Litecoin definition

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Litecoin was developed in 2011 as a faster and lower-cost alternative to Bitcoin. It is issued through mining and has a capped supply of 84 million coins. Litecoin is often used for quicker peer-to-peer payments, as well as for making business transactions such as at online electronics retailer Newegg, or at AMC Theatres’ virtual box office and concession stand. Litecoin holders can also use their coins at physical retailers like Whole Foods via payment networks such as Flexa.

For example: LTC can be used to make fast, small transactions, such as paying someone 10 LTC for an online subscription. Litecoin’s blockchain confirms transactions roughly 4X faster than Bitcoin, using Scrypt hashing instead of SHA-256, which effectively makes mining and transaction confirmation faster.

Some investors view Litecoin as an established payment-focused asset with a relatively long operating history. Clearing and settlement occur on the Litecoin blockchain, typically within 15 to 30 minutes.

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Investing in or trading Litecoin involves risk. The price of Litecoin can go up or down quickly, and you could lose some or all of the money you invest. Digital assets like Litecoin are not guaranteed by any government or bank, and their value can be affected by market volatility, technology issues, fraud, or changes in regulations. Transactions on the Litecoin blockchain cannot be reversed, and network delays may affect how quickly trades are completed. Before buying or trading Litecoin, you should carefully consider your financial situation, investment experience, and risk tolerance.

Trading in digital assets, including cryptocurrencies, is especially risky and is only for individuals with a high risk tolerance and the financial ability to sustain losses. For more information about the risks surrounding the trading of Digital Assets please see the “Disclosure of Risks of Trading Digital Assets“.

IB is not party to any transactions in digital assets and does not custody digital assets on your behalf. All digital asset transactions occur on the Paxos Trust Company (“Paxos”) or Zero Hash LLC (“Zero Hash”) exchanges. Any positions in digital assets are custodied solely with Paxos or Zero Hash and held in an account in your name outside of IB.

Digital assets held with Paxos or Zero Hash are not protected by SIPC.

For more information about eligibility to trade digital assets with Paxos or Zero Hash, please see the FAQ.

Zero Hash LLC and Zero Hash Liquidity Services LLC are licensed to engage in Virtual Currency Business Activity by the New York State Department of Financial Services.

INTERACTIVE BROKERS LLC IS A MEMBER OF NFA AND IS SUBJECT TO NFA’S REGULATORY OVERSIGHT AND EXAMINATIONS. HOWEVER, YOU SHOULD BE AWARE THAT NFA DOES NOT HAVE REGULATORY OVERSIGHT AUTHORITY OVER UNDERLYING OR SPOT VIRTUAL CURRENCY PRODUCTS OR TRANSACTIONS OR VIRTUAL CURRENCY EXCHANGES, CUSTODIANS OR MARKETS.

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Litecoin (LTC)

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