Litecoin Vs Tether
Litecoin vs Tether, which is the best of the two highly functional and accessible cryptocurrencies. This article provides an overview of both these cryptos, compares the similarities and differences between the two and concludes which of the two may be best suited to you. We have also listed the top brokers for trading and speculating upon these digital currencies below.
Top Litecoin & Tether Trading Brokers
#1 - Deriv.com
Why We Chose Deriv.com
Deriv.com continues to offer a strong selection of 30+ crypto pairs - this is more than double the range offered at our leading competitor, IQ Cent. 1:2 leverage is also available so you can magnify potential returns, and there are no commissions which is ideal for newer day traders.
"Deriv.com will suit day traders looking to make fast-paced trades using CFDs and multipliers with high leverage up to 1:1000. The broker is also the industry leader in synthetic indices, which simulate real market movements and are available around the clock. "
- DayTrading Review Team
- Coins: BTC, LTC, ETH, USDT, USDC
- Crypto Mining: No
- Auto Market Maker: No
- Crypto Spread: From 0.5
- Crypto Lending: No
- Crypto Staking: No
- Platforms: Deriv Trader, MT5
- Minimum Deposit: $5
- Regulator: MFSA, LFSA, VFSC, BFSC
About Deriv.com
Deriv.com is a low cost, multi-asset broker with over 2.5 million global clients. With just a $5 minimum deposit, the firm offers CFDs, multipliers and more recently accumulators, alongside proprietary synthetic products which can't be found elsewhere. Deriv provides both its own in-house charting software and the hugely popular MetaTrader 5.
Pros
- Beginners and experienced day traders can access a good range of 20+ technical indicators in Deriv Trader vs 30+ in MT5
- Deriv continues to offer fast and reliable 24/7 support and the WhatsApp service is particularly convenient
- The free demo account is ideal for practicing short-term trading strategies and no registration is required
Cons
- The range of 100+ assets trails some competitors such as Quotex which offers 400+
- There are limited copy trading tools and analysis features compared to alternatives like IQ Cent
- There's no loyalty program or rebate scheme for high volume traders
#2 - IQCent
Why We Chose IQCent
IQCent offers 17 crypto pairs through its proprietary terminal, including Bitcoin, Ethereum and Litecoin. Leverage on crypto CFDs is capped at 1:10, whilst binary options payouts vary by token but remain competitive. OTC assets, for example, pay out up to 95%.
"IQCent will appeal to day traders looking for a straightforward binary options and CFD trading platform with low fees, a range of accounts, and copy trading. Getting started takes less than 1 minute and a $250 deposit. "
- DayTrading Review Team
- Coins: BTC, ETH, LTC, ETC, DOGE, MATIC, QNT, SOL, XRP, USDT, XMR, BNB
- Crypto Mining: No
- Auto Market Maker: No
- Crypto Spread: Variable
- Crypto Lending: No
- Crypto Staking: No
- Platforms: Online Platform, TradingView
- Minimum Deposit: $250
- Regulator: IFMRRC
About IQCent
IQCent is an offshore binary options and CFD broker based in the Marshall Islands. The brand continues to offer a range of unique account types with bonuses and perks, including payout boosts, TradeBacks and free rollovers. With 100+ assets, around-the-clock trading and 98% payouts, the firm is popular with aspiring short-term traders.
Pros
- There's an accessible $0.01 minimum stake for new day traders with a small budget
- IQCent is one of the few binary options brokers that also offers a copy trading service for hands-off traders
- The proprietary terminal offers TradingView-powered charts which deliver dozens of technical indicators and studies
Cons
- The market analysis is very basic with limited technical summaries and insights from analysts
- The broker is not overseen by a respected regulator, though this is common among binary options firms
- IQCent charges a punitive $10 monthly inactivity fee if you fail to place at least 1 trade per month
#3 - EagleFX
Why We Chose EagleFX
A strong range of cryptocurrencies are available with 35+ tokens including popular assets like Bitcoin and Ethereum. You can also make convenient Bitcoin deposits within minutes, with no transfer fees.
"EagleFX will serve experienced day traders looking for raw ECN spreads, high leverage and fast withdrawals. Beginners can also take advantage of the low $10 minimum deposit and round-the-clock support. However, the lack of regulation is a major drawback."
