Litecoin has been dubbed Bitcoin silver by many of its followers, but this cryptocurrency has been predicted to have a longer shelf than it’s predecessor due to it’s lower peer-to-peer transactions and more sustainable variations of its blockchain technology.
But where do you start if you’re interested in investing or buying Litecoin? How does Litecoin work and what are the advantages to it compared to Bitcoin? Where do you store your Litecoin and how do you buy them? For many new investors and users of Litecoin, it all sounds way too tricky to start. Fortunately that’s not true at all, and you will soon learn that working with Litecoin is very easy and very similar to what you are used to.
Who is this guide for?
This guide is aimed at people who want to invest in Litecoin or simply want to know more about this revolutionary blockchain.
In this manual, we discuss everything you need to know to take part in this digital revolution!
Why did we make this guide?
Litecoin has been around since 2011 and has since made huge leaps in popularity, functionality and value. More and more people are therefore choosing to transfer part of their income to Litecoin as an alternative to Bitcoin.
Yet there is a lot of confusion around the similarities between Litecoin and other cryptocurrencies in general. Many people have no idea how to use the network or where to start. Others are confused between the similarities between Litecoin and Bitcoin. And some are afraid that investing, buying and working with Litecoin requires a huge technical background.
The good news is that many of these concerns and questions have been answered and / or misplaced. You will soon find that working, paying and receiving money within the Litecoin network is not only simple, but easier and faster than at your own bank! Once the first step is taken you will soon notice how intuitive the network is and how easy it is to make transactions..
In addition, you will also understand what makes Litecoin so popular and you will become more familiar with all the ins and outs of this cryptocurrency.
The purpose of this guide is to help you with this first step! We can imagine that if you buy Litecoin (LTC) for the first time you will no longer see the forest through the trees. We have created this guide to show you through your first purchase of LTC, the currency of Litecoin, and help you with the choices you can make on your way. We discuss aspects of Litecoin such as:
- Litecoin wallets, what types are there and how do you choose the best?
- How you can invest in Litecoin. Which brokers are reliable?
- How do you ensure that you use your LTC safely?
- What the differences are between Litecoin and Bitcoin.
How should you use this guide?
Firstly, we strongly recommend that you bookmark this page in your browser so that you can always come back if you have any questions.
This guide is subdivided into a number of chapters that each describe an aspect of Litecoin. In other words, each chapter is a mini manual in itself!
For this reason, you can choose how exactly you go through the manual. If you are completely new to the world of cryptocurrencies, we strongly advise you to go through the entire manual once.
Do you already have a strong idea of how and what a blockchain is and you are not completely new in this world. Then you can safely jump to the chapter that is most relevant to your question.
Important: If you are looking for the best place to buy Litecoin, you can go straight to chapter 3.
What is Litecoin?
Litecoin’s beginning had a turbulent start, where they struggled to find a full-time development team. However, founder and former Coinbase employee Charlie Lee decided to leave his full-time position in Summer 2017 and this started this coin’s rapid growth in the market.
When Lee first created Litecoin he imagined creating a currency that would not be a direct competitor to Bitcoin but complementary counterpart that would operate as “digital silver” to Bitcoin’s status as a digital store of value of gold. You can normally find Lee on Twitter acting as a vocal and transparent front man for the Litecoin project and can often be found sharing his thoughts on a number of topics affecting the cryptocurrency community.
Whilst being in charge of the day to day operations involved in running the Litecoin project, Lee is also a member of the Litecoin Foundation. This is a non-profit organisation that strives to advance Litecoin for the good of society by developing and promoting state-of-the-art blockchain technologies that can be useful for other altcoins to implement.
The relationship between Litecoin and Bitcoin
The relationship Bitcoin and Litecoin are generally seen as being complementary to each other with Litecoin often moving ahead with technological changes and upgrades that can also benefit the Bitcoin network.
Because Litecoin has focused on being faster and more efficient than Bitcoin they are aimed at becoming adopted by merchants and vendors. In addition to implementing frequent and faster block generation, Litecoin also makes use of the Lightning Network and Segregated Witness (SegWit) to help guarantee that its users will be able to rely on a network that is capable of handling a high volume of transactions at a higher speed and at a much lower cost. Litecoin was also recently used to perform a cross-chain atomic swap. This allows users to swap cryptocurrencies directly through the use of a smart contract, without the need for a third party, such as an exchange.
These upgrades give Litecoin the upper hand when it comes to overall efficiency; however, it’s almost inevitable that these LTC features will eventually be incorporated by the Bitcoin blockchain.
However, despite establishing itself as a top 5 cryptocurrency, Litecoin still trails in its old brother’s wake when it comes to popularity. Bitcoin currently holds a market cap of around $117B and it is also capable of recording 24-hour trade volumes of up to four times greater than any other cryptocurrency.
Even though Bitcoin is seen as the superior coin, the Bitcoin network can never exceed 21 million coins, which is due to be minded by the end of 2018. Litecoin can accommodate up to 84 million coins and its lower price makes it more suitable for purchasing low-priced goods or services, and as cryptocurrencies edge closer to mass adoption this should help Litecoin close the gap.
Frequently Asked Questions
Litecoin is considered the smaller, faster younger brother to Bitcoin. A typical Litecoin transaction takes 2.5 minutes, where as a transaction on the Bitcoin network takes 10 minutes.
Contrary to popular belief, you are not completely anonymous in the Litecoin network! Each wallet is publicly visible and traceable, but is not linked to one person, so it is very difficult to trace.
Litecoin (LTC) can you buy from a broker like BTCDirect. No idea how it works? Then read the chapter about buying and selling Litecoin in our guide.