Both Litecoin and Ethereum have been around for a very long time. With LTC being traded at roughly 10% of the price of ETH, many wonder which one to buy. This guide compares both Litecoin and Ethereum, as well as how to get the best from a LTC to ETH exchange.
What is Litecoin?
Believe it or not, Litecoin is one of the oldest cryptocurrencies in the market today. It was released in 2011. LTC is available across most exchanges and enjoys a good reputation among crypto enthusiasts. The drawback to Litecoin is that it hasn’t always performed as expected and the price has been very volatile. Today, Litecoin is still popular but it is traded at a much lower value than most expect it to. People are waiting for it to break out and realize its true value.
As a blockchain product, Litecoin is very basic. Many refer to it as a Bitcoin spin-off. This is true to some extent, except it isn’t a traditional Bitcoin fork. Instead, it uses the same foundation as Bitcoin rather than being directly forked from Bitcoin’s blockchain. This leads to some confusion as it is technically a ‘project fork’ from Bitcoin but it isn’t an actual fork from Bitcoin.
In terms of function, it operates in a very similar way to Bitcoin. But, it is faster with a block time of two and a half minutes instead of Bitcoin’s ten-minute block time.
That is pretty much Litecoin in a nutshell. It is similar to Bitcoin and it really is a good basic crypto with a price that doesn’t always reflect its potential.
What is Ethereum?
While Litecoin is a simple and basic cryptocurrency, Ethereum is a completely different animal with layers of complexity, smart contracts, and subsidiary blockchains (ERC20). Ethereum isn’t just a straightforward cryptocurrency in the way that Bitcoin and Litecoin are. Instead, the goal of Ethereum is to create a world powered by blockchain technology rather than worry about the financial transaction aspect.
Ethereum allows developers to quickly and easily create their own blockchains and crypto tokens that run on those blockchains. Some of the tokens are hugely successful in their own right. A notable example is Enjin, which has recently partnered with Microsoft. Other ERC20 tokens aren’t so good, which has led to a lot of people wanting Ethereum to clean up the platform.
Ethereum is a dominant force in the world of crypto. Beyond Bitcoin, there isn’t anyone else that can yet compete (although some might argue Ripple is up there). The price of Ethereum sits high because of its mass adoption and huge popularity.
Similarities and Differences
The similarities between Litecoin and Ethereum are few and far between. Both are fuelled by successful and reputable currencies, and both use blockchain technology. Beyond that though, there is very little similarity. Many traders use this to their advantage when trading LTC to ETH. During downturns in the overall market, Litecoin can sometimes behave differently. But also when the market is good, many will want to convert LTC to ETH as the margins tend to be more generous when ETH grows in price than LTC.
The differences between Ethereum and Litecoin are clear, with both functioning in completely different ways and both having very different philosophies about how crypto should shape the future. Litecoin believes the cryptocurrency itself holds the key, whereas Ethereum believes that the tech it runs on is the key. Which is the best cryptocurrency philosophy remains to be seen, but it is an exciting battle for the future.
The best LTC to ETH Exchange?
Many exchanges convert LTC to ETH. So, picking the one would be tough. It is up to every trader or investor to choose the exchange that best meets their requirements — be it trade volume, fees, security, etc. Among the most popular platforms are KuCoin, OKEx, Binance, and more.
There are some mistakes that people make when buying LTC or ETH, and it is best to avoid these.
- CFDs. Make sure you’re not using a CFD as you will not own the currency and you could lose all of your investment betting the wrong way on the market;
- Exchange wallets. Once you have performed an LTC to ETH exchange, move your currency to your own wallet;
- Exchanges without an LTC to ETH calculator. Good exchanges like Godex.io will provide a free and easy to use LTC to ETH calculator so you can buy with confidence.
Apart from these common pitfalls, there are many reputable LTC to ETH exchange platforms, you just need to be careful about picking the right one.
How to Convert LTC to ETH
When you have found the perfect LTC to ETH exchange you will need to create an account. After creating your account you can connect your existing wallet and begin trading. A good exchange will have a chart with buy and sell prices displayed clearly and also LTC to ETH calculator tools.
Other than the tools, many exchanges provide the latest news from the crypto world to help investors and traders make informed decisions. Of course, using an LTC to ETH exchange isn’t without risk and knowing when to convert LTC to ETH is the single best thing you can do to remove this risk.
Make use of the price analysis, learn the graphs, and look at a broad range of crypto-related events to build up a projection. Only once you have an understanding of the market and where it is likely to be — commit to trading LTC to ETH.