What Is Litecoin (LTC): Everything You Need to Know in 2023

Litecoin (LTC) is the first successful altcoin, created by modifying the Bitcoin source code — both cryptocurrencies are very similar in operation mechanism. Still, it is important to note that this is not the first altcoin to copy the Bitcoin source code; however, LTC is the first significant altcoin that has enjoyed wide popularity among crypto enthusiasts.

Although the working mechanism of Litecoin is similar to Bitcoin, it also has some revolutionary ideas and features. For example, Segregated Witness and Lightning Network are among them. Over the years, Litecoin has positioned itself as a separate entity and friendly altcoin focused on becoming better than Bitcoin through its innovative features. Today, we have prepared a guide where you will learn what Litecoin meaning is and whether it is worth buying. Let’s get started!

LTC Definition: What Is Litecoin (LTC)?

What is Litecoin? Litecoin is a cryptocurrency that allows users to perform P2P (Peer-to-Peer) transactions in a decentralized environment like other major crypto coins. What is LTC? Well, the native token of the Litecoin network is known as LTC, which is used for trading, and the LTC definition also stands as ‘digital silver’ to Bitcoin’s ‘digital gold’ status.

Litecoin is a less complex version due to the simpler hashing algorithm. That’s why it can process each transaction within 2.5 minutes, which is much faster than the initial version of Bitcoin.

History of Litecoin (LTC)

Litecoin was created by Charlie Lee, who used to observe Bitcoin closely and found some aspects that could be improved. For example, reducing the time to complete a transaction and reducing transaction commissions. Thus, in October 2011, he published a white paper introducing Litecoin (LTC). The rise in popularity of Litecoin (LTC) began immediately after its inception, and it took just two years for Litecoin to reach a market capitalization of $1 billion. Over time, Litecoin has gradually increased in value, although it has experienced many sharp ups and downs throughout its history.

One of the most significant events in the history of Litecoin took place when its creator, Charlie Lee, sold all of his holdings. He stated that people started accusing him of manipulating news about Litecoin for personal gain. Moreover, he also said that his growing influence on the platform raised concerns regarding decentralization. Therefore, in December 2017, he sold all his LTCs to avoid conflicts.

What Is Litecoin (LTC) Used For?

As mentioned before, Litecoin (LTC) was created by modifying the Bitcoin source code to offer cryptocurrency users a better experience. So, what is Litecoin used for? Below are some of the problems that Litecoin solves.

- One of the biggest problems BTC users faced was the slow speed of transactions. Litecoin offers faster transaction processing and confirmation. In addition, it offers lower transaction fees.

- The total supply of Litecoin (LTC) tokens is limited to 84 billion, which is four times more than Bitcoin (BTC). This provides more convenient and easier Litecoin mining for crypto enthusiasts, which allows them to make more profits.

- The Litecoin network uses a Scrypt Proof-of-Work algorithm, considered more secure than the hashing algorithms used in other cryptocurrencies. This algorithm also offers better processing power than an SHA-256 algorithm.

Litecoin (LTC) Overview

LTC Price	$95.33
LTC Price Change 24h	+5.28%
LTC Price Change 7d	+1.93%
LTC Market Cap	$6,928,377,299
LTC Circulating Supply	72,680,789 LTC
LTC Trading Volume 24h	$784,737,548
LTC All-Time High (ATH)	$412.96
LTC All-Time Low (ATL)	$1.1137

How Does Litecoin Work?

If you are wondering ‘How does Litecoin work?’ and what the Scrypt Proof-of-Work algorithm is all about, then here is a brief guide on how it works.

Scrypt Proof-of-Work Algorithm

Scrypt is a hash function or mining algorithm (like the Bitcoin SHA-256 algorithm). It works with a POW (Proof-of-Work) consensus mechanism where a miner chooses a variable known as a nonce value. Thus, miners solve a complex mathematical puzzle, and the final result must be less than or equal to the given goal. If a target value is below an allowed block, the generation will be more difficult for a miner, and vice versa. The Litecoin block generation time is 2.5 minutes, so the system automatically adjusts the target value to ensure that a miner generates a new block every 2.5 minutes.

For example, if the variable chosen by a miner or a nonce value is ‘45678’, the system will place it in the header of the new block to be hashed. With this value, the system will try to solve the math puzzle, and if the resulting output is greater than the target value, a miner will need to try again with a different nonce value. All miners trying to generate a new block do the same. The platform only rewards the miner who solves the puzzle with a received hash value below the target. The person who solves the puzzle faster than the rest receives a reward.