- DayTrading Review Team
- Coins: BCH, BTC, DASH, EOS, BIT, ETP, LTC, BTC, OMG, ZEC, USDT, BCH, ETP, QTUM, XMR, DOT, ETC, IOS, NEO, SAN, ZRX, EDO, ETH, IOT, NEO, SAN, XRP, BTG, EDO, ETH, OMG, TRX, XRP
- Crypto Mining: No
- Auto Market Maker: No
- Crypto Spread: Floating
- Crypto Lending: No
- Crypto Staking: No
- Platforms: MT4
- Minimum Deposit: $10
About EagleFX
EagleFX is a forex and CFD broker, established in 2019. The broker uses STP execution on the MT4 platform, offering tight spreads and low commissions. With leverage up to 1:500 and no restrictions on hedging or scalping, EagleFX is an attractive option for short-term traders.
Pros
- EagleFX continues to offer 24/7 customer support to clients via live chat, email or telephone
- The $6 round-turn commissions are competitive (other commission structures we review come in at around $7 per round-turn)
- High forex leverage is available for experienced investors, up to 1:500
Cons
- The range of 100+ instruments is very limited compared to the hundreds offered by most other competitors
- The broker is based offshore and is unregulated, meaning traders will receive little to no safeguards
- There are very limited educational resources, market research and popular additional tools like copy trading - common features found at many alternatives
#4 - OKX
Why We Chose OKX
OKX continues to offer a superb selection of 400+ tokens including Bitcoin and Ripple. You can buy and sell tokens or trade cryptos on margin via derivatives, including perpetual swaps, options and futures. OKX stands out for its low fees, extensive range of tokens and speedy crypto transactions.
"OKX is a top pick for crypto traders looking for emerging coins and crypto projects to invest in. Traders can also make use of the broker's copy trading service and automated bots."
- DayTrading Review Team
- Coins: BTC, XCH, ETH, OKB, OKT, LTC, DOT, ADA, DOGE, XRP, USDT, ICP, BCH, LINK, XLM, ETC, MATIC, THETA, UNI, TRX, EOS, FIL, XMR, NEO, USDC, AAVE, SHIB, LUNA, KSM, BSC, ATOM, IOTA, ALGO, XTZ, CRO, MKR, BTT, CEL, LEO, WBTC and many more
- Crypto Mining: Yes
- Auto Market Maker: No
- Crypto Spread: Variable
- Crypto Lending: Yes
- Crypto Staking: No
- Platforms: AlgoTrader
- Minimum Deposit: 10 USDT
- Regulator: VARA
About OKX
OKX is a respected cryptocurrency firm, established in 2017, that offers a large suite of products, from mining pools to NFTs. Traders can access over 400 crypto tokens via OTC trading and derivatives. With an excellent web platform, developer tools and dynamic charts, OKX is a popular choice for technical traders.
Pros
- OKX maintains an excellent reputation with 20 million global clients and a license from the Dubai Virtual Assets Regulatory Authority
- Traders can access historical market data for spot and futures combining OHLC data, aggregate trades and trading history
- Crypto staking and pools are available with competitive mining fees from 2%
Cons
- The firm offers limited regulatory oversight, though this is common among crypto brokers
- The broker's platform and features may be complex for novices
- The quality of customer support was inconsistent based on testing
#5 - CEX.IO
Why We Chose CEX.IO
CEX.IO offers hundreds of popular cryptocurrencies including big names like Bitcoin, Ethereum and Litecoin. The trading platform is well-designed with sophisticated charting and analysis tools, including 50+ in-built indicators. Traders can also reduce their monthly volumes through the tiered pricing structure.
"CEX.IO continues to serve a range of crypto investors looking to buy, sell, trade, hold and earn with low fees. The tiered pricing structure will appeal to active traders while rookie investors will enjoy the straightforward platform interface and excellent education."
- DayTrading Review Team
- Coins: ZRX, 1INCH, AAVE, BTC, BCH, ADA, LINK, COMP, ATOM, DAI, DOGE, ETH, GUSD, ICP, LTC, LRC, MATIC, MKR, DOT, SHIB, SOL, XLM, SUSHI, SNX, USDT, XTZ, USDC, UNI, WBTC, ZIL
- Crypto Mining: Yes
- Auto Market Maker: No
- Crypto Spread: 0.15% maker & 0.25% taker (Standard)
- Crypto Lending: Yes
- Crypto Staking: Yes
- Platforms: TradingView
- Minimum Deposit: $20
- Regulator: GFSC
About CEX.IO
CEX.IO is one-stop-shop for crypto investors where you can buy and sell popular digital tokens, speculate on prices with margin trading and earn rewards through staking. Since it launched in 2013, more than five million traders have deposited over $7.5 billion. CEX.IO is registered with the FinCEN in the US and the GFSC in the EU.
