What Is Litecoin (LTC) And Whether It’s Worth Buying?

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Litecoin (LTC), launched in 2011 by Charlie Lee, is often seen as a simpler, faster version of Bitcoin. It’s built to handle transactions more quickly and with lower fees, making it useful for those who need to move money fast without paying high costs. One unique aspect is that Litecoin is mined differently than Bitcoin, making it more accessible for a wider range of miners.

Litecoin is often referred to as the "Silver to Bitcoin's Gold." Litecoin, like Bitcoin, relies on miners to validate transactions and maintain the network's security. Litecoin ranked among the top 20 largest cryptocurrency by market capitalization. Litecoin differentiates itself by focusing on faster transaction speeds and a larger total supply of coins, making it more suitable for everyday use. This focus allows Litecoin to serve as a practical option for daily transactions, contrasting Bitcoin's predominant role as a store of value.

What is Litecoin?

Litecoin (LTC) is an altcoin, an alternative cryptocurrency to Bitcoin, utilizing blockchain technology for secure peer-to-peer transactions. However, Litecoin aims to offer a more scalable payment network, featuring faster transaction times and reduced fees compared to Bitcoin. This allows LTC to serve as a more efficient medium for day-to-day payments.

Short history of Litecoin

October 9, 2011: Charlie Lee announces Litecoin on bitcointalk.org.
October 12, 2011: The first Litecoin block is mined.
August 25, 2015: Litecoin undergoes its first halving, reducing mining rewards from 50 LTC to 25 LTC.
2017: Litecoin adopts SegWit to improve scalability and efficiency by splitting transaction data, allowing more transactions per block.
December 2017: Litecoin hits a record high, surpassing $370.
2018: The introduction of the Lightning Network, allowing faster and easier transactions.
August 5, 2019: The second Litecoin halving reduces rewards to 12.5 LTC.
October 2020: PayPal adds Litecoin support, alongside Bitcoin, Ethereum, and Bitcoin Cash broadening its accessibility for transactions.
May 2021: Litecoin reaches another all-time high, exceeding $415.
May 2022: The Mimblewimble Extension Blocks (MWEB) are activated, enhancing privacy and fungibility on the Litecoin blockchain.
August 2, 2023: The third halving event decreases rewards to 6.25 LTC.

Pros and cons of Litecoin

Here’s a detailed look at the pros and cons of Litecoin (LTC).

Faster transactions. Litecoin processes transactions in about 2.5 minutes, significantly faster than Bitcoin’s 10-minute confirmation time. This makes it more practical for everyday transactions.
Lower transaction fees. LTC usually has lower transaction fees compared to Bitcoin, making it cost-effective for smaller transactions and payments.
Greater coin supply. With a total supply of 84 million coins (compared to Bitcoin’s 21 million), Litecoin is less prone to scarcity, potentially reducing price volatility.
Established reputation. Litecoin is one of the oldest altcoins, launched in 2011. Its longevity provides a level of trust and security in the market.
Fewer technical issues. Many cryptocurrencies, especially newer ones, face technical issues or security problems. Litecoin has been around since 2011 and has faced far fewer problems than most of its competitors, giving beginners confidence in its reliability.
SegWit and lightning network. Litecoin was one of the first major cryptocurrencies to adopt SegWit (Segregated Witness) and integrate the Lightning Network, enabling faster and more scalable transactions.

Limited unique use case. Despite its speed and efficiency, Litecoin doesn’t offer the same groundbreaking functionality as newer altcoins like Ethereum, which supports smart contracts and decentralized applications (dApps).
Decreasing market share. Litecoin has been overtaken by newer cryptocurrencies withmore advanced features, causing its market cap to drop relative to others.
Security concerns with ASIC mining. Litecoin mining largely relies on ASIC (Application-Specific Integrated Circuit) miners, which centralizes mining power and reduces the ability for small, individual miners to participate profitably.
Lower developer activity. Compared to other altcoins like Ethereum or Solana, Litecoin has fewer ongoing development projects and upgrades, limiting its evolution and relevance in a rapidly changing crypto space.
Price volatility. Like most cryptocurrencies, Litecoin is highly volatile. Its price can fluctuate significantly over short periods, which can pose a risk for both investors and users.

In summary, Litecoin remains a solid choice for fast, cost-effective transactions, but faces challenges in terms of competition and innovation within the cryptocurrency space.

How to mine Litecoin (LTC)

Litecoin mining process works similarly to Bitcoin’s Proof-of-Work (PoW) process, relying on miners to validate transactions and secure the network. Miners contribute computational power to solve cryptographic puzzles, receiving LTC as a reward. The current block reward stands at 6.25 LTC, historically rewards have decreased by half approximately every four years.

When considering mining Litecoin, the following factors play a significant role:

Hardware. While CPU/GPU mining is possible, ASIC miners are a much better option due to their efficiency, though they require higher initial investments and increased electricity consumption.
Software. Specialized mining software helps miners communicate with the network, distribute tasks, and monitor their hardware performance.
Electricity costs. Your electricity costs could make or break your mining as mining consumes significant energy, electricity costs should be factored into profitability.
Solo mining vs. mining pools. Solo miners need substantial computing power to remain competitive, while mining pools combine efforts for greater success, though rewards are shared.
Monitor mining changes. Litecoin's difficulty goes up and down. If you pay attention to these changes, you can mine when it's easier and avoid wasting energy when it’s tough.

While it is difficult to predict the future of Litecoin, several factors play into its potential. Litecoin's longevity in the market gives it credibility, and its focus on fast, cost-effective transactions is appealing for practical use. However, newer cryptocurrencies offering broader capabilities might pose challenges for Litecoin's growth, especially in such a volatile market.

