The blazing success of Bitcoin has resulted in the creation of hundreds of other digital coins with each one of them claiming to have a unique USP. While that’s far from the truth, it is a fact that there are some cryptocoins that have something of value to offer to their users. One such digital currency is Litecoin. There are many developers and digital currency enthusiasts who are plunging into Litecoin mining.
Litecoin was created in 2011 and claims to be a faster version of Bitcoin. Is this claim true? Well, unlike many other cryptocoins that indulge in meaningless boasts, Litecoin does not. Analysis and research have shown that Litecoin transactions happen four times faster than that of Bitcoin. And they are cheaper too.
What Is Litecoin?
Litecoin came into existence because its creator Charlie Lee was convinced that there were too many flaws in the Bitcoin code and Litecoin could be one up if they were able to do a better job with the code and other features such as speed of transactions, mining processes, and scalability. Litecoin was created because Lee wanted a better and lighter version of the original. Today Litecoin price hovers around $77 which is an impressive figure according to analysts.
Key Advantages Over Bitcoin
Litecoin was developed to work as a payment system that could be used globally. Users can receive and send funds either within the country or abroad without a third party getting involved. The best part is that transactions can be done cheaply and speedily. Funds can arrive in your wallet in minutes from any corner of the world.
Scalability is another key benefit that Litecoin offers. While Bitcoin can process only seven transactions per second, Litecoin can process a maximum of 56 transactions every second. This is a key reason for the growing popularity of Litecoin.
With its popularity growing with time, there are many people who want to engage in Litecoin mining. There are many ways of doing it. Your choice of the mining process will depend on the kind of budget you have.
In solo mining, you carry out Litecoin mining on your own, using your own equipment and without sharing any responsibility with others. The advantage of using solo mining is that you keep all the rewards which can mean more money in your wallet. The downside is that you need to make an upfront investment on equipment and also pay the energy bills on your own. This can make mining more expensive and the costs can eat into your profits.
Don’t want to do it solo? You can consider joining a Litecoin mining pool. In this method, all participants share their resources such as energy and computing power. The process boosts the chances of getting a block reward and also that of a regular flow of income.
The flipside of joining a pool is that you might have to pay a fee to join the Litecoin mining pool sometimes. Also, the rewards are shared with other miners which can be annoying and can result in a meager income, especially if the pool is a large one.
Two of the most popular mining pools are Litecoin Mining Pool and Antpool. The former has been in existence since 2011 and is free to join. The rewards are distributed in accordance with the energy and computing power contributed. The payouts are instantaneous. The operations are secured using two-factor authentication.
Antpool is based in China and claims to be one of the largest Litecoin mining pools available. Joining is free but all block rewards are not shared. Payments are released on a daily basis and are commensurate with the power components contributed by each miner.
If you want to experience Litecoin mining without having to spend on costly equipment o paying a joining fee to a pool, you can consider this option. You have to pay a mining rig for their services. All you need is a computer for carrying out cloud mining. The option is preferred by novice miners as they do not have to shell out money for expensive hardware and electricity. Just a word of caution here. There are many dubious players operating in this field and there is the likelihood that you could get scammed. Do proper research before taking the plunge.
About Litecoin Hardware Equipment:
In the early days of Litecoin, you could make good profits by using a CPU or a GPU. With a small investment, you could earn impressive returns. That’s not possible anymore. However, you can buy specially designed mining hardware called Application Specific Integrated Circuit or ASICs to carry out mining affordably and profitably.
One of the most popular hardware systems used in Litecoin mining is the Antminer L3+. It is regarded as the powerful Litecoin mining hardware and offers impressive speed and high reliability.
The best thing to do is not rush into buying or mining Litecoin and make every move after careful consideration of all consequences.