The Ultimate Litecoin Frequently Asked Questions List for 2020

  1. What is Litecoin? What does 'Litecoin' mean?
  2. How does Litecoin work?
  3. Who invented Litecoin? How was Litecoin created? Who is behind Litecoin?
  4. What is Litecoin used for?
  5. Why does Litecoin have value?
  6. How many Litecoin coins are there? What is the Litecoin maximum supply?
  7. What is a Litecoin transaction? How do Litecoin transactions work?
  8. Are Litecoin transactions anonymous? Can Litecoin be traced?
  9. What is Litecoin mining? How is Litecoin mined? How does Litecoin mining work?
  10. Can Litecoin be taxed? Are Litecoin gains taxable? Are Litecoin transactions taxable?
  11. How does a Litecoin ATM work? Are Litecoin ATMs safe? Are Litecoin ATMs anonymous?
  12. Can Litecoin scale?
  13. Can Litecoin be stolen?
  14. Can Litecoin be hacked?
  15. Where is Litecoin stored? Where to store Litecoin?
  16. What is a Litecoin wallet? How do Litecoin wallets work?
  17. Who uses Litecoin? Where is Litecoin used?
  18. Who accepts Litecoin? Where is Litecoin accepted?
  19. Why is Litecoin the future?
  20. Can Litecoin crash? Will Litecoin crash?
  21. Is Litecoin a good investment?/a>
  22. Where to buy Litecoin? How to get Litecoin?
  23. Can I buy Litecoin without ID? Is there a way to get Litecoin without SSN?
  24. Can I get Litecoin without KYC? Is it possible to buy Litecoin without verification?
  25. Which cryptocurrency to buy? Should I buy Bitcoin or Litecoin? Litecoin vs Bitcoin?
  26. Is Litecoin publicly traded?
  27. Can Litecoin reach 1000? Can Litecoin reach 10000? Can Litecoin reach 100K?
  28. How long is a Litecoin transaction time?
  29. How many confirmations for a Litecoin transaction?
  30. How much is a Litecoin transaction fee? How much does a Litecoin transaction cost?
  1. What is Litecoin? What does 'Litecoin' mean?

  2. Litecoin is loosely based on the design ideas of Bitcoin, the world's first decentralized cryptocurrency. Cryptocurrency is a medium of exchange backed by cryptography. A decentralized cryptocurrency keeps track of all transactions by all addresses on a peer-to-peer shared record. The main innovation of Bitcoin is the Blockchain, which breaks up the record of transactions into blocks, each one crypographically connected to the previous. Litecoin is traded on bitni.com.

  3. How does Litecoin work?

  4. Blockchain based cryptocurrencies like Litecoin work by grouping transactions together in data blocks, then linking the blocks cryptographically. The chain of blocks is stored across a decentralized network of nodes, and distributed as peer-to-peer shared files. Quantities of Litecoin are stored at addresses, cryptographic sequences paired with a private key used to spend the amount at the address. The user's wallet keeps track of all their Litecoin addresses and adds up the balance.

  5. Who invented Litecoin? How was Litecoin created? Who is behind Litecoin?

  6. Litecoin was created by Charlie Lee as an attempt to technically improve Bitcoin, by increasing the generation of new blocks to once every 2.5 minutes instead of 10, and using scrypt as the hash function. The first tweak makes transaction times faster. The second makes mining more accessible to those without specialized hardware. Litecoin is maintained by the Litecoin Foundation, and is released as open source.

  7. What is Litecoin used for?

  8. Litecoin is used for anything money is used for - buying, selling, donations. But Litecoin can also be used for even more things than fiat currency: A means of accepting donations or facilitating commerce that cannot be shut down by governments or the banking system. Also storing up wealth that cannot be confiscated.

  9. Why does Litecoin have value?

  10. Litecoin has more value than Fiat Currency because it's more useful: It's anonymous, decentralized, irreversible, cannot be devalued, cannot be confiscated, can be sent over the internet to anywhere in the world in minutes. Things that are very useful and scarce tend to be valuable. One reason Litecoin has value because it fulfills all of the requirements of money: Store of Value, Medium of Exchange, Unit of Account.

  11. How many Litecoin coins are there? What is the Litecoin maximum supply?

  12. The maximum supply of Litecoin is limited to 84 million. The reason is halving - the reward for mining is reduced by half every 4 years. 840,000 transaction blocks are processed every 4 year halving cycle. The first block reward to miners was 50 coins per block, after halving they were 25, then 4 years after that 12.5, and the series keeps reducing by half. All the block rewards that will ever be add up to 100, so 840K times that is 84 million.

  13. What is a Litecoin transaction? How do Litecoin transactions work?

  14. A Litecoin transaction is a transfer of value from one address to another. The transaction spends the outputs of previous transactions as it's input. The entire value of an output is spent, so any remainder may be sent back to the sending address - this is called the "change". A transaction is created by a user on their Litecoin client software, then broadcast out to all the other nodes and becomes part of the Blockchain.

