Introduced in 2011, Litecoin (LTC) is one of the oldest digital currencies still in existence. Mining Litecoin has increased in difficulty and decreased in profitability over the years, but it is still possible. However, you’ll need access to sufficient time and resources in order to make a profit. Make sure you you’ve run the numbers before investing in Litecoin mining, as often times it may be a better idea to invest in Litecoin than mine it.
Disclaimer: This information is not financial advice or an endorsement of cryptocurrency or any specific provider, service or offering. Cryptocurrencies are highly volatile and high risk. Do your own research and seek financial advice before buying. Please check with providers if their services are available in your state.
How do I mine Litecoin?
Assess the pros and cons of each of the three mining methods outlined above. Once you’ve decided which method is the right choice for you, read on for step-by-step instructions on what you need to do to start mining Litecoin. The main ways to mine Litecoin are:
Just like bitcoin, Litecoin uses a distributed ledger known as a blockchain. This ledger is managed by thousands of miners who use computing power to verify transactions and secure the network.
In a nutshell, miners are presented with complex mathematical equations that can only be solved using computers. By solving these puzzles, miners can verify blocks of Litecoin transactions. As a reward for their hard work, they receive LTC.
Method 1: How to mine Litecoin at home
Create a Litecoin wallet.Before you start mining, make sure you’ve set up a private wallet where you can securely store your LTC.
Choose your hardware.Compare the hardware options available for mining Litecoin – for example, will you be setting up a rig with multiple GPUs or investing in an ASIC miner? Remember to consider the cost of power and adequate ventilation when organizing your setup.
Installing software.If you’re using an ASIC miner, your hardware will most likely come with pre-installed mining software. If you’re mining using a graphics card, you’ll need to download and install free mining software, so make sure to research your options, and only download from trusted websites.
Start mining.Follow the instructions in your software package to start mining Litecoin. Remember to store any LTC you earn in a secure wallet and monitor the performance of your equipment and the price of Litecoin regularly to ensure that your mining remains profitable.
Method 2: How to mine Litecoin using a mining pool
Create a Litecoin wallet. Compare Litecoin wallets and choose one that offers the right features and security protections for you.
Choose your mining hardware. Select the hardware you’ll use to mine LTC, such as an ASIC miner or a GPU mining rig.
Install any necessary software. Most ASIC miners come with pre-installed software, but if you’re mining with a GPU, you’ll need to download and install Litecoin mining software from a trusted provider.
Choose a mining pool. Compare the rewards, fees, minimum payouts and other features offered by a range of Litecoin mining pools. You may even want to sample a couple of pools before deciding on one for the long term. Please note that some pools will require you to use recommended software
Start mining. Make sure your LTC rewards are moved to a private wallet as soon as possible. Recalculate the cost of mining regularly to ensure that your operation remains cost-effective.
Method 3: How to mine Litecoin using a cloud mining service
Choose a cloud mining company. Do your research to find out what services are available and what benefits they offer. Remember that cloud mining scams are a very real risk, so it’s essential to make sure you’re dealing with a reputable provider.
Select a mining package. Take a look at the mining contracts on offer from your chosen company. How much do they cost? How long do they run for? What mining equipment will be used? What sort of payout can you expect? Is it possible to customize a package that better suits your requirements?
Pick a mining pool. Once you’ve purchased a plan, you’ll usually need to select a mining pool. Once again, compare the available options and consider their fees, size, minimum payouts and more before making your decision.
Start mining. You can now start cloud mining Litecoin. Make sure to move any profits you receive into a secure Litecoin wallet that allows you to control your private key.
If you want to mine Litecoin, make sure you’re fully aware of all your options and the potential risks involved with each approach. By doing your research and finding the right setup for your needs, you could eventually make a profit mining LTC.
Disclosure: At the time of this writing the author holds ADA, ICX, IOTA and XLM.
Disclaimer: Cryptocurrencies are speculative, complex and involve significant risks – they are highly
volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of
future performance. Consider your own circumstances, and obtain your own advice, before relying on this information.
You should also verify the nature of any product or service (including its legal status and relevant regulatory
requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may
have holdings in the cryptocurrencies discussed.
Tim Falk is a freelance writer for Finder, writing across a diverse range of topics. Over the course of his 15-year writing career, Tim has reported on everything from travel and personal finance to pets and TV soap operas. When he’s not staring at his computer, you can usually find him exploring the great outdoors.
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