Bitcoin Cash vs. Litecoin: Which One to Invest In?

The global financial market has changed tremendously since Bitcoin (BTC) appeared as an alternative flexible and anonymous payment method. Bitcoin Cash and Litecoin are altcoins that were developed as a substitute for BTC.

Litecoin (LTC) was created for faster and more cost-effective transactions. BTC was facing major scalability issues since it was not capable of handling multiple transactions at the same time. Bitcoin Cash (BCH) came as the solution for this issue. In this article, we will highlight the differences between Litecoin vs. Bitcoin Cash and analyze the pros and cons of each coin.

What is Bitcoin Cash (BCH)?

Bitcoin Cash (BCH) is an altcoin known as the “Hard Fork” of BTC, created to solve major scalability issues of the latter. Bitcoin Cash is a decentralized P2P payment method that came from the core of Bitcoin as a way to update the BTC network, making it faster and more efficient.

Since more and more users were joining the BTC network, its congestion increased sharply, making Bitcoin blocks very slow to process. BCH came as a solution, offering the 8 MB block size, as of today reaching the size of 32 MB. Concerning the security level of BCH, it utilizes the SHA-256 algorithm, as BTC does, which has proven to be reliable.

Bitcoin Cash’s features

In the list below are some of the main features of Bitcoin Cash:

• Bitcoin Cash fees are lower and can assist with any transaction regardless of the location where it is done.
• It is a highly secured network that uses the Proof of Work protocol, which contributes to the network's safety and scalability.
• Bitcoin Cash transactions are immutable, meaning that they are recorded and cannot be altered.
• Despite its anonymous and decentralized nature, Bitcoin Cash is transparent.
• Any transaction that is done on the network is recorded and stored in a public ledger, known as a blockchain.
• BCH’s supply is fixed, offering its holders the opportunity to store value in digital assets for a long time.

Where can I buy Bitcoin Cash?

OWNR wallet is a highly secure multifunctional digital wallet app that is popular for its high-quality services and for its experienced personnel, who are always willing to provide help for any problem. Thus, for those who are interested in buying Bitcoin Cash, OWNR wallet is considered to be an efficient choice that will help you enter the crypto sphere easily and safely. To trade BCH through OWNR wallet, you simply need to download the app and follow some simple steps to register your account.

What is Litecoin (LTC)?

Litecoin’s purpose is to introduce to the market a different and more accessible version of BTC. While BCH is considered the “Hard Fork” of Bitcoin, LTC is the “lite version” of it. Litecoin is based on the Proof of Work protocol, but it differentiates itself from other coins since it exploits the computing power of the PC’s memory. Conversely, Bitcoin and various altcoins are based on using the computing strength of the CPU or GPU. Moreover, LTC amplifies its hashing function and its security by implementing a scrypt hashing algorithm, demanding higher memory specifications to operate, since this algorithm is faster and more reliable.

Litecoin’s features

Litecoin embodies the primary functions of Bitcoin, but still includes its own features, which are described in the list below.

• All cryptos are highly volatile. However, LTC is considered to have a higher reward-to-risk ratio.
• It has a specific limit of circulating coins. This is beneficial since its value rises.
• Litecoin’s blockchain is constantly being upgraded charging even lower fees and offering higher security.
• The key metric of Litecoin is the high speed of fulfilling transactions since it is based on the computing power of the computer’s memory.

Where can I buy Litecoin?

If you are interested in investing in Litecoin, OWNR wallet app is one the most efficient solutions. You can download the app and register for a new account easily just by following a few steps. OWNR wallet app is a reliable tool that operates in a highly secure environment, where you can store, manage, exchange, and receive your crypto tokens. OWNR wallet’s benefits are available for all its users. Go to our website now and get started on investing in crypto simply by downloading our mobile or desktop app.

How do Litecoin and Bitcoin Cash differ?

When comparing Bitcoin Cash vs. Litecoin, you can see various differences, which are described below:

• Creation Litecoin (LTC) is one of the oldest altcoins: it was launched in 2011 by Google engineer Charlie Lee. Bitcoin Cash (BCH) is an altcoin that was developed in 2017 as the “Hard Fork” of BTC. In their core operations, they both embody some primary functions of BTC, but each of them has its own characteristics that differentiate one from the other.

• Consensus Bitcoin Cash utilizes a Proof of Work consensus mechanism in order to mine its blocks. The BCH validation process is based on the computing power of the GPU and a part of the computer’s CPU in order to process and verify transactions in its blockchain. LTC also uses a Proof of Work mining consensus mechanism with a slight difference from BCH. Litecoin verifies its transactions by using the computing power of a big percentage of the PC’s memory and not by utilizing GPU or CPU.

