Litecoin is one of the leading cryptocurrencies. Technically, Litecoin has some similarities to Bitcoin. By press time, Litecoin as trading at $70.03 with a market capitalization of $4,425,385,508 and ranked in the fifth position. You can own Litecoin through buying it on an exchange or mining.
Litecoin mining is the process by which Litecoin blockchain is maintained. Mining is a process of authenticating and validation of Litecoin transactions moving from one wallet to the second. The entire process entails solving algorithms and being the first to reach a solution is rewarded with Litecoin as payment.
On the Litecoin blockchain, a consensus is achieved with Scrypt, a Proof-of-Work hashing algorithm. In 2019, Litecoin has been under focus following the August halving. Halving is a process that occurs after mining rewards for digital assets is reduced by 50%. Before the halving process, Litecoin, miners were awarded 25 coins per block. After the halving process, Litecoin miners, miners will only receive 12.5 Litecoins per block. Litecoin rewards halve every 840,000 blocks, a process that occurs every four years. The first step is to create a Litecoin wallet to receive rewards. Ensure the wallet you settle for is secure and easy to navigate, even for starters. For more, look at the best Litecoin wallets in 2019. Here is how to mine Litecoin in 2019.
There are various ways of mining Litecoin. Script algorithm is easier to mine using the primary CPU of your computer as it is memory intensive so you should make sure the hardware of your device must be efficient enough to mine. Although Litecoin mining can be done on CPUs, the GPUs shows significantly better hash rate results.
You can buy specialized hardware designed for mining Scrypt-based cryptocurrencies known as ASIC miners. These miners perform better than CPUs and GPUs and therefore have a much better chance of winning mining rewards. However, using ASICs means that you will have to incur additional cost for you to realize success especially when you are alone. To get maximum returns, you will need to use almost free electricity. Mining is a power-consuming activity, and it generates a lot of heat. You will also need to invest in fans to prevent your equipment from overheating.
Electricity cost is the major downside to mining with ASICs. Additionally, earning from block rewards can take a long time. Popular equipment to mine Litecoin with include Bitmain Antminer L3+ (504MH/s), Antminer L3++ LTC 580 MH/s, L3+ Antminer, Antminer L3+, and Innosilicon A4+ LTCMaster 620MH/s. To acquire this equipment, you will need a budget ranging between $200 to about $2000. Additionally, this hardware is straightforward to set up for beginners. In choosing your hardware, always compare the available hardware options. If you settle for an ASIC miner, the hardware might come with preinstalled mining software. If you’re mining using a graphics card, you’ll need to download and install free mining software. From this point, you can start mining Litecoin.
Joining a mining pool enables you to join hands with other miners and put your computing power together and mine Litecoin. With mining pools, all the rewards earned are shared among the group. The advantage of this mining pool is that payouts are frequent compared to when you are alone. Most importantly, conduct some research before joining any mining pool. Here is a list of authorized Litecoin mining pools https://www.litecoinpool.org/. Remember that not all mining pools are run the same. They differ based on factors like fees, size, and payouts. In some cases, the history of the mining pool also determines the difference. Be sure to look out for favorable conditions. The larger the pool, the higher the payouts will be.
With a mining pool, you will need a wallet to receive the LTC payments. Additionally, choose your mining hardware such as an ASIC miner or a GPU mining rig. You will then install the necessary software and select the mining pool. At this point, monitor your mining process. It is worth noting that some pools will require you to use specific mining software.
Once you have settled on the right hardware, the next stage is selecting the mining software. In most cases, ASIC mining usually comes with preinstalled Litecoin Mining software. Here are some of the popular Litecoin mining software to go for
Easyminer. Easyminer has a built-in wallet backed with an online user support center. It easy to set up with a seamless UI. Additionally, it offers real-time statistics. You can monitor share and hash rates.
GUIMiner Scrypt. This software works on Windows operating system. It is easy and straightforward to navigate for beginners. It is designed for Scrypt mining.
CPU Miner For CPU mining. This client-based software is straightforward to use and optimized to mine various cryptocurrency based on SHA256 and Scrypt algorithm. Cpuminer is available for Windows, Mac, and Linux. Download it and run the .exe file by merely writing a bat file to start operations.
CGMiner. This is an open-source mining code written in c for cross-platform such as Linux, Windows. Code for this is freely available by the developer, make sure to download from the developer website, and it’s version changes from time to time. Before downloading the software, ensure your GPU is up to date and ready to start mining.
Litecoin cloud mining is another option, but it is advisable not to go for it. With cloud mining, it is a hassle-free process. You don’t incur charges of buying equipment or maintaining the mining apparatus. Popular cloud mining platforms include Genesis Mining, HashFlare, Hashnest, and Eobot. Note that with Cloud mining, you will need to lease your computing power, which is a cheaper option but comes at a high cost. For Litecoin mining, cloud mining is not advisable as your venture will be profitable after at least two months. Additionally, some companies might be scams out to take your money. Additionally, some companies usually have hidden fees charged daily. Note that with cloud mining you are giving another company access to your computer hence a possible entry of viruses to your system. We do not recommend you to try Litecoin cloud mining, but we thought this should be mentioned to keep yourself safe.
For years, mining cryptocurrencies has been a lucrative venture. However, with time, returns from mining have significantly declined. To calculate Litecoin mining profitability, you need to put certain factors into consideration. Look at the hash rate, power costs per unit, pool charges, the value of your equipment, and the current price of LTC. To determine the profitability of Litecoin, we have several online tools to help you. Before using these tools ensure all the data is correct to avoid getting wrong profitability measure.
As seen above, with sufficient investment, mining alone is profitable. But with mining pools chances of good payouts are high. With the halving process, it means that you need to consider the demand and supply of Litecoin, and how it works and its impact on miners.
Litecoin mining is a profitable venture provided you apply the right approach. Ensure you have conducted your research before settling on any method. Your option should have the potential for growth and most importantly, secure. With Litecoin halving, Litecoin is expected to increase in value, something that will translate the same to miners.
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