Litecoin Wiki ▷ What is LTC? Cryptocurrency & more!
Our Litecoin (LTC) guide will give 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 commonly referred to as LTC. We always recommend that you do your own research before investing in any cryptocurrency.
What is Litecoin (LTC)?
Litecoin was introduced in 2011 and is one of the oldest and most established cryptocurrencies. It was seen as a junction from Bitcoin created (fork) and has a lot in common. In fact, it's so similar that Litecoin doesn't even have its own white paper, and LTC was created from the Bitcoin source code.
Fork is when a cryptocurrency splits in two.
Although Bitcoin is very similar, Litecoin was created to provide cheaper fees and faster transaction times. LTC also has its own separate blockchain.
The idea was that Bitcoin would be the "gold" of cryptocurrency 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 like buying a coffee.
So what is LTC? It's a store of value and a method of transaction - it's a cryptocurrency in the true sense of the word.
How is LTC used?
Litecoin has already been offered as a payment method by some online shops. As cryptocurrency becomes a widely accepted form of payment, it is extremely likely that LTC will be one of the first cryptocurrencies to be accepted by new traders.
Litecoin’s limited supply of 84 million means that as demand for the cryptocurrency 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 below:
- Board: 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 cryptocurrency space, many of whom refer to him as SatoshiLite.
Satoshi Nakamoto: was the code name of the creator of Bitcoin. Nobody knows his true identity to this day. Charlie Lee's nickname, SatoshiLite, is just a comment referring to him as the little brother of the mysterious Bitcoin creator.
On December 20, 2017, Charlie Lee announced on Reddit that he had sold all of the LTC he owned. He cited a conflict of interest because his comments on Twitter had such an impact on the LTC price. Lee went on to state that he “will not leave Litecoin. I will still be spending all of my time working on Litecoin. If Litecoin is successful, I will still be rewarded in many different ways, just not directly through owning coins. ”
Who is SatoshiLite?
Charlie Lee was born in Ivory Coast. His parents were Chinese pioneers who went to Africa in the 1960s. When Charlie was 13 he moved to the United States and graduated from MIT with a Masters in Computer Science.
After leaving college, Charlie worked as a software engineer 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 were recognized and in 2007 Google joined them. At Google, Lee worked on projects such as YouTube Mobile and the Chrome operating system. While he was still 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 Charlie on Twitter and stay up to date with his thoughts on the cryptocurrency 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 cryptocurrencies exist side by side, with Litecoin being used for smaller transactions and Bitcoin for larger transactions. Both cryptocurrencies are also viewed as a store of value.
Litecoin focused on:
- Cheaper transactions.
- Faster transactions.
- LTC has gone to great lengths to be taken over by merchants (an area Bitcoin has struggled in).
Litecoin can also be seen as a test area for new technologies for Bitcoin. For example, LTC received Lightning Network, SegWit, and Atomic swaps before Bitcoin did. It appears that once it has been proven that it worked for Litecoin, then an upgrade will be provided for Bitcoin.
1) Lightning Network: Put simply, it's an upgrade that makes transactions faster and cheaper.
2) SegWit: Increases the number of transactions per second that the network can process.
3) Atomic Swaps: Is a method by which people can exchange one cryptocurrency for another without an exchange or third party involvement. Atomic swaps can only take place between two cryptocurrencies that both have implemented the technology.
It's actually not a decision between LTC and Bitcoin. Instead, both cryptocurrencies should be viewed as complementary.
LTC is still a separate giant in the cryptocurrency space. At the time of writing, it has the fifth largest market cap for cryptocurrencies.
How high can the Litecoin price rise?
In short, no one knows what LTC could be worth in the future, or whether the cryptocurrency will be launched en masse. For fun, we're going to take a look at how much Litecoin the average person would have if everyone in the world were to use 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 charge they can expect for credit cards to process transactions is around 1,2% of the transaction value. With LiteCoin, the lowest fee is around 0,0002 LTC, that's around 3 cents! We assume that online stores with the introduction of Litecoin will start faster over time as they want to take advantage of low-cost transactions.
Should you invest in Litecoin?
It is entirely up to you whether or not to invest in Litecoin. However, we are happy to give our opinion.
- LTC is already a well-established (the fifth largest cryptocurrency) and has a large following.
- We see the benefit in using LTC for everyday transactions. Over time, we believe that merchant adoption will increase as business owners try to lower payment processing fees and get faster transactions.
- Since Litecoin is the testing ground for Bitcoin, it is likely that it will always be one step ahead of its big brother technically.
- LTC is one of the easiest cryptocurrencies to buy.
- If LTC is never used on a large scale then it has a limited use case.
- Litecoin founder Charlie Lee has sold all of his Litecoins.
- There are many other cryptocurrencies out there trying to do the same thing as Litecoin.
How to Buy Litecoin
Currently, the easiest way to buy Litecoin is through Coinbase. We have a detailed manual has been compiledshowing you how to use Coinbase and buy Litecoin.
Set up a Litecoin wallet
You can leave LTC on Coinbase - this really is the easiest way to store your Litecoin. However, we believe that it is best for you to be in control of your own cryptocurrency so that you do not have to rely on the trust of third parties.
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 want to install your LTC wallet. For this example we are using MAC OS X
You will then be presented with a screen with a few options. You want to download Litecoin Core. Once downloaded, open the file and move Litecoin Core into your applications.
- You will then see the LTC wallet in your application folder.
- When you try to open the application, you will see that your computer is marking 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 has been blocked. Just click "Open on anyway" to activate it.
- Then a window opens with a welcome message and informs you that the LTC wallet is now downloading every transaction from the Litecoin blockchain. This can take a while.
How do you use the official LTC wallet?
Overview image: Here you only see your LTC balance and whether there are still open transactions. (Our wallet is set to English)
Send: Here you can make Litecoin payments from your wallet.
- Send To - Just enter the recipient's LTC address.
- Amount - Obviously just the amount of LTC you want to send. Be sure to use the correct decimal points.
- Transaction Fee: You can customize the fee you pay. The default is set to a low rate.
- After you have provided the details, your transaction will be processed by clicking the Submit button. As simple as that.
How to send Litecoin to your Wallet: If you have LTC on Coinbase and want to send it to your own Litecoin wallet, click 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 into Coinbase when you want to withdraw your LTC.
Here's how to store your LTC in the safest possible 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 by using 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 Litecoin private 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 as well as ledgers.
Do you need help figuring out which hardware wallet is best for you? Take a look at ours Comparison article Ledger vs. Trezor.