Litecoin is among the top 10 choices of cryptocurrency investors and miners and most of them are looking for what is Litecoin mining and what are the best Litecoin mining pools, machines, and software.
Here in this guide, I will help you with my findings on Litecoin mining.
It is always highly recommended to do the research behind the assets, in which you are planning to invest and if you are planning to invest in the mining of cryptocurrency then definitely you should be more cautious.
Before moving, first, do you know what is Litecoin and how it works, I suggest you read the ultimate comprehensive guide on Litecoin.
I feel strongly, that you have gained good enough information about Litecoin and it seems nothing left with the basics of Litecoin.
So here in this article, we will focus on the Mining of Litecoin using various sources.
Let’s first discuss what is Mining in Litecoin?
What is Litecoin Mining?
Mining is a process of authenticating and validating Litecoin transactions moving from one wallet to the second.
Still not clear, let me explain you with an example
Imagine you are sending Litecoin to one of your friends who is somewhere around the second side of the globe.
Now your transaction will not clear until someone in between both of you authenticate that transaction and register them in Blockchain.
In the real world, we have a bank that authenticates all the transactions and adds them into the bank ledger.
Similarly, in Blockchain technology whenever, any transaction initiated from any wallet will have a mathematical problem associated with it.
People like you and me sitting at home running high-power computers or devices to solve those mining problems using hash power and whoever is able to solve that mathematical problem or puzzle will get Litecoin in reward.
Here all the devices used to solve puzzles call mining devices and all people who are using those devices call miners.
After clearance of every puzzle that transaction will be authenticated and will be added to the blockchain register and Litecoin will be successfully transferred to the recipient wallet.
Every transaction initiated for Litecoin got cleared its first level verification in just 2.5 minutes because the Litecoin block is just 2.5 minutes only.
Why Mine Litecoin?
There is around 2033 cryptocurrency to mine but why we chose to mine Litecoin?
Well, answers hidden in the year 2017 when cryptocurrency was crazily traded at the market and the price of every coin was increased and at same time Litecoin price increased from 4$ to 360$ and it was the first indication for the popularity of the coin.
Well, surprisingly it is 2021, and Litecoin trading around $200 among the top 10 list.
It was introduced to overcome the drawback of Bitcoin and providing a low transaction time and block size of just 2.5 minutes which makes it suitable for adoption by small businesses.
Max supply of 84 million is quite enough to circulate in the market and the Proof of work-based Scrypt algorithm made it different than Bitcoin.
And it is far easier to mine Litecoin as compared to Bitcoin, so it will be not that much expensive and you can make a decent profit by investing in it.
Well, if you have money then you should buy Litecoin, and if you have decided to mine then stay with us.
Now the question is how to mine Litecoin and what devices, software, and pool are best for Litecoin.In the next guide for each, we will go one by one.
What is Required Before Litecoin Mining?
Before starting any mining process you should make sure to have your wallet ready to collect your Litecoin, every Litecoin mined by any devices will be credited back to your wallet.
So first decide which wallet you should choose for and which would be best for security and for same here is the guide on Best Cryptocurrency wallet.
Now I consider, you are ready with a Litecoin wallet.
Can you Mine LiteCoin using a Computer?
To mine any cryptocurrency, it is the prime concern which device they should use for, basically, all the cryptocurrencies are based on two technology
- Proof of Work (POW)
- Proof of stack (POS)
To mine cryptocurrency, it requires SHA256 and Scrypt algorithm, here Litcoin requires the Scrypt algorithm to mine
Script algorithm is easier to mine using the basic CPU of your computer as it is memory intensive so you should make sure the hardware of your device must be efficient enough to mine the coin.
Usually, your home laptops are capable of mine cryptocurrency using that traditionally integrated chips but I would not recommend using in the case of Litecoin.
There are two possible ways to mine using your decent computer.
The most highly recommended way is using GPU, do purchase graphics media card like Nvidia and integrate with your system it has more power to efficiently solve algorithms. Surprisingly it is not expensive as Bitcoin which requires ASIC.
