Bitcoin vs Litecoin: How are BTC and LTC different?

We compare bitcoin and Litecoin side by side in this in-depth guide.

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As the world’s oldest and largest cryptocurrency, bitcoin (BTC) needs no introduction. While not as well-known as its bigger brother, Litecoin (LTC) has also long been one of the world’s largest digital currencies by market cap and has a loyal following in the crypto community.

So, what’s the difference between bitcoin and Litecoin and how do they compare to one another? To find out, let’s take a look at the history, features and purpose of each coin.

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade.

Head to head: Bitcoin vs Litecoin

Bitcoin (BTC)

Buy bitcoin

Litecoin (LTC)

Buy Litecoin

Launch date3 January 20097 October 2011
FounderSatoshi NakamotoCharlie Lee
OriginUnknownUnited States
Max. number of tokens21 million84 million
Token usesDigital assetDigital asset
IndustryPeer-to-peer digital currencyPeer-to-peer digital currency
Consensus algorithmProof of workProof of work
AlgorithmSHA-256Scrypt
Decentralised?
  • Yes
  • Yes
Mineable?
  • Yes
  • Yes
Buy token

Where to buy bitcoin and Litecoin

We've compiled a list of exchanges where you can buy bitcoin and Litecoin. Compare below or head to our step-by-step guide for how to buy bitcoin or comprehensive guide on how to buy Litecoin.

Name Product Deposit methods Fiat Currencies Cryptocurrencies
CoinSpot Cryptocurrency Exchange
Bank transfer, BPAY, Cash, Cryptocurrency, POLi, PayID
AUD

308
cryptocurrencies

CoinSpot is an Australian exchange that lets you easily buy, sell and trade more than 290 cryptos.
Swyftx Cryptocurrency Exchange
Bank transfer, Credit card, Cryptocurrency, Debit card, Osko, PayID
AUD, NZD

284
cryptocurrencies

Finder Exclusive: Receive $10 BTC on Sign up and Verification.
Buy and sell a wide range of cryptocurrencies at competitive rates on this Australian exchange.
Digital Surge Cryptocurrency Exchange
Bank transfer, Cryptocurrency, POLi, Osko, PayID
AUD

276
cryptocurrencies

Finder Exclusive: New members get $10 bonus after verification. T&Cs apply.
An Australian based exchange with a focus on simplicity that allows users to purchase a range of cryptocurrencies with AUD.
Binance Cryptocurrency Exchange
Credit card, Cryptocurrency, Debit card, Osko, PayID
USD, AUD, GBP, CAD, EUR, CNY, RUB, TRY, NGN, UAH & 40+ more

272
cryptocurrencies

Promo: New users earn up to USD 100 in bonus rewards on qualified deposits and trades. Valid till 31 December 2021. T&Cs apply.
Binance is the world’s largest exchange by trading volume. Get started with instant zero fee AUD deposits and withdrawals in Australia, and enjoy low trading fees, a wide selection of cryptocurrencies and 24/7 local customer support.
Independent Reserve Exchange
Cryptocurrency, SWIFT, Osko, PayID, EFT
AUD, NZD, USD

27
cryptocurrencies

Trade AUD and other fiat currencies against a wide range of cryptos at competitive rates.
Cointree Cryptocurrency Exchange
Cash, Cryptocurrency, POLi, PayID, Online banking
AUD

166
cryptocurrencies

Finder Exclusive: New members get $10 bonus after first trade. T&Cs apply.
Buy 160+ cryptocurrencies with fast-growth portfolio insights, and the ability to swap any coin to any other instantly.
Coinstash Cryptocurrency Exchange
Bank transfer, Cryptocurrency, PayID
AUD

123
cryptocurrencies

Buy 120+ different cryptocurrencies using AUD with competitive trading fees in the Australian market.
eToro Cryptocurrency Trading
Bank transfer, Credit card, Debit card, Neteller, PayPal, Online banking, Skrill
EUR, GBP, NZD, USD, AUD, CAD, HKD, SGD, CHF, NOK & 5+ more

27
cryptocurrencies

Disclaimer: Volatile investment product. You should consider whether you can afford to take the high risk of losing your money.
Copy the trades of leading cryptocurrency investors on this unique social investment platform. $50 minimum deposit.
FTX Cryptocurrency Exchange
FTX Cryptocurrency Exchange
Credit card, Wire transfer, Silvergate Exchange Network (SEN), Signature SIGNET
USD,EUR,GBP,AUD,HKD,SGD,TRY,ZAR,CAD,CHF,BRL

69
cryptocurrencies

FTX is an exchange built by traders for traders, with a range of derivatives markets such as options and futures with deep leverage, in addition to standard spot markets. Note: Not available for US customers.
Gate.io Cryptocurrency Exchange
Cryptocurrency
USD, EUR, GBP, HKD, SGD, AUD, CHF, MXN

