Wilson - Mastering LiteCoin: a beginners guide to start making money with LiteCoin

Copyright 2013 by Adidas Wilson

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Adidas Wilson

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Table of Contents

L itecoin Introduction

1. Cryptocurrency Wallet Guide
2. How To Buy Litecoin
3. Mine Litecoin and Other Altcoins
4. A Better Investment: Bitcoin or Litecoin
5. Litecoin Wallet Clients
6. Bitcoin vs Litecoin
7. Invest In Litecoin
8. SegWit In The Wild
9. Coinbase Users
10. Second Largest Currency
11. Bitcoins in 8 Ways
12. The Purpose of Blockchain
13. Feathercoin
14. ICO
15. Understanding Cryptoeconomics
16. Cryptocurrency: The Ultimate Guide

References

Litecoin Introduction

C harles Lee created Litecoin in 2011, and it is now the 2nd or 3rd largest digital currency after Bitcoin. For those already using Bitcoin, Litecoin has a few surprises for you. The main desktop application is an enhancement of Bitcoin-QT Client, and you can download it from Litecoin websiteyou can also use it as a digital wallet.

Litecoin is different from Bitcoin in some ways. To begin with, the cap for Bitcoin is 21 million coins while the cap for Litecoin is 84 million.

Litecoin has begun with a mining reward of 50 coins for every block just like Bitcoin. However, the award for Litecoin halves every 840,000 blocks which is larger than the set 210,000 for Bitcoin.

The Litecoin transaction fee is slightly higher than that of Bitcoin, but again, one Litecoin is worth 0.019BTC.

W HERE ON EARTH CAN you get Litecoin? If you are not a miner, you have to purchase Litecoin from one of the few;

BitBargain UK

Bittylicious

Bitfinex

BTC-e

BTER

Kraken

Cryptsy

Vircurex

CoinMKT

Litecoin is still very far from matching Bitcoins standards and getting merchants to accept this digital currency is not easy.

The algorithm that Litecoin uses as proof of work is entirely different from the one that Bitcoin does. Bitcoin uses SHA256 hashing algorithm, and Litecoin uses Scrypt algorithm. In simple terms, the Litecoin system only favors systems with a very high RAM (which is very costly), and it is a kind of Memory Hard Problem. Apart from that, transactions are conducted just as in Bitcoin.

The Litecoin mining process is very much similar to the Bitcoin mining process. Same with other crypto-mining, in Litecoin mining there are mining pools that increase rewards for miners.

Whether you plan to solo mine or join a pool of miners, use cgminerit is the best mining software.

Just like cryptocurrency in general, Litecoin is not for everyone. Charles Lee in an interview said that most will use Bitcoin for expensive purchases and Litecoin for micro transactions.

Chapter 1

Cryptocurrency Wallet Guide

W hat is a crypto currency wallet? It is a software program for storing public and private keys and interacts with different blockchain to allow users to send and receive online currency and also monitor their balance.

Although there are so many people that use digital currency wallets today, there is still a lot of confusion on how they work. As opposed to traditional wallets, online wallets do not store currency. These currencies are neither stored anywhere nor do they exist in any physical form. It is only the records of transactions that exist and are stored on blockchain.

When someone sends you cryptocurrency, they are signing off ownership of those coins to the address of your wallet. The private key in your wallet has to match the public address the currency is assigned to if you want to spend the coins and unlock funds. If the private and public keys match, your digital wallet balance will increase while the senders balance will decrease. So do not expect a real exchange of actual coins. The proof of the transaction is its record on blockchain and the change in balance in the wallet.

Various types of wallets offer different ways to access and store your online currency. There are three distinct categories of wallets; paper, hardware, and software. Software wallets are online, mobile or desktop.

How secure your wallet is, depends on its type (hardware, online, desktop, mobile, paper) and your service provider. It is riskier to store currency on a web server compared to offline since offline wallets cannot be hacked. However, regardless of the wallet you are using, you should be careful because if you lose your private keys, you lose your money as well. In another case, you can be scammed.

1. Backup your wallet. Only store small amounts online and keep the rest in a highly secured environment.

2. Update your software regularly (both on your mobile and computer).

3. Add extra security layers.

Multi-currency Wallets

Bitcoin is the most popular cryptocurrency, but many others (altcoins) have come a long way. If you would like to have a variety of digital currencies, you can do so without having a different wallet for each one. There are multi-currency wallets that allow you to have several currencies in the same wallet.

Some transactions require you to pay a fee while others dont. Alternatively, you can set your fee. Either way, the fees are usually too small.