Earlier it was possible to mine Bitcoin using GPU but now it moved to ASIC so all GPU was looking for a coin to mine and now interestingly Litecoin moved from CPU to GPU.
This opened a window for all miners to use old Bitcoin GPU miners to mine Litecoin.
People recommend setting up one completely separate device using the graphics card for better results.
Just to let you know, now a new ASIC came into the picture, which does the mining of Scrypt but it is very hard to grab them as these are limited in size and their name is Bitmain Antimeter L3+, their stock not long last.
Before the start of any mining, I would like to sure that mining using my own computer is very risky and can harm my own system component so take the wise decision.
This type of mining call solo mining, where you will earn your own, but do you think you can make that much?
It is very hard for beginners, so to get a high chance of reward there are other methods which we call the mining pool.
Best Litecoin Mining Pool
Let say, you have set up your own system at home where you have purchased new devices and invested a decent amount of money.
Currently, Litecoin provides an opportunity to mine 12.5 coins per block which were earlier 25 coins.
Every four years, these available mine coins will get half means next it will be 6.25, and then so on.
Even 12.5 Litecoin is not enough to get the reward for every miner because people all over the globe dreaming to catch newly generated coins and now the question is, do you have that much potential to grab them?
People have invested a lot in setting up personal devices call mining devices, so here the best option for you is to join a pool.
The pool is a group of people connected with each other and sharing their system power to mine collectively.
So here all the globe with limited efficiency of system power come together and agree to share system power and it creates a huge source of mining power and that pool will combine mine Litecoin.
Isn’t that interesting?
Yes, but the problem is whatever coins mined will be shared among all the members of the pool and everyone has a limited share based on their system has power and various factors. Do research own for your interested pool.
But instead of doing a large investment on your own solo setup, it is far better to be a part of a group where combine power can mine more than what your limited investment will do.
If you really want to join that pool, there is a list of Mining Pools.
Here is one Litecoin self-authorized mining pool call LitecoinPool.org.
It is the first true pay-per-share Litecoin pool. I would suggest having a look for What is Blockchain technology guide to understanding more about blocks.
Best Litecoin Mining Devices
Now if you are willing to mine through any piece of the way then let me tell you the name of two devices.
- CPU Miner
- GPU Miner
If you are willing to mine using your own CPU then you should use a software call cpuminer, it is client based super easy mining software.
It is multithreaded highly optimized mining software used to mine various cryptocurrency based on SHA256 and Scrypt algorithm.
There is a platform call Sourceforge from there you can download CPUMiner.
cpuminer is available for Windows, Mac, and Linux, simply download and save somewhere in your system.
To run .exe file of that downloaded miner, simply write a bat file which should have few basic details as shown below and you will be active and up running.
Image credit coindeskNow mining using cpuminer is started to learn more about CPU mining do follow subreddit group.
If you are intended to mine using GPU then there is software call CGMiner, It is an open-source mining code written in c for cross-platform such as Linux, Windows.
Code for this is freely available by the developer, make sure to download from here developer website and its version changes from time to time.
Simply download that software and make sure your system GPU is up to date and ready to start mining.
Now again you have to create the batch file and run the program using a command prompt.
Now it will start mining coins and you will see multiple codes are running on your computer screen.
Wrap Up on Litecoin Mining
It is the end of my guide on Litecoin mining, before starting any mining or doing investment in mining devices make sure to have research on it
Always try to find out the best coin which you should mine because you should mine for the worth coin which has possible growth future.
Here is the list of suggested Cryptocurrency which you should mine.
Here you can mine coins using both CPU and GPU at a time and you could check the possibility of earning from both.
It seems that you will get far better results using GPU instead of CPU.
Just to let you know, to improve the security of Litecoin and prevent from attack Litecoin and Dogecoin has combined their mining pool.
Here we have learned all about Litecoin mining, devices, software, pool, and the best platforms.
Rest decision is yours, but it was all I would like to share with you.
Put your comment in the comment box and share it with your social media friends to aware of Litecoin mining.