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Litecoin Mining

Posted In Business - By Techtiplib on Monday, June 18th, 2018 With No Comments »

One of the main differences between cryptocurrencies and fiat currency is the absence of a central control of money. When money is controlled from a central place, there is also minting. The controlling authority also controls the supply of money.

All these things do not happen when it comes to cryptocurrencies. In cryptocurrencies, there is a select group of people called miners who have the responsibility of creating new coins.

Litecoin

How does Litecoin mining work?

Bitcoin mining has become expensive, and people are looking to diversify their investments, and Litecoin mining is one of the most popular alternatives. See how you can start as a Litecoin miner.

All the transactions in done in the Litecoin network are combined into units called blocks. When all the blocks come together, they form the Litecoin blockchain.

Whenever a new transaction occurs, the miners have to verify it for it to form a complete block. Every time a block is complete, the miners receive a reward which is their incentive for spending their time and resources to proof transactions. This system of rewarding miners is called the proof of reward system.

What is the Litecoin mining difficulty?

The Litecoin mining difficulty is an algorithm that updates according to the networks hashing power. It also ensures all blocks complete in 2 ½ minutes.

It also ensures there is no surplus mining that leads to a price drop after a massive price increase.

I want to start mining where do I start?

There are three main ways you can use to get started as a Litecoin miner. You can choose any depending on your financial capability.

  • Solo mining

As the name suggests, you go into mining by yourself. You purchase the equipment, pay for electricity and other overheads on your own.

The main advantage of going this way is that you will not share the rewards with anyone you also don’t need to pay any fees.

On the flipside, it is capital intensive, and a shoestring budget will not work in this case. So if you do not plan on investing a fortune, you may consider the other options we will see.

  • Join a mining pool

Here, you join a group of other miners and you pool your resources to purchase the equipment you will need. You also get to split the overhead costs such as electricity among yourselves.

The downside of joining a mining pool is that you will have to share the rewards with everyone in the pool. Additionally, some mining pools have a joining fee which is more expenditure.  

One of the most famous mining pools is the Litecoin pool.

  • Cloud mining

If buying a set of expensive equipment is not your cup of tea, this is the option you should be looking at. Here all you need to do is cough up some money and pay a cloud mining company to do the heavy lifting for you while you reap the rewards.

It may seem simple but can also be quite dangerous if you get a scam company that rips you off. One of the best legitimate cloud miners is Hashflare.

Once you choose an option, you will need mining hardware.

What kind of hardware do I need to mine Litecoin?

It is easy to get mining hardware; they are even available on Amazon. Some of the most popular brands include Antminer L3+, Grid seed miner, and the Dual miner USB.

However, the most common mining hardware that even comes with the pre-installed software is the ASIC hardware.

Is Litecoin mining profitable?

To register a profit when mining. You should carefully consider the type of hardware you buy. Here are a few considerations to bear in mind.

  • The power consumption of the hardware. The more power it consumes, the less your profit.
  • Does the hardware have resale value?
  • How long does the hardware take to arrive? The sooner, the better.

Final thoughts

Hopefully, you now have some insight into what Litecoin mining is and how you can get started in it. It is advisable as with anything else to carefully consider your options and abilities before diving into mining.

We wish you all the best if you decide to take the leap.

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