How to mine Litecoin (LTC)?
You want to mine Litecoin, but you do not know how to do it? So we will see how to do it without any problem. Built on a practically identical technology, Litecoin mining resembles in many ways the mining of Bitcoin cryptocurrency.
However, some nuances allow it to generate higher profitability. Let’s review the similarities and differences of Litecoin mining with Bitcoin mining to better determine its strengths.
Litecoin mining, close to Bitcoin mining
The principle of Litecoin mining is the same as for Bitcoin: it is to create a block within the BlockChain, having to fulfill a certain number of conditions to be valid.
Like Bitcoin, Litecoin’s mining is limited to a certain number of corners, in this case, 84 million, and the mining premium (initially 25 litecoins per block) is halved every four years. Currently, the mining of a block, therefore, yields to its minor 12.5 litecoins.
As for Bitcoin, the effort required to create a block is largely a function of the level of competition between minors: the more they are numerous, the more it will require computing power.
Differences between Litecoin Mining and Bitcoin Mining
The difficulty of mining is readjusted every two days when it is readjusted only every 14 days on the Bitcoin network. Yet, they are all made every 2016 blocks! This hiatus is explained by the difference in speed of creation of a block, which takes 2.5 minutes on Litecoin, against 10 minutes on Bitcoin.
As a minor, the main difference between Bitcoin and Litecoin lies in the Proof-Of-Work algorithm. Indeed, Bitcoin uses the SHA-256 algorithm, while Litecoin preferred to opt for the Script, designed by Colin Perceval.
Low in memory, the SHA-256 algorithm is compatible with the use of FPGA and ASIC, the use of which has gradually obsolete CPU and GPU hardware and significantly increased the difficulty of mining.
Although using more memory, the Scrypt algorithm prevented FPGAs and ASICs from effectively undermining Litecoin.
Today, the mining difficulty of Litecoin is better controlled than that of Bitcoin and requires much lower computing power.
Before you start mining Litecoin, however, do not forget to study its profitability according to the material you already have on the site Whattomine.
The interest of Litecoin mining
The mining of Litecoin must ensure a minimum of profitability to encourage the miners to continue their work.
Note, however, that greed should not be your primary motivation for participating in mining activities. Indeed, the profitability of mining Litecoin is now positive but is unlikely to make you win large sums of money.
The main purpose of the mining is to contribute to the smooth operation of the Litecoin Blockchain. By investing in the long term, you can fully participate in the development of Litecoin and sustain a system in which you believe.
In the longer term, you will end up reaping the benefits of your mining activity, since you will have helped Litecoin grow and become more valuable.
Choosing the right equipment
It is almost impossible to mine Litecoin with a home computer for several reasons. The first of these is that a home computer is not powerful enough to effectively mine Litecon. In addition, a computer will consume a lot of electricity, which will make you a burden too much for mining Litecoin is profitable. Finally, the components of your computer will be heavily involved, so its life will be significantly reduced.
To be able to mine Litecoin effectively, you need at least two powerful graphics cards, although it may be advisable to use more for better performance. Ideally, if your budget allows, we recommend using a Scrypt ASIC minor. It is a machine specially designed for mining. It will perform well while remaining relatively economical.
In addition, you must have two programs. The first is an online wallet that will allow you to receive and store your Litecoin. You will also need to download a Litecoin mining program. For optimal efficiency, we advise you to choose Bootstrap.dat, which is reliable and relatively simple to configure and use.
You have to calculate whether Litecoin mining is profitable. Mining will cost you an important investment to buy your equipment and will cause a consequent electricity consumption. So you have to calculate if you earn more money than you spend. You need to know that your income through mining will be influenced by two factors:
the first is the difficulty of mining the Litecoin. Generally, the more cryptocurrency is mined, the more the difficulty to mine increases. If the mining is more difficult, your yield will be less important;
In addition, you will need to monitor the evolution of Litecoin’s value. However, since you can not do much to influence or predict its evolution, we advise you to keep some margin to avoid getting into the red due to a sudden drop in value.
Choose how to work
You can choose to work alone or in a mining pool. If you work alone, you may have more difficulty in generating profits and earn money may be longer, but you will get everything you need. While if you do it through a mining pool, efforts are pooled, but so are payments. In summary, you will earn less, but you will win more easily. If you want to work via a mining pool, we recommend Genesis Mining. It is a reliable platform that will allow you to mine many crypto-currencies.
What you must remember
To be able to mine Litecoin, you must equip yourself accordingly. If your budget allows, we advise you to opt for an ASIC Scrypt minor.
You can choose to work alone or via a mining pool.