what are litecoin

What is a Litecoin?Everything you need to know to get started

What is a Litecoin ?

A Litecoin is a digital coin or cryptocurrency similar to Bitcoin except transfers are faster. It is referred to as the ‘Digital Silver’ and Bitcoin ‘Digital Gold’.

Charlie Lee , the Litecoin Founder, wanted to create a solution to complement Bitcoin just like Silver is to Gold.

As a result Litecoins were designed for everyday transactions.

Litecoin is a fork of Bitcoin which means was copied from Bitcoin Core (original Bitcoin) software and then modified.

Litecoin features

  • Bitcoin and Litecoin are technically very similar except for a few tweaks.
  • Litecoin is a transaction friendly cryptocurrency. In fact, Litecoin transfers faster than Bitcoin which makes it ideal for small-size purchases because of the faster transaction confirmation.
  •  LTC or XLT are the Litecoin symbols on the exchanges.
  • Charlie Lee created Litecoin in October 2011.
  • Litecoin is non-inflationary digital coin.
  • The Litecoin Foundation is registered in Singapore as a non-profit organization.
  • 1 Litoshi = 0.000 000 01 LTC or one millionth of a Litecoin

Where can I get Litecoin?

The safest and most secure way to buy Litecoin is through cryptocurrency exchanges.

Here are 5 exchanges I recommend to buy litecoin

  1. Coinbase
  2. Bitpanda
  3. Paxful
  4. CEX.io

If you are looking for a safe and easy solution, I would also recommend checking out this article on how to buy litecoin with a credit card

What can I buy with Litecoin?

You can buy a wide range of products with Litecoin including airplane tickets, clothing, spices and even coffee.

There are over 60 merchants who currently accept Litecoin and registered on the official Litecoin website.

These merchants and their industries can be viewed on Litecoin.org

Storing your litecoin

Just like cash you need a wallet to store your Litecoins.

Except in the case of litecoin, you need a digital wallet.

A cryptocurrency wallet works a lot like a online bank account.

what are litecoins

Set up a wallet

You can download a special Litecoin Wallet to hold only your Litecoin.

However, I recommend using a multicurrency wallet like Exodus.

It a very secure and easy-to-use cryptocurrency wallet for beginners .

It also solves the problem of having a separate wallet for each cryptocurrency.

Protip: to write your passphrase (private key) on paper as soon as you finish the installation so that you can you can always access the wallet in the future.

Who is Litecoin for?

The team designed Litecoin to facilitate adoption among merchants and smaller transactions.

What is a litecoin

Advantages of using litecoin for merchants

  1. Almost instantaneuous transaction confirmation from both the buyer and the seller.
  2. The merchant does not need to deal with charges backs because charges can not be reversed.
  3. Litecoin has feature which allows a website to use the computing power of the user to mine litecoins.
  4. The average litecoin block takes 2.5 minutes but if they wish for a more secure transaction, the merchant can wait for all 4 blocks.
  5. Just like any other cryptocurrency previously closed markets around the world are now accessible.
  6. Litcoin founder, Charlie Lee, said in an interview that merchants were encouraged to provide an additional discount to customers as they are paying less in transaction fees.

Cons of Litecoin

1. As it is unregulated in many part of the world many banks refuse to work with businesses which are associated to cryptocurrency

2. Though cryptocurrency has gained a lot hype, peer-to-peer transfers are still new.

  1. Many people might find it easier to pay with bankcards.

Processing transactions (Mining)

  • Only 84 million Litecoins can be ever be created or mined.
  • Both Bitcoin and Litecoin can be mined at the same time.

Litecoin Mining Explained for beginners

 Litecoin Mining vs Bitcoin Mining?

What’s the difference between mining Litecoin and Mining Bitcoin?

LITECOIN VS BITCOIN

LITECOINBITCOIN
Transaction Time2.5 minutes10 minutes
Coin Limit84 million21 million
Coin Generationhalved every 840,000 Blockshalved every 210,000 blocks
Proof of workScryptSHA-256
Premined1500

Is Litecoin Mining Profitable?

Check if is it profitable for you to with Litecoin Mining Profitability Calculators:

CoinWarz

Controversy

The biggest concern of the Litecoin Team was that ASIC miners are becoming a form of centralization so they designed Litecoin so that it would be inefficient to be mined with Asic miners.

However, Bitmain has released a new antminer capabable of mining Litecoin

Recommended: How does cryptocurrency mining work?

The History of Litecoin

On October  7th 2011 Charlie Lee, an ex-Google Employee  announced on BitcoinTalk forum that he had created Litecoin which is a ‘Lite’ version of Bitcoin. He was also the Director of Engineering at Coinbase.

As the specifications of Litecoin where similar to Bitcoin, Litecoin does not have a whitepaper, however, Charlie Lee highlighted its differences in a post in BitcoinTalk.

Litecoin was launched on Thursday Oct 13, 03:00 GMT.

Charlie Lee (Litecoin Founder)

Litecoin was created by ex-Google employee Charlie Lee and was launched in October 2013.

After that, Charlie Lee became the unofficial spokesperson for Litecoin.

On December 20th 2017, Charlie Lee announced in a Reddit post  that he had sold all his Litecoin.

He felt that whenever he tweeted Litecoin prices or bad news, the LTC prices either rose or fell as a result.

So by selling his coins, he felt that he would be in a better position to speak about Litecoin without influencing the prices.

Charlie Lee had also promised to continue to support Litecoin and has kept his promise so far.

Despite his coin begin very successful, Charlie Lee said, in several interviews, that he regrets not keeping his anonymity like Satoshi.

Why did Litecoin do better than all the other altcoins?

The Litecoin founder said that he wanted to create a coin which took all the benefits of the previous altcoins without their disadvantages.

Litecoin Price History

what are Litecoins
LTC/USD Price History

What is the Future for Litecoin?

In a recent interview, Charlie Lee mentioned that the supply of Litecoin might increase so as miners will still be provided incentives .

He also hinted that he might leave the Litecoin Team so that the coin would be truly decentralized.

What is a Litecoin Faucet?

A Litecoin faucet is a reward system.

User are required to fulfill very basic tasks to receive free litecoins in exchange.

The tasks usually involve entering your name, email address, enter a login page and then your Litecoin address (see above), enter captcha and claim reward.

The rewards are extremely negligable but it is the only way to earn Litecoin without any hardware or financial investment.

what are litecoins

Litecoin Faucet Terms:

  • Litoshi: A Litoshi is similar to the Bitcoin’s Satoshis. A Litoshi works a lot like cents for dollars or euros except that one Litoshi is one hundred millionth of a Litecoin.
  • 1 Litoshi = 0.000 000 01 LTC
  • Microwallet: A microwallet is a payment system used which helps users store their Litoshis each time they are paid. The user can then withdraw the Litoshis to the Litecoin Wallet. Microwallets also help identify fake faucets and help prevent withdrawals from the Litecoin Wallet.
  • Revisit Time: This is the limit imposed by the website on how many times a day the user can claim Litoshis.

Top 3 Litecoin Faucets  :

Note: Many websites claiming to be faucets very often do not pay out or require users to reach a certain amount before they are paid.

Forks: Litecoin Cash

Litecoin Cash is a hard fork of Litecoin.

Despite having similar names, the LitecoinCash team and Litecoin team are not affiliated nor associated with each other.

They also have technical differences:

LitecoinCash vs Litecoin vs Bitcoin
LitecoinCash (LCC)Litecoin (LTC)Bitcoin (BTC)
Maximum Supply840 Million84 million21 million
DistributionMining, ClaimingMiningMining
AlgorithmSHA256ScriptSHA256
Blocktime2.5 minutes2.5 mins10 mins
Claim Ratio10:1

Other facts:

  • The Litecoin Cash, Lead Developer admited to Coindesk that he named the project LitecoinCash to draw more attention to the project.
  • Litecoin Founder Charlie has not been a big supporter for LitecoinCash because he felt that the LitecoinCash Team where banking on user confusion:

what are litecoins -litecoin for beginners

Chickun Rising by Reddit user @Mikeross14