Mining Bitcoin profitably for an individual is now a sweet dream. As such, Litecoin (LTC), one of its closest cousins, sometimes called “digital money” – where his elder would look like gold -, should hold your attention. Before you start mining Litecoin, however, it is important to consider the reasons why you are considering this option. If your goal is simply to own them, then buying that currency on a shopping platform may be better suited to your expectations. Indeed, mining a cryptocurrency requires time and investment (equipment, electricity, etc.) in order to generate a profit. If, on the other hand, you wish to contribute to the maintenance of the Litecoin network or to participate actively in the development of this currency, for pleasure or conviction, mining may be for you!
What is Litecoin mining?
Cryptocurrencies operating according to a validation system by proof of work (or ” proof of work “In English), such as Bitcoin and Litecoin, follow a mining process by which the blockchain is maintained. The blockchain is a register of all the transactions carried out on the network since the creation of the Litecoin project.
Minors receive the data relating to the transactions disseminated by the participants from the last block found and assemble these transactions according to structures called “Merkle trees”. After grouping this data in a block to add to the chain, they work on calculate hash (the calculation) correct.
To do this, a one-way cryptography algorithm is launched on a portion of data which will return only a single hash file, making it possible to verify the integrity of the data sent via a computer network. The latter, which cannot be reused, proves that the data has not been altered. A single incorrect figure in the very long line of transactions will completely transform the hash and reveal any irregularities.
Mining is a competitive activity. Indeed the first miner who manages to generate a hash smaller than the target provided by the network ” find»A new block and receives a certain number of litecoins (LTC) in return. Since it is impossible to know which nonce (single-use random number) will generate a hash below the target, minors must rely on luck as well as on their computing power, that is to say the performance of their computer. .
To find out more about Litecoin, see our guide.
How to mine Litecoin?
From theory to practice, there is not just one step here … But no worries, we give you all the tips you need to effectively mine Litecoin!
Equip yourself to mine Litecoin
The equipment needed to mine Litecoin depends on the method chosen. To mine alone, it’s no longer possible to rely solely on a computer’s processor or graphics card. Of specialized equipment have in fact been developed for the purpose of mining cryptocurrencies. So the ASIC minor (Application-Specific Integrated Circuit) is as profitable as it is practical.
Compare the different options available to mine Litecoin effectively. Do you prefer the versatility that GPUs can offer or have a dedicated minor device ASIC ? Remember to take into account the power consumption and more than recommended character adequate ventilation.
Also, get a Litecoin wallet(your cryptocurrency storage system). Indeed, since you will receive litecoins as a reward during your mining activity, you will need a wallet to receive them. Make sure you select a wallet that offers the features and the level of security you want.
Finally, you will need a mining software. Some software is included in the purchase of a computer to mine as Antminer.
You are finally ready to mine your Litecoins. For this, you have several choices.
Litecoin mining alone
You can directly start your activity. Follow your software’s instructions to start mining Litecoin.
Our advice: Check the Litecoin price regularly to make sure the transaction remains profitable.
Litecoin mining thanks to a mining pool
A mining pool , or“Mining pool”, is a grouping of several people pooling their computing power to increase the chances of discovering a new blockfaster than others.
If you choose pool mining, several sites such as LitecoinPool or the famous Minergate will help you with this. Keep in mind, however, that the rewards are shared. So do the comparison between what you earn in your pool and what you spend . Do not hesitate to test some of them before stopping on one of them in particular.
The major point of attention who will guide you on the choice of a mining pool will be in particular expenses taken by these!
To note : Some pools will ask you to use dedicated software.
How to ensure profitability to mine Litecoin?
The profitability of your Litecoin mining operation depends on a number of factors. The hashrate (hash rate), the freshapplied by your possible mining pool, the price of electricity , that of your equipment as well as valueLitecoin itself is important. There are even profitability calculators available online, like Stelareum’s, to help you make these calculations.
The creator of Litecoin, Charlie Lee, is optimistic about the mining of this cryptocurrency, which remains a fascinating activity. By choosing the right tools and the most suitable methods, you will be able to embark on the adventure and join the community of miners of the Litecoin network. At the time of this writing, cryptocurrency has experienced steady rise which may have interested his minors.