With the rise of BTC, there are more and more digital currencies on the market, and the more popular ones are ETH and LTC. Therefore, many investors like to compare LTC with ETH. After all, the original intention of investors in digital currency transactions is to make money, so it is natural for investors to want to invest in digital currencies with good potential. Then, between LTC and ETH, which investment potential is good?
- Both have faster transaction times than Bitcoin.
- Both use the Proof of Work (POW) consensus mechanism. ETH uses Ethash, while LTC uses the Scrypt algorithm. The idea behind POW is to allow miners to use their hash rate to solve cryptographic problems. As a result, miners who solve the problem by adding new blocks to the blockchain also receive the same reward.
- Both can be traded on many cryptocurrency exchanges.
Based on the above information, you may get into trouble between buying LTC or ETH. However, it is worth noting that compared with ETH, LTC was launched earlier, giving it more payment functions. On the contrary, ETH is not just a payment method. It can also act as an innovative contract platform. Therefore, this is a problem to be grasped, and you should invest in both based on the unique possibilities. Obviously, LTC is beneficial in daily transactions. For example, major retailers have regarded it as a payment method. On the other hand, ETH has played an essential role in developing the decentralized ecosystem, making it popular among developers for its ability to transfer property.
The difference between LTC and ETH:
- LTC is mainly regarded as a payment method or currency because it can replace Bitcoin. To be clear, this is a fork of Bitcoin. On the contrary, ETH is mainly regarded as the innovative contract platform required to develop decentralized applications.
- The transaction fee of LTC is US$0.04, while the transaction fee of ETH is US$0.85 per transaction.
- For each block mined with LTC, 25 LTC will be rewarded. In ETH, five units of Ether were rewarded.
- The block time of ETH is 15 seconds, while the block time of LTC is 2.5 minutes.
- Compared with the short-term of LTC, ETH is considered to have long-term application prospects. This is based on its ability to transfer value, store data, and develop many functions.
- LTC was launched in 2011 and ETH was launched in 2015.
- ETH can prepare funds for new projects, but it is impossible to use LTC.
- LTC has an upper limit on the number of coins issued because once it is reached, no new coins will flow into the system. ETH has a different model because the same number of coins are released into the system every year.
Through the above introduction, I believe that everyone has a good understanding of the potential of LTC and ETH. However, no matter which digital currency they choose to invest in, investors must remember the principle of price limit trading, which means that investors can use The order of buying price lower than the market price or selling price higher than the market price is executed when the market price fluctuates to the set price. When the set price deviates significantly from the market price, it is easy to appear unsuccessful result.