Litecoin was introduced in 2011 and is one of the oldest digital currencies that still exist. Although mining Litecoin has increased in difficulty and decreased in terms of profitability, however, it still is possible to make a profit off of it. In order to crack this, you will need to have access to resources and sufficient time. Before moving ahead, make sure that you run the number before investing in Litecoin.
Now, the question arises, how does one mine Litecoin?
To begin with, in the real world almost every financial institution requires a central authority that can confirm and process a transaction. For instance, if you wish to transfer some money to your friend, you would probably seek help from a bank.
But, think about this, instead of one person or another institution (say a bank) having full control, what if everybody had it? This can happen when you start mining. For you to become a miner, you must have great computing skills which will help you solve mathematical puzzles. The reason why computers are needed is that they are designed in such a way that humans can’t solve them easily. When it is solved, the block of the transaction is verified.
Once done, you need to assess both pros and cons of each of the two mining methods outlined below. After you have made your decision based on what method suits you best, you are ready to mine!
The primary two ways to mine Litecoin are:
Method #1. How can you mine Litecoin at home?
- First, you need to create a Litecoin wallet before you start mining. Make it a point that you have set up a private wallet wherein you can securely store the LTC.
- Pick your hardware. There are several hardware options available when it comes to mining Litecoin. Here, remember to consider the cost of power and see if there is adequate ventilation when organizing the setup.
- Install the software. There are some companies that come with pre-installed mining software. Moreover, if you are mining using graphics cards then you will have to download and install free mining software. Thus, make sure to do thorough research and only download from trusted sources/websites.
- Commence mining. Follow all the instructions stated in the software package in order to mine Litecoin. Moreover, remember to store any LTC you have earned in a secure wallet and monitor the performance of the equipment and the price on a regular basis.
Method #2. How can you mine Litecoin through a mining pool?
- Open a Litecoin wallet. There are a plethora of Litecoin wallets out there, choose the one that offers features and securities best suited to your needs.
- Then comes picking the right mining hardware. Pick the hardware with which you will mine LTC.
- If there is a need for installing software then do that. Some wallets come with the option of pre-installing software then there are some, where you will be required to download and install Litecoin mining software from a trusted website/provider.
- Before you choose a mining pool, compare the rewards, minimum payout, fees, and other features that are offered by various Litecoin mining pools. You can even take a sample of a couple of pools out there before deciding on the one you want to go ahead with. Furthermore, please see that there are some pools that need you to use recommended software.
- You can now start mining! One thing that you need to keep in mind, move your LTC rewards to a private wallet as soon as you get the opportunity. Don’t forget to recalculate the cost of mining regularly to make sure your operation remains cost-effective.
If you are planning to mine Litecoin then make sure that you are completely aware of all your options and potential risk involved with each approach. When you are done with due diligence and finding the right setup for you, you could eventually make a profit mining LTC.