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Author: Admin | 2025-04-28
Any financial instrument, the number one priority is ensuring that your account and holdings are secure. If you are interested in buying Litecoin, remember that cryptocurrencies are more volatile than most other assets and will require additional risk management.Learn more about cryptoassets such as Litecoin on the eToro Academy.FAQIs Litecoin better than Bitcoin?Litecoin is capable of handling a higher number of transactions than Bitcoin because blocks are generated more often. Litecoin also has additional functionality compared to Bitcoin. For example, the Scrypt algorithm increases decentralisation, and the MimbleWimble protocol enhances performance and allows investors to make confidential transactions.However, Bitcoin is the world’s most popular cryptocurrency, and so, will likely always beat Litecoin in terms of wider adoption.What is Proof of Work?Litecoin operates using a Proof of Work (PoW) consensus mechanism. Proof of Work is a technique used by blockchains to validate new transactions and ensure the distributed ledger is accurate and up to date. The time taken to complete the process varies from blockchain to blockchain and determines the speed at which transactions can be processed.Do I own Litecoin on eToro?This will be determined by your location and which eToro entity you open an account with. In line with conditions set out by global financial regulators, some accounts will hold cryptoassets as a Contract for Difference (CFD), meaning you don’t own the underlying instrument. On the other hand, in some regions, your Litecoin (LTC) will be held in your name in an eToro-managed nominee account, and you will own the underlying cryptocurrency. This information is for educational purposes only and should not be taken as investment advice, personal recommendation, or an offer of, or solicitation to, buy or sell any financial instruments.This material has been prepared without regard to any particular investment objectives or financial situation and has not been prepared in accordance with the legal and regulatory requirements to promote independent research. Not all of the financial instruments and services referred to are offered by eToro and any references to past performance of a financial instrument, index, or a packaged investment product are not, and should not be taken as, a reliable indicator of future results.eToro makes no representation and assumes no liability as to the accuracy or completeness of the content of this guide. Make sure you understand the risks involved in trading before committing any capital. Never risk more than you are prepared to lose.
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