Litecoin Wiki ▷ What is LTC? Crypto currency & more!
Our Litecoin (LTC) Guide gives you everything you need to know about the project. We explain what Litecoin is, what the project does and give our opinion on the investment potential. You should know that Litecoin is generally referred to as LTC. We always recommend that you do your own research before investing in a crypto currency.
What is Litecoin (LTC)?
Litecoin was introduced in 2011 and is one of the oldest and most established crypto currencies. It was created as a fork of Bitcoin and has many similarities. In fact it is so similar that Litecoin does not even have its own white paper and LTC was created from the Bitcoin source code.
Fork is when a crypto currency splits into two.
Although Bitcoin is very similar, Litecoin was created to achieve lower fees and faster transaction times. LTC also has its own separate block chain.
The idea was that Bitcoin would be the "gold" of the crypto currency and would be used primarily as a store of value or for really big purchases. Litecoin, on the other hand, would be the "silver" used for lower and more frequent transactions such as buying a coffee.
So what is LTC? It is a store of value and a transaction method - it is a crypto currency in the truest sense of the word.
How is LTC used?
Litecoin has already been offered by some online shops as a payment method. As crypto currency becomes a widely accepted form of payment, it is highly likely that LTC will be one of the first crypto currencies to be accepted by new merchants.
Litecoin's limited supply of 84 million means that as demand for the crypto currency increases, so does the price.
The Litecoin Team
The Litecoin team is led by founder Charlie Lee, and there is also a team of 11 volunteers, in addition to the team members listed below:
- Board members: Charlie Lee, Xinxi Wang & Franklyn Richards.
- Managing Director: Charlie Lee
- Operations Manager: Keith Yong
- Sponsored full-time and part-time developers: Adrian Gallagher & Loshan T.
Charlie Lee remains one of the most influential people in the crypto-currency field, many of whom refer to him as SatoshiLite.
Satoshi Nakamoto: was the code name of the creator of Bitcoin. To this day no one knows his true identity. Charlie Lee's nickname, SatoshiLite, is just a commentary that calls him the little brother of the mysterious Bitcoin creator.
On December 20, 2017, Charlie Lee announced on Reddit that he had sold all the LTC he owned. He cited a conflict of interest, as his comments on Twitter had such an impact on the price of LTC. Lee went on to state that he "will not leave Litecoin. I will still spend all my time working on Litecoin. If Litecoin is successful, I will still be rewarded in many different ways, just not directly through coin ownership."
Who is SatoshiLite?
Charlie Lee was born in the Ivory Coast. His parents were Chinese pioneers who went to Africa in the 1960s. When Charlie was 13 years old, he moved to the USA and graduated from MIT with a master's degree in computer science.
After leaving college, Charlie worked as a software developer at Kana Communications for 3 years. He then moved to Guidewire Software and held the position of Senior Software Engineer for 4 years.
It seems that Charlie's skills as a software developer have been recognized and in 2007 Google joined. At Google, Lee worked on projects like YouTube Mobile and the Chrome operating system. While still working at Google, Charlie founded LTC.
In 2013, SatoshiLite left Google to join Coinbase as Director of Engineering and left that position in June 2017 to pursue the Litecoin project full time.
You can follow Charlie on Twitter and keep up to date with his thoughts on the crypto currency markets and Litecoin.
Which crypto should you choose? LTC or Bitcoin?
The first thing to know is that LTC and Bitcoin are NOT in competition with each other. The idea is that both crypto currencies coexist, with Litecoin for smaller transactions and Bitcoin for larger transactions. Both crypto-currencies are also considered as a store of value.
The focus of Litecoin was on:
- Cheaper transactions.
- Faster transactions.
- LTC made a great effort to be taken over by distributors (an area where Bitcoin struggled).
Litecoin can also be seen as a testing ground for new technologies for Bitcoin. For example, LTC received Lightning Network, SegWit and Atomic swaps before Bitcoin did. It appears that once an upgrade has been proven to work on Litecoin, it will be made available for Bitcoin.
1) Lightning Network: Simply put, it is an upgrade that makes transactions faster and cheaper.
2) SegWit: Increases the number of transactions per second that the network can process
3) Atomic Swap: Is a method by which people can exchange one crypto currency for another, without an exchange or third party involvement. Atomic Swaps can only occur between two crypto-currencies that have both implemented the technology.
It is not really a decision between LTC and Bitcoin. Instead, both crypto currencies should be considered complementary.
LTC is still an independent giant in the field of crypto currency. At the time of writing, it has the fifth largest market capitalization for crypto currencies.
How high can the Litecoin price rise?
In short, no one knows what LTC might be worth in the future or whether the crypto currency will be introduced in masses. For fun, we will take a look at how much Litecoin the average person would have if everyone in the world used LTC for everyday transactions.
The price of LTC is highly dependent on demand and how widely it is accepted as a payment method. For merchants, the lowest fee they can expect to pay for credit cards to process transactions is about 1.2% of the transaction value. With LiteCoin, the lowest fee is about 0.0002 LTC, which is about 3 cents! We assume that online shops will start faster with the introduction of Litecoin over time, as they want to take advantage of cheaper transactions.
Should one invest in Litecoin?
It is entirely up to you whether you invest in Litecoin or not. However, we are happy to give you our opinion.
- LTC is already well established (the fifth largest crypto currency) and has a large following.
- We see the benefit in using LTC for everyday transactions. Over time, we believe that merchant acceptance will increase as business owners seek to reduce payment processing fees and obtain faster transactions.
- Since Litecoin is the testing ground for Bitcoin, it is likely that it will always be technically one step ahead of its big brother.
- LTC is one of the easiest crypto currencies to buy.
- If LTC is never used on a large scale, it has a limited application.
- Litecoin founder Charlie Lee has sold all his Litecoins.
- There are many other crypto currencies that try to do the same thing as Litecoin.
How do you buy Litecoin?
Currently the easiest way to buy Litecoin is through Coinbase. We have put together a detailed guide that shows you how to use Coinbase and how to buy Litecoin.
Setting up a Litecoin wallet
You can leave LTC on Coinbase - this is really the easiest way to store your Litecoin. However, we believe that it is best for you to have control over your own crypto currency, so that you do not need to rely on the trust of others.
If you are looking for a free Litecoin wallet to take personal control of your LTC, we recommend using the official wallet.
Visit the official Litecoin Wallet download page. Then simply select the device on which you wish to install your LTC Wallet. For this example we use MAC OS X
You will then see a screen with some options. You want to download Litecoin Core. After downloading, open the file and move Litecoin Core into your applications.
- You will see the LTC Wallet in your application folder.
- When you try to open the application, you will see that your computer marks that it is an unidentified developer.
- To activate the official LTC wallet, simply go to the system settings and click on "Security & Privacy".
- Under "Security & Privacy". you will see a message that Litecoin-QT was blocked. Simply click on "Open anyway" to activate it.
- A window will then open with a welcome message informing you that the LTC Wallet is now downloading each transaction of the Litecoin block chain. This may take a while.
How to use the official LTC wallet?
Overview screen: Here you see only your LTC balance and whether there are any open transactions. (In our case the wallet is set to english)
Send: Here you can make Litecoin payments from your wallet.
- Send to - Just enter the LTC address of the recipient.
- Amount - This is obviously just the amount of LTC you want to send. Make sure that you use the correct decimal points.
- Transaction fee: You can customize the fee you pay. The default setting is set to a low rate.
- After you have entered the information, your transaction will be processed by clicking the Send button. It is as simple as that.
To send Litecoin to your wallet: If you have LTC on Coinbase and you want to send it to your own Litecoin wallet, click on the Receive tab.
- Enter the amount of LTC you want to send to your wallet. Click on "Request Payment". Your Litecoin wallet address will be displayed. You simply enter this in Coinbase when you want to withdraw your LTC.
To store your LTC in the safest way
Litecoin's free wallet is a great way for you to take personal control of your LTC. However, the safest way to store your LTC is to use a hardware wallet.
What makes a hardware wallet secure? Hardware wallets store your private keys and protect them from keyloggers and phishing attempts. With a hardware wallet, you don't even know your private Litecoin key yourself, making it virtually impossible for it to ever be exposed to the outside world.
The two most popular hardware wallets are both compatible with LTC. We use both Trezor and Ledger.
Need help finding out which hardware wallet is best for you? Take a look at our comparison article Ledger vs. Trezor.