How to buy Litecoin Cash (LCC)
Learn about the new cryptocurrency Litecoin Cash (LCC), and how you can buy LCC in Australia.
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Litecoin Cash (LCC) is a hard fork of Litecoin (LTC), the world’s fifth largest cryptocurrency in terms of market capitalisation according to CoinMarketCap.
Launched on 18 February 2018, this proof-of-work cryptocurrency uses the SHA-256 algorithm and aims to offer improved transaction processing and to allow for older mining hardware to be put to use.
However, the Litecoin Cash hard fork has not been without controversy and has attracted its fair share of criticism. Let’s take a closer look at how the new currency works, its pros and cons, and how to buy LCC in Australia.
How to buy LCC: Your step-by-step guide
If you want to buy LCC, here’s an example of how you can do it on YoBit:
Step 1. Create an account with a cryptocurrency exchange that allows you to trade LCC.
As Litecoin Cash isn’t listed on every crypto exchange, you’ll first need to search for an exchange that lists this coin in one or more currency pairings. Once you’ve found a suitable exchange, you can sign up for an account by providing your email address and setting up a password.
To satisfy Know Your Customer (KYC) laws, some exchanges will also request your full name, contact details and proof of ID before allowing you to start trading. Don’t forget to also enable two-factor authentication to provide an extra layer of security for your holdings.
Step 2. Deposit funds into your account
At the time of writing (February 2018), it’s not possible to exchange Australian dollars (AUD) for LCC in one transaction. Instead, you’ll first need to use your AUD to acquire a crypto that’s available in a pairing with LCC, for example bitcoin (BTC), and then exchange that cryptocurrency for LCC.
If you are using BTC to pair with LCC and buying through YoBit, you would need to deposit BTC into your YoBit account. Log into YoBit and click the "Wallets" link on the top menu bar. In the list of supported currencies, find BTC and select the deposit option. This will prompt a pop-up with a generated deposit address. Using this address, you can then transfer funds from the wallet where you store your BTC into your YoBit wallet.
Step 3. Buy LCC
To get started on the final step, search for the currency pair you want to trade, such as LCC/BTC. Click on “Buy LCC” and check out the current market price.
You can then choose a limit or market order and specify the amount of coins you want to buy. Make sure you carefully review the full details of your transaction before confirming the purchase.
How to sell LCC
If you decide to sell your Litecoin Cash holdings, you’ll need to look for the “Sell LCC” link and then follow a similar process to that outlined in step 3. However, remember that your desired currency pairing may not be available, so you may first need to exchange LCC for a major cryptocurrency before you can then get the coin or token you want.
Which wallets can I use to hold Litecoin Cash?
At the time of writing (February 2018), Litecoin Cash developers had not yet released the coin’s official wallet. However, a bootstrap file was available for download to Windows, Mac and Linux operating systems.
How Litecoin Cash works
Litecoin Cash was founded in December 2017 by a team with no ties to the original Litecoin project. It was first announced on 3 February 2017 in the bitcointalk forum, with the developers announcing that Litecoin Cash would hard-fork away from the Litecoin blockchain at block 1,371,111.
LCC uses bitcoin’s SHA-256 algorithm for mining purposes to create new tokens, allowing crypto miners with old technology to put their hardware to good use again. Mining difficulty is also recalculated every block, using Evan Duffield's DarkGravity V3 algorithm from Dash.
But what’s the purpose of this new cryptocurrency? For the answer, let’s look at a quote taken from the FAQ on the official Litecoin Cash website:
"There is no fast, cheap SHA256 coin with good difficulty adjustment. SHA256 miners have little practical choice of hashpower destination, and if they do mine blocks they're being paid in a currency with 10 minute block times.
We believe we can offer an excellent SHA256 coin for general usage. We love Litecoin, and wanted to give something to the brave hodler community. With everyone else too busy forking Bitcoin, we decided that the Litecoin blockchain was a perfect means of initial [sic] distribution for our coin."
The team behind Litecoin Cash also claims that it will offer 90% cheaper transactions than Litecoin, and that the target block time of 2.5 minutes provides four times the transaction bandwidth of bitcoin.
Litecoin vs Litecoin Cash
What are the key differences between Litecoin and Litecoin Cash? Check out the table below for a quick guide.
|Litecoin (LTC)||Litecoin Cash (LCC)|
|Maximum supply||84 million||840 million|
|Block time||2.5 mins||2.5 mins|
|Difficulty adjustment||3.5 days||Every block (DarkGravity)|
Source: Litecoin Cash
What to consider before buying LCC
Buying or holding any kind of cryptocurrency is speculative as coins and tokens are not only complicated but also highly volatile. With this in mind, you’ll need to carefully research all the risks and rewards of any crypto before making a purchase.
If you’re thinking of buying LCC, consider the following factors first:
- Max supply. The maximum supply of Litecoin Cash is 840 million LCC. It’s worth monitoring the circulating supply of LCC on sites such as CoinMarketCap as well as checking for the coin to be listed on new exchanges to get a clearer picture of the supply vs demand equation.
- Distributed to LTC holders. The Litecoin Cash fork rewarded all Litecoin holders with LCC at a disbursement rate of 10 LCC for every 1 LTC held.
- Small premine. Litecoin Cash’s developers also announced that an amount equivalent to less than 1% of the circulating supply of LCC (less than 0.65% of the total money supply) at fork time would be paid into a development fund.
- Slow start to mining. With an aim to remove any unfair advantages for early miners, block rewards were designed to start at 1.25 LCC and grow to 250 LCC over the first 400 blocks after the fork. The first 24 blocks after the fork will be mined at minimum difficulty before the DarkGravity algorithm will adjust the difficulty based on observed block generation time.
- Criticism. The launch of Litecoin Cash has been met with scepticism by many within the crypto community, but the most notable criticism came from Litecoin founder Charlie Lee. On 5 February 2018, he posted the following on Twitter: “PSA: The Litecoin team and I are not forking Litecoin. Any forks that you hear about is [sic] a scam trying to confuse you to think it's related to Litecoin. Don't fall for it and definitely don't enter your private keys or seed into their website or client. Be careful out there!”
- More from Charlie Lee. In an interview with CoinDesk, Lee also said, “It confuses people into thinking Litecoin is splitting. The Litecoin community has no interest in splitting. It's just some people trying to make a quick buck. And calling it Litecoin gives them some legitimacy.”
- No white paper. Another criticism levelled at Litecoin Cash is that it doesn’t have a white paper outlining the reasons behind its development and the uses for the cryptocurrency.
- Real-life use cases. The main purpose quoted on the official Litecoin Cash website for the coin’s creation is to benefit miners with SHA-256 mining equipment. This has prompted some commentators to question whether Litecoin Cash offers any serious use cases or advantages over Litecoin. While Bitcoin Cash developed as a fork of bitcoin in response to debate and disagreement in the bitcoin community, no such situation existed before the creation of Litecoin Cash.
- Anonymous development team. Of the four team members mentioned on the coin’s official website, three only list their first names. The fourth member is Michael "Scarlet" Wyszynski, Litecoin Cash Design Lead and Liaison Lead.
Consider the issues listed above and any other pertinent factors to decide whether you should buy any LCC.
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