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What is Litecoin (LTC) and How does it work?

Litecoin (LTC) is a decentralized peer-to-peer cryptocurrency. It allows funds to be transferred between individuals or businesses without an intermediary like a bank.


itecoin is one of the world's biggest cryptocurrencies and it's ranked in the top 10 by market cap. Created in 2011, it was already worth $1 billion by the end of 2013.

What is Litecoin?

Just like Bitcoin, Litecoin (LTC) is a decentralized peer-to-peer cryptocurrency. In Layman's terms, it is a money payment system. It allows funds to be transferred between individuals or businesses without an intermediary like a bank.

It was created in October 2011 by Charlie Lee, a former Google employee of 10 years and Massachusetts Institute of Technology (MIT) graduate. Litecoin was designed to process transactions faster than Bitcoin therefore getting the name "lite."

Litecoin uses a different consensus algorithm which allows more people to become miners resulting in faster transaction time. It takes Bitcoin an average time of 10 min to create a block in the blockchain, while Litecoin only needs around 2.5 min.

Litecoin is ideal for everyday small transactions like buying coffee thanks to its processing speed.

Litecoin vs Bitcoin

Litecoin is often coined the "little brother" of Bitcoin. They have many similarities, in fact, technically, they are almost identical. Litecoin's developers even stated they wanted to create the “silver” to Bitcoin’s “gold.”

Like Bitcoin, it is completely decentralized, meaning no individual or group like governments, authorities, or central banks can own and control it. Litecoin's blockchain can never be changed or manipulated unlike all of today's centralized financial system.

Litecoin is peer-to-peer and borderless to omit third-party intermediaries and currency exchanges.

Bitcoin (BTC) vs Litecoin (LTC) - infographic

Bitcoin has a max supply of 21 million BTC while Litecoin has a max supply of 84 million. Litecoin is 4 times faster than Bitcoin in terms of transaction confirmations, as mentioned earlier, Bitcoin takes 10 min to create a block and Litecoin only needs 2.5 min.

Bitcoin uses the SHA-256 algorithm for mining compared to Litecoin's Scrypt algorithm. The scrypt algorithm allows Litecoin to be mined on a less powerful computer.

How to mine Litecoin

Litecoin is mined the same way as Bitcoin, using a distributed ledger known as a blockchain. But Litecoin uses a newer algorithm known as Scrypt.

Thousands of miners use computers to solve complex mathematical equations to verify transactions and create blocks on the Litecoin blockchain. After verifying transactions, they receive LTC as payment in return.

Miners are currently awarded 12.5 Litecoins per block created. Litecoin mining halving happens roughly every 4 years, and the last Litecoin halving happened on August 5, 2019. The total supply of Litecoin is 84 million.

Solo mining can be done on a personal computer with a hefty investment by purchasing ASIC (application-specific integrated circuit), a hardware designed to mine  Scrypt-based cryptocurrencies.

A mining pool works faster than mining individually, the larger the pool, the greater the chance of earning LTC. hWhen joining a mining pool, be sure to check their credibility and history. They will also charge a fee for being part of the pool. Each mining pool varies, do your own research.

Using a cloud mining service is the easiest hassle-free way to mine Litecoin. Cloud mining companies provide all the equipment and take care of the maintenance of the hardware and electricity for a fee.

Do thorough research before signing up for a cloud mining service as there are many scams out there.

How to buy Litecoin?

Buying Litecoin is the same as buying any other cryptocurrency. First, you will need to find a cryptocurrency exchange. Since Litecoin is one of the most popular cryptocurrencies, many exchanges offer it.

Based on your geographic location, find an exchange that services in your area. You can choose to buy Litecoin instantly with credit cards, wire transfers, or other cryptocurrencies and more.
You can find the right exchange for you in our application.

Litecoin wallet

It is always safer to store cryptocurrencies in a hardware wallet instead of on an online exchange. Cybercriminals are getting more and more sophisticated, and they often target exchanges as they hold the most funds.

Hardware wallets are best in security as they are kept offline. Software Litecoin wallets are also a good option as they are easier to use and cheaper than hardware wallets in terms of cost.

It is your choice to store your funds where you want, here is a list of wallets that support Litecoin.

Litecoin's future

Litecoin is constantly developing and adding new features. LitePay by Litecoin is a great app that allows merchants to accept payments from a customer's phone.

The Litecoin Foundation is a non-profit organization that aims to help society by developing and promoting state-of-the-art blockchain technologies.

No one can be certain about Litecoin price predictions or what the future holds for Litecoin, but Litecoin is working hard on being the main cryptocurrency for everyday use.

Marina L

Dog mom of two and nugget enthusiast. Reddit and video game addict. Co - founder of Vyntex Developments.

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