Litecoin is an alternative form of currency with minimal effort and zero fees. For the layman, the concept of a currency that requires no handling is appealing. You might ask yourself what a cryptocurrency actually is?
In short, this is an alternative form of online currency that is not backed by a central bank. This means it’s completely decentralized and works without the need for a centralized server. The demand for Litecoin is because it’s being mined by computers in a very similar way to how a computer would mine gold. Like gold, there are specialized computers that do the work for you.
Like other cryptocurrencies, you can trade this currency on major exchanges, however the differences between Litecoin and other forms of currencies is the processing fee. These fees are minimal, and you don’t need to trust a third party with your money.
Anyone can create their own Litecoin, and this means they have to register as a seller so they can sell some or all of their digital assets to someone who needs it. If you want to participate in trading, you will be required to make a few transactions through a trusted third party.
Trading in this way isn’t recommended for beginners because trading this way is inherently risky. Trading through the use of a trusted third party makes sure that you’re protected and has all the features that you’d expect from any other currency exchange.
Before you start trading in Litecoin, make sure you check out the features of the currency you’re trading in. There are options like secure sites, privacy and identity theft protection and reporting fraud.
To learn more about this particular exchange, you can visit their website at Coinbase.com. There’s also an upcoming news blog.