Litecoin is a type of cryptocurrency with the symbol 'Ł' and is a type of money that is completely virtual. Litecoin is the third largest cryptocurrency and like its contemporaries not only is a currency, but like a bank's online network or Paypal, it functions as an online payment system. Litecoin is decentralised so is not controlled by banks or government.
Each Litecoin is a file stored in a digital wallet, and can be sent (whole or as a part) to other people, or used to pay for goods. Litecoin was an early spinoff of Bitcoin, and in technical details is is almost identical to Bitcoin.
Litecoin is different to Bitcoin as the Litecoin Network aims to process a block much quicker, allowing Litecoin to confirm transactions much faster than Bitcoin. The currencies also use different cryptographic algorithms - Litecoin uses an agorithm called Scrypt, which is newer than the longstanding SHA-256 algorithm which is used by Bitcoin.