Profitably mining Bitcoin as an individual is now a distant memory. As such, Litecoin, one of its closest cousins, sometimes referred to as the ‘digital silver’ (Bitcoin being the digital gold), should catch your attention. Before you start mining Litecoin, however, it is important to look at the reasons for considering this option. On the one hand, if your goal is simply to own it, then purchasing this currency on an exchange platform will be easier. This is because mining cryptocurrency requires time and a great deal of committed investment (hardware, energy… and so on) so you have a chance to generate a profit. If, on the other hand, you wish to contribute to the maintenance of the Litecoin network or actively participate in the development of this currency, for pleasure or conviction, mining might be for you!
Cryptocurrencies operating under a proof-of-work (PoW) consensus algorithm, such as Bitcoin or Litecoin, need to follow a mining process to maintain their respective blockchains. The Litecoin blockchain is a register of all transactions carried out on the network since the creation of the Litecoin project in 2011.
Miners receive data relating to the transactions that have been disseminated by the participants from the last block and assemble these transactions according to structures called ‘Merkle’ trees. After grouping this data onto a block in order to add it to the chain, they work on calculating the correct hash (processing power).
To do this, a one-way cryptographic algorithm is run on an amount of data that will return only a single hash file, allowing the integrity of the data sent to be verified. This last validation, which cannot be reversed, proves that the data has not been altered. A single incorrect number in a very long line of transactions would completely transform the hash and reveal any irregularities.
Mining is a competitive activity. The first miner who manages to generate a hash smaller than the target provided by the network has ‘found’ a new block and therefore receives a reward in the form of litecoins. Since it is impossible to know which node (miner) will come up with the lower hash, miners must rely on luck as well as their computing power.
To learn more about Litecoin, see our ultimate guide.
Let us walk you through all the way from theory to practice, with all the tips you could ever need.
The equipment needed to mine LTC depends on the method chosen. To mine alone, it is no longer possible to rely solely on a computer’s processor or graphics card. You will need special equipment such as an ASIC (application-specific integrated circuit) mining machine, which will offer you the most practical and cost effective option!
You should compare the different options available carefully. Do you prefer the versatility that GPUs can offer or is it easier to have a dedicated ASIC miner? Remember to take into account power consumption and ventilation/cooling.
Furthermore, get yourself a LTC wallet to store your hard earned cryptocurrency. You can have a read of our guide to the best Litecoin wallets here.
Finally, you will need good mining software. Some software, however, is included with the purchase of an ASIC miner such as the AntMiner T19.
So now you are finally ready to mine your LTC. Your options are as follows:
If you decide to go it alone, you can start mining straight away by following your chosen mining software’s instructions.
Our advice: Check the price of LTC regularly to make sure you get the price possible for your efforts and to check to see if mining LTC is actually still profitable.
A mining pool is a group of miners who pool their computing power to increase the chances of discovering a new block faster than other miners across the network.
If you choose to join a mining pool, several sites such as LitecoinPool or the well-known Minergate are a good place to start your search. Keep in mind, however, that the rewards are shared. So compare what you earn in your pool with what you spend. Don’t hesitate to try out a few before making up your mind on a particular one.
Good to know: Some pools will require you to use a specific software.
The profitability of your Litecoin mining operation depends on a number of factors. These include:
There are profitability calculators, like the one from Stelareum, to help you with such calculations.
Litecoin’s creator, Charlie Lee, is optimistic about the mining potential of this cryptocurrency, which, regardless of the money you will or will not make, remains a fascinating activity. By choosing the right tools and the most suitable methods, you can embark on this mining adventure successfully and join the large community of Litecoin miners!
Président et Cofondateur de MinedHack et fervent défenseur de la Blockchain depuis 2017, je suis conscient que sans explications et vision de l’industrie son adoption n’aura jamais lieu. J’ose espérer en tant que Reporter et Rédacteur de CoinTribune aider à cette mission.
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
|BITCOIN (BTCUSD) ₿||$65,949.50||2.66%|
|ETHEREUM (ETHUSD) Ξ||$4,106.80||5.9%|
|IMM. US (REIT)||$2,716.15||1.56%|
Receive the latest and best crypto news directly to your inbox
Receive a free hour of coaching with an expert! Just fill in this form and our expert will contact you within 48 hours.