If you’re into crypto, you’ll probably be aware of just how profitable mining can be. However, mining can also be time-consuming, energy-intensive, and a waste of money if not researched properly beforehand. So, if you’re specifically interested in mining Litecoin, check out the recommendations and tips below so that you’re in the know before getting started.
What Is Litecoin?
Before getting into the ins and outs of Litecoin mining, let’s quickly discuss what exactly Litecoin is. Founded in 2011 by former Google engineer Charles Lee, Litecoin is one of the oldest cryptocurrencies out there, surpassing the likes of Ethereum, Ripple, and Tether in age.
Today, Litecoin is a very popular token with a value that generally ranges between $100 and $200 depending on the state of the market. Like Bitcoin, Litecoin uses the proof of work (PoW) mechanism on its blockchain for both mining and block verification (though the two tokens do not operate in the exact same way). But what makes Litecoin worth mining?
Of course, the most important question prospective Litecoin miners ask is, “Will this make me a profit?” Fortunately, you can turn a healthy profit mining Litecoin, though the amount you make will depend on what hardware and software you use, and whether you solo or pool mine. But if you play your cards right, mining Litecoin can make for a lucrative venture. So, what’s the best way to go about it?
Litecoin Mining Hardware
A crucial element required in any crypto mining is dedicated hardware. This can range from a basic CPU to a specialized ASIC rig. While we’d all love to mine crypto successfully using our preexisting CPU, this hardware just doesn’t make the cut in many cases, and you’ll certainly have a hard time mining Litecoin if you rely on a CPU.
To mine Litecoin efficiently, you’ll need an ASIC rig, as you just can’t mine this token efficiently using a CPU or GPU. As you may know, ASIC rigs can be very pricey, so it’s important to know whether you want to fully commit to Litecoin mining before making any investment into hardware.
There are a range of ASIC rigs out there, making it difficult to choose. So, we’ve listed a few rigs below that you could consider if you want to mine Litecoin, such as the Bitmain Antminer L3++, the FutureBit Apollo LTC Pod, and the Goldshell LT5.
Litecoin Mining Software
Unlike the mining hardware, the software required to mine tokens doesn’t stand a chance of breaking the bank. In fact, you can find many reputable Litecoin mining software programs for free. However, you shouldn’t jump to download the most popular or talked-about mining software. Instead, it’s best to choose your Litecoin mining software that suits your needs and suits your mining speed and hardware.
There’s a huge range of options out there when it comes to mining software, even more than there is for hardware. In terms of Litecoin, there are a few solid programs out there that you can download to start mining successfully. We’ve listed a few below that you can check out.
1. Easy Miner
Easy Miner is a top choice for Litecoin mining due to its myriad of great features. Though it is mostly advertised as Bitcoin mining software, you can still easily use it to mine Litecoin. Not only is Easy Miner open source, but it offers personal wallet management, a high level of security, and offers real-time analytics (displaying your earnings, hash rate, and other key statistics).
What’s more, Easy Miner provides you with live community support so that you can find answers when you run into an issue. You also don’t need to worry about the price because Easy Miner is entirely free.
Awesome Miner is another reputable mining software program that offers ASIC support for Litecoin mining. With easy scalability, optimized Antminer firmware, and the support of over 25 mining engines, Awesome Miner makes it easy to mine Litecoin without having to spend a single penny. You can also keep an eye on all of your rigs using Awesome Miner’s dashboard, so you’ll know if something changes.
CGMiner is a popular open-source program for mining Bitcoin, Dogecoin, and Litecoin, and has several helpful features that will make your mining experience a lot smoother. CGMiner offers detailed statistics of your mining progress, fan speed control, and won’t charge you a penny to download and use it.
Though the latest version of CGMiner is great if you’re using an ASIC rig, note that if you wish to use it for mining another token using a CPU or GPU, you’ll need to stick with the older version, as CPUs and GPUs have been phased out of its update.
Litecoin Mining Pools
While you can mine Litecoin on your own, you’ll stand a much better chance of receiving regular income by joining a mining pool. Mining pools allow you to earn mining rewards by contributing your mining power along with other users to increase the chance of finding and mining a block. Using a pool to mine can make your entire mining experience a lot more dependable.
Keep in mind that mining pools do have fees, and you won’t receive the full mining reward, as you would with solo mining. So, if you’re more of a gambler and you’re willing to wait a lot longer to find and mine a block, you can give solo mining a try, but note that this will provide you with a much less reliable form of income.
If you’re interested in joining a Litecoin mining pool, we’ve listed three of the best around below.
Litecoinpool is currently one of the largest and most popular Litecoin mining pools in operation. It consists of over 16,000 miners, with a network hashrate of over 100 TH/s. With that many miners, you’re almost guaranteed to receive regular rewards, though it’s worth noting that the division of rewards will decrease depending on how many users are in the pool.
Litecoinpool rewards users using their pay-per-share (PPS) rate, which pays you relative to the shares of computing power you’ve provided the pool with. The more you provide, the higher the reward. And, now for the best part: Litecoinpool doesn’t even charge a fee!
ViaBTC offers mining pools for a range of tokens, including Litecoin. It stands with Litecoinpool as one of the biggest mining pools out there and also has a huge network hashrate and thousands of miners.
ViaBTC is designed to be easy to navigate, with a simple user interface that even a beginner could understand. However, ViaBTC’s Litecoin mining pool does charge a fee for operations and maintenance, so you’ll see this come out of your mining reward if you choose to mine with this pool.
BTC.com is operated by Bitmain, a company that also produces ASIC mining rigs. While you can mine a range of cryptos using BTC.com’s software, its Litecoin mining pool is one of the most well-known available today. BTC.com offers a native crypto wallet to store your rewards and uses the pay-per-share model to pay its miners.
Like ViaBTC, BTC.com also charges a fee, which will be taken out of your mining rewards. Currently, this fee ranges between 1.5 and 4%.
The Risks of Mining Litecoin
As is the case when mining any token, mining Litecoin does not come without its risks. Firstly, a drastic change in the market value of the coin you’re mining can have a severe effect on the rewards you’ll be eligible for. On top of this, you won’t always be guaranteed to find and mine a block if you mine on your own, so it’s best to join a mining pool for more of a reliable stream of income.
You should also be mindful of the energy consumption of crypto mining. The process can quickly rack up a big electricity bill. And, if you’re not mining efficiently, you may end up paying big bucks for energy requirements without making it back in your profits. But doing your research and using reputable hardware, software, and mining pools can help reduce the chance of an unsuccessful mining venture.
Mining Litecoin Can Be Profitable, but It Pays to Know Your Stuff
While Litecoin cryptocurrency mining can provide a steady form of income, it’s crucial to do some reading and get to grips with the topic before you get started. This way, you can safely and effectively mine Litecoin without wasting your time or money. Happy mining!
Read More: The Quick Guide to Mining Litecoin