What Is Litecoin?

By Lyle Daly – Updated Dec 31, 2024 at 4:31 PM

Key Points

Litecoin, launched in 2011, processes transactions faster and cheaper using blockchain technology.
Litecoin's value hinges on user adoption and features like faster transactions than Bitcoin.
Risks for Litecoin include low merchant acceptance and potential obsolescence due to competition.

Litecoin (LTC +3.87%) is a cryptocurrency that launched in 2011 to complete cryptocurrency transactions quickly and cheaply. It was developed using a copy of Bitcoin's (BTC +3.65%) source code, and it is one of the first altcoins, a term used to refer to every cryptocurrency other than the market leader Bitcoin.

Litecoin in its early years frequently ranked as the second-largest cryptocurrency. Its similarity to Bitcoin makes Litecoin popular among those looking for an affordable Bitcoin alternative. If you're considering an investment in Litecoin, keep reading to learn everything you need to know.

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Cryptocurrency Metric	Litecoin	Bitcoin
Coin release date	Oct. 7, 2011	Jan. 9, 2009
Maximum coin supply	84 million	21 million
Average transaction time	2.5 minutes	10 minutes
Halving interval for block rewards	840,000 blocks	210,000 blocks
Mining algorithm	Scrypt	SHA-256

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About the Author

Lyle Daly is a contributing Motley Fool stock market analyst covering information technology and cryptocurrency. Lyle has been a contributor at the financial services company since 2018. His work has been featured on USA Today, Yahoo Finance, MSN, Fox Business, and Nasdaq. Before joining The Motley Fool, he wrote for financial brands including Intuit.

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Lyle Daly has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin, Coinbase Global, and PayPal. The Motley Fool recommends the following options: long January 2027 $42.50 calls on PayPal and short March 2025 $85 calls on PayPal. The Motley Fool has a disclosure policy.