What is Litecoin? LTC explained
What is Litecoin? Litecoin (LTC) is a decentralized proof-of-work cryptocurrency, launched in October 2011 from Bitcoin's code to make payments confirm faster. It produces a block about every 2.5 minutes and its supply is capped at 84 million coins. This guide explains how Litecoin works, how it compares with Bitcoin and how to keep LTC safe in your own Litecoin wallet.
What is Litecoin and where did it come from?
Litecoin is an independent cryptocurrency with its own blockchain, launched in October 2011 as a fork of Bitcoin's code. It keeps the same idea of a public ledger secured by proof of work, but changes a few important settings.
Litecoin was designed to be lighter and faster for everyday payments, which is why it is often called the silver to Bitcoin's gold. No bank or company issues it, and its rules live in open-source software.
The coin trades under the ticker LTC and divides into eight decimal places. The smallest unit is called a litoshi, so you never need to buy a whole coin.
How does Litecoin work? Scrypt and 2.5-minute blocks
Litecoin uses proof of work like Bitcoin, but its mining algorithm is Scrypt rather than SHA-256. That means Bitcoin miners cannot mine Litecoin directly, and the two networks run on separate hardware.
On average the Litecoin network produces a block every 2.5 minutes, four times faster than Bitcoin. In practice your first confirmation usually arrives sooner, and exchanges reach their required number of confirmations sooner too.
Litecoin is merged-mined with Dogecoin: miners can use the same computational work to produce blocks on both networks at once. This helps secure both chains.
Litecoin fees are paid in LTC and depend mostly on the size of the transaction and how busy the network is, not on the amount you send. They are usually low, but they are not fixed.
The 84 million cap and the Litecoin halving
Litecoin's maximum supply is 84 million coins, four times Bitcoin's 21 million cap. The limit is written into the protocol and cannot change without broad agreement across the network.
Litecoin has halvings too: the miners' block reward is cut in half every 840,000 blocks, which works out to roughly every four years at 2.5-minute blocks. The most recent Litecoin halving took place in August 2023.
A halving slows the creation of new LTC. Its effect on the price is uncertain, and nobody can predict it reliably.
Litecoin vs Bitcoin: what is the difference?
The main differences between Litecoin and Bitcoin are block speed, mining algorithm and total supply; the underlying design is almost the same. The table puts the key points side by side.
Bitcoin is better known and is mostly debated as a store of value, while Litecoin is known more for faster confirmations and usually lower fees. Neither is simply better; they are used in slightly different ways.
| Feature | Litecoin (LTC) | Bitcoin (BTC) |
|---|---|---|
| Launched | October 2011 | 2009 |
| Proof-of-work algorithm | Scrypt | SHA-256 |
| Average block time | About 2.5 minutes | About 10 minutes |
| Maximum supply | 84 million | 21 million |
| Halving interval | 840,000 blocks (about 4 years) | 210,000 blocks (about 4 years) |
| Most recent halving | August 2023 | April 2024 |
| Native SegWit address prefix | ltc1 | bc1 |
| Smallest unit | Litoshi | Satoshi |
SegWit and MWEB: Litecoin's major upgrades
Litecoin activated SegWit in 2017. SegWit keeps signature data separate, frees up space in each block and is the basis of the native SegWit addresses that start with ltc1.
In 2022 Litecoin activated MWEB (MimbleWimble Extension Blocks), an optional privacy extension that hides the amounts of transactions made inside it. Using it is optional, and ordinary Litecoin transactions remain public as before.
Not every exchange or service supports MWEB, so check what the destination accepts before you use it.
What is a Litecoin wallet and what does an ltc1 address mean?
A Litecoin wallet holds your private key; the LTC itself lives on the blockchain, and whoever has the key or the recovery phrase controls the coins. The most important choice is whether you hold that key yourself or leave it with a middleman.
Native SegWit Litecoin addresses start with ltc1. Older Litecoin addresses start with L or M and are still valid, but ltc1 addresses usually need a smaller fee per transaction.
Waletifi supports Litecoin natively and gives you a native SegWit ltc1 address. It is derived from your wallet's 24-word recovery phrase on the standard path m/84'/2'/0'/0/0, so you can also restore it in other standard wallets.
Your keys stay on your phone, transactions are signed on the phone and the network fee is shown before you confirm. Litecoin has no memo or tag, so you only enter the address and the amount.
How to buy Litecoin and move it to your own wallet
To buy Litecoin, people usually buy it on an exchange and withdraw it to their own wallet address, or receive LTC directly from someone who has it. Follow these steps:
- Open Litecoin in your wallet and copy your ltc1 receive address.
- On the exchange's withdrawal page, pick LTC and the Litecoin network, not any other network.
- Paste the full address and compare its first and last characters with the one in your wallet.
- For a large amount or a new destination, send a small test amount first, then the rest once it arrives.
- Check the live Litecoin price before you buy so you have a clear idea of what it is worth.
Litecoin risks and mistakes to avoid
Like any cryptocurrency, the Litecoin price can move a lot in a short time and tends to rise and fall with the wider market. Competition from other cryptocurrencies and payment networks is strong, and no coin has a guaranteed future.
The biggest technical mistake is mixing up addresses. Litecoin (ltc1) and Bitcoin (bc1) addresses look alike; sending LTC to a Bitcoin address, or BTC to a Litecoin address, either fails or loses the funds.
Litecoin is still a proof-of-work chain: fees are usually low but never zero, and they rise when the network is busy. Keep these in mind too:
Sent crypto on the wrong network? What to do
- Never photograph your recovery phrase or keep it in a messenger or cloud storage.
- Treat any promise of guaranteed profit or doubled LTC as a scam.
- Only put into crypto money you can afford to see fluctuate.
