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In this post, we will talk about ”How to Mine Litecoin in 2018 – A Step by Step Guide for Beginner’s “. Litecoin is a cryptocurrency that is similar to Bitcoin. Bitcoin inspired the development of Litecoin. Litecoin is an open source payment network that operates on a decentralized system. It is a global payment network that is secured by the use of mathematics, which in turn empowers users to regulate their own funds. Just like every other cryptocurrency, Litecoin is a digital currency that makes use of the peer-to-peer payment system. It is a digital currency that allows users to carry out instant payments or transactions worldwide. The extremely low transaction fee Litecoin charges tend to attract more users to this cryptocurrency. Despite being inspired by Bitcoin, Litecoin comes packed with a different hashing algorithm, and it is faster than Bitcoin when confirming transactions. Similar to other cryptocurrencies, Litecoin is generated through mining. Hence, it is important to look at the concept of Litecoin mining.
Overview of Litecoin Mining
The mining process of Litecoin could be stressful as it is hard to produce what is popularly known as blocks. During the mining process, miners come together to collectively assembly all transactions or business dealing carried out on the Litecoin network. These transaction records are bundled together into what is called blocks, therefore, more of these blocks put together creates what is known as a blockchain. To mine Litecoin, miners are required to generate a cryptographic hash of each block that meets a set standard. Any miner that eventually creates a block is usually rewarded with twenty-five newly generated litecoins. It is vital to know that the mining process gets tougher on a daily basis.
When considering mining Litecoin, a person should analyze if mining will be profitable or not, the equipment needed to mine and the cost it involves. Presently, mining is not as profitable as it used to be. Therefore, there are various factors to consider. As a miner, you should consider the following:
Factors to Consider for Litecoin Mining
- As a potential miner, you should consider the cost involved in mining. For example, you will need a mining hardware. It is important to calculate your potential profit after purchasing your hardware.
- Consider how much electricity your mining activity will consume. Note that most times your mining activities may consume a lot of electricity, which in turn adds to one’s cost. Therefore, estimate if mining will be profitable after your electricity expenses.
- Also, consider the difficulty involved in mining. As stated earlier, mining gets tougher on a daily basis especially when more users join such mining pool. Due to this, a user should make a realistic projection of your expected income
- If you want to successfully mine Litecoins, you should consider the time and energy you would put into such. Is it really worth your time? Is the revenue good enough for the time and energy you have put into the mining of such cryptocurrency? These questions will help you evaluate or know if mining is indeed a good idea.
- Make inquiries or findings pertaining to your mining process. If you do this, you will get a better insight into what you are about to venture in.
After you have had a thorough thought on whether to mine Litecoin or not and you feel that you still want to mine Litecoin then below are the things you will need for your mining.
First, as a potential miner, you should know about mining pools. A mining pool is a platform for prospective miners who come together to pool their resources or computational power in other to solve a cryptographic puzzle hence, generating blocks. In return, these miners submit a valid proof of work that is used to determine the amount of share or reward each miner will get. The reward gotten is most times shared according to the contributions made by each person. The reward system works in two ways:
- The first way is using the proportional method. This method works in such a way that the reward is given when a user finds a block. Therefore, it is shared according to a number of shares submitted by each user.
- The second method is the pay-per-share method also known as PPS. This method is different from the proportional method in a way that the users are given a fixed reward for every share submitted.
Litecoin Mining for Beginner’s
When considering mining, it is critical to know the mining pool you want to join. For every mining pool, profitability matters a lot especially to the success of such pool. Thus, there are many facts you should evaluate. For a beginner, make sure you consider the following.
- The profitability of such pool
- The features of such pool (It should have the essential mining pool features)
- Read the reviews and reputation of your preferred pool.
- Consider the reliability of the mining pool.
- Also, ask questions regarding the pool. Contact their customer care to know more about the mining pool.
Another important factor to consider is your cryptocurrency wallet. As a miner, you will need a wallet to store your earned Litecoin. Owning a wallet is important for the security of your Litecoin. You could pick from a large variety of free and premium wallet. There are hardware, online, paper wallets that you could choose. Nevertheless, having a wallet is important.
More so, know the software you want to use for your mining. There is various Litecoin mining software suitable for Windows, Linux or Mac. Therefore, choose the best among them.
To start mining, you have to install your CPU miner. This CPU miner is a software, and it is seen as the easiest way to start mining. For you to be able to use it, you need to know what is called ‘code lines’ as you will need to write them. This will enable you to start the mining process.
More so, for you to be able to mine using this CPU miner, you will have to set your CPU miner by simply writing a one-line code which is known as the batch file on the windows system. For you to be able to successfully launch your cpuminer, you will definitely need this one line code and the correct instructions provided. You will need some details such as;
- You will need the full path directory. The full path directory should be the one that has the mining program kept in it.
- You will need your mining pool server’s stratum url.
- You will need your mining pool username
- You will also need your mining pool server port number
- Your worker name will be needed
When setting up your miner, you will have to save your batch file and activate your mining program. Most mining pools usually have a web built interface. If your setup process is successful, then your mining pool would show you that your mining worker is active/on. When mining Litecoin, it is highly important to calculate your expected profit so that you will not be a loss.