The cryptocurrency Litecoin is created by mining, generating a total of 84 million Litecoins. How the process works and how you can mine Litecoins yourself, we will show you in this post.
For links on this page, the merchant may pay a commission, e.B. for marked with or green underline. Litecoin Mining: You need these requirements
The peer-to-peer cryptocurrency Litecoin, like Bitcoin, is based on blockchain technology and is a decentralized open source payment network. In Litecoin mining, a transaction with Litecoin is processed by the so-called miner and added to a transaction block.
- With Litecoin, as with Bitcoin, the proof-of-work process is used to generate new blocks. In addition, Litecoin uses the Scrypt algorithm, but unlike Ethereum mining, the use of graphics cards is no longer worthwhile. In the meantime, you can mine profitably almost exclusively with ASIC processors.
- The more powerful your hardware, the higher the likelihood that you will successfully mine a block before anyone else. Only under this condition will you receive the reward in the form of Litecoins, as well as the transaction fees for all transactions made. Until the next Litecoin Halving in 2023, you will receive 12.5 LTC as a reward.
- If you want to mine Litecoin, you have three options: Either you participate in a mining pool or you keep control and mine alone. Alternatively, you can hire a cloud so that other miners can do the mining for you.
This way you can mine Litecoin yourself
With the appropriate equipment, it can be quite lucrative to mine Litecoin yourself. Keep in mind, however, that in addition to the high acquisition costs, solo mining also incurs the ongoing electricity costs and amount to a few hundred euros a year.
- For the mining of Litecoin, the following special hardware has proven itself in practice: ASIC Antminer L3++, Bittech L1 and Innosilicon A4 LTCMaster. Due to the high demand, however, the devices are often sold out.
- In addition, you need a wallet to store your coins, the safest are offline wallets. For example, the Jaxx Liberty is often used.
- In terms of software, you need specific mining software, for example, the program Scrypt is best suited for ASIC mining. If you buy a specific mining computer, the software is often already included.
- To start mining, start the mining software via Bat file. In the script that you now write, the address of the program, the program, if necessary the address of the mining pool and the port number of the mining server come. Then enter the username, the number of miners and your password. By double-clicking on the Bat file, the mining is carried out.
- In any case, keep in mind that mining requires an enormous amount of computing power from your computer and it will be in operation all day. Ensure sufficient ventilation and take into account the energy costs.
Litecoin mining: If you want to mine yourself, you should think through all options well. (Image: Pixabay/WorldSpectrum) Litecoin: Mining Pool and Cloud Mining
Since solo mining is not profitable for every person, it may make sense to join a mining pool or use a cloud.
- Pool Mining: The advantage of a mining pool is that the hash power of all participating miners is added together. This increases the likelihood of successfully mining a block. The prize will be divided among the participants of the pool.
- Participation in a mining pool is usually subject to a fee, it can incur up to two or three percent of the winnings you gain from mining. For this, your own computing power does not have to be so high, so that you in turn save costs.
- Cloud mining: Especially if you want to try mining once and are not yet sure whether the high effort pays off for you, cloud mining is a good alternative. For this you do not need your own devices and hardly need any technical knowledge.
- With cloud mining, you conclude a contract and pay a fixed amount for a certain number of hashes per second for the entire contract period. That is, you basically “lease” the equipment and pay for the computing power. As a reward, you will receive Litecoins, for which you should have your own wallet. As with any contract, you should think carefully about the terms of the contract and possible risks.
- Leading cloud mining providers include: Genesis Mining, MINING RIG RENTALS and MinerGate.
Video Tip: Trading Cryptocurrency – Is BitPanda Reputable?
Each cryptocurrency has special characteristics – in the next post you will learn how the cryptocurrency Ripple works.