Introduction: How to mine Litecoin
Litecoin (LTC) is one of the earliest digital currencies designed by former Google engineer Charlie Lee in October 2011. Litecoin is essentially a bitcoin fork, i.e., the BTC version was devised to overcome bitcoin’s complexities. Charlie envisioned seizing the crypto market that remained untapped by bitcoin by offering lower fees, lower turnaround time (TAT), and by limiting the existence of mining pools on its ecosystem. As a result, the Litecoin ecosystem processes the transactions four times faster than the bitcoin network, charges lower transaction fees, and can mine 84 million LTC, which is four times more than bitcoin’s capacity. Litecoin price prediction indicates bullish growth for LTC, which is currently priced at 200.51 USD to fluctuate between $311 to $319 by the end of the second quarter this year and further jump to $513 by this year-end. Crypto analysts suggest that LTC will touch 1200 USD in 2025.
How Does Litecoin Mining Work?
Considering the bullish market trend of LTC, many miners are looking forward to capitalizing on the opportunity LTC mining offers. LTC is based on blockchain technology that miners support. With computing devices such as an application-specific integrated circuit (ASIC), these miners solve complex computational problems and get LTC as an incentive. Incase of LTC mining, miners can choose from three different mining processes viz. solo mining, pool mining, and cloud mining.
- Firstly, a crypto wallet is downloaded and installed to store the LTC received as an incentive after the mining process.
- The hardware devices required for mining are allocated and assembled accordingly. Depending on the budget, a rig of Graphics Processing Units (GPUs) or ASIC would be determined. After that, the cost of power and devices is estimated before assembling.
- After the hardware assembly, the necessary software compatible with the hardware setup is selected. The GPU hardware will be compatible with most of the accessible versions of mining software available online. Besides, the ASIC set has pre-installed mining software and hence will be highly compatible.
- The selected software will have a set of instructions that will guide through the process of mining. After mining, litecoin is stored in the crypto wallet. Users must keep track of the mining process at regular intervals to access the revenue generated.
- The mining pool is a group of miners sharing infrastructure and resources to mine cryptocurrencies. Both solo and pool mining may share a few similarities, the significant difference being that in solo mining, the users will mine the block rewards alone. In pool mining, they will mine the block rewards together with other people.
- The first two steps (1 and 2) are repeated in pool mining as well.
- It is advised to be cautious of the free versions of software available to mine the cryptos meant for the GPUs. ASIC devices will have pre-installed versions, which minimize the compatibility issues in the mining process.
- The most crucial step is selecting the right pool that will offer appropriate incentives, lower fees, and transparency. Comparing pools through these parameters will lead to efficient and profitable pools. Before starting the full-fledged mining process, the users must try a few mining pools, which will help in the shortlisting process.
- The LTC mined through this process is stored in the crypto wallet. The users are advised to monitor the mining process regularly to ensure profitable mining.
Cloud mining uses the cloud provider’s services, with infrastructure designed explicitly to mine cryptos.
- The user should choose the most popular and trusted Cloud provider to avoid any security breaches. Secondly, the benefits these cloud providers offer must be weighed for LTC mining before the selection process.
- The services offered by these providers are contractual. So the packages are to be selected after scrutinizing the following parameters:
- Duration of these services
- The efficiency of the devices applied
- Range of mining rewards
- How flexible and personalized are the packages
- The mining pool should be shortlisted based on the cost and rewards the mining pool offers.
- The provider’s instructions must be followed before mining the LTCs. The LTCs are transferred to the crypto wallet, and the mining process is monitored to track revenue generated against the cost.
With Litecoin price prediction aiming at the Litecoin price, reaching the 1200 USD mark by 2025, currently $200, mining would prove to be a profitable option to generate incredible revenues. However, the mining process involves many risks. Hence, it is advisable to be cautious during the setup process, and it is crucial to measure it against the cost to ensure it is profitable. Extensive research while selecting a mining pool and cloud service provider will protect from malicious entities and security breaches.