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Introduced in 2011, Litecoin (LTC) is one of the oldest digital currencies still in existence. While you can buy Litecoin on a huge range of crypto exchanges, you can also mine Litecoin to be rewarded with LTC.
However, you’ll need access to sufficient time and resources in order to make a profit, so keep reading to find out about the different methods available for mining Liteocin.
Coin name | Ticker symbol | Mining algorithm |
---|---|---|
Litecoin | LTC | Scrypt |
Just like bitcoin, Litecoin uses a distributed ledger known as a blockchain. This ledger is managed by thousands of miners, who use computing power to verify transactions and secure the network.
In a nutshell, miners are presented with complex mathematical equations which can only be solved using computers. By solving these puzzles, miners can verify blocks of Litecoin transactions. As a reward for their hard work, they receive LTC.
In the early days of Litecoin’s existence, it was possible to mine the currency using your computer’s CPU or video graphics card and make a profit. This is no longer the case.
While Litecoin mining isn’t as developed as the bitcoin mining industry, it’s now a much more resource-intensive process than it used to be. That said, there are three options for mining Litecoin:
If you want to go it alone, be aware that rather than using your CPU or graphics card to mine Litecoin, it’s now possible to buy specialised hardware designed for mining Scrypt-based cryptocurrencies. Known as ASIC (application-specific integrated circuit) miners, these are significantly more powerful than CPUs and GPUs and therefore have a much better chance of winning mining rewards.
You’ll need to be willing to invest in ASIC mining technology to have any chance of success mining Litecoin. Don’t forget that you’ll also need to buy a separate power supply cord and potentially also fans to prevent your equipment from overheating.
The biggest advantage of solo mining is that you don’t need to share mining rewards with anyone else. However, the downsides are that you’ll need to pay for the electricity required to run the equipment, and you may go for long periods of time without earning any block rewards.
If you think there’s safety in numbers, you might want to consider joining a mining pool. These mining collectives allow you to join forces with other miners and put your combined computing power to work mining Litecoin.
This means that LTC rewards are shared amongst the group, so while you will only get a small share of the LTC mined, you’ll receive payouts much more frequently than if you’re mining on your own.
However, each mining pool is run a little differently to the next, so it’s important to research a pool before joining. You’ll need to consider:
Once you’ve found the right pool, follow the instructions provided to join and start mining.
If you want access to the latest mining hardware but you don’t want to deal with the hassle and expense of buying and maintaining the necessary equipment, you may want to consider a cloud mining company. These providers, such as Genesis Mining and HashFlare, allow you to lease Litecoin mining equipment for a set period of time.
Leasing computing power is cheaper than setting up your own rig. It also means that you can avoid the issues associated with running your own mining operation, such as equipment maintenance, overheating risks and electricity usage.
However, there are downsides. These services obviously don’t come free, and you’ll need to be willing to surrender a certain level of control to the company you choose. There’s also the risk of falling victim to a scam cloud mining service, so it’s essential to thoroughly research any company before signing up.
Assess the pros and cons of each of the three mining methods outlined above. Once you’ve decided which method is the right choice for you, read on for step-by-step instructions on what you need to do to start mining Litecoin.
If you want to mine Litecoin, make sure you’re fully aware of all your options and the potential risks involved with each approach. By doing your research and finding the right setup for your needs, you could eventually make a profit mining LTC.
Simply interested in buying Litecoin? See our step-by-step guide.
Image source: Shutterstock
Disclosure: At time of writing the author holds ADA, ICX, IOTA and XLM.
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