What is Litecoin?
Litecoin (LTC) is an offshoot of Bitcoin (BTC) launched three years after BTC in 2011 by Charlie Lee, an ex-Google engineer, making it a longstanding cryptocurrency.
The coin is very similar to Bitcoin, with a few exceptions. First, LTC was created as a faster way to transact in cryptocurrency. Its proof-of-work relies on graphics processing rather than central processing, it uses Scrypt for its hashing function, and the maximum number of coins that can ever be generated is four times the amount of Bitcoin.
These characteristics could make LTC a great investment, especially at the discounted prices it is experiencing today.
Key Concepts of Litecoin
- Speed – Transactions on the Litecoin network take about two minutes to complete, making it much faster than BTC’s nine-minute average.
- Innovation – LTC was built to provide faster transactions and continues to be improved. For example, the Litecoin Foundation recently released a layered protocol called OmniLite that adds to the coin’s security and transaction fee structure. The foundation also created a debit card to make LTC adoption easier. Overall, the LTC developers are working hard to integrate Litecoin into the payment systems we use daily via an open-source platform structure.
- Growing Adoption – There are reportedly thousands of online merchants that accept LTC as payment for goods.
- Coin Supply – The LTC supply is limited to 84 million coins. While this is much higher than other cryptocurrencies, it gives LTC the advantage of being more accessible because its supply is less scarce.
Litecoin vs. Bitcoin
Litecoin and Bitcoin serve the same overall purpose: to act as a currency that records all transactions on their associated blockchains. After this, they differ quite a bit. Because of the way LTC is configured to do its proof-of-stake work and hashing, LTC transactions can be more than three times faster than the average BTC transaction, and they generally cost less, too.
The difference in price and transaction time on its blockchain can be a huge advantage for Litecoin. Both of these characteristics allow for mass adoption.
How to Buy Litecoin
Bitcoin IRA provides access to LTC along with more than 60 other cryptocurrencies. Always use trusted exchanges and wallet providers like Bitcoin IRA when making an investment. To use Bitcoin IRA to buy LTC, simply create an account, fund it, and trade.
Litecoin Crypto IRA and Taxes
A crypto IRA with Bitcoin IRA is a self-directed account. You can open a Roth or traditional IRA. With a Roth IRA, you contribute after-tax money into the IRA account, and you generally won’t be required to pay federal taxes when you withdraw the money after you reach retirement age.1 With a traditional IRA, the money is deposited pre-tax, and you’ll be required to pay taxes at retirement age when you withdraw the money.
Aside from those differences, you will not pay capital gains taxes by purchasing Litecoin in your IRA account. However, as with any IRA account, if you choose to withdraw before retirement, you could face paying a penalty as well as the taxes you owe.
Why Should I Invest in Litecoin with Bitcoin IRA?
Thanks to the Litecoin Foundation, LTC has solid fundamentals and is positioned to be around for a long time, perhaps realizing incremental gains over the long term. This situation makes it especially attractive as a long-term investment that you could put into a retirement account. Some investors are trying to get in at a good price, hinging on the probability that it will be a winner over the next decade.
Because Bitcoin IRA offers more than 60 different cryptocurrencies to choose from, you can diversify your holdings as you add money to the account. In addition, Bitcoin IRA provides investors with education about coins and is constantly searching for new opportunities to add to their coin selection.
How to Create a Bitcoin IRA with Litecoin
To create a Bitcoin IRA with Litecoin, visit Bitcoin IRA or download the convenient mobile app to open or create an account. When you open an account, you will be asked if you want to roll an existing IRA or fund the account from scratch. After the account is funded, you can start your journey to invest in Litecoin.
1Some taxes may apply. We recommend you consult your tax, legal, and investment advisor.