Litecoin is the “silver to Bitcoin’s gold”: one of the oldest, most reliable cryptocurrencies, built for fast, cheap payments rather than fancy features. It has run without drama since 2011, shares Bitcoin’s hard-capped monetary design, and is accepted almost everywhere. This review covers what LTC is, how it compares to Bitcoin, its supply and mining, and how to buy and store it.
What is Litecoin?
Litecoin is a peer-to-peer cryptocurrency created in 2011 by Charlie Lee, a former Google engineer. It was forked from Bitcoin’s codebase with a few deliberate changes aimed at faster, cheaper everyday payments. Lee described Litecoin as the “silver to Bitcoin’s gold,” a lighter, more transactional counterpart to Bitcoin’s store-of-value role.
LTC is the network’s native asset. Litecoin is not a smart-contract platform. Its appeal is simplicity, longevity, and reliability as a way to move value quickly at low cost. It is one of the longest-running blockchains still in continuous operation.
Litecoin vs Bitcoin
Litecoin is closely modelled on Bitcoin, with a few key differences that define its niche.
| Property | Bitcoin | Litecoin |
|---|---|---|
| Launched | 2009 | 2011 |
| Maximum supply | 21 million | 84 million |
| Block time | About 10 minutes | About 2.5 minutes |
| Hashing algorithm | SHA-256 | Scrypt |
| Primary role | Store of value | Everyday payments |
The faster blocks and larger supply make LTC feel more like spendable money, while keeping the same predictable, capped issuance that gives Bitcoin its hard-money appeal.
How Litecoin’s tokenomics work
Litecoin mirrors Bitcoin’s monetary design, with a larger supply and faster blocks.
- Fixed supply. A hard cap of 84 million LTC, exactly four times Bitcoin’s 21 million.
- Halving. Block rewards are cut in half roughly every four years, steadily reducing new issuance until the cap is reached.
- Faster blocks. A roughly 2.5-minute block time means quicker confirmations than Bitcoin.
| Property | Detail |
|---|---|
| Maximum supply | 84,000,000 LTC |
| Consensus | Proof-of-Work (Scrypt) |
| Block time | About 2.5 minutes |
| Issuance | Halves roughly every four years |
Scrypt mining and the payments focus
Litecoin uses the Scrypt hashing algorithm rather than Bitcoin’s SHA-256. Scrypt was originally chosen to be more memory-intensive and resistant to early specialised mining hardware. Today, dedicated Scrypt miners exist, and Litecoin is frequently merge-mined with Dogecoin, which shares the algorithm and borrows Litecoin’s security.
In practice, Litecoin’s enduring niche is fast, cheap payments. Low fees and quick confirmations make it a common choice for transfers, and it is widely accepted by merchants, payment processors, and exchanges. Its long, stable track record is part of the appeal, with no complex moving parts to break.
Pros and cons
Strengths
- One of the most battle-tested blockchains, running reliably since 2011.
- Low fees and fast confirmations suit real-world payments.
- A clear, predictable monetary policy with a hard cap and halvings.
- Extremely broad exchange and merchant support.
Risks
- Limited functionality compared with smart-contract platforms. It competes purely as money.
- Pressure from stablecoins and faster payment-focused chains.
- As an older asset, it can lack the growth narrative of newer projects.
Where to buy and store LTC
LTC is one of the most widely listed cryptocurrencies and trades on Binance, Coinbase, Kraken, and almost every other major exchange. New to this? Our how to buy crypto guide covers the steps. After buying:
- Self-custody. Withdraw LTC to a hardware or software wallet. Litecoin is supported by virtually all multi-coin wallets. See our wallets guide.
- Spend it. Its low fees make LTC practical for real payments where accepted.
- Hold on exchange. Convenient for traders, but you do not control the private keys.
Litecoin does not offer staking, since it is a proof-of-work coin. Earning yield on LTC generally means lending it through a third party, which carries counterparty risk.
Frequently asked questions
How is Litecoin different from Bitcoin? Litecoin shares Bitcoin’s basic design but has faster 2.5-minute blocks, a larger 84 million supply, and uses Scrypt instead of SHA-256. It is positioned for everyday payments rather than mainly as a store of value.
Can I stake Litecoin? No. Litecoin is a proof-of-work coin with no native staking. Any LTC yield comes from lending through a third party, which adds counterparty risk.
Does Litecoin have a supply limit? Yes. There will only ever be 84 million LTC, and new issuance halves roughly every four years until that cap is reached.
Is Litecoin still used? Yes. It remains one of the most widely accepted coins for payments, valued for low fees and fast, reliable confirmations.
What is merge-mining with Dogecoin? Because Litecoin and Dogecoin share the Scrypt algorithm, miners can secure both chains at once with no extra energy, which strengthens the security of both.