Litecoin is a peer-to-peer cryptocurrency, launched in 2011, intending to be the silver to Bitcoin’s gold. Litecoin was forked from the Bitcoin code, by former Google engineer Charlie Lee. Because of this, 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. Litecoin is currently accepted by over 200 online and physical shops and stores.
LTC is currently priced at $23.60, having a market cap of $1,406,056,872. The maximum supply is four times that of Bitcoin, namely 84 million, out of which 59,053,813 LTC are in circulation.
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 their personal computer. But seeing as the mining difficulty increases over time, and more miners are joining in to compete for block rewards, the hardware used for mining has become incredibly performant. People that use a regular computer to mine will always be surpassed by those that have performant devices.
To have any chance of reaping some mining rewards, you will have to invest into an efficient mining computer, and the electricity that powers said machine. Electricity costs can add up to hefty sums in certain regions, and this might not make mining always feasible.
You will need to take into consideration how much daily return you are likely to produce after your power costs and how much time will it take for you to recuperate your investment spent on the hardware.
There are several alternatives for those that wish to get involved in mining but lack the finances to operate on their own.
How to Mine Litecoin
Before starting anything, 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 it is still supported by the Litecoin development team.
Now 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.
Bitmain is one of the biggest manufacturers of mining equipment, which sell 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. 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 yourself, just 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
Step 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
Step 2: Access the miner’s interface and log in.
Step 3: Download the free IP Scanner tool (Angry IP Scanner).
Step 4: Install and run the Angry IP Scanner.
Step 5: Click “Start” to scan and find devices on your local network.
Step 6: Go to the top menu bar and click “Go to” and then click “Next alive host”.
Step 7: Right-click on ‘Antminer’ from the Hostname column and choose “Copy IP.” Paste the IP into your browser’s URL line.
Step 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 chancing, 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 farms.
But fortunately, there are some alternatives for those who lack the resources to set up a commercial-level operation.
One possibility is to join a mining pool. A pool is where miners use their collective computing power to help solve the mathematical problems and 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.
Mining Litecoin: Conclusion
In this day and age, Bitcoin mining is no longer a lucrative endeavor unless you are doing it at a large- scale level. And while Litecoin mining seems to have the same trajectory, it is much more viable to run a mining operation individually.