In case you wish to own Litecoin, you can simply acquire it from an exchange platform like Coinbase. But if you wish to try Litecoin mining (given you have free time and the necessary resources that will fetch you handsome dividends), here’s the perfect guide that you need to read up before you go ahead and do your own bit of research.
The essentials of LTC mining mostly rely on the mining equipment, the OS, the software, and the mining pool that you may choose to join. Given you have a grip on these important factors, some good online tutorials can guide you through. Based on your skill set, here’s a rulebook that may be of some help.
In Proof-of-Work digital currencies such as BTC and LTC, mining is the crucial method of maintaining the blockchain record. Miners get transaction information that is broadcast by different members of the system, they collect those transactions into what is known as ‘blocks’.
A hash is the consequence of running a restricted cryptographic calculation on a pile of information: a certain dataset will return just one hash, however the hash can’t be utilized to reproduce the information. Rather, it fills the need to effectively guarantee that the information hasn’t been altered. Mining is a competitive affair. Litecoin miners try and locate a block using the computing power of their PC and get rewarded for their hard work. Currently, the Litecoin block reward stands at 25 LTC. To increase their hashing power, Litecoin miners use a specialized mining equipment to generate faster hash rates. By assembling powerful machines, miners create what is known as a ‘mining rig’.
Litecoin Mining Hardware
In the good ‘ol days, miners would mine Bitcoin with even a CPU. By the year 2011, the competition had increased, and the best way to earn profits was by utilizing a GPU or graphics processing unit. By opting for Scrypt, Charlie Lee, the developer of the Scrypt network, tried to ensure that Litecoin is mined with a CPU, but the network couldn’t live up to the set standard. After the CPU era, GPUs were utilized to mine LTC. Later, ASICs or application-specific integrated circuits were created to run the SHA-256 protocol and Bitcoin miners gradually shifted their focus from GPUs.
It is to be noted that ASICs specifically meant for Litecoin mining (it runs the Scrypt algorithm) have been launched but these are quite an expensive purchase. You may choose to mine Litecoin with a CPU or a GPU, but the stakes are high and you will not end up making any profit.
Pool Mining Vs Solo Mining
Once you’ve chosen the mining equipment, you will need to choose whether you wish to opt for solo mining or join a mining pool. Solo mining may take up much of your time and yet you may not be able to locate a block. When you do discover a block when mining on your own, you can keep the entire block reward of 25 LTC to yourself. Yu must be clear that it is possible only if you are mining using an ASIC hardware. In case you’re mining solo with the help of a CPU or a GPU, there are zero chances of consistently acquiring any LTC.
With pool mining, things are a little different. Pool platforms allow individuals to come together and share their computing power. Cloud mining is a variant of pool mining. With Litecoin cloud mining, there is no need to purchase a mining equipment or go through the hassle of maintaining it. At the same time, you also do not have to spend on the exorbitant electricity charges. All you have to do is purchase a mining contract which provides you with rented hash power to mine Litecoins.