Use Cases for Litecoin (LTC)

How does LTC work? Well, many projects are built on the Litecoin platform, such as Miningcore, Simcoin, Crypto Bar, Cryptex, etc. The main goal of all these projects is to make using blockchain easier and more convenient.

One of the most common use cases for Litecoin (LTC) is PayPal. If you are a US citizen, you can use PayPal to buy, sell, pay for, and store your LTC coins.

Apart from this, Litecoin (LTC) has also managed to establish partnerships with various companies. Some organizations allow the use of LTC tokens to purchase goods and services. Below we have mentioned only well-known companies that allow you to buy digital services and physical products with LTC.

Travala

Travala is an online platform that offers services for travel enthusiasts. You can use your Litecoin (LTC) tokens to buy airline tickets and book hotel rooms via the service. The platform partners with more than 2 million hotels and several major airlines.

RE/MAX

On this platform, you can rent or buy property using your LTC coins. The company has listed Litecoin (LTC) as a valid billing address. RE/MAX even offers luxury real estate for cryptocurrency.

Snel

Snel is a platform where you can use your LTC to buy VPS, dedicated hosting, cloud hosting, web hosting, and domain names. This platform supports over 20 different payment methods, including cryptocurrencies such as Litecoin (LTC), Bitcoin (BTC), and others.

Litecoin Price Today

Even though the current value of LTC is below $100, the token has already shown significant promise. Over the past month, the coin has increased by 40.59% in price. By 2026, the price of LTC is expected to cross the $349 mark. Like most other cryptocurrencies, the coin is highly volatile. Still, since the founding of the Litecoin network, LTC has shown steady growth.

Should I Buy Litecoin (LTC)?

The total number of Litecoins in circulation is 84 million LTC. This share is 79% of the maximum supply. Due to its limited supply, LTC is considered a ‘secure’ crypto, and many people consider it a store of value. If cryptocurrency truly becomes the currency of the future and replaces the current traditional government currency, then Litecoin (LTC) coins will undoubtedly have more value. Despite the criticism and loss of the status of a unique cryptocurrency, Litecoin is still known as one of the most significant digital currencies.

On the other hand, it is important to note that some cryptocurrencies perform better than Litecoin even though they were created later. However, due to rapid price fluctuations and overall high volatility in the cryptocurrency market, Litecoin can generate high returns. In any case, it is very important to do due diligence to ensure that buying Litecoin (LTC) is a good investment decision.

Where to Buy Litecoin (LTC): Switchere Exchange

If you’re wondering where to buy LTC, you should definitely think about buying it at Switchere. On our platform, you have an opportunity to buy LTC in the fastest and most convenient way. Moreover, we offer some surprising bonuses! Users of our platform enjoy a 0% service fee for the first order.

How to buy LTC with USD? At Switchere, you can buy crypto for fiat money or swap crypto for crypto. In addition to traditional purchases with a bank card, you can use alternative payment methods available (SEPA, SOFORT, Apple Pay, Google Pay, and local Asian banks).

Here is an easy step-by-step guide on buying LTC at Switchere!

- Visit our website and log in to your account.

- Choose the currency pair for exchange as well as a payment method and enter the amount. Don’t forget to check the transaction details by clicking on ‘Details.’ Once you’ve done, click the ‘Buy’ button.

- Specify your Litecoin wallet address and click on the ‘Buy’ button.

- Enter your card details and click on the ‘Pay Now’ button. Please take into account that you have a limited amount of time to send your funds. Elsewise, the transaction will be canceled automatically.

- Once you send the funds and your transaction receives the required number of blockchain confirmations, the amount of purchased LTC will be sent to your provided wallet address accordingly.

- Congratulations! The transaction is completed, and now you can check your Litecoin wallet.

Usually, Switchere transactions take 5-30 minutes. If you have any issues with the exchange process, let us know at [email protected].

Conclusion

Investing in cryptocurrencies is always associated with high risks. Litecoin is a very volatile asset, so you need to be careful when investing in it. Set aside in advance the amount of money you afford to lose. Buy several LTC coins to analyze their behavior and market performance. This will allow you to thoroughly understand whether investing in this cryptocurrency aligns with your investment goals.

We hope our detailed guide to Litecoin (LTC) has helped you understand what LTC meaning and Litecoin definition are all about and how this cryptocurrency works.