825
cryptocurrencies

Finder exclusive: New users get $90 worth of Gate.IO points and an airdrop of $5 in GateTokens if trade volume exceeds $100 in their first week. T&Cs apply.
A feature-rich exchange with over 700 tokens including derivatives, yield farming and lending products.
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Compare up to 4 providers

Name Product Deposit methods Fiat Currencies Cryptocurrencies
CoinSpot Cryptocurrency Exchange
Bank transfer, BPAY, Cash, Cryptocurrency, POLi, PayID
AUD

308
cryptocurrencies

CoinSpot is an Australian exchange that lets you easily buy, sell and trade more than 290 cryptos.
Swyftx Cryptocurrency Exchange
Bank transfer, Credit card, Cryptocurrency, Debit card, Osko, PayID
AUD, NZD

284
cryptocurrencies

Finder Exclusive: Receive $10 BTC on Sign up and Verification.
Buy and sell a wide range of cryptocurrencies at competitive rates on this Australian exchange.
Digital Surge Cryptocurrency Exchange
Bank transfer, Cryptocurrency, POLi, Osko, PayID
AUD

276
cryptocurrencies

Finder Exclusive: New members get $10 bonus after verification. T&Cs apply.
An Australian based exchange with a focus on simplicity that allows users to purchase a range of cryptocurrencies with AUD.
Binance Cryptocurrency Exchange
Credit card, Cryptocurrency, Debit card, Osko, PayID
USD, AUD, GBP, CAD, EUR, CNY, RUB, TRY, NGN, UAH & 40+ more

272
cryptocurrencies

Promo: New users earn up to USD 100 in bonus rewards on qualified deposits and trades. Valid till 31 December 2021. T&Cs apply.
Binance is the world’s largest exchange by trading volume. Get started with instant zero fee AUD deposits and withdrawals in Australia, and enjoy low trading fees, a wide selection of cryptocurrencies and 24/7 local customer support.
Independent Reserve Exchange
Cryptocurrency, SWIFT, Osko, PayID, EFT
AUD, NZD, USD

27
cryptocurrencies

Trade AUD and other fiat currencies against a wide range of cryptos at competitive rates.
Cointree Cryptocurrency Exchange
Cash, Cryptocurrency, POLi, PayID, Online banking
AUD

166
cryptocurrencies

Finder Exclusive: New members get $10 bonus after first trade. T&Cs apply.
Buy 160+ cryptocurrencies with fast-growth portfolio insights, and the ability to swap any coin to any other instantly.
Coinstash Cryptocurrency Exchange
Bank transfer, Cryptocurrency, PayID
AUD

123
cryptocurrencies

Buy 120+ different cryptocurrencies using AUD with competitive trading fees in the Australian market.
eToro Cryptocurrency Trading
Bank transfer, Credit card, Debit card, Neteller, PayPal, Online banking, Skrill
EUR, GBP, NZD, USD, AUD, CAD, HKD, SGD, CHF, NOK & 5+ more

27
cryptocurrencies

Disclaimer: Volatile investment product. You should consider whether you can afford to take the high risk of losing your money.
Copy the trades of leading cryptocurrency investors on this unique social investment platform. $50 minimum deposit.
FTX Cryptocurrency Exchange
FTX Cryptocurrency Exchange
Credit card, Wire transfer, Silvergate Exchange Network (SEN), Signature SIGNET
USD,EUR,GBP,AUD,HKD,SGD,TRY,ZAR,CAD,CHF,BRL

69
cryptocurrencies

FTX is an exchange built by traders for traders, with a range of derivatives markets such as options and futures with deep leverage, in addition to standard spot markets. Note: Not available for US customers.
Gate.io Cryptocurrency Exchange
Cryptocurrency
USD, EUR, GBP, HKD, SGD, AUD, CHF, MXN

825
cryptocurrencies

Finder exclusive: New users get $90 worth of Gate.IO points and an airdrop of $5 in GateTokens if trade volume exceeds $100 in their first week. T&Cs apply.
A feature-rich exchange with over 700 tokens including derivatives, yield farming and lending products.
loading

Compare up to 4 providers

Did you know?

Bitcoin and Litecoin: A brief history

Bitcoin’s origins can be traced back to 2008, when Satoshi Nakamoto, whose true identity remains unknown, released a now-legendary paper titled “Bitcoin: A Peer-to-Peer Electronic Cash System”. In it, Nakamoto outlined a vision for peer-to-peer electronic cash that would decentralise the world’s financial systems.

In January 2009, bitcoin was launched. Using a public ledger known as a blockchain to record and validate transactions, bitcoin is designed to function independently of any central authority such as a government or bank.