How to buy Litecoin

To buy Litecoin (LTC), follow these steps:

Choose a cryptocurrency exchange. Sign up on a reputable exchange that supports Litecoin.

Best crypto exchanges to buy Litecoin
	Min. Deposit, $	Coins Supported	Spot Taker fee, %	Spot Maker Fee, %	Foundation year	Open an account
OKX	10	329	0,1	0,08	2017	Open an account Your capital is at risk.
Kraken	10	278	0,4	0,25	2011	Open an account Your capital is at risk.
Crypto.com	1	250	0,5	0,25	2016	Open an account Your capital is at risk.
CoinMetro	1	72	0,2	0,1	2018	Open an account Your capital is at risk.
Ledger Wallet		1817	0	0	2004	Open an account Your capital is at risk.

2. Create an account. Complete the sign-up process by providing your email, setting a password, and completing identity verification (KYC).

3. Deposit funds. Deposit fiat money (USD, EUR, etc.) into your account via bank transfer, debit card, or another payment method supported by the exchange.

4. Buy Litecoin. Once the funds are in your account, navigate to the trading section and select Litecoin (LTC). Specify the amount you wish to buy and confirm the purchase.

5. Store your Litecoin. For security, you can store Litecoin in a hardware wallet or a software wallet, though exchanges also offer online storage. You also can earn Litecoin without spending money by using faucets, joining referral programs, or participating in airdrops and games.

Understanding Litecoin (LTC): Is it worth your investment in 2025?

For beginners deciding if Litecoin (LTC) is worth buying, it’s key to understand its strengths and limits. Litecoin was built to be faster and more efficient than Bitcoin. While Bitcoin takes about 10 minutes to confirm a transaction, Litecoin completes it in around 2.5 minutes, which means you can move funds quickly without the high fees associated with Bitcoin. If you’re just starting, this speed and low cost make Litecoin an appealing option for everyday transactions. It’s also widely accepted on platforms like PayPal, adding to its real-world usability.

However, beginners should consider whether Litecoin offers enough potential compared to newer coins. While it has a long history since 2011 and is trusted by many, Litecoin doesn’t offer some of the unique features found in more recent cryptocurrencies, like Ethereum, which supports smart contracts. So, while Litecoin is a good choice for fast and low-cost payments, it might not provide the innovation or long-term growth some investors are seeking in the expanding crypto space.

Conclusion

Litecoin was designed to be a faster, more efficient cryptocurrency for daily transactions. While newer cryptocurrencies have surpassed Litecoin in market cap, its stability and scalability continue to make it a viable option for payments. While its simplicity and speed are advantages, it may struggle to stay competitive without further innovation. For users seeking fast payments, Litecoin remains solid, but those looking for cutting-edge technology may explore other options. However, investors and traders should also remain aware of the risks involved due to the volatile nature of the cryptocurrency market.

FAQs

What makes Litecoin different from Bitcoin?

Litecoin offers faster transaction times (2.5 minutes compared to Bitcoin's 10 minutes) and has lower transaction fees. Moreover, Litecoin's total supply is capped at 84 million coins, significantly more than Bitcoin 21 million.

Is Litecoin a good investment?

Litecoin can be a good investment for those looking for a stable, established cryptocurrency focused on fast and affordable transactions. However, like all cryptocurrencies, it carries risks due to market volatility and competition from newer altcoins.

What is Litecoin used for?

Litecoin is great for people looking to send smaller payments quickly, without delays or heavy costs. It's often seen as a more efficient alternative to Bitcoin for day-to-day payments. Additionally, it can be held as an investment in the hopes that its value will appreciate over time.

How does Litecoin mining work?

Litecoin mining uses a Proof-of-Work (PoW) system similar to Bitcoin, where miners solve complex mathematical problems to validate transactions and secure the network. Miners are rewarded with newly minted LTC, though mining requires specialized hardware (like ASICs) to be profitable.

Team that worked on the article

Ivan is a financial expert and analyst specializing in Forex, crypto, and stock trading. He prefers conservative trading strategies with low and medium risks, as well as medium-term and long-term investments. He has been working with financial markets for 8 years. Ivan prepares text materials for novice traders. He specializes in reviews and assessment of brokers, analyzing their reliability, trading conditions, and features.

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Chinmay Soni is a financial analyst with more than 5 years of experience in working with stocks, Forex, derivatives, and other assets. As a founder of a boutique research firm and an active researcher, he covers various industries and fields, providing insights backed by statistical data. He is also an educator in the field of finance and technology.

As an author for Traders Union, he contributes his deep analytical insights on various topics, taking into account various aspects.

Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO).

Leverage

Forex leverage is a tool enabling traders to control larger positions with a relatively small amount of capital, amplifying potential profits and losses based on the chosen leverage ratio.

Bitcoin

Bitcoin is a decentralized digital cryptocurrency that was created in 2009 by an anonymous individual or group using the pseudonym Satoshi Nakamoto. It operates on a technology called blockchain, which is a distributed ledger that records all transactions across a network of computers.

Cryptocurrency

Cryptocurrency is a type of digital or virtual currency that relies on cryptography for security. Unlike traditional currencies issued by governments (fiat currencies), cryptocurrencies operate on decentralized networks, typically based on blockchain technology.

Volatility

Volatility refers to the degree of variation or fluctuation in the price or value of a financial asset, such as stocks, bonds, or cryptocurrencies, over a period of time. Higher volatility indicates that an asset's price is experiencing more significant and rapid price swings, while lower volatility suggests relatively stable and gradual price movements.

Investor

An investor is an individual, who invests money in an asset with the expectation that its value would appreciate in the future. The asset can be anything, including a bond, debenture, mutual fund, equity, gold, silver, exchange-traded funds (ETFs), and real-estate property.

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