What is Litecoin?

James Patterson Crypto Casino Expert

Updated:December 12, 2022

When it comes to online currencies, there are several big names in the cryptocurrency world that are more well-known than others. Of course, keeping these in mind can help you find the right currency for your needs. However, not every cryptocurrency is created equally; some are much more volatile and less reliable than others.

With this thought in mind, today, we’re looking at some of the key features of the Litecoin cryptocurrency, including how it differs from more recognized options and how you might be able to use Litecoin for your own online payments. Hopefully, this will help you decide whether or not Litecoin payments are the right option for your online spending or money-saving goals.

What is Litecoin?

Litecoin is a very interesting type of cryptocurrency that has somewhat gone overlooked compared to other forms of crypto, such as Bitcoin, Ethereum, and Tether. However, there’s no doubt that the Litecoin model offers numerous key benefits that have contributed to the platform’s success, despite the seemingly lower appeal than some alternatives.

Litecoin is the second-oldest form of cryptocurrency, launched in 2011. Charlie Lee (a former engineer at Google) developed Litecoin. When compared to many of the other altcoins that launched around a similar time, it’s undeniably become one of the most well-known in the modern day. The average market capitalization of Litecoin is around 10% of the Ethereum blockchain.

The Litecoin cryptocurrency uses C++ as a coding language and Scrypt as a hashing algorithm. This would pave the way for other currencies, such as Dogecoin, to do the same. However, Litecoin was innovative in its features, focusing on providing more efficient solutions than Bitcoin. It is often described as the “silver to Bitcoin’s gold” as a result.

Originally, Litecoin aimed to provide an alternative cryptocurrency that massive miners didn’t dominate. However, while Litecoin failed to make mining more focused on small-scale, individual use, it succeeded in several other ways. Notably, the Litecoin system focused on maintaining the value of its currency and providing a faster, more efficient payment system.

A single Litecoin can be divided into smaller subunits. The smallest subunit of Litecoins is the Litoshi, representing around one hundred millionth of a Litecoin.

Is Litecoin a Stable Currency?

Litecoin is not a form of stablecoin, which means that its value fluctuates over time. However, an interesting point of note about the Litecoin platform is that it implemented a long-term value retention strategy whereby the total value of a mined block halves roughly every four years.

This helps preserve the coin’s value by reducing the overall supply of Litecoins, up to a pre-set maximum of 84 million coins in circulation. As such, the developers anticipated that Litecoin would offer a more stable form of wealth holding than other cryptocurrencies.

Originally, when Litecoin launched in 2011, only 150 pre-mined coins were available. Currently, there are approximately 71.8 million Litecoins in circulation. The next deadline for block rewards to be halved is scheduled for August 2023.

How is Litecoin Backed?

Similarly to Bitcoin, Litecoin is not backed by any tangible assets, which can cause the value of a single Litecoin to fluctuate. Since it has a greater supply and is less widely supported by investors compared to other cryptocurrencies, it also has a much lower value per coin. Therefore, this could significantly influence the price you pay for Litecoins.

How Much is Litecoin Worth?

While Litecoin is not backed by any tangible assets or a form of stablecoin, its worth tends to be much more stable than other types of cryptocurrencies. For example, while Bitcoin and Ethereum both suffered major value drops in 2018, down to around one-third to one-fifth of the current value of a coin, Litecoin only dropped by around 50% – indicating much better value stability.

This may be due to the relatively lower value of each Litecoin, making the asset seem more appealing to more casual crypto users. Additionally, the fast transaction speeds make Litecoins among the most practical options for online payments.

How Does Litecoin Work?

Litecoin works very similarly to the standard Bitcoin model but focuses on providing a more efficient solution overall. It is an open-source code that uses a simpler algorithm than Bitcoin, enabling much faster transactions. As such, the time required to mine a single Litecoin block is around one-quarter of Bitcoin’s time, taking only about two and a half minutes per block to complete. This enables substantially faster transaction speeds with Litecoin compared to other cryptocurrencies, making it one of the main options for people wanting a more rapid transaction option.

Can I Make Money with Litecoin?

As with any non-stable cryptocurrency, it is potentially possible to make money with Litecoin. However, Litecoin’s value fluctuations, for the most part, tend to be very small, with fluctuations over the course of a day usually only changing by around 3%. However, it is potentially possible to make money with Litecoin. Still, it’s also possible to lose money – as such, any Litecoin investments should only be made with money you can afford to lose.

Of course, it’s notable here that Litecoin is designed to be a long-term financial storage platform instead of a “get rich quick” scheme. As such, steps have been taken to keep the value of Litecoins as similar as possible, which reduces the opportunities for investors to make money directly.

Where Can I Buy Litecoin Cryptocurrencies?

If you would like to buy Litecoins, there are numerous cryptocurrency exchanges online that support the currency. Platforms such as Coinbase and Binance are among the most popular and well known exchanges that provide support for Litecoin purchases; however, the majority of cryptocurrency exchanges that handle altcoins will also provide support for Litecoin transactions.

You can buy Litecoins directly from other traders with Fiat currency. Or, you can trade other cryptocurrencies for Litecoins instead.

How Litecoin Can be Used to Bet at Casinos

Litecoin can be used for online purchases in many different ways. Notably, since Litecoin is designed to be faster than Bitcoin and other such cryptocurrencies, it may also provide a much faster and more streamlined option for individuals looking to deposit or withdraw funds from online casinos.

The Benefits of Using Litecoin to Bet at Casinos

If you’re looking to bet or gamble with online casinos, cryptocurrency payments like Litecoin often provide many benefits. As a result, it’s clear that Litecoins (and other similar currencies) can be a valuable tool to help improve your overall experience.

Speed

Without a doubt, the main benefit of using Litecoin as a payment method for online casinos – particularly in comparison to other forms of cryptocurrency – is speed. Since Litecoin uses a much faster block time, processing transactions takes even less time with Litecoin compared to Bitcoin. As such, your deposits and withdrawal transactions should complete almost instantly!

Anonymity

As is the case with many cryptocurrencies, a further benefit of using Litecoin to bet at online casinos is anonymity. Since your personal data is not directly attached to the transaction, it’s incredibly difficult to trace payments made via cryptocurrency routes. This also prevents any transactions from appearing on your bank statement, making it a much more private transaction than paying with a bank card.

Secure

When it comes to security, there’s no doubt that the Litecoin hashing system is incredibly effective for preventing hacking and brute-force attacks. The platform has not suffered any major attacks, and Litecoin is considered a more secure version than Bitcoin. Plus, by using Litecoin to pay for your casino funds or withdrawals, your financial information is kept off the casino site..

In the event of any data breaches with the casino, your personal data will be much more secure if you haven’t directly entered them into the platform; instead, your personal data is tied to your Litecoin wallet, helping add an additional layer of safety and security for your transactions.

Range

It might not be the most popular cryptocurrency on the market, but the incredible speeds of Litecoin have helped cement it as a firm favorite among casinos. Many online casinos now offer Litecoin payment options to help provide new and innovative payment opportunities for customers, helping

Final Thoughts

If you’ve been looking for a new way to play online casino games, using an altcoin such as Litecoin could be worthwhile. And, while it’s perhaps not quite as famous as some of the other major cryptocurrencies, it’s nevertheless clear that Litecoin paved the way for new advancements in the crypto field.

Being the second-oldest cryptocurrency itself is nothing to scoff at, and the “simpler” nature of the Litecoin cryptocurrency system definitely makes it a practical and versatile cryptocurrency to work with. So, if you’ve found an online casino that pays out in Litecoins, considering Litecoin payments could be a good part of your decision. However, it’s important to recognize that the number of available Litecoins is rapidly running out, and it may not be long before the mining cap of 84 million coins is reached, especially due to the contributions of large scale mining companies and systems.

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About the author

James Patterson

Editor

James Patterson

Editor

James Patterson studied computer science in the Unveristy of Colorado before taking an interest in cryptocurrencies. For years James has worked with various online casinos on their tech implentation and is considered an expert in the field of crypto payments.