Learn How to Mine Litecoin:
First things first. If you are interested in buying and owning Litecoin, you probably should just buy it from a cryptocurrency exchange, it’s much easier. But, if you want to own it by mining litecoin – this guide will give you the complete concepts on how to mine Litecoin?.
Let me guess before you start. You’ve been doing a lot of research on cryptocurrencies, its past and future, but, now you are thinking about mining some Litecoin on your own, right?
We are sure that by the time you will be reading this article on how to mine Litecoin?, you must be knowing all about Bitcoin and how popular it is, but on the contrary, many people are now choosing to mine Litecoin instead!
It takes 10 minutes minimum for the network to confirm each block for Bitcoin, but Litecoin is four times faster at just 2.5 minutes! If this will be your first time to mine Litecoin, it’s probably best to know all about questions about how to mine Litecoin?.
So, What is Litecoin?
Before we start to lean “how to mine Litecoin?”, let’s get to know what is Litecoin? Litecoin is another cryptocurrency, just like Bitcoin. It uses radically different algorithms to process the transactions. These processes are called “Script”. Initially, it was easier for people to mine it from home computers until there was a development of dedicated mining machine called ASICs. It can now process Script coins like Litecoin much faster.
What is Mining?
Mining is a process by which transactions are verified and then added to a public ledger. This ledger is known as blockchain, and also the means through which new Litecoin are released. Anyone, anywhere with access to the internet and suitable hardware for mining can participate in this process.
How does it work?
Mining needs a dedicated computer and a specially built program, which helps miners to compete in solving complicated mathematical problems by this computer and program with their peers. In regular intervals, the computer programmed miners would attempt to solve a block of problems which has transaction data using cryptographic hash functions. What is Hash – It is a numeric value of fixed length that helps in identifying available data.
Cryptocurrency mining includes two basic functions:-
- Adding transactions to the blockchain which includes securing and verifying the transactions.
- Releasing of newly mined currency.
Mining is now considered a lucrative business option, due to, cryptocurrencies gaining in popularity and have increased in humongous value. As a result, many people around the world want to know how to mine Litecoin? and many organizations have started investing in the mining business and have dedicated warehouses and hardware installed.
What they’d need to do to mine themselves?
Now that Litecoin has been gaining popularity, many people are investing their time and money to mine it. Today everyone wants to know, how to mine litecoin? There are now many options available to mine Litecoin, it depends, how much you can shed? But it also becomes equally important to know, how to mine Litecoin? To begin, let’s have a look at what are the options available for mining?.
Solo mining, in simple terms means, you are mining Litecoin by yourself. It means that you have bought the required equipment and are not sharing any responsibilities with anyone else that only you.
Mining Poll, in simple terms means, you and other miners are sharing the resources and mining Litecoin. Here, you share resources like computing power and electricity. As a result, you have a chance to get more block reward and consistent income as you now have more power.
There are many Litecoin mining pools to choose from, here are top 2 examples
Antpool is located in China. This is one of the largest Litecoin mining pools available right now in the world. It is not only for Litecoin but, this pool also has pools available for other cryptocurrencies. They are pro in the business and definitely knows better than anyone else, how to mine litecoin?. They only keep all of the transaction fees for any blocks that the pool mines. There is no charge or any fee to join the Antpool pool, however, the block rewards are shared with the pool members.
The amount released by them to the mining member is dependent upon the power you contribute to the mining pool.
It is the most powerful hardware that you can buy right now to mine Litecoin. Not only that it is the quickest hardware available right now, but, also it is made by a well-known manufacturer company named BitMain. But, as a suggestion, before you buy it, you must have a complete understanding of how to mine Litecoin? No other Litecoin mining hardware can compete with this Litecoin miner currently.
How much can be earned by mining?
It is very important to know, how much you will earn, right?, Afterall, you are reading this article of how to mine Litecoin?, cause you want to make money by mining Litecoin. The estimated expected Litecoin earnings are based on a statistical calculation. It is calculated using the values entered and do not account for difficulty and exchange rate fluctuations, stale/reject/orphan rates, and a pool’s efficiency.
- If you are mining using a mining pool –
The estimated expected cryptocurrency earnings can vary greatly depending on the pool’s efficiency, stale/reject/orphan rate, and fees.
- If you are mining solo –
The estimated expected cryptocurrency earnings can vary greatly depending on your luck and stale/reject/orphan rate.
ESTIMATED LITECOIN MINING EARNINGS
|Time Frame||LTC Coins||BTC (LTC/BTC at 0.00894140)||USD (BTC at $6,612.90)||Power Cost (in USD)||Pool Fees (in USD)||Profit (in USD)|
As of today, Litecoin mining earning is close to 3.129 USD for 1 GHash/s. The above image will give you all the details of the Litecoin mining per block.
What do they need to get started?
Creating a Litecoin Wallet
You will be needing a Litecoin compatible wallet to store your mined coins, whether you are mining for yourself or joining a mining pool. These cryptocurrency wallets are likened to physical wallets that are used to hold digital fiat currencies. A wallet allows you to secure your digital cryptocurrency, it also shows you account balance and you can view and track your transactions.