• Value The value of BCH and LTC is not fixed. As with all cryptocurrencies, they are highly volatile, making it difficult to specify their market capitalization in the long term. However, as of November 24, the current BCH market cap accounts for $2,219,189,210 USD, and its price is $115.36. As of now, its current circulating supply is 19,237,675 BCH. LTC, on the other hand, as of November 2022, has a market cap of $5,533,786,554 USD, and its price is at $77.20 USD, with a total maximum supply of 84 million coins.

• Growth Both Litecoin and Bitcoin Cash are volatile and their growth depends on various factors, such as popularity, supply and demand, production costs, etc. Litecoin had a significant price growth at the beginning of 2022, reaching $217.13. However, as of November 2022, its value has fallen to $79.22, experiencing a tremendous drop of nearly 60% of its initial price. Bitcoin Cash at the start of 2022 had a price growth that reached $574.11. However, its impressive growth was followed by a fall of 80.05%, reaching a value of $114.52 in November 2022.

• How it works The Bitcoin Cash and Litecoin networks are based on decentralized blockchain technologies that provide anonymous and secure transactions through an open-source cryptographic protocol. They both use the computing power of different devices, such as the CPU, GPU, or a big part of the computer’s memory. In order to get rewards, Litecoin miners try to solve complex mathematical equations called hashes as fast as they can to gain the right to verify new transactions in the network. Miners of Bitcoin Cash can also verify and include new transactions in its native network by solving complex mathematical problems using cryptography.

• Purpose Bitcoin Cash was created from a hard fork of the original Bitcoin blockchain, offering faster transactions and lower fees than its predecessor. Meanwhile, Litecoin is considered more scalable, lowering transaction time, and is more suitable for people who need to send money fast between different countries or currencies. Thus, depending on your trading strategy and your needs, it is important to research both options carefully before making any decisions.

• Blockchain validation processes When mining Bitcoin Cash, a Proof of Work validation process is used in order to confirm and add new blocks in the network. The BCH blockchain is encrypted by using the SHA-256 cryptographic hash function. Litecoin also uses a Proof of Work mechanism where the transactions are processed by the participating nodes.

• Mining Bitcoin Cash and Litecoin use the Proof of Work consensus mechanism but with different algorithms and computing power sources. BCH mining uses the computing power of the CPU or GPU chip. Conversely, Litecoin’s mining power comes from exploiting a big part of the computer’s memory. BCH operates with the SHA-256 algorithm, while LTC utilizes a scrypt hashing algorithm offering more centralized and higher transaction speeds. For higher and faster mining rewards, individual miners are advised to join mining pools.

• Transaction speed In cryptocurrencies, transaction speeds are directly connected with how fast a block of transactions can be generated. The average time for each LTC block is 250 seconds, while for BCH it is 600 seconds. Thus, we can conclude that Litecoin is faster. However, you should always keep in mind that these cryptos don’t have the same block size, since Bitcoin Cash has a 32 MB block size, and Litecoin has a 1 to 4 MB size.

• Transaction fees Both LTC and BCH include a transaction fee when they are used as payment methods. Currently, BCH charges $0.20 to $0.25 per transaction or 0.000014 BCH on its native network. LTC, on the other hand, is a more cost-efficient solution, since it usually charges $0.05 per transaction or 0.00019 LTC.

• Block time Litecoin's block time and confirmation speed are typically faster than those of Bitcoin Cash, so transfers with this cryptocurrency are usually quicker as well. Ultimately, faster block times and confirmation speeds coupled with lower transfer fees make Litecoin an attractive choice for many investors who are seeking a more affordable cryptocurrency option.

• Supply Litecoin’s current supply as of 24 November 2022 is 70,501,469 LTC, covering nearly 84% of its maximum total amount of 84,000,000 LTC. On the other hand, Bitcoin Cash can accommodate a smaller amount that can never exceed 21 million BCH. Today, there are 19,111,462 BCH in circulation.

Litecoin vs. Bitcoin Cash: Let’s Look at the Table

Difference	Bitcoin Cash	Litecoin
Block Sizes	32 MB	1 MB
Transaction Speed	Over 100 transactions per second	54 per second
Computing Power	Around 30 min	Around 30 min
Total Supply	21 million	84 million
Transaction Fees	$0.20 up to $0.25 per transaction	$0.05 per transaction
Mining Algorithm	SHA-256	Scrypt Hashing Algorithm
Zero-Confirmation Transactions	Implemented (In a testing period)	Doesn’t support the function

Use Cases

Bitcoin Cash

Bitcoin Cash (BCH) is a decentralized electronic cash system that aims to provide users with a fast, cheap, and reliable way to send and receive money. Bitcoin Cash has become popular among those who want to use cryptocurrency for day-to-day transactions, such as buying coffee or groceries. It is considered rather efficient to store Bitcoin Cash, since it is likely to continue to grow in popularity as an electronic cash system that is both fast and affordable.

