What is Litecoin?
Find out below the different methods to mine Litecoin and how to execute each one of them.
Litecoin is a digital currency that was established by former Google employee Charlie Lee. The cryptocurrency was designed to complement the features that Bitcoin lacks, ultimately creating a digital currency that is better than Bitcoin in many ways and is considerably cheaper and more efficient. Lee admits to using Bitcoin as an inspiration, and it quickly garnered popularity upon launch. Litecoin is now seen as a secondary option for Bitcoin.
How to mine Litecoin
The process of mining Litecoin is more commonly done by a group of miners who verify Litecoin transactions between traders. This process of ‘mining’ is basically solving a mathematical puzzle that rewards miners with LTC in exchange for their work. Other than verifying transactions, mining also serves as a way to secure the network.
There are three ways in which you can mine Litecoin. These three are listed below:
- Solo Mining
Mining Litecoin, or any cryptocurrency for that matter, is very expensive because it involves much technological equipment. When you choose to do this alone and not with anybody’s help, this is called solo mining. This also means that you will reap all of the rewards on your own as you did all of the work.
- Obtain a Litecoin wallet. You must first have a secure Litecoin wallet where you can store your Litecoin right after mining.
- Set up your hardware. Prepare your equipment for the required set up for Litecoin mining. For example, you need to choose between setting up a rig with multiple GPUs or investing in an ASIC miner.
- Install your software. If you are using ASIC miner, there’s a big chance that your hardware is already installed with mining software. However, for other options such as a graphics card, you will have to install mining software and set up your hardware manually.
- Begin mining. Begin Litecoin mining by adhering to the instructions states in your software package. Remember to have your Litecoin wallet ready for storage.
- Join a mining pool
If you would rather share the work and the responsibility with a team of crypto miners, then that could mean a lesser timeframe to complete the task. This option is for miners who perceive of solo mining as too much of a risk.
In this option, miners share resources or mining software. The rewards will also be shared among all miners. Some mining pools, however, require a fee for you to join in.
To mine with a mining pool, you have to:
- Obtain a Litecoin wallet. Choose a Litecoin wallet that guarantees the security of your Litecoin. Also, ensure that it offers the features that you want to access in a Litecoin wallet.
- Set up your hardware. Choosing which hardware to use is a big factor in your mining. This might include choosing between a GPU mining rig or an ASIC miner.
- Join a mining pool. There are various mining pools available, and you can choose which of these you want to join by assessing the advantages and disadvantages of each. Compare the fees and rewards offered by the mining pool, as well as its features. Also, some mining pools may require specific software for you to use.
- Begin mining. Secure your Litecoin rewards by investing in a secure Litecoin wallet.
There are two popular mining pools that have gained popularity throughout the years:
- Litecoin mining pool – This mining pool began operating in 2011. It is recognized as one of the oldest and original mining pools for Litecoin. The advantage is that it is free of charge and requires two-factor authentication for security.
- Antpool – This is among the largest mining pools, and it is located in China. They also mine other cryptos like Bitcoin and Ethereum. It is also free of charge.
- Use a cloud mining service
If you think that both solo mining and joining a mining pool is too costly, then you can refer to this third option, which is cloud mining. Cloud mining companies offer this, and it entails a group of computers to do the mining on your behalf. All you need to do is to pay for the service. You only need a computer to oversee everything.
In this option, you will be availing the services of a mining rig, or a group of computers that do the mining. The more computers you pay for in your mining rig, the more mining you can do. It also means investing in the mining rig. Following that thought, the more money you invest, the better access you will have to the rewards.
- Pick a cloud mining company. Carefully weigh your options as you look for a reliable cloud mining company to do business with. Weigh the advantages and disadvantages, as well as the features provided. Some cloud mining companies are unreliable, and it is not a far-fetched idea to get scammed by one of these. Make sure that you pick one that has a good reputation.
- Take a mining package. Each cloud mining company offers a range of mining contracts. You must consider all the probable expenses, it running time, equipment, and rewards. Pick something that better suits what you expect out of it.
- Pick a mining pool. Similar to the requirements above weigh in your choices. Consider which fees, rewards, and other factors you prefer to gain.
- Begin mining. You can now begin mining. But before you do so, make sure that you have a secure Litecoin wallet on standby.
Before you begin mining Litecoin, ensure that you are fully ready and aware of the processes and risks that are unavoidably part of this. Once you have gained sufficient knowledge on how to mine and the rewards you can reap out of it, this could become a source of potentially big profits. The most important thing to do is to learn and enjoy your mining experience.