Cryptocurrency mining is becoming increasingly popular, especially among currencies that have reached notable heights in recent years. In this article, we will look for one of the top 10 cryptos according to market cap, mainly Litecoin. We will explain to you how to mine Litecoin in an easy-to-understand manner.
About Litecoin (LTC)
Litecoin is a peer-to-peer cryptocurrency launched in 2011. In the crypto space, it intends to be the silver to Bitcoin’s gold. Litecoin was forked from the Bitcoin code by former Google engineer – Charlie Lee. Thus, it has similar functionalities to Bitcoin, but in addition to this, Litecoin was designed to have faster processing times.
Since its release, Litecoin has become one of the highest valued altcoins and one of the best transactional currencies. As of January 2021, Litecoin is among the most widely accepted cryptocurrencies, with more than 2000 merchants accepting LTC across the globe.
Currently, LTC is priced at $210.10, with a market cap of $14,027,401,440. The maximum supply is four times that of Bitcoin, which is 84 million, out of which 66,656,740 LTC are in circulation. In this guide, we show you how to mine Litecoin and other aspects associated with the “Silver” crypto.
There are several preconditions that one must consider before getting involved in mining, and not all individuals are suited to mine crypto.
Mining nowadays has come to require large investments on the miner’s part. In the beginning, anyone could have mined just by using a personal computer.
However, as mining difficulty increases over time, and more miners join in to compete for block rewards, the hardware used for mining has become incredibly performant. Those who have performant devices will always surpass people who use a regular computer to mine crypto.
To boost your chances of reaping some rewards from cryptocurrency mining, you will have to invest in an efficient mining computer and the electricity that powers it. Electricity costs can add up to hefty sums in certain regions, and this might not make mining feasible at all times.
You will need to take into consideration how much daily return you are likely to produce after your power costs. Besides, you need to know how much time it will take for you to recuperate your investment spent on the hardware.
There are several alternatives for those who wish to get involved in mining but lack the finances to operate on their own.
How to Mine Litecoin
Before you get started with Litecoin mining, you first need to download and install a wallet in which you will store your Litecoin. The best choice for mining would be the Litecoin core wallet, which was created and is still supported by the Litecoin development team.
Next, you have to get your hardware. You can either assemble a mining rig on your own, or you can buy a specially-made crypto miner. This is a major requirement to consider if you want to know how to mine Litecoin correctly.
Bitmain is one of the biggest manufacturers of mining equipment, which sells a broad range of products on their website. Bitmain’s Antminer L3+ is a very powerful ASIC miner, which uses Scrypt to mine Litecoin.
The L3+ appeared on the market in 2017 and was very profitable for a long time. Initially, it managed to generate profits of $20-$30 per day, in spite of rising difficulties and network hash rates.
If you have some technical expertise, you can create one by using three main components:
- One or more advanced graphics processing units (GPUs);
- A cooling unit or fan setup (to prevent the machines from overheating);
- A type of Scrypt mining software.
How to Set up Your Miner
Below are the steps you need to follow:
1. Plug in all the chords:
- 9 PCI-e connections (2 on each of the 4 hashing boards, and 1 on the controller);
- The Ethernet cable (from the L3+ to your router);
- The power cord.
2. Access the miner’s interface and log in.
3. Download the free IP Scanner tool (Angry IP Scanner).
4. Install and run the Angry IP Scanner.
5. Click “Start” to scan and find devices on your local network.
6. Go to the top menu bar and click “Go to” and then click “Next alive host.”
7. Right-click on “Antminer” from the Hostname column and choose “Copy IP.” Paste the IP into your browser’s URL line.
8. Login with “root” as your username and password.
Note: It is important to stay updated regarding the developments made in the mining industry. The world of crypto, as well as crypto mining, is constantly evolving and changing, and miners also have to keep up with them.
New technology emerges on the market after a certain period of time, rendering older machines useless. This could also be an update made to the Litecoin network, which may change its mining algorithm and hence, the way the mining hardware performs.
Litecoin Mining Pools
Gone are the days when you were able to set up a small mining operation in your home and actually make some profit. Now individual miners have to compete with large mining organizations or mining farms. Fortunately, there are some alternatives for those who lack the resources to set up a commercial-level operation.
One possibility is to join a Litecoin mining pool. A pool is where miners use their collective computing power to help solve the mathematical problems, and then earn block rewards. Even though the rewards are shared between each party, making the return lower, it allows individuals to mine with a much lower investment.
Another alternative is to invest in shares in a mining operation. This enables the companies that operate the mining rigs to build larger and more competitive setups, generating a higher return.
Litecoin’s Latest Developments
So far, Litecoin has remained one of the top 20 cryptocurrencies with notable positive changes in the recent past. Recently, PayPal and Google Finance added LTC to their pool of cryptocurrencies, while Grayscale also bought up to 80% of all Litecoin that was mined in February.
The crypto fund manager currently owns $244 million worth of Litecoin. Grayscale is one of the few organizations in the US, which allows accredited and institutional investors to buy cryptocurrencies.
In February alone, Litecoin miners produced more than 201,600 LTC. But even as the supply increased, Grayscale customers were equally busy purchasing the majority of the mined coins.
According to mining tracker service LitecoinBlockHalf, Litecoin miners solve a single “block” of LTC every 2.5 minutes. However, the miners sell a majority of their rewards on the open market to cover mining costs and make a profit as well.
Currently, Bitcoin mining is no longer a lucrative endeavor unless you are doing it at a large-scale level. Even if Litecoin mining seems to have the same trajectory, it is much more viable to run a mining operation individually. This guide on how to mine Litecoin can help you make an informed decision.
Featured image: Pixabay.com
Note: This post was originally published on 15 December 2018 and has been totally updated for the completeness and veracity of the content on 15 March 2021.