How to Mine Litecoin in 2021?

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How to Mine Litecoin in 2021?

Although Bitcoin is seen as the “gold” of cryptocurrencies and a value for long-term purposes, Litecoin is seen as the “silver” of cryptocurrencies and a trading tool for cheaper and daily purposes. Litecoin was released on October 7, 2011, through an open-source client on GitHub. The Litecoin network was launched on October 13, 2011. It was created primarily by forking the Bitcoin Core client. Over the past year, Litecoin has appreciated about 356%, which has increased the need to know how to mine Litecoin.

Litecoin vs USD

How to buy Litecoin?

Suppose you do not intend to learn how to mine Litecoin due to the technical nature and tedious mining process. In that case, you can still buy and own Litecoin or profit from its price fluctuation by investing in Litecoin CFDs.

At the time of this writing, these are the top four crypto exchanges where you can cheaply buy LTC:

Best Litecoin Wallets

Before you learn how to mine Litecoin, here are some of the top crypto wallets best suited for Litecoin.

Litecoin Core

Litecoin Core is the official Litecoin wallet. It also acts as a complete node to help secure the Litecoin network. It is compatible with Windows or Linux PC and any OSX computer as a desktop wallet.

Exodus

The Exodus multi-currency wallet is a desktop crypto wallet released in 2016, and due to its beautiful design, it has quickly become one of the most popular. The creators of the Exodus wallet, evaluating the user interface above all, created a wallet with an aesthetically pleasing user interface and several useful features. You will find that everything is presented, and Exodus has all the customization options you need to make it special for you.

Trezor

Trezor is one of the best hardware crypto wallets in the market. It securely stores your private keys and, in most cases, allows you to perform your transactions without the need for an internet connection. It is small enough that you can carry it in your pocket or attach it to your keychain.

Ledger

Ledger is also one of the most popular and secure hardware crypto wallets for Litecoin. It is an offline, cold storage wallet that supports the storage, and just like Trezor, it’s small and portable.

Litecoin Mining Guide

There are three ways on how to mine Litecoin mining. This is similar to mining other PoW based cryptos like Bitcoin, Komodo and Tron. The use of processors (CPUs) when mining Bitcoin is no longer profitable. Because even graphics processing units alone are not enough, mining-specific equipment called ASIC is used. Litecoin mining can be done using the CPU units of computers. However, with the loss of profitability of this method, graphics card processors (GPUs) have become a necessity. Then, with the advent of ASIC devices that can solve the Scrypt algorithm, LTC mining has become done only with special equipment.

When mining LTC, the decision to mine alone or as part of a pool is important. Nowadays, you almost have no chance of getting Litecoin using a standalone GPU or CPU. In the pools, a large number of miners can create blocks by producing high hash power.

Miners are presented with complex mathematical equations that can only be solved using computers. Miners can verify blocks of Litecoin transactions by solving these puzzles. To ensure the security of the blockchain, awards are distributed to the miners per verified block.

Currently, miners are rewarded 12.5 LTC for every block mined. Typically, it takes about 2.5 minutes for the Litecoin transaction block to be verified. In comparison, it takes about 10 minutes to mine a single block of BTC. The reduced Litecoin mining time can be attributed to its mining algorithm. Litecoin uses Scrypt, while bitcoin uses the SHA-256 mining algorithm.

What is Scrypt Mining Algorithm?

The Scrypt algorithm is a software component that maintains the system integrity of the blockchain. If you intend on learning how to mine Litecoin, you must understand the working of Scrypt.

The basic principles of how the Scrypt algorithm works and the SHA-256 are consistent: a block of information is delivered to the input, a hash function is applied to it, and a hash is sent to the output. The generation process is based on the creation of transaction blocks, each consisting of two components.

The Scrypt crypto algorithm appeared shortly after the advent of Bitcoin, which was developed on the SHA-256 algorithm. Bitcoin mining quickly shifted from computer processors to graphics processors (GPUs), then to FPGAs (programmable hardware devices), and then to special mining devices (ASICs). However, due to the concentration of ASICs, the decentralization of the Bitcoin cryptocurrency becomes problematic.

how to mine LTC

Scrypt coins, especially Litecoin, became popular after migrating Bitcoin mining to ASIC. Many miners with graphics cards were unemployed – their equipment cannot keep up with special miners’ equipment. They began adapting their equipment to Litecoin mining using the Scrypt algorithm or mining other cryptocurrencies.

The Scrypt hashing function was created to make hardware mining more difficult by increasing the resources required for the calculation and ASIC calculation counters. The SHA-256 and Scrypt mining methods differ in that the Scrypt algorithm requires a large amount of memory for the calculation and hashing process. It is needed to store pseudo-random sequences that are generated at the beginning of the algorithm execution. If there were not enough memory, it would take a long time to find the desired hash.

Litecoin, the best-known representative of the Scrypt algorithm. The popularity of the Scrypt and Litecoin mining algorithm has recently increased due to the strong growth of the entire cryptocurrency market since the bull market of 2017. For example, Litecoin can be mined on GPUs – their advantage is the ability to break down other altcoins and special ASIC miners for the Scrypt algorithm.

Note that ASICs are mathematically superior to CPUs and GPUs, which can generate more hashes per second. As a result, miners who use a device other than an ASIC to search for a cryptocurrency are disadvantaged. However, the Scrypt mining algorithm was introduced to prevent ASIC mining from taking place because the algorithm is memory-intensive. ASIC miners were initially not well suited to degrade Scrypt-based protocols, so miners using CPUs and GPUs could remain competitive.

Litecoin Mining Equipment

When Litecoin mining first started, making good money using only CPU (Central Processor Unit) and GPU (Graphics Processing Unit). You can now purchase special Litecoin mining equipment called ASIC. ASICs are much more powerful than CPUs and GPUs, which significantly increases your chances of getting a mining award.

Unfortunately, as ASIC has always won the race, the possibility of using a CPU or GPU has disappeared. If you want to mine Litecoin, you need to consider Antminer L3+. It is regarded as the most powerful Litecoin mining hardware you can buy. Produced by a reputable manufacturer called BitMain, this hardware is also the fastest. The number of accounts a hardware device can make per second is known as the hash rate. Antminer L3+ has a hash ratio of 504MH/s. It solves jigsaw puzzles faster than any other hardware on the market.

When deciding how to mine Litecoin, you can opt for Antminer’s previous product, L3 (not L3+!), for a longer option. Litecoin mining performance of this device is also quite good but very noisy!

Remember, if you don’t want to spend money on expensive hardware, you can opt for cloud mining.

The Best Way to Mine Litecoin

There are three primary ways you can mine Litecoin:

  • Solo mining;
  • Litecoin mining pools;
  • Using cloud mining service.

Solo Mining

If you want to do solo mining, it will be much better for you to buy special hardware designed for Scrypt-based cryptocurrency mining, Litecoin’s algorithm, instead of making rigs of graphics cards. This hardware is commonly called ASIC. These devices are much more powerful than CPUs and GPUs and have a much better chance of earning mining rewards.

Therefore, if you want to mine LTC, it is much wiser to invest in ASIC mining devices. Of course, it would be a good practice to support your ASIC devices with extra fans.

Solo mining means you won’t share mining rewards with anyone else. However, the disadvantages of solo mining are not many. The most important of these is that you have to go on for a long time without winning any block rewards.

How to Mine Litecoin at Home: A Step-By-Step Process

Step 1 – Create a Litecoin wallet

Before you start mining, be sure to set up a private wallet where you can store your LTC safely. If you want, you can create your Litecoin wallet with Ledger Nano-style paid hardware called cold wallets, or you can get a free Litecoin wallet using a Trust Wallet or Coinbase wallet.

Step 2 – Select your hardware

Compare available hardware options for Litecoin mining. For example, will you install a rig with multiple GPUs or invest in an ASIC miner? Be sure to consider power costs and cooling costs when arranging your installation.

Step 3 – Installation of the software

If you’re using an ASIC miner, your hardware probably comes with preinstalled mining software. If you are mining using a graphics card, you need to download and install free mining software. You can use software such as CGMiner, BFGMiner, GUIMiner according to your hardware.

Step 4 – Select a mining pool

Compare rewards, fees, minimum payments and other features offered by Litecoin mining pools on the market. Even if you aim for a long-term excavation, it is advisable to test these pools by trying them for a few days. Note, however, that you may need to use recommended software when using some pools.

Step 5 – Start mining

Follow the instructions in your software package to start Litecoin mining. Don’t forget to store any LTC you earn in a secure wallet and regularly monitor the performance of your equipment and Litecoin price to ensure your mining remains profitable.

How to Mine Litecoin in a Mining Pool

You can also use mining pools when mining Litecoin. Mining pools are groups of crypto miners who mutually cooperate to share mining rewards relative to their contributed hash rate. Mining pools offer many benefits because rewards are more predictable and, in many cases, higher. At the same time, however, they are concentrating power on the owners of the mining pool. However, Bitcoin miners have the option to redirect their hash power to another mining pool at any time. For example, if you as a miner no longer agree with the actions of the mining pool owner, you can switch to another pool.

These mining pools allow you to join forces with other miners and block much faster with your combined computing power. However, this means that LTC rewards will be shared within the group. You also get paid much more often but in small amounts than solo mining when digging in miner’s pools.

Best Litecoin Mining Pools

Litecoinpool.org

Litecoinpool.org. is the best Litecoin mining pool. Other pools often support the mining of different cryptocurrencies. For Litecoin miners, litecoinpool.org is incomparably better. The pool has a pure PPS reward system. You’ll be paid for each valid share you send. The pool provides combined mining, which means that several subcodes can be mined based on the Scrypt algorithm, but you can only get rewards with LTC.

ViaBTC

ViaBTC is currently the second-largest Litecoin pool. In addition to Litecoin on ViaBTC, you can mine Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, Dash and Zcash. ViaBTC was first established as a Bitcoin mining pool, and other cryptocurrencies were added over time. Litecoin became available for mining in ViaBTC in 2017.

There are no fees for transactions in this pool, but miners must pay a 4% fee for withdrawals. The reward system is PPS. If you have your hardware, create an account and start mining. You can also try cloud mining, but this is less profitable.

Nicehash

Nicehash is one of the most popular services for miners and cryptocurrency traders. Nicehash is a multi-platform platform that supports almost all top algorithms, including Scrypt.

Nicehash’s main focus is the ability of users to buy and sell computing power. This is not exactly about Litecoin mining. You will receive payment at BTC. Nicehash is included in this list because the Scrypt algorithm is available in Nicehash. It is always possible to replace BTC with LTC in the Nicehash system.

Miners are not required to register with Nicehash. However, some legacy ASIC firmware may not be compatible with Nicehash. Before connecting to a server, make sure you have the latest firmware version. All instructions are available on the official Nicehash website.

However, each mining pool can have its own rules and traditions. That’s why it’s important to explore a pool before joining. When deciding on how to mine Litecoin in a pool, consider the following:

  • Pool size: The bigger the pool, the better the chance of winning LTC
  • Fees: You will need to pay a fee for the privilege of joining a mining pool, so find out how much the fee is and how often it should be paid.
  • Minimum payments: Check the minimum threshold to transfer the earned LTC to a private wallet.
  • Reliability: Before entering a mining pool, investigate how long the pool has been active and whether it is reliable.

Not all mining pools enjoy a good reputation. However, a much bigger problem would be if a single mining pool would take over 51% of the computing power in the blockchain. Because then the blockchain can be manipulated and the decentralized concept turned upside down. Therefore, mining pools in the crypto scene are sometimes viewed with scepticism.

