Litecoin Mining isn’t for everyone. So, if the only reason why you want to mine is to have some Litecoins, then it is recommended that you buy Litecoin from one of the top exchanges. However, if you have the time, resources, and, passion for keeping the network decentralized, this post is for you.
How To Mine Litecoin
1. Choose the Hardware
Just like with Bitcoin mining, you need to choose the hardware for mining Litecoin. Litecoin can be mined with the Scrypt hash algorithm using a CPU. However, this method of mining is no longer profitable for miners. Miners have also used GPUs to mine Litecoins, but this was only profitable till ASICs for Scrypt was invented. So, your hardware should be application specific integrated circuits.
2. Choose the Software
If you have purchased an ASIC miner, you may not need to do any mining software installation as they typically come pre-installed. If you want to use CPU or GPU mining, then you have to choose a Litecoin software that is secure to use. To avoid mining for the software developer and wreaking havoc on your system, you should not follow instructions you do not trust.
3. Choose a Pool
While mining solo might seem like a more fun experience, it’s not necessarily the best choice. With the increasing difficulty of mining, joining a mining pool is your best bet to making a profit from Litecoin mining. If you’re going to choose a pool make sure you do your research thoroughly before you join. Note that you’ll be required to pay a membership fee for joining the pool. Whenever a reward is given, you’ll get your fair share. Your share will be according to the hash power you contributed to the pool mining. The earnings might seem low but it’s going to be more steady than when you’re mining alone. Another thing you should consider is the market concentration of the pool. If the pool is made up of too many miners and it eventually starts consuming more than half of the network’s computing power, you might get kicked out.
Level : Basic