You wouldn’t have known it at the time, but bitcoin was to inspire a whole generation of cryptocurrencies. One of these was Litecoin, which Google employee Charlie Lee created by modifying bitcoin’s open-source code. Launched in October 2011, Litecoin was designed to offer faster, more affordable transactions than bitcoin, making it a much more practical digital currency for everyday use.

As Lee would famously state, “Litecoin is the silver to bitcoin’s gold.”

Prices: Bitcoin vs Litecoin

Bitcoin

Litecoin


How similar are bitcoin and Litecoin?

On the surface at least, there are plenty of similarities between bitcoin and Litecoin. Both of them are cryptocurrencies designed to remove the need for centralised control, both can be used as digital cash, and both rely on a proof of work algorithm to achieve network consensus.

But there are far more differences than there are similarities.

How bitcoin works vs how Litecoin works: 5 key differences

1. Total coin supply

This is one of the most obvious differences between the two coins. While bitcoin’s maximum supply of coins will never exceed 21 million, Litecoin’s upper limit is four times higher at 84 million. As of June 2018, there are approximately 17.1 million BTC and 57 million LTC in circulation, representing approximately 81% and 68% of their respective total supply.

In terms of their practicality for everyday use, this difference in the supply limits doesn’t really have any effect. This is due to the fact that both currencies can be divided into tiny amounts – the minimum amount of BTC you can transfer is 0.00000001 BTC (one hundred-millionth of a BTC), which is known colloquially as a satoshi – so they can still be used to purchase low-cost goods and services.

2. Transaction processing speed

Although bitcoin and Litecoin transactions are technically processed instantly, it takes time for those transactions to be confirmed by other network participants.

Litecoin is significantly faster than bitcoin at confirming transactions. While bitcoin’s average confirmation time is around 10 minutes per transaction, Litecoin’s network typically takes around 2.5 minutes to confirm a transaction. In times of heavy network congestion, bitcoin confirmation times have even stretched beyond a day. This theoretically makes Litecoin a more attractive proposition for merchants and others who need to frequently conduct transactions.

However, bitcoin advocates have pointed out that many merchants would happily allow zero-confirmation transactions on most purchases.

3. Mining algorithms

Both bitcoin and Litecoin can be generated by mining, with new bitcoin blocks generated every 10 minutes and new Litecoin blocks every 2.5 minutes. However, the algorithms these two currencies use to determine the mining process that generates new coins are different – bitcoin uses the SHA-256 algorithm and Litecoin’s algorithm is called Scrypt.

The SHA-256 algorithm is widely considered to allow a greater degree of parallel processing. This has seen the development of increasingly sophisticated mining methods, with the vast majority of bitcoin mining now carried out by Application-Specific Integrated Circuits (ASICs). Built for the sole purpose of mining bitcoin, these expensive hardware systems have taken bitcoin mining far out of reach for the everyday user.

Meanwhile, Litecoin’s Scrypt algorithm was designed to offer more resistance to custom hardware solutions. This makes it more accessible to new miners and those who can no longer mine bitcoin, but the introduction of Scrypt ASICs to the market in recent years means Litecoin is nowhere near as easy to mine as it once was.

4. Volume of transactions

Transaction throughput is another key yardstick used to measure the performance of cryptocurrencies. While bitcoin’s network is capable of handling around 7 transactions per second, while Litecoin’s maximum capacity is 56 transactions per second.

But while Litecoin is a clear winner in this category, it still falls well short of other popular currencies, such as Ripple’s 1,500 transactions per second.

5. Market capitalisation and popularity

In terms of market capitalisation and widespread recognition, bitcoin stands head and shoulders above all other cryptocurrencies. As of June 2018, bitcoin has the largest market capitalisation of any cryptocurrency, at almost US$116 billion. Litecoin is a long way back in sixth position, with a market cap of US$5.59 billion.


The bottom line: Bitcoin vs Litecoin

Now that we know how bitcoin and Litecoin compare, which advantages does each currency hold over the other?

Why might you buy bitcoin?

Bitcoin undoubtedly has its shortcomings, particularly in confirmation times and problems with scalability, but as a store of value it’s currently unparalleled in the crypto world. As the oldest and most widely accepted digital currency, it has a level of widespread recognition that makes other cryptos turn green with envy.

Why might you buy Litecoin?

Where Litecoin outperforms bitcoin is as a medium for transaction. Given that this was the coin’s original purpose, that should come as no great surprise. Litecoin transactions are confirmed faster and attract significantly lower fees than the bitcoin network, making it more suitable for everyday use.

FAQ


Picture: Shutterstock

Disclosure: At the time of writing, the author holds ADA, ICX, IOTA and XLM.


Disclaimer: Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

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