Cryptocurrency Explained: Litecoin
Litecoin, the Alright Coin
Litecoin (LTC) is a cryptocurrency that was designed to act as a "lighter" version of Bitcoin.
Litecoin is 4x faster than Bitcoin (BTC) and averages 2.5 minutes to complete each block with processing fees of less than a penny.
Litecoin uses this notation symbol, "Ł"
What is Litecoin?
Have you ever tried to send money to another country? Or between two bank accounts? If you have, you know that sometimes it can take days. Wire transfer fees within the US can be between $25 - $30, and worse, between $45 - $50 for international transfers. If this headache sounds familiar to you, take a look at Litecoin.
Litecoin is a cryptocurrency that uses peer-to-peer technology to quickly send payments anywhere in the world. It’s 4x faster than Bitcoin and averages 2.5 minutes to complete each block with very low fees.
How Litecoin Works
Litecoin was built using Bitcoin’s source code in 2011 by MIT grad and former Google employee Charlie Lee to create a “lighter” version of Bitcoin (...hence, the name).
Like Bitcoin, Litecoin uses a form of Proof-of-Work (PoW) mining to determine which group of transactions will be appended to the blockchain next. Litecoin uses a hash function called scrypt. This hash function was introduced as a way to make Litecoin mining more accessible to hobbyists than Bitcoin mining.
The Litecoin network processes transactions in 2.5 minutes, four times faster than Bitcoin’s processing time. The average Litecoin block requires 12 transaction confirmations and takes an average of 2.5 minutes to complete. Since the Litecoin network can process blocks four times faster, the total amount of LTC released is four times greater than BTC. This means the fixed amount of Litecoin set to exist will cap at Ł84 million units, as opposed to Bitcoin’s 21 million units.
Due to Litecoin’s complementary nature to Bitcoin and the fact it has established a market for itself, it is often considered the first successful alternative cryptocurrency, or altcoin.
Why Invest in Litecoin?
Litecoin is not the most exciting cryptocurrency, but it was intentionally designed to be this way. In an interview, Charlie Lee said “being boring is good for money... I don’t think it’s good to take the approach of ‘build fast and break things’ with money when you want it to be stable and actually work. And Litecoin has worked flawlessly over the past nine years.”
Since its inception, Litecoin has consistently ranked among the top ten capitalizations of the cryptocurrency market which makes it relatively stable compared to other altcoins created around the same time.
Using Litecoin is fast and cheap. Litecoin transactions take only 2.5 minutes and average transaction fees cost pennies. Plus, as a well-established altcoin, many merchants that accept BTC as payment also accept LTC. This makes Litecoin a good option for those looking to use crypto for daily purchases.
Major proponents of Litecoin are hopeful that an increase in usage and adoption on a greater scale will inevitably raise its value.
Litecoin Privacy Enhancements
Litecoin uses a protocol called MimbleWimble Extension Blocks to protect the privacy of its users. It works by hashing the public keys of either party, and the amount transacted, so only the people involved in the transaction can see. Onlookers can verify a random amount moved between two random addresses, but cannot know the exact amounts. Then all the transactions within the block are mixed up so that they cannot be forensically traced from the blockchain. To avoid double-spending of coins, the protocol issues a set number of inputs that correspond to set outputs - which are cryptographically linked to the actual amounts. When the inputs are subtracted from the outputs, the total will be "0," meaning the transaction is valid and no extra currency (inputs) is left unaccounted.
Litecoin enabled the MWEB through a soft fork in 2022, making the network significantly more private.
How to Buy or Sell Litecoin through CoinFlip
Are you interested in transacting with Litecoin? You can buy or sell Litecoin at your nearest CoinFlip ATM, through the CoinFlip Wallet app, or with CoinFlip Preferred.
How to Buy and Sell Litecoin with Cash
Use cash to purchase and sell Litecoin though CoinFlip’s global network of 5,000+ ATMs. Find your nearest ATM with our locator.
To buy Litecoin you will need cash, a smartphone, and a crypto wallet - we suggest you use the CoinFlip Wallet, mentioned above. You also need to choose your purchasing amount. If transacting less than $960 will need to provide your phone number, name, and date of birth. For more than $960 you will need other identification, which you can learn about here.
For a complete guide to purchasing Litecoin, check out our explainer.
You can sell Litecoin for cash at certain CoinFlip ATMs. Not all crypto ATMs can perform sell transactions, so make sure to check the “sell” box on the ATM locator.
Selling is similar to buying in that you will need a smartphone and a crypto wallet. To see a step-by-step selling guide, read this article.
You can Now Buy and Sell Litecoin with ACH or Wire Transfer!
Wire transfers and Automated Clearing House (ACH) make buying and selling large amounts of cryptocurrency easy and safe. CoinFlip Preferred is our premium over-the-counter service for large exchanges and white-glove assistance.
To perform a wire or ACH transfer, you need a checking account and a crypto wallet. A CoinFlip Preferred account manager can walk you through the process if you call 877-339-6432.
How to Buy with Wire
Create your free CoinFlip Preferred account
Complete your account setup by answering a few simple security questions
Choose the amount of Litecoin (or other preferred crypto) you'd like to buy, then select your payment option.
How to Sell with Wire
Start a free CoinFlip Preferred account or log in to your existing account
Click the "Sell" button on the dashboard
Fill out the request form with your wallet address and bank wire details
Send the crypto from your wallet to the CoinFlip address
Receive cash in your bank account as soon as the wire clears!
How to Perform an ACH Transfer
1. Register with CoinFlip Preferred
2. Select the Link Account option and fill out the required information
3. Complete the order. The ACH transfer should clear in three to five business days.
