Firstly, if Litecoin as a cryptocurrency excites you to invest in it, you will consider purchasing using an exchange. But on the other hand, if you are familiar with the concept of mining, and are equipped with mandatory resources and time to start the mining journey of Litecoin, then it is also a viable option to get Litecoin.
Litecoin mining is very much analogous to bitcoin mining as the consensus mechanism of both these cryptocurrencies is the same. However, litecoin operates on a different hashing algorithm as bitcoin to improve the scalability. If you are also interested in Bitcoin trading, visit at this link to know more about this business. Litecoin mining correspondingly depends upon factors like mining hardware, applications, and software alