Difference between Litecoin (LTC) and Ripple (XRP)

By November 11, 2020March 28th, 20224 minute read
Difference between Litecoin (LTC) and Ripple (XRP) - WazirX

Ripple and Litecoin are ruling the crypto market with their sheer simplicity and security, which comes at a low cost. As the crypto market evolves continuously with the emergence of brand new cryptos, thorough competition prevails between the contenders. This, in turn, propels their faster growth by helping with the implementation of new technologies so that transactions can be completed securely. Today, we are going to compare Litecoin and Ripple for you to decide which is the more lucrative means of investment.

About Litecoin

Litecoin entered the crypto sphere back in 2011 to fill up the inherent loopholes of Bitcoin. It was specially designed to improve transaction speeds while lowering down the fee compared to BTC. As of today, Litecoin remains to rule the global crypto market in terms of market capitalization. If you are thinking about undertaking LTC to INR conversions, then you are bound to feel the benefit from this decentralized crypto’s Send/Receive features, check out the latest price of litecoin in india. Let us now take a look at the biggest USPs of Litecoin:

  • GPUs are used for efficient mining of Litecoin, and this distributes Hash power equitably amongst all the users by keeping ASIC miners at bay.
  • Litecoin ranks highest in terms of block timing, and this makes it a preferred choice of users around the globe seeking out faster turn-around times.
  • Litecoin made use of spam filters for the most part, which helped keep a limit on the block size.
  • A highly progressive core development team and community have helped all users of Litecoin in getting readymade answers to their doubts. A high level of interaction has led to its massive popularity amongst users. 
  • LTC is the preferred choice for everyday transactions given its comparatively lower value and an encryption process that strengthens the security threshold. 

Just like the advantages listed above, Litecoin also comes with certain inherent shortcomings, which have been listed below:

  • The growth track of Litecoin is dependent completely on the troubles of Bitcoin. However, if BTC can address its transaction speed and scalability concerns in the days to come, then Litecoin might find it difficult to sustain its stronghold.

Should You Invest In Litecoin?

Litecoin has been trading since 2011, and this has established its stronghold as reputed crypto. Investors usually favor investing in Litecoin over the short-term, and thus, you won’t face any difficulty in finding sellers. The listing of Litecoin on Coinbase has also helped convert LTC to INR and engage in buying or selling transactions. Irrespective of all these advantages, Litecoin is crippled by the highly volatile level of the crypto market, which invests the same as a considerably risky affair. 

About Ripple

Ripple Technology has gained recognition around the globe by the name of XRP digital coin. Users can undertake various forms of money transfer through the decentralized platform of Ripple, courtesy of its open-source, peer-to-peer network. Let us first take a look at the advantages of using Ripple:

  • Big banks and financial institutions around the globe are now banking on Ripple, which has led to its popularity amongst general consumers. 
  • The transaction speed of Ripple is higher than peer cryptocurrencies such as Ethereum, Bitcoin, and Litecoin. While pre-SegWit Bitcoin took more than 1 hour and Ethereum took more than 2 minutes, XRP transactions could be completed in just 4 seconds. 
  • Ripple’s transaction fees are 0.00001 XRP making it significantly lower than that of Bitcoin, Ether, and Litecoin.
  • XRP serves as a popular means of cross-border payment, which is already giving rival fiat payment systems like MoneyGram, SWIFT, and Western Union a run for its money. 

Ripple also comes with certain loopholes, which have been mentioned below:

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  • Most of the cryptocurrencies are decentralized. But Ripple goes against this general consensus by owning more than 50% of the coin supply. This acts as a cause for concern for experts who believe that the lack of decentralization can impact the price predictability of Ripple adversely.
  • Ripple’s consensus ledger approach requires transaction verification by validated participants, which are considerably different from the usual cryptocurrency standards. Anyone on the Bitcoin network can set up a node, and they can even verify the transaction. 
  • Ripple doesn’t conform to traditional cryptos’ rules as its primary goal is the promotion of money transfer technology. This makes the XRP coin the secondary part of their strategy. 

Should You Invest In Ripple?

The positives of XRP to INR conversion outweigh the cons by a good margin. Ripple has created a network that interconnects banks and other payment providers. This has evolved into a highly lucrative venture which draws in users from around the globe. Ripple’s high scalability levels are modified according to the market trends, which has led to its successful collaborations with the banking fraternity. Ripple started out from a low price point, but it’s sudden price explosion brought it in line with peer cryptos. While the prices of peer cryptos have crashed countless times, Ripple has experienced a steady hike making experts fully optimistic about its future. Ripple coins’ low price makes it a highly affordable investment and one that doesn’t burn a hole in your wallet. 

Litecoin Vs Ripple – Final Thoughts

Both these cryptos carry the potential of making their mark felt in the world of crypto. While they are considered similar, certain differences also exist, and you need to take note of these dissimilarities to choose the one which is better fine-tuned to your requirements:

  • Litecoin was created to cover the loopholes of Bitcoin, and this brings in more functions. Ripple has a solitary function to perform, and that is to propel cross-border transactions like converting 1 Ripple to INR in a low-cost and secure manner.
  • Litecoin attracts people engaging in daily transactions, whereas Ripple is more suited for financial institutions and large corporations. 
  • Maintenance of Litecoin requires more effort, while Ripple is simpler to maintain since it does not rely on multiple functions.

What Is Cryptocurrency?

A cryptocurrency is a digital currency secured by encryption, due to which chances of activities such as counterfeiting and double-spending taking place get close to impossible. Cryptocurrencies get created on blockchain technology ( a distributed ledger enforced by a distributed network of computers). Cryptocurrencies are unique in that they do not get issued by any central authority. The term "cryptocurrency" comes from the encryption techniques used to keep digital currencies and the network safe.

Is Cryptocurrency Safe To Invest In?

Cryptocurrency investments are subject to market risks, but if sufficient security measures are not taken, trading accounts can be maliciously accessed. Investments come with risks and uncertainties, and we cannot claim that any digital currency investment is risk-free. Buying and selling cryptocurrencies can be risky even if the trader is knowledgeable about the market and treats their coins carefully.

Are Cryptocurrencies Legal In India?

In India, cryptocurrency is legal, and anyone can buy, sell, and trade it. Because India lacks a regulatory system to regulate its operations, it is presently uncontrolled. According to the Ministry of Corporate Affairs, companies must now document their crypto trading/investments inside the financial year.

Is Pi Cryptocurrency Safe?

Pi Network (PI) is the newest digital token to catch the cryptocurrency community's interest, even before it has wholly debuted. Some users see it as a chance to get engaged in a cryptocurrency from the beginning and profit in the future, similar to how early Bitcoin adopters made huge profits by mining and keeping the coin. Other users have compared Pi to a worthless multi-level marketing (MLM) scheme.

Who Invented Cryptocurrency?

Satoshi Nakamoto invented cryptocurrencies and the technology that makes them function in 2009. The presumed pseudonymous individual or persons who invented Bitcoin used this identity. In addition, Nakamoto created the first blockchain database. Even though many people have claimed to be Satoshi Nakamoto, the person's identity remains unknown.

Is Cryptocurrency Banned In India?

No, cryptocurrency is not banned in India. India has seen its ups and downs in the crypto sector concerning its legal status. The Reserve Bank of India (RBI) issued a circular in April 2018 advising all organizations under its jurisdiction not to trade in virtual currencies or provide services to assist anyone in dealing with or settling them. A government committee proposed outlawing all private cryptocurrencies in mid-2019, with up to ten years in prison and severe penalties for anyone dealing in digital currency. The Supreme Court overruled the RBI's circular in March 2020, allowing banks to undertake cryptocurrency transactions from dealers and exchanges.

Is Crypto Legal In India?

Cryptocurrencies are legal in India, and anyone can purchase, sell, and exchange them. It is currently uncontrolled, as India lacks a regulatory structure to oversee its operations. Per the Ministry of Corporate Affairs, companies must now record their crypto trading/investments within the financial year. In cases where a person receiving the gains is an Indian tax resident, or the cryptocurrency is regarded as domiciled in India, cryptocurrency transactions have been taxable in India

How To Invest In Cryptocurrency?

There are two ways of investing in cryptocurrency, mining and via exchanges. Cryptocurrency mining is considered the procedure of verifying and adding transactions to the blockchain public ledger. Another option is via cryptocurrency exchanges. Exchanges generate money by collecting transaction fees, but there are alternative websites where you can interact directly with other users who want to trade cryptocurrencies.

How Many Cryptocurrencies Are There?

There are over 5000 other digital currencies available on the internet in addition to Bitcoins. The only problem is that they haven't gotten the users' attention. Besides Bitcoins, a few other digital currencies have gained popularity among users. It's been more than ten years since Bitcoins were first released, and now they've achieved new heights thanks to their phenomenal success.

What Is The Safest Cryptocurrency To Invest In?

Bitcoin has had the highest market capitalization, has been around the longest, has the most experienced development team, and has enormous network impact and brand recognition. As a result, while trading cryptocurrencies, the rate of return on Bitcoin is commonly used as a benchmark. However, the risks associated with cryptocurrencies remain, and the safest cryptocurrency for you depends on your analysis.

Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.
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