What is Litecoin?
Litecoin is another type of cryptocurrency that launched in 2011 as an alternative to Bitcoin.
June 22, 2023
What is Litecoin and when was it launched?
Litecoin is another type of digital currency, like Bitcoin and Bitcoin Cash. It was launched in 2011, shortly after Bitcoin as an alternative (now known as an “altcoin”).
Just like other cryptocurrencies, it’s not owned by one person, company, or government. It’s enabled and supported by all its users, on networks of computers running certain software.
Who created it?
Litecoin was created by Charlie Lee, a former Google engineer who had a goal of making a faster, cheaper version. He called it the “lite version of Bitcoin.”
He built it using the same software as Bitcoin, but he tweaked the code to produce a different cryptocurrency.
Litecoin is confirmed faster
So, what makes Litecoin "lite?" Litecoin can handle a maximum of 56 transactions per second, whereas Bitcoin can only handle a maximum of 71.
Litecoin also has 4 times the maximum supply as Bitcoin: 84 million in total. And as of April 2022, over 70 million Litecoin have been created2.
Market volatility: It's up and it's down
Like with many cryptocurrencies, there’s volatility in the price of Litecoin—meaning prices can go up and down quickly in a short amount of time.
In May 2021, the price of Litecoin hit an all-time high of $412.96. But over the next 6 months, its price fell by over 50%3.
What that means for you: Trading cryptocurrency can be risky so it’s important to decide for yourself if you’re comfortable buying it.
If you do decide it’s the right move for you, think about how much you want to invest in crypto. Make sure it’s not money from your emergency savings or that you may need to pay your bills.
Essentially, if you can’t afford to lose it, don’t use it.
What can I do with it?
In the Plynk app, you can only buy, hold, and sell Litecoin.
But more broadly, people around the world use Litecoin in all sorts of ways. They buy, hold, sell, transfer, and exchange it.