Litecoin is commonly considered the “silver” to Bitcoin’s “gold”. It’s like the sidekick to Bitcoin’s superhero status. It was created by Charlie Lee in 2011 and was built on a fork of Bitcoin to make a faster and more cost-effective alternative.
Litecoin isn’t just a digital coin; it was created as a digital solution with features designed to solve Bitcoin’s apparent insufficiencies concerning transaction speed and gas fees. From lightning-fast transactions to a bag of tricks you won’t find in Bitcoin’s utility belt, Litecoin is here to show that it’s more than just a silver lining in the crypto world.
We’re embarking on a journey to uncover the eight most dazzling uses of Litecoin in the real world.
These use cases are:
- Digital Payments
- Donations and Charity
- Digital Collectibles and NFTs
- Decentralised Finance
- Integration with Smart Contracts
- E-commerce Integrations
Now, let’s explore the intriguing world of real-world use cases of Litecoin.
8 Most Prominent Use-cases of Litecoin of Real-World Application
1. Digital Payments
Litecoin can be used to safely and securely make payments over the web. Its network generates a new block every two and a half minutes, which makes it up to four times faster than Bitcoin. This, along with speedy transactions and minimal gas fees, is ideal for digital payments and day-to-day use.
Litecoin is highly liquid. Market analysts predict Litecoin could see a rise in value due to its speed and high liquidity. While this is not a guarantee that it will make you rich, it presents a good option if you want to diversify your portfolio.
3. Donations and Charity
Litecoin, just like all other cryptocurrency donations, is classified as a non-taxable event, which makes it a cost-efficient method for both the donor and the recipient.
Also, donating with Litecoin helps eliminate the need for wire transfers and the hefty transaction fees and bank charges that come with it.
The Giving Block and Cure Starts Now are examples of charities that accept Litecoin for donations.
4. Digital Collectibles and NFTs
As recently as this year, developers forked a Bitcoin NFT collection into the Litecoin network to give Litecoin its first set of NFTs since its creation in 2011.
Considering NFTs on the Litecoin network are relatively new, it could also serve as an investment option with proper research.
Transaction fees on Blockchain networks like Bitcoin and Ethereum can sometimes be hefty depending on how complex the node problems are.
This is where Litecoin comes in. With a block time of just two and a half minutes and extremely low transaction fees, Litecoin is perfect for making small, continuous transactions and point-of-sale payments.
6. Decentralised Finance
As a result of Litecoin’s high liquidity and other great features, it can play a pivotal role in Decentralized finance applications.
Roles such as collateral and lending, as a liquidity and trading pair and even cross-chain functionality make it a versatile asset in DeFi.
7. Integration with Smart Contracts
Litecoin’s integration with smart contracts through OmniLite allows developers to harness its reputation for low transaction fees and fast transactions in building their own tokens and assets on the Litecoin network.
This makes the Litecoin network an accessible alternative for building on the Blockchain and decongest networks like Bitcoin and Ethereum.
8. E-commerce Integrations
Litecoin’s speed, cost-effectiveness and security features make it a valuable asset for e-commerce businesses and startups looking to expand their payment options and provide a more seamless shopping experience for their customers.
Examples of some e-commerce businesses that have integrated a Litecoin payment gateway include PrestaShop, WooCommerce and ZenCart.
Importance of Real World Use-cases
Practical applications are as important to the success of any crypto project. The good news is that Litecoin doesn’t just offer hypothetical possibilities but also practical benefits.
The importance of real-world use cases includes:
These real-world use cases demonstrate that Litecoin is more than a theoretical concept but has practical uses in everyday life.
These use cases also showcase the utility of Litecoin and its ability to solve real problems and provide tangible benefits to users.
3. Market Acceptance
As these use cases become more widespread and market sentiment becomes positive, Litecoin’s overall recognition and market acceptance will increase.
As Litecoin use cases expand into more sectors, it becomes less reliant on any single application. This would make it more versatile and last even longer in the ever-evolving crypto world.
Risks in Litecoin Investments and Strategies for Managing them
Many people open a Litecoin wallet with plans to invest or trade Litecoin. But like any other investment, it has its obvious risks. Here are some risks of investing in Litecoin:
1. Price Volatility
Litecoin, like all other cryptocurrency-based assets, is very volatile. This means that significant price fluctuations can occur. A sudden drop in price will lead to panic sales and, ultimately, losses.
2. Long-term Viability
This refers to the sustainability of Litecoin in the long run. Blockchain technology evolves very fast, and these rapid technological advancements may render current technologies like Litecoin obsolete with time.
3. Lack of Regulation
A major selling point of blockchain technology is its decentralised nature. While this has its pros, it also comes with the risk of fraud and market manipulation as a result of the absence of comprehensive regulation.
The good news is there are also strategies to manage these risks. Some of these are:
- Do not put all your eggs in one basket; diversify your portfolio.
- Use reputable cryptocurrency exchanges and wallets.
- Choose exchanges with sufficient liquidity.
- Develop a clear investment strategy and stick to it.
Frequently Asked Questions (FAQs) About the 8 Most Prominent Use-cases of Litecoin for Real-World Application
What Problem Does Litecoin Solve?
Litecoin solves the issue of high transaction fees and increased transaction time.
Why is Litecoin So Much Cheaper than Bitcoin?
The current price of Litecoin, like any other cryptocurrency, is determined by a couple of factors, including investors’ perspective, market sentiment, etc.
Is Litecoin a Good Investment in 2023?
This is primarily determined by market analysis and research. It is essential to understand that the crypto market is very volatile.
It’s always important to do your own research (DYOR) before making investment decisions.
Why are Litecoin’s Transactions Faster than Bitcoin’s?
Litecoin’s Transactions are about 4 times faster than Bitcoin because each new block added to the Litecoin network takes about two and a half minutes, while a new block on Bitcoin takes 10 minutes.
How to Buy and Sell Litecoin?
You can buy Litecoin on major exchanges like Binance, KuCoin, OKX and Coinbase. To buy Litecoin on any of these exchanges, use the following steps:
- Create an account and perform the necessary KYC registrations.
- Deposit funds that you would like to trade for Litecoin into your exchange account.
- Place an order to buy Litecoin.
For users in Nigeria and Ghana, selling Litecoin with the above method can be tricky, considering the restrictions around cryptocurrency in these regions. These users should rather sell Litecoin directly for local currency at the best rates on Breet.
Litecoin’s use case extends beyond being a digital currency. From digital payments to Integrations with smart contracts, Litecoin has become a versatile and valuable asset.
Its hashing algorithm and other unique features of Litecoin’s network enable it to facilitate fast transactions with low fees, highlighting it as an excellent asset for day-to-day transactions.