Litecoin

Litecoin has a faster processing speed and requires fewer miners to confirm transactions. LTC is often seen as a more efficient and practical alternative. Its networks tend to be more profitable for miners over the long term, making LTC an attractive option for those looking to invest in the cryptocurrency space.

Bitcoin Cash (BCH): Pros and Cons

Advantages of Bitcoin Cash

Bitcoin Cash is a digital asset and a payment system. It was made in order to allow more transactions to be processed on the BCH network by increasing the block size limit to 8 MB. The advantages that BCH has to offer are the following:

• The average transaction fee is generally lower than Bitcoin’s.
• Bitcoin Cash is often seen as a more practical currency for everyday use.

Disadvantages of Bitcoin Cash

There are also some disadvantages to using Bitcoin Cash:

• Its hashing algorithm is not as secure as that of Bitcoin, making it more susceptible to attacks by malicious miners.
• As a fork of the Bitcoin blockchain, it is not compatible with all software and hardware that supports Bitcoin.
• BCH’s market capitalization is still only a fraction of that of Bitcoin.

Litecoin (LTC): Pros and Cons

Advantages of Litecoin

Below are the major advantages of choosing Litecoin:

• Litecoin networks can process a block every 2.5 minutes.
• Its processing speed also reduces the risk of double spending.
• There are fewer Litecoin miners, which gives individuals a greater chance of successfully mining a block and being rewarded.
• Litecoin is less likely to experience a sudden drop in hash power.

Disadvantages of Litecoin

As with all investments, there are also some drawbacks that should be taken into consideration:

• The Litecoin blockchain is still facing some unresolved issues such as a lack of replay protection.
• Litecoin is an experimental currency that has a greater risk of its value crashing if unforeseen problems arise.
• Litecoin is more volatile. Its prices can fluctuate more dramatically, which can be either good or bad depending on the market conditions.

Are Litecoin and Bitcoin Cash similar in any way?

While cryptocurrencies such as Bitcoin Cash (BCH) and Litecoin (LTC) have many major differences, there are also several points of similarity between the two.

• Both BCH and LTC are based on the same underlying technology.
• Transactions must be verified by a network of computers.
• Both cryptos can be used for various reasons, from trading goods online to paying for everyday bills and services.
• These currencies have relatively high liquidity levels due to their widespread acceptance across multiple exchanges.

Comparing Litecoin vs. Bitcoin Cash reveals that, while they are certainly not identical to each other, they do share some essential characteristics related to their technology and application.

Is Litecoin better than Bitcoin Cash?

One of the primary considerations is choosing wisely between various crypto assets to invest in. The answer is complicated and depends largely on your level of risk tolerance and investment goals. While Litecoin and Bitcoin Cash are both cryptocurrency options, there are a few key benefits of Litecoin that make it the better choice. For one, Litecoin networks process blocks quicker than Bitcoin Cash, meaning transactions are confirmed faster. Secondly, Litecoin requires fewer miners to process blocks, making it more energy-efficient.

Which is better to buy? Litecoin vs. Bitcoin Cash

Both Litecoin and Bitcoin Cash offer unique advantages depending on what an investor is looking for. Litecoin is an open-source peer-to-peer digital currency that is sometimes referred to as "the silver to Bitcoin's gold." It has faster processing transaction times, lower transaction fees, and better scalability compared to its predecessors.

Bitcoin Cash allows more transactions per second than other cryptocurrencies and provides broader access for those living in developing nations who lack traditional banking facilities. Ultimately, there is no one-size-fits-all answer regarding which cryptocurrency is the best purchase: it depends largely on an individual's objectives, budget constraints, and risk appetite.

However, both Litecoin and Bitcoin Cash are often considered safer investments than some other altcoins due to their wide acceptance within the crypto industry. After researching each option carefully, investors should make a decision on which they feel would be more beneficial in reaching their financial goals.

FAQ

Is Litecoin cheaper than Bitcoin Cash?

Between Litecoin and Bitcoin Cash, some investors may wonder which is cheaper. While there is no definitive answer that applies to all situations, Litecoin generally tends to be more economical than Bitcoin Cash for small purchases.

Is Bitcoin Cash a good investment?

BCH has various benefits such as a low average transaction fee, a high level of safety, instant money transfers, etc. However, there are various risks associated with cryptocurrency investments including security risks, threats, scams, and so on.

Should I exchange Litecoin for Bitcoin Cash?

Deciding whether or not to exchange Litecoin for Bitcoin Cash is a personal decision based on your individual goals and financial resources. Which crypto is best for you depends on your usage patterns and risk tolerance: if you're a conservative investor looking for secure long-term gains, Bitcoin Cash may be preferable due to its established track record.

DISCLAIMER: None of the authors, contributors, administrators, or editors connected to OWNR Wallet encourage readers to invest in Bitcoin Cash or Litecoin without proper research. This article is purely for educational purposes only.