Pros
- The proprietary terminal features an advanced charting package from TradingView, including 50+ technical indicators
- CEX.IO has remained a trusted crypto exchange since its launch, with 5+ million users
- High quality educational materials are available through the University feature
Cons
- The broker has limited regulatory oversight
- The Exchange Plus platform delivers a cluttered interface compared to competitor platforms
- Deposit and withdrawal fees are relatively high, including 0.3% + $25 for SWIFT withdrawals
What is Litecoin?
Litecoin (LTC) is a digital currency that allows for instant, low-cost, worldwide payments. The main difference in Litecoin vs Tether is that the former network doesn’t rely on any central financial authorities, yet is secure and ensures significant storage efficiency and rapid transaction times. Litecoin uses open-source software to generate a peer-to-peer cryptocurrency that functions similarly to bitcoin. LTC can be utilised as a low-cost currency that can be transferred near-instantaneously. The crypto is also de-coupled from central banks and authorities and is frequently referred to as the ‘silver of cryptocurrency’.
Considering the start date of the coins in the Litecoin vs Tether debate, the former was founded by Charlie Lee and released on October 7th, 2011 via an open-source client on GitHub and the network went live on October 13th as a hard fork of the Bitcoin Core client. The network initially offered a significantly lower block generation time, a new hashing algorithm called Scrypt and a relatively high total coin supply. In May 2017, the first-ever Lightning Network transaction took place using Litecoin. 0.00000001 LTC was transferred from Zürich to San Francisco in less than a second.
During the period December 2016 to December 2017, Litecoin rose in value by 8,200% and, in February 2018, Alza accepted Litecoin as a payment method, further strengthening the token’s rise in prominence. In September 2018, Litecoin and Walmart were rumoured to have agreed on a partnership, which resulted in a 30% spike in LTC, though this was revealed as fake news, causing a subsequent drop in the value of LTC.
What is Tether?
Moving onto the latter of the Litecoin vs Tether comparison, USDT uses tokenisation to create government-backed currencies on various blockchains, including Ethereum and Bitcoin. Tether is unique in this way and has burgeoned in popularity since its inception. Tether has rapidly grown in scale and figures show that it has significant market capitalisation and daily transaction volume (among the likes of Ethereum).
Tether is a cryptocurrency that is backed one-for-one by the US dollar (USD). ‘Tether tokens’ are issued by Tether Limited and backed by Tether’s reserves. USDT tokens exist as digital assets built on Bitcoin, Ethereum, Trong, Algorand, EOS, OMG and SLP blockchains, which allow for the issuance and redemption of cryptocurrency tokens.
A major difference between Litecoin vs Tether is that USDT is a blockchain-enabled platform that was created to allow the digital use of fiat currencies with the objective to aid transactions between cryptocurrency exchanges. By coupling the value of USDT to the US dollar, traders benefit from the speed and flexibility of cryptocurrencies in tandem with the stability of the US dollar. Despite being pegged against USD there is no guarantee provided by Tether Ltd. for any right to exchange USDT for the fiat counterpart.
Tether Ltd. was formed in November 2015 and first went by the name Realcoin. In the last few years, Tether has developed close ties with Bitfinex, one of the largest exchanges in the world. Both companies share the same management team, notably, Jan Ludovicus van der Velde is the CEO of both Tether and Bitfinex. In 2019, Tether had the highest daily and monthly trading volume of any cryptocurrency in the world, even surpassing Bitcoin. As of Q3 2021, there were approximately 63.2 billion USDT tokens in circulation.
Litecoin Vs Tether Similarities
Swaps
Litecoin enables ‘atomic swaps’, whereby different coins can be exchanged across the blockchain without using a third party, avoiding transaction fees in the process.
You can use Tether to purchase other cryptocurrencies, including Litecoin and Ethereum. USDT can be also exchanged for fiat currencies on many exchanges.
