforms like yuanpaygroup.app to perform trade deals if they are not confident in their decisions and new to trading.
Pros of Ethereum
Ethereum is a much smarter commodity as it works by “smart contracts”. The transactions involving ether happen seamlessly in around 15 seconds. Moreover, there is no limit to the platform. You can buy as much as you can afford and trade however you want.
On top of this, Ethereum is not limited to trading of cryptocurrencies. The platform can be used for numerous other tasks such as storing data for medical records and keeping a record of the voter’s database. The Ethereum blockchain is secure as the algorithm does not provide any gap for infringements.
Cons of Litecoin
Litecoin is available in a limited amount. There are only 84 million coins available that are redistributed among the traders. Moreover, the transactions can take up to 3 minutes whereas Ethereum takes only 2 seconds to transfer funds.
Cons of Ethereum
Trading with Ethereum is not easy as it uses a complicated programming language that may take a while for traders to understand. The investments are perilous, therefore is advised to invest carefully.
Which One is the Better Option?
Ethereum and Litecoin are separate units that are used for different purposes. According to financial advisors, it is better to diversify your assets so a mixture of both coins would be the most viable option.
However, if you must choose between the two cryptocurrencies, then Ethereum should be a priority as it has many other perks such as smart contracts that have reduced the transaction time to a mere 2 seconds.
Litecoin on the other hand is a digital currency that needs a third-party platform for trading and the market is called at around 80 million coins that makes it tougher for people to acquire Litecoin.
The world of crypto is expanding each day. As Bitcoin and its price has surged to $58000; the market is getting saturated.
Thus, altcoins were created to outsource some of the traffic. Among many, Litecoin and Ethereum gained popularity and attracted many people to invest.
It is better if traders keep a mix of both currencies as their assets, but after weighing the pros and cons of Ethereum and Litecoin – Ethereum can be deemed as a better option due to its diverse nature. The Ethereum platform supports the ether currency meanwhile offering a blockchain medium to store data.