If you are interested in mining, you would have most likely heard of Litecoin. Incepted in 2011, Litecoin has gained traction over the last couple of years and emerged as a highly popular cryptocurrency among miners. This guide will take you through the various aspects of Litecoin mining.
A Brief History of Litecoin
In October 2011, Charlie Lee, a software engineer at Google announced the creation of Litecoin, a cryptocurrency similar to Bitcoin in many respects. An early spinoff of Bitcoin, Litecoin differed from Bitcoin on many counts: lower block generation time (2.5 minutes), slightly different GUI and most importantly, scrypt hashing algorithm (instead of SHA-256).
Litecoin experienced massive growth in November 2013 during which it saw 100% growth within 24 hours. Later in May 2017, Litecoin was used to carry out the first Lightning Network transaction when 0.00000001 LTC was transferred from Zürich to San Francisco in under one second. Since its birth, Litecoin has demonstrated a kind of staying power most cryptocurrencies have not.
Litecoin Mining Hardware
When Litecoin mining first began, it was possible to make substantial profits by using a CPU (Central Processing Unit). The hashing algorithm for Litecoin Scrypt, being faster and easier, allowed mining with just a CPU or GPU (Graphics Processing Unit).
However, over time, the competition among the miners has soared to new levels and, so has the mining difficulty. Today, it is not possible to mine profitably using anything but specialized mining hardware called ASIC (Application-Specific Integrated Circuit).
ASICs are far more powerful than CPUs and GPUs which means they enhance your odds of winning the mining reward. If you are serious about Litecoin mining, you can consider Antminer L3+ from BitMain. Antminer L3+ has a hash rate of around of 504 MH/s and consumes up to 800 W of power.
The best thing about it is that is easy to set up: all you need to do is to connect it with your PSU and PC and you are ready to mine. It is also more compact than other mining hardware. If, however, you are reluctant to invest in mining hardware, cloud mining is the alternative to go for.
Litecoin Mining Software
If you have chosen Antminer L3+, setting it up for mining is a breeze. The entire set up comes with an installation file that provides you with the option of mining solo or joining a mining pool. Here are the steps you need to follow in order to get started with mining:
- Visit the BitMain website and create an account. Press the IP reporter button on the hardware controller for 5 seconds.
- Your IP address will appear on the website. Enter this address on the website.
- Enter the wallet address of your Litecoin account that you want your coins to be sent to.
You are now good to go. If, however, you wish to join a pool, the following additional steps would be needed:
- Click on Miner Configuration in your BitMain account.
- Click on General Settings and enter the URL of your mining pool, your worker ID and your password.
As you mine and earn rewards, you will need a wallet for storing your Litecoins. At the moment, there are plenty of options to choose from. Considering its reputation and the amount of security it offers, Litecoin Core can be a good bet for you. Litecoin Core can be used for both sending and receiving Litecoins.
If security is your prime concern, you can consider using a cold wallet i.e. a wallet that has never been connected to the internet. Another option is using a paper wallet wherein you can store your public and private keys in offline mode.
Mining Solo vs Joining a Pool
Beginner miners are often stuck between mining solo and joining a mining pool. Each alternative has its pros and cons. Mining solo comes with the risk of going for long periods without earning any tokens. On the flip side, if you earn rewards, they belong exclusively to you and aren’t meant to be shared with anyone.
In pool mining, on the contrary, a large number of miners combine their processing power and distribute the rewards in proportion to the power contributed. So, on one side, you are assured of more steady returns, on the other side, you earn only a small share of each block the pool mines.
Another key aspect to consider in pool mining is security. While some pools are highly reputable, others may be run by fraudsters. Besides, pools are vulnerable to cyberattacks. So, when joining a pool, make sure to carry out a background check.
You can choose any pool out of the hundreds available in the marketplace. Some of the popular ones include:
- Litecoin Mining Pool: Operational since 2011, this pool is one of the safest options available in the marketplace. A key benefit of joining Litecoin pool is that you don’t need to pay mining fee. The pool uses a pay-per-share (PPS) system wherein your rewards are proportional to the amount of mining power and electricity you contribute. Plus, there are instant payouts.
- Antpool: Situated in China, Antpool is one of the largest pools for many cryptocurrencies including Litecoin. Antpool does not charge any joining fee but keeps the transaction fees for all blocks mined by the pool. The block rewards are shared in proportion to the mining power contributed.
Is Litecoin Mining Profitable in 2019?
The profitability of your mining operations depends on several factors including hash rate, electricity costs per unit, pool charges, cost of your equipment, Litecoin market cap and, most importantly, the current price of Litecoin. Using our online Litecoin mining calculator you can calculate your gross returns and net profits for Litecoin mining.
With the recent halving of mining rewards for every block from 25 LTC to 12.5 LTC, Litecoin mining may not appear as lucrative. But at the end of the day, it is the demand and supply of Litecoin that dictates its price and your profitability.
Interested in Litecoin mining? Connect with our cryptocurrency experts today on our toll-free number 1–888–889–3335.