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How to mine Litecoin (LTC)

Find out 3 ways you can mine Litecoin in this beginner's guide.

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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.

Coin nameTicker symbolMining algorithm
LitecoinLTCScrypt
Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade.

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:

  1. Method 1: Solo mining
  2. Method 2: Pool mining
  3. Method 3: Cloud mining
  4. 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

    1. Create a Litecoin wallet. Before you start mining, make sure you’ve set up a private wallet where you can securely store your LTC.
    2. 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.
    3. 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.
    4. 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

    1. Create a Litecoin wallet. Compare Litecoin wallets and choose one that offers the right features and security protections for you.
    2. Choose your mining hardware. Select the hardware you’ll use to mine LTC, such as an ASIC miner or a GPU mining rig.
    3. 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.
    4. 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
    5. 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

    1. 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.
    2. 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?
    3. 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.
    4. 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.

    Buy Litecoin

    Frequently asked questions

    Is Litecoin mining profitable?

    This depends on a range of factors, including everything from the mining rig you’re using to power costs where you live. Use an online mining profitability calculator to work out your total costs.

    How often are Litecoin blocks generated?

    Litecoin blocks are generated every 2.5 minutes, four times faster than bitcoin’s rate of every 10 minutes.

    How big is Litecoin’s block reward?

    Litecoin’s current block reward is 25 LTC. However, the block mining reward halves every 840,000 blocks, so it will reduce to 12.5 LTC in 2019.


    Image source: Shutterstock

    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.

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2 Responses

    Default Gravatar
    AbrahamDecember 19, 2018

    Before you start Litecoin mining are you going to invest before you start?

      Avatarfinder Customer Care
      JoshuaDecember 20, 2018Staff

      Hi Abraham,

      Thanks for getting in touch with finder. I hope all is well with you. :)

      Yes, you would need to invest in having your own computer, Internet connection, and other pieces of crpyto mining equipment. If you already have some of these things, then you will have fewer investments to make. Depending on the mining method you will choose, you would need to have the basic software and hardware to start mining.

      I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.

      Have a wonderful day!

      Cheers,
      Joshua

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