It is encrypted and needs a password to send any digital currency out of the wallet. This encryption helps in protecting your cryptocurrency from virus and trojans.
The Litecoin wallet can be downloaded from the official litecoin website – litecoin.org. There are few other wallets also, which are available to store your Litecoin. Eg – the Ledger Nano, Jaxx, Exodus, Coinomi, LoafWallet, and LiteAddress wallets.
Why cryptocurrency wallets?
You can store your Litecoin on a cryptocurrency exchange as well, but it’s not advisable, why?. The cryptocurrency exchanges are vulnerable to hacking or bankruptcy. Hence, it is advisable to keep the amount of cryptocurrency which you need for regular daily transactions. Always remember, a large number of your digital assets should be stored on a hardware wallet. It is better to be safe than sorry!.
Here, we will give you an example to relate to that. You all keep our money safe in the bank. You only withdraw the money you need on a daily or a weekly basis. Rest you keep it safe in a bank, cause it is vulnerable to theft or loss of currency.
Choosing a Miner
Miners as on date are being awarded appx 25 new LTC per block. As per the equation and mining difficulty and including other costs, this amount gets half every 4 years or every 8,40,000 blocks. Litecoin is therefore scheduled to produce 84 million litecoin only. It is 4 times more than the produce of the most popular cryptocurrency, Bitcoin.
It is important to make use of the fastest and the most efficient way to mine Litecoin. Solo miners consider a lot of factors while choosing the right miner. After all, it is a matter of safe earning by mining their favourite cryptocurrency. But all may go waste if you do not know, how to mine Litecoin?. The faster a miner will work to solve the block problems, the quicker a person will be able to recover invested funds and also will start making substantial profits.
Choosing a Mining Pool
As said earlier, the more powerful and fast your miner is, the more Litecoin it will mine in a given period of time. Having a very powerful device for mining is great, but not the best option. You can still earn lower compared to when you join a mining pool.
By joining resources with other miners in a pool gives you a chance to earn bigger rewards. You have a much better chance of earning a steady income by joining a mining pool, but your earning is less in comparison to the solo mining option.
Difference Between personal mining and cloud mining
Though, there are vast differences between cloud mining and personal mining and its covered in this article of how to mine Litecoin? let’s look at the main differences between them in order to understand them better:-
- Cloud mining is the process of mining a cryptocurrency by using a remote datacenter with shared processing power. Whereas, personal mining means that you are using hardware equipment for mining by yourself, setting it up and mining your cryptocurrency.
- Cloud mining is shared mining process and hence, it is a cheaper way of mining a cryptocurrency. Personal mining involves the cost of equipment, electricity, setting up cost and space. It is also noisy, as the mining hardware produces sound and it might bother you if the miner is set up at home.
- Could mining is quicker and easier to start as and when a payment is made to the service provider. For personal mining, first, you must know, how to mine Litecoin?, then you will have to order hardware, wait for the delivery (may take weeks) and technical setup is required.
- Cloud mining has a higher initial cost compared to purchasing your own equipment, however, due to the increasing demand of low availability of GPU & ASIC’s, the gap is slowly decreasing.
- There is a possibility of fraud in case of cloud mining, the service provider company may suddenly shut down its operation due to higher costs and lower number of buyers and you may lose your investments. However, there are 2 most successful and trusted companies which are operating without a flaw, namely Genesis Mining and Hashflare.
- For personal mining, you are required to do research on how to mine litecoin in an effective and efficient way and thus results in miners being more educated about cryptocurrencies they are mining and the blockchain in general.
Is mining legal?
This has been a matter of discussion in many countries and we must say that it is also very important to know before you start to know “how to mine Litecoin”. It generally depends upon the country you live in, the government policies and implication which are applicable in your country.
As a general rule, If you are able to own and use cryptocurrency where you live, you should also be able to mine cryptocurrency in your country. It is also to be noted that, If owning a cryptocurrency is illegal in your country, mining is most likely to be illegal as well.
There are few exceptions to this rule, one such exception is Iceland. While cryptocurrency is officially illegal to own or trade in Iceland, there are still a number of large-scale, well-known mining companies which are operating throughout the country. The laws are obviously subjected to change as per the government policies and technological advancements, however, it is important that you do research before you invest in mining equipment.
As of now, the future of cryptocurrency will likely to see changes in cryptocurrency mining regulations. As the mining industry is rapidly evolving, what may be important and unique today could be a daily task tomorrow. An example of cryptocurrency mining, in the early days of cryptocurrency, it was possible to mine cryptocurrency even with a graphic card. People were not curious about how to mine Litecoin?
But now, due to mass adoption and technologic development, the future looks bright and people want to know, how to mine Litecoin? It’s just a matter of fact, how and when we will see a clear sky.
In the end, I hope this guide gave you a complete understanding of the process of mining. If you want to mine Litecoin, make sure you’re fully aware of all your options available to you.
Make note of the potential risks involved with each available option. By doing complete research and finding the right setup for your needs, you could eventually make a profit mining LTC.
For more info, advertisement or suggestions please contact us