Speed
Litecoin vs Tether are both relatively fast cryptocurrencies. Litecoin uses advanced open-source technology to power the Litecoin Network, which processes a block every 2.5 minutes, four times faster than Bitcoin’s 10 minutes. Litecoin takes 30 mins on average to complete a transaction and makes 56 transactions per second.
Tether uses many different blockchains, varying in speed depending on the network being linked to. On the Ethereum blockchain, for example, it usually takes 10-50 seconds, whereas, on the Tron blockchain, the transaction time is nearly instant. Tether also allows you to settle fiat balances much faster than standard exchanges.
Regulation
Litecoin vs Tether are both decentralised, free from regulation and censorship and open to all. Despite being coupled to the US dollar, Tether isn’t held to the same regulatory standards and remains decentralised.
Supply
Litecoin vs Tether have circulated supplies of approximately 66.8 million LTC and 68 million USDT respectively, and total supplies of 84 million LTC and 71 million USDT respectively.
Security
Litecoin vs Tether are both relatively stable cryptocurrencies. The Litecoin blockchain is the largest Scrypt-based network, transacting and securing billions of dollars since 2011, as well as operating with 100% uptime.
Every USDT token is supposedly 100% backed by fund reserves, providing an extra level of safety. However, if the cash reserve fails to correspond to the amount of USDT in circulation, it will no longer remain 1:1 to the U.S. dollar peg. Tether Ltd. promised external audits in 2018 to prove they had the appropriate reserves but split away from its auditor later that year. Furthermore, in November 2017, $31 million USDT was stolen in a hack and trading was suspended for a month. Whilst this remains a concern, Tether Ltd. has taken appropriate steps to remedy the problem and ensure that the chances of it occurring in the future are greatly diminished.
Liquidity
Litecoin vs Tether are both relatively liquid. The significant market capitalisation of Litecoin ensures liquidity and opportunity for investors. Most people trading on the major exchanges hold Tether, as companies such as Bittrex hold a client’s balance in USDT rather than USD.
Differences
Storage/Distribution
Litecoin can be purchased on a variety of different exchanges, including Coinbase, Kraken, BTC-e and Cryptsy, as well as over-the-counter (OTC) and P2P. USDT can be purchased using the Tether wallet or on crypto exchanges such as Huobi, OKEx and Binance.
Litecoin vs Tether can both be stored using hardware, desktop, mobile, lightning and paper wallets. Litecoin uses a Scrpyt Hash Algorithm whereas Tether does not have a hash algorithm at all.
Market Cap
Tether’s market capitalisation (~70 million) is around 6 times larger than Litecoin’s (~10 million). More accurate values can be found online on websites like CoinGecko and CoinMarketCap.
Price
Token value and transaction cost is a major difference for Litecoin vs Tether. LTC tokens are worth significantly more than USDT tokens, sitting at more than USD 150 (USDT is always very close to USD 1, by definition).
Litecoin has a processing fee of LTC 0.0001 ($0.015), regardless of transaction size. Processing fees for Tether tokens vary (depending on the chosen blockchain network).
Mining
A major difference for Litecoin vs Tether is the method for creating new tokens. New Tether tokens are not mined but minted by Tether Ltd, following a different validation mechanism. New coins are created when a user deposits money into their account.
The Litecoin blockchain follows a proof of work (PoW) system that requires mining to validate any transactions and generate more tokens. This is done using the Scrypt algorithm, so ASIC and FPGA devices may find it more difficult and expensive to mine LTC. In addition to regular mining, Litecoin can be generated and earned via cloud mining, Litecoin faucets and special online games.
Pros Of Litecoin For Traders
- Speed – A major advantage of Litecoin vs Tether is that it is very fast when compared to its competitors. For instance, it generates blocks four times faster than Bitcoin and confirms transaction legitimacy much faster than popular alternatives.
- Supply – The max supply of Litecoin is 84 million tokens, meaning there is plenty of supply and it is relatively stable.
- Accessibility – Traders can buy and store Litecoin from across the world and use many investment vehicles, including futures and ETFs. It is most suitable for inexpensive transactions. LTC commands low fees and all transactions are fully anonymous. Many currency exchanges offer to trade LTC.
- Market Capitalisation – Litecoin has a market cap of over USD 10 million, which will most likely ensure future liquidity and profit potential for both traders and investors.