Litecoin Cloud Mining

These providers allow you to rent Litecoin mining equipment for a specified period. This type of orientation costs less than installing your hardware. In addition, you do not need to deal with problems related to carrying out mining activities such as equipment maintenance, overheating risks and electricity usage.

You don’t want to be fond of expensive equipment, but if you’re keen to mine, there’s a third way for you! You pay for a Litecoin mining package in cloud mining to do all the work for you. All you need is a computer. The mining package refers to a group of computers used as cryptocurrency mining. The more computers you have in your package, the more you mine!

This option is perfect for beginners learning how to mine Litecoin since they don’t have to pay for expensive devices due to high electricity bills. To access cloud mining rewards, you need to invest a certain amount. The more investment you receive, the more coins you will receive.

But it would help if you were careful while deciding on which cloud mining company to use. There are a lot of scammers who don’t have the equipment and take your money. Do your research well before sending your money.

The Best Cloud Mining Sites

When deciding on how to mine Litecoin, these are some of the best cloud mining providers:

Genesis Mining

Founded in February 2014, the company is one of the most experienced companies due to its establishment on this date. The company started operations in the British Virgin Islands and only obtains Bitcoin and Dash by mining clouds. Previously, Litecoin also operated for Ethereum and Monero.

CryptoUniverse

CryptoUniverse has been on the mining network for two years; although it is not as old as the cloud mining sites, we count and count. The idea under the company’s cloud mining project is that those who want to get cryptocurrency can profit easily. They have contracts that are especially suitable for many budgets. Users can sign up for the site and start mining the cloud.

Hashflare

This company, on the other hand, shows a different kind of work than the others. Cloud mining is not done by themselves but by third parties. So, neither you nor they have any electronic devices. Hashflare’s contracts to its users include Bitcoin, Ethereum, Litecoin. However, since the third party is involved, we can say that it is not recommended.

Hashnest

Hashnest cloud mining was founded in 2014 by the giant Bitcoin mining company Bitmain. Bitmain manufactures ASIC mining equipment and manages the largest mining pool called Antpool. Although Bitmain is a China-based company, Hashnet has farms in many regions around the world. In this way, it benefits from low-cost electricity costs. If daily dividends are lower than the operating cost for ten consecutive days, your contract will automatically cancel. There are no refunds.

However, such services have their downsides. While these services are not very cheap, they can often be far from some transparency. There are also many completely fraudulent cloud mining companies in the market.

How to mine Litecoin using a cloud mining service: A Step-By-Step Process

Step 1 – Choose a cloud mining company

Please do your research to determine which services are available and what benefits they offer. Keep in mind that there are many cases of fraud in cloud mining. So don’t make the mistake of turning to companies that promise you too much profit margin rather than using elite firms.

Step 2 – Select a mining package

Take a look at the mining contracts offered by the company you have decided on and choose the one that works best for you when you make that decision. How much are you going to pay? How long will it take you to get a return? What will mining equipment be used? And look for answers to questions about whether you have a chance to upgrade to a package that better suits your needs in the future.

Step 3 – Select a mineral pool

When you buy a plan, you usually need to choose a mining pool. When choosing a miner’s pool, compare available options and consider the fees, sizes, minimum payments and more of the pools before making your final decision.

Step 4 – Start mining

Now, you can start cloud mining Litecoin. Regularly check whether all profits you receive while mining the cloud are transferred to your private key in a timely and complete manner.

Bottom Line

The crypto altcoin market is reaching newer heights and has recently attained $1.5 trillion in market capitalization. According to expert fundamental and technical analysis, Litecoin is also poised for exponential growth in the years to come. Therefore, we believe mining Litecoin is pretty lucrative at this point. We really hope you found this article on ‘How to mine Litecoin?’ informative and useful.      

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