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What is litecoin?

Litecoin is a peer-to-peer cryptocurrency in many regards similar to Bitcoin. Coins are created and transferred using an open source cryptographic protocol and are not managed by any central authority. Thanks to the adoption of Segregated Witness, and the Lightning Network, Litecoin has some technical advantages over Bitcoin and other major cryptocurrencies. It is capable of handling a greater number of transactions in a given time and thus reducing potential bottlenecks, as seen with Bitcoin. Also, payment cost of Litecoin is nearly zero and it’s payment speed is approximately four times faster than Bitcoin.


Launched in October 2011 by Charlie Lee, a former Google engineer, Litecoin is a peer-to-peer cryptocurrency designed to complement Bitcoin. Known as the "silver to Bitcoin's gold," it offers faster transaction times and a different hashing algorithm, Scrypt, which allows for more accessible mining. Initially popular for its technological innovations, Litecoin has maintained its relevance through active development and community support. Key milestones include the adoption of Segregated Witness (SegWit) in 2017 and the implementation of the Lightning Network, enhancing scalability and transaction speed. Litecoin continues to be a significant player in the cryptocurrency market, valued for its stability and ongoing improvements.

How Litecoin Is Made?

Like all cryptocurrencies, Litecoin is not issued by a government, which historically has been the only entity that society trusts to issue money. Instead of being regulated by a Federal Reserve and coming off a press at the Bureau of Engraving and Printing, Litecoin’s are created by the elaborate procedure called mining, which consists of processing a list of Litecoin transactions. Unlike traditional currencies, the supply of Litecoin’s is fixed. There will ultimately be only 84 million Litecoin’s in circulation and not one more. Every 2.5 minutes (as opposed to 10 minutes for bitcoin) , the Litecoin network generates, what is called a block—a ledger entry of recent Litecoin transactions throughout the world. And here is where Litecoin’s inherent value derives.

Read more: What Is Litecoin And How Does It Work?

Mining for Litecoin?

The incentive for mining is that the first miner to successfully verify a block is rewarded with 50 Litecoin’s. The number of Litecoin’s awarded for such a task reduces with time. In October of 2015 it will be halved, and the halving will continue at regular intervals until the 84,000,000th Litecoin is mined. But could one unscrupulous miner change the block, enabling the same Litecoin’s to be spent twice? No. The scam would be detected immediately by some other miner, anonymous to the first. The only way to truly game the system would be to get a majority of miners to agree to process the false transaction, which is practically impossible.

Read more: What Is Litecoin And How Does It Work?

Storing your litecoin?

Storing your Litecoin. If you want to buy Litecoin or already have some, you need to find a safe place to store it. You have a lot of options, depending on what you plan to do with your Litecoin. The most common option is putting your Litecoin into a software wallet. This option is relatively safe but not very practical for frequent use. The second most common option is to store your Litecoin on a cryptocurrency exchange, where it is not as secure as in a software wallet but offers more flexibility. On an exchange, you can easily sell, buy more, exchange, or lend your Litecoin to make a profit. A newer and highly secure method is using a hardware wallet. This keeps your Litecoin absolutely safe from online threats. However, be cautious because if you lose or damage the hardware wallet, you will lose all your funds. Hardware wallets are similar to flash drives and provide high security, but they are not practical for frequent transactions. If your main goal is to increase your Litecoin holdings, we recommend storing it on your account here at, where you can earn an annual interest of 10%. Ultimately, the best storage option depends on your priorities and what you want to achieve with your Litecoin. Choose the variant that aligns with your needs and offers the level of security and convenience you require.

Different between litecoin and bitcoin?

Litecoin transaction fee’s are mere cents compared to bitcoin transaction fee’s that can cost dollars. Litecoin has a faster network. Transaction’s are much faster than they are in the bitcoin network. An Average Litecoin transaction takes 2 minutes. An average bitcoin transaction take’s 10 minutes on a good day. Total amount of bitcoin is 21 million coin. Litecoin has 84 million coins. Litecoin also uses a different algorithm. Bitcoin use’s Bitcoin’s SHA-256. Litecoin use Litecoin’s Scrypt.

The Bottom Line?

Once a currency reaches a critical mass of users who are confident that the currency is indeed what it represents and probably won’t lose its value, it can sustain itself as a method of payment. Litecoin isn’t anywhere near universally accepted, as even its own founders admit that it has fewer than 100,000 users. (Even bitcoin probably has less than half a million total users.) But as cryptocurrencies become more readily accepted and their values stabilize, one or two of them—possibly including Litecoin—will emerge as the coin(s) of the digital realm.

Read more: What Is Litecoin And How Does It Work?

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