- Swaps – LTC can be exchanged across blockchains without using a third party, avoiding external transaction fees.
Pros Of Tether For Traders
- Scale – Tether plays a significant role on many exchanges and is one of the most traded digital currencies. Tether is the most widely integrated digital-fiat currency. The token has a very high market cap of over USD 60 million, meaning Tether could garner high profits for investors in the future. It is possible to trade Tether Tokens on a wide range of popular exchanges, including Shapeshift, Bitfinex and GoCoin. Tether Ltd. is also working with Poloniew and Space Shift.
- Stability – A key difference in Litecoin vs Tether is that USDT has been widely adopted as the uncertainty typically surrounding crypto is negligible with Tether. The stablecoin offers a more stable alternative to traditional cryptoassets as it is coupled to the dollar, though users still benefit from the security granted by blockchain technology
- Transparency – Tether Ltd. Publishes daily holdings, in addition to regular audits.
- Performance – In addition to USDT tokens, Tether Ltd. has released a wallet for storing them, providing support for APIs. Tether Ltd. also has very good customer support service; responses to user requests are given promptly and are effective
Litecoin Noteworthy Points
Considering Litecoin vs Tether, payments through LTC are non-refundable, meaning that money from erroneous transactions cannot be claimed back. Furthermore, if funds in a Litecoin wallet have been stolen, there is no way of claiming any of it back.
Compared to other similar cryptocurrencies, Litecoin doesn’t tend to fare so well when caught up in negative press and seems to recover more slowly than its competitors.
Tether Noteworthy Points
There have been several scandals surrounding Tether, with the company alleged to have manipulated its prices, shown through discrepancies between the size of the actual vs reported reserve fund. Tether Ltd. was also on the receiving end of a hack that stole $31 million, on top of being accused of stealing more than $30 million from investors.
Tether has been part of allegations against Bitfinex, who have the same management team. Both companies have received subpoenas from the US Commodity Futures Trading Commission (CFTC), disturbing positive market sentiment towards Tether. Claims have been made that Bitfinex used Tether’s funds to cover up to $850 million since mid-2018. The OAG uncovered that iFinex, the operator of Tether and Bitfinex, had made false statements about USDT and the movement of hundreds of millions of dollars between the two companies to conceal Bitfinex’s losses.
Litecoin vs Tether also vary in that people in the US, Cuba, North Korea, Iran, Pakistan, Singapore, Syria and Venezuela are restricted from using the Tether platform.
Final Word On Litecoin Vs Tether
Litecoin Vs Tether is no easy comparison, they are both popular, effective and reliable for crypto investors, users and traders. Litecoin generally appeals due to its speed and accessibility. Despite its recent controversies, Tether remains a relatively stable and reliable cryptocurrency as it is coupled to the value of the US dollar.
FAQs
Litecoin Vs Tether – Which Cryptocurrency Is Better?
Both Litecoin and Tether are reliable and efficient cryptocurrencies. Litecoin is notable for providing fast and seamless transactions, whereas Tether is very stable and popular.
Litecoin Vs Tether – Which Cryptocurrency Is Safer?
Every Tether token is purportedly 100% backed by fund reserves, providing an extra level of security. However, if the cash reserve fails to correspond to the amount of USDT in circulation, it will no longer remain 1:1 to the US dollar peg. The Litecoin blockchain is the largest Scrypt-based network, transacting and securing billions of dollars and operating with 100% uptime since 2011.
Litecoin Vs Tether - Which One Is More Volatile?
Tether is tethered to the US dollar and pegged to its value. Fiat currencies are generally much more stable than cryptos and USD is one of the most stable fiats. This results in USDT being much more stable than Litecoin, though the lack of volatility makes it less useful for investment and trading purposes.
Litecoin Vs Tether - Which One Has A Bigger Market Cap?
Tether has the larger market cap, generally sitting at six times greater than Litecoin’s.
Litecoin Vs Tether - Which One Is Better For Short-Term Trading?
It is more likely that you would be able to generate higher yields with Litecoin as its value fluctuates more frequently and to a greater degree than Tether’s.
Litecoin Vs Tether - Which One Has Higher Gas/Mining Fees?
Tether is not a proof of work blockchain so mining is not the process used to verify transactions and mint new coins. However, Litecoin does follow this approach and charges an LTC 0.0001 gas fee.