  15. Are Litecoin transactions anonymous? Can Litecoin be traced?

  16. The blockchain is a public record of all transactions by all addresses. However, an address is just a number - it doesn't reveal anything about the identity of the one using it, like a street address can. As long as this number is never linked to an identity, the Litecoin user is safe. There is no way to "trace" a Litecoin address to the person using it - unless they leave clues connecting their Litecoin address to their physical identity. bitni.com has maximum anonymity - we don't ask for personal details.

  17. What is Litecoin mining? How is Litecoin mined? How does Litecoin mining work?

  18. Litecoin mining is the computational process of adding new blocks to the blockchain. New transactions are grouped together in a block. New blocks must cryptographically connect to previous blocks with a proof-of-work hash function. Mining hardware is designed to the hashing function as quickly as possible. Miners are paid a small transaction fee for including new transactions in blocks. Mining also creates new Litecoin coins, which go to the miners.

  19. Can Litecoin be taxed? Are Litecoin gains taxable? Are Litecoin transactions taxable?

  20. Litecoin was not designed to be taxed. If no one reports their Litecoin gains, there is no way an authoritarian regime can know who gained what. However, centralized exchanges with accounts and IDs do report their user's Litecoin balance to tax authorities. If you want privacy from authoritarian regimes, you need an accountless exchange that doesn't ask for your ID - bitni.com is the best exchange in this regard.

  21. How does a Litecoin ATM work? Are Litecoin ATMs safe? Are Litecoin ATMs anonymous?

  22. Litecoin ATMs allow a customer to buy Litecoin by inserting physical cash, like a vending machine, or send Litecoin to receive physical cash. (The former are called "1 way" ATMs and the latter are called "2 way".) If the Litecoin ATM is from a trusted manufacturer and operator, it should be safe to use. Different Litecoin ATMs have differing AML/KYC requirements.

  23. Can Litecoin scale?

  24. Litecoin has scaled to handle millions of transactions per month. Litecoin is software, and it can evolve to scale - the code can be modified with better algorithms and the network then upgrades to the more advanced version. Litecoin was modified from Bitcoin as an attempt to help to solve scaling issues, by creating a new block every 2.5 minutes instead of 10, which allows transactions to be processed faster.

  25. Can Litecoin be stolen?

  26. Anyone who knows the private key can move the coins from an address. If the private key is not known, it's not possible to spend the coins at an address. Litecoin stored in the wallets of a centralized exchange can be stolen - it happens all the time. At a Non-custodial exchange like bitni.com, you are in charge of your wallet at all times.

  27. Can Litecoin be hacked?

  28. If the Litecoin network could be hacked, it would have already happened. The blockchain is decentralized across thousands of independent nodes - the more nodes on the network, the higher the security. If any one node is compromised, it will not compromise the others. However, centralized Litecoin exchanges are hacked all the time! That's why you need a non-custodial exchange like bitni.com.

  29. Where is Litecoin stored? Where to store Litecoin?

  30. The data of all Litecoin transactions is stored in a public ledger (blockchain) distributed as peer-to-peer shared files. Each node has a complete copy of all transactions ever made - the blockchain. So the blockchain is stored in the cloud - not on a centralized server, but on thousands of independent nodes. Each user's Litecoin balance is also kept track of in their wallet.

  31. What is a Litecoin wallet? How do Litecoin wallets work?

  32. A Litecoin wallet stores all of the user's Litecoin addresses. The sum value of all of the addresses in a wallet is automatically added up - this is the total balance of a wallet. Centralized exchanges store the user's wallet, which is risky. Non-custodial exchanges like bitni.com do NOT store user's wallets, which is much safer.

  33. Who uses Litecoin? Where is Litecoin used?

  34. Millions of people everywhere in the world use Litecoin for all the same things as any other money is used for - buying, selling, and donations - and the number of users is growing rapidly. Anyone needing to transfer wealth internationally, especially outside the grasp of authoritarian regimes, for ridiculously low cost, will find Litecoin useful if they are not already using it. Litecoin is also used as an investment and a hedge against inflation.

  35. Who accepts Litecoin? Where is Litecoin accepted?

  36. Many merchants, especially online, accept cryptocurrencies as payment. Charities like Wikipedia accept donations in crypto. Web Hosts and Domain registrars often accept crypto. Large brick and mortar stores are starting to accept crypto payment. Some local restaurants are also coming on board. bitni.com accepts Litecoin to convert to other currencies, of course.

  37. Why is Litecoin the future?

  38. The reason why a cryptocurrency is the future can be summed up in 3 words: Because it's better. Litecoin is a huge improvement over fiat currency. It is also an improvement over precious metals - they can't be wired over the internet. If central banks continue destroying the value of fiat currencies, cryptocurrencies will become even more important to the future of money.

  39. Can Litecoin crash? Will Litecoin crash?

  40. If X were going to crash to zero, it would have probably done it already. There have been wild price swings - because it's new and there's a lot of speculation, like the internet when it first came out. But there are wild price swings with other commodities like oil. Litecoin's low after it's all-time high of several hundred dollars is still in the scores of dollars. For Litecoin to crash to $0, demand would need to be zero or supply would need to be infinite - a highly unlikely scenerio.

  41. Is Litecoin a good investment?

  42. The Original Bitcoin has gone from pennies to thousands and thousands of dollars in less than a decade, utterly blown away the stock market, even gold and other precious metals, and far outperformed pretty much any other investment. While Litecoin has not reached Bitcoin's high, it has performed relatively well, going from pennies to several hundred dollars at it's high - a pretty good investment.

  43. Where to buy Litecoin? How to get Litecoin?

  44. Exchanges are where Litecoin is bought and sold, however there are several types: Centralized Exchanges store the user's coins like a bank and require ID. Decentralized Exchanges (DEX) facilitate peer-to-peer buying and selling between users - and these can be done locally in-person or online. Non-Custodial exchanges like bitni.com are a quick and easy way of swapping cryptocurrencies without signing up.

  45. Can I buy Litecoin without ID? Is there a way to get Litecoin without SSN?

  46. Many Centralized exchanges have rigorous requirements for identification, such as uploading a scan of passport or other government documents. Decentralized exchanges usually have less stringent requirements for identification, especially if the transaction is in-person. Non-custodial exchange bitni.com does not require identification for crypto-to-crypto swaps. If you want Litecoin without SSN, you've come to the right place.

  47. Can I get Litecoin without KYC? Is it possible to buy Litecoin without verification?

  48. KYC stands for Know Your Customer. Many regimes have become increasingly authoritarian towards cryptocurrency and seek to crack down on anonymous trading, by requiring the customer to upload documents proving their identity. Many exchanges have caved in to the pressure and now have KYC policies. Centralized exchanges almost always have KYC, some Decentralized exchanges do as well. bitni.com does not require KYC for crypto-to-crypto swaps.

  49. Which cryptocurrency to buy? Should I buy Bitcoin or Litecoin? Litecoin vs Bitcoin?

  50. In many ways, Litecoin is technically superior to Bitcoin. It has much faster transaction times. It can be mined on home computers without specialized hardware. However, Litecoin doesn't have the massive publicity that Bitcoin has (not all of Bitcoin's publicity is good, but apparently there's no such thing as bad publicity). And that's why Bitcoin is priced much higher. Many more people know about Bitcoin than Litecoin.

  51. Is Litecoin publicly traded?

  52. Most Litecoin trading is done by buying and selling coins directly by individual investors. However, there are cryptocurrency funds listed on stock markets. A Cryptocurrency Exchange Traded Fund (ETF) holds assets in single cryptocurrencies or a basket of them. It may be more convenient to buy into one basket fund instead of manually managing dozens of different cryptos and their respective wallets. In the case of Litecoin, it is probable some Cryptocurrency ETFs are holding it.

  53. Can Litecoin reach 1000? Can Litecoin reach 10000? Can Litecoin reach 100K?

  54. Thousands, or tens of thousands, or even hundreds of thousands for a Litecoin may seem speculative, but Litecoin's high is already several hundred dollars. Litecoin started out at practically nothing and rose in a parabolic curve to it's high almost a hundred times higher than the starting price. $1000 is only three times higher than the all time high. If the long term trend continues, Litecoin could reach new highs orders of magnitude greater.

  55. How long is a Litecoin transaction time?

  56. A new block on the Litecoin blockchain is added every 2.5 minutes. The number of transactions in each block is limited to several thousand. Transactions paying higher fees are given priority over those paying lower fees, which must sometimes wait to be included in future blocks instead of the current one. A Litecoin transaction time can be as short as the generation of one block in 2.5 minutes. However, 6-12 levels of blocks is needed for irreversibility, thus the safe transaction time is 15-30 minutes.

  57. How many confirmations for a Litecoin transaction?

  58. A Litecoin transaction can be tentatively completed in as little as 1 confirmation in 2.5 minutes. However, the latest blocks in the blockchain are changeable until more blocks are added after them. For irreversibility, 6-12 levels of blocks and thus 6-12 confirmations are needed. The latest block in the process of being added to the blockchain is changeable. Not till several more blocks have been added after it is that part of the blockchain considered immutable.

  59. How much is an Litecoin transaction fee? How much does a Litecoin transaction cost?

  60. A Litecoin transaction fee is the cost of having transaction data included in blocks added to the blockchain permanent record, which fluctuates under market supply and demand. The highest fees are over a dollar, the lowest are pennies. Lots of factors affect Litecoin transaction fees, such as the cost of electricity, the hardware capacity and competition between miners, the number of simultaneous transactions competing to be included in a block.

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