What Is Litecoin? Faster, Lighter Alternative to Bitcoin
Litecoin (LTC) is a peer-to-peer cryptocurrency that launched in 2011. The aim was for it to be faster and more lightweight than Bitcoin, originally based on Bitcoin’s codebase, but with quicker block processing, intended to be used as a method of peer-to-peer payment. As one of the oldest, most widely traded, and best-established altcoins, it’s a solid example for anyone learning the basics of how a decentralized digital currency works.
Litecoin Current Price, Market cap, Supply
The price of Litecoin moves around with the rest of the crypto market every day. As of writing, LTC is trading at $45. It has a market cap of roughly $3.5 billion, which gives it rank #28 by market cap on CoinGecko. Daily trading volume is in the hundreds of millions of dollars, indicating relatively good liquidity on the exchanges it’s listed on. There are 77.2 million LTC circulating out of a total hard cap of 84 million coins. The token reached its all-time high in May 2021 at almost $410 as part of a market-wide rally, well above current prices.
| Metric | Approximate Value |
|---|---|
| Price | ~$45 |
| Market cap | ~$3.5 billion |
| CoinGecko rank | #28 |
| 24-hour volume | ~$300 million |
| Circulating supply | ~77.2 million LTC |
| Max supply | 84 million LTC |
| All-time high | ~$410 (May 2021) |
The figures contained on this page are approximate and will change over time. Use a real-time price tracker to verify the current price before making any decisions based on this data.
How Transactions Are Processed by Litecoin Network?
Litecoin uses the Scrypt algorithm to facilitate mining of its currency, which is what allowed mining via consumer hardware before ASICs became common. Charlie Lee, an ex-Googler, started this project in an effort to decrease Bitcoin’s transaction confirmation times; usually, Litecoin’s transactions are confirmed within 2.5 minutes.
Block rewards are halved on a pre-scheduled basis via events called Litecoin halving, which reduces the amount of new currency that will enter circulation over time. Litecoins can be sent in private via an upgrade that introduced MimbleWimble (MWEB); additionally, LitVM aims to bring smart contracts and other forms of programmability to the Litecoin blockchain. In general, the transaction fees for using Litecoin are less than $0.01.
Where to Buy and Store Litecoin
Investors who want to buy Litecoin can find it on most major exchanges, such as Kraken, eToro, and Bybit. It is often paired with USD or USDT as its most active trading pair. After purchasing, coins can either stay on the exchange or be transferred to a dedicated Litecoin wallet, which can be a mobile app or a hardware device. This option provides better control over private keys. Some platforms have also launched products related to a Litecoin ETF. This provides investors with indirect exposure without holding the coin directly, but availability differs by region and regulations.
Opportunities & Risks for Litecoin Investors
Opportunities
Longstanding history of liquidity in the larger crypto ecosystem
Faster and cheaper transfer times vs BTC (LTC vs BTC)
Continued use case for low-cost transfer of value from person-to-person
Potential future catalysts could be institutional adoption or renewed interest in ETFs
Risks and Considerations
LTC has a smaller market cap and dev community compared to BTC
Like all altcoins, LTC is subject to extreme price fluctuations
Price forecasts of LTC are speculative and not certain
Regulatory issues are handled by individual jurisdictions of the world which may impact trading and/or classification of LTC
Things to Consider before Investing in Litecoin
If you’re planning on purchasing Litecoin there are a few things that you may wish to consider first.
- Liquidity: ensure the exchange has sufficient trading volume to enter and exit positions without any significant slippage.
- Security: prefer exchanges that have a proven record, and transfer your larger holdings into a non-custodial wallet
- Regulatory position: ascertain whether the asset is supported, and properly licensed in your jurisdiction
- Strategy for entry: while some newer investors might prefer to make one large investment, many are opting for the dollar-cost averaging strategy, while deciding whether to execute a market order (to make immediate entry) or a limit order (to target a particular price)
As a rule it is a good idea to spread money across many different investments so you do not lose everything if one of them does not do well. It is also an idea to learn about the people behind Litecoin and what they plan to do before you give them your money. Most importantly do not invest more money than you can afford to lose.
Summary of Tracking Litecoin
This guide is for informational purposes only and is not financial advice. Prices, network upgrades and regulatory conditions change often so it is good to check live data and multiple sources before forming any view on where the coin may be going.
Commonly Asked Questions About Litecoin
What is the price of Litecoin today?
The cost of Litecoin varies moment to moment. A live tracker can be found that will give you a live reading. It is around $45 currently.
Should I hold or sell Litecoin at the current price?
That depends on your individual finances and ambitions-this guide cannot answer this question for a reader.
Is Litecoin a good investment right now and long-term?
It is a personal investment decision and depends on your risk appetite and long-term horizon, based on individual research rather than a single answer.
Will Litecoin reach $10,000?
There is no factual foundation on which to base this kind of claim and so any answer at that level must be considered purely speculative.
