Crypto

Litecoin vs Ethereum: The 2022 Guide to Destroy All Guides

Comparing and contrasting cryptocurrencies and being brutally f******g honest about it is my thing. It’s my bread and butter, so I wrote...

Written by Sinwan Zahid · 4 min read >
litecoin-vs-ethereum

Comparing and contrasting cryptocurrencies and being brutally f******g honest about it is my thing. It’s my bread and butter, so I wrote about it. To answer your queries, today, I’m looking at Litecoin vs Ethereum. Read on.

Ever since the OG Bitcoin (BTC) entered the market and gathered believers around it, several other cryptocurrencies have popped up and made a place for themselves too in the following years. Two of them: Litceoin (LTC) and Ether (ETH). 💱

The entry of hundreds of new cryptocurrencies is a consequence of more and more people taking an interest in investing in crypto, mostly because these assets, albeit unstable, are beginning to perform phenomenally well.

In this article, I’ll have you look at two major contenders, Litecoin vs Ethereum, and give you the lowdown on which cryptocurrency you should invest in.

Litecoin vs Ethereum 💱

When you get started with comparing Litecoin and Ethereum, several factors like purpose of coin, supply, past history, mining strategies, transaction fees and etc. need to be taken into account.

✋ Hold up, hold up. If you don’t know about the Ethereum and how it works, then part of whatever I’m about to say may sound like gibberish. And that ain’t good for your time, mate. Take a moment to go 🔥 here 🔥 and get a quick Ethereum lesson for free. Thank me later. 😉

But if you consider yourself, let’s call it, a connoisseur of crypto, then let’s move ahead. Let’s start with an introduction of each, their purpose and how popular they’ve been so far.

What is Litecoin?

Litecoin’s LTC is a cryptocurrency, which was first introduced in 2011 by a Google employee called Charlie Lee. Litceoin is oft considered as the silver to the gold Bitcoin, meaning that it’s very similar to Bitcoin but a cheaper, quick alternative to it. You may call it a knock off, up to you, not suggesting. 😛

👀 Explore: How to set gas fees on MetaMask wallet

Litecoin is an open-source blockchain project with Bitcoin’s code. Compared to Bitcoin’s 21 million finite coins, Litecoin is still capped but at 84 million – which is not infinite but significantly more than the former.

In creating Litecoin, the goal of the founder was also to make sure that transactions were cheaper and quicker. As compared to Bitcoin, Litecoin reduces any ambiguities or chances of it and makes trading much more efficient. People with Litecoin can make smaller transactions almost instantly, like buying a bagel. Which reminds me, I’d love me some bagels right about now. 🥯

🤤 Snapping out of my hunger pangs, let’s take a quick look at what Ethereum brings to the challenge.

Read this guide: How to buy and swap tokens using MetaMask.🔮

What is Ethereum?

Ethereum is a blockchain platform that came around much later in 2015. It was developed and founded by crypto enthusiast Vitalik Buterin, who in 2013 released a whitepaper detailing the various uses of the technology for financial use and also, more importantly, as a decentralized platform for application developers.

Not long after, Ethereum gained many fans and along with that, momentum. Oh gosh darn, so much momentum. Everywhere you look now, it’s all about the ETH. It’s cryptocurrency, namely Ether, fuels the Ethereum blockchain. Now in 2022 it is one of the most highly regarded cryptocurrencies in terms of market capital and share. 🤑

One of Ethereum’s most distinctive features is its smart contracts, which are executed on the blockchain. They allow easily for the exchange of money, or transfer of content, property, or any assets that hold value. Each of these smart contracts is governed by a set of rules. Well, I think this is sufficient. Now we should move on to comparisons, my favorite. 🍽

Litecoin and Ethereum Similarities

Before we get into how Litecoin and Ethereum are different, let’s look at how similar they are. Don’t get your hopes up, there aren’t a lot.

  1. Fast transaction time – Litecoin in its efforts to differentiate from Bitcoin, made its transactions significantly quicker. Ethereum’s cryptocurrency, too, has a faster transaction time as compared to Bitcoin. While both Litecoin and Ethereum use different approaches to achieve quick transaction speeds, the result is similar.
  2. They are traded on major exchanges like Coinbase and Coinbase Pro – Coinbase acts like the stock exchange for digital assets, and both Ethereum and Litecoin exist on the platform. People can safely buy, sell, transfer, store Ethereum and Litecoin with Coinbase.
  3. Open source, peer-to-peer networks – Both platforms allow for the transfer of currency coins without the involvement of a central authority.

Litecoin and Ethereum Difference

While the similarities are less, there are several differences when we’re putting Litecoin vs Ethereum against each other. Let’s have a look.

  1. Litecoin supply is finite, Ethereum is not – At the moment, Litecoin has a supply limited of 84 million coins, so it is finite. For Ethereum and its cryptocurrency, Ether, no such limit exists. Hence it will not be scarce in the near future.
  2. Function and purpose are different – While Litecoin came about as a currency only, Ethereum is much more diverse. It’s got the goods and it’s keeping up with the times. Ethereum is a proper platform which can be used to create smart contracts and also transfer assets, property and similar stuff. 😏 This feature does not exist on Litecoin, but tbh, it wasn’t built to offer that so even though they’re losing out, we can’t blame the poor guys.
  3. Much more easier to mine on Ethereum – Ethereum is a much faster blockchain, whereas, Litecoin lags behind. Both do, however, use Proof-of-work mining, but that may soon change when Ethereum adopts Proof-of-stake mining, making it even faster. Me likey. 😋
  4. Transaction speed is slower on Litecoin – Because Litecoin transactions are put into newly-mined blocks, the speed of transactions is affected. However, Ethereum again has an advantage here, since it’s quicker to mine than Litecoin and Bitcoin. Faster mining means faster transactions, that too of an estimated 15 seconds. Litecoin stands at over 2 minutes. I don’t know about you, but slow and steady does indeed not win the race here. 😝
  5. Transaction fees vs gas fees – For every new transaction put into a newly mined block, Litecoin has a transaction fees of $0.04, which isn’t a lot. However, Ethereum doesn’t charge a transaction fee at all.
    Instead it has what people call a gas fee ⛽, a fee paid in Ether for carrying out a successful transaction on the blockchain. This has recently become a problem with some simple transaction costing as much as a $100. Ooof, that’s a problem – but they’ll fix it, I think?

More reading: How to add tokens to MetaMask 🦊

Litecoin vs Ethereum: Which cryptocurrency to invest in?

Both Litecoin and Ethereum are likely to stick around for a long time because they were early into the crypto market. That’s the reason why they were able to make space for themselves and also attract investors.

Ethereum, more than Litecoin however, has gained plenty more momentum because of its unique smart contracts feature and ability to perform quicker mining + transactions. Moreover, every friggin’ person on the planet – okay maybe that’s a bit of an overstretch but ykwim – is Googling it. 👩‍💻 That’s got to mean something, no?

Historically, too, Ethereum as a project has a much stronger foundation, diverse functions, and its progress over Litecoin has been massive. While investing in Ether may be high risk for some, but it comes with high rewards and that is what we’ve been seeing throughout 2021 and it still holds in 2022.

Gotta tell the truth, fam. Ethereum is where it’s at. And that’s where your investment should be. Period. 🔷

🙋‍♀️ And before you leave,

Check out courses on MetaSchool, free of cost.

Written by Sinwan Zahid
I help digital course creators achieve business success ✨ Profile

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