LitePay is a new service that is trying to give more utility to Litecoin by making it easier to adopt and utilize in the real world. Despite being one of the oldest cryptocurrencies, as well as the first to utilize the Scrypt algorithm for mining, Litecoin has never really been in the forefront of people’s minds. LitePay may be the disruptor that changes this.
LitePay: The BitPay/Coinbase for Litecoin
If a business wants to allow customers to pay using cryptocurrency but they don’t want to take on the risk of market fluctuations, they have to use a third party. The two most popular for Bitcoin are Coinbase and BitPay, both of which allow businesses to accept Bitcoin and have it instantly converted into USD or other currencies. This gives customers the flexibility of choosing what to pay with, while not subjecting the receiver to the cryptocurrencies at all.
LitePay is set to do the same thing for Litecoin. With lower fees and a completely different team behind Litecoin, many people hold it in their wallets as well. And with this new service, businesses that already accept Bitcoin can add Litecoin to their list as well, giving the same flexibility of a broader audience without any of the risk.
Understanding Conversion Rates
For those that wish to use Litecoin for payments, it’s important to understand how conversion rates are calculated. Being that LitePay will be a middleman between users and exchanges, they will be taking exchange rates to find an average or the best rate they can for the conversion. They also take into account slippage, which is where a large order can sway the market slightly by clearing out buy/sell orders, so larger purchases will see this much more often than smaller ones. But the rate they give is what you will receive. It can be argued that you can get better rates doing everything manually, but this is a fast and easy way to make a purchase without having to go through all the other steps and possible delays (using exchanges, withdrawing funds, waiting for them to arrive, etc.).
Bringing Another Crypto Exit Point
Bitcoin has remained the main dominator of cryptocurrency partially because it is the only way in and out of most cryptocurrencies. While Litecoin is not going to disrupt Bitcoin itself, it is definitely a game-changer in its own right. Instead of going from LTC->BTC to make a purchase online or convert back to fiat, this gives a way to go straight from LTC to the things you want to buy. With faster blocks and cheaper fees, Litecoin has been growing in popularity a bit lately, and this is more than likely going to help propel its adoption. That said, it still has a way to go, and adoption takes time, so the full effects of LitePay may not be seen for many months (or even a year or longer). However, for those interested in learning more about how to set it up and exactly how it works, you can do so right here. We’ll also continue coverage of it as news comes about, but for Litecoin, this is a huge step forward.
Disclaimer: Do not make any investments without doing full due diligence beforehand. While this gives the currency a lot more utility, that is no guarantee that the coins will go up in value and not down, so never risk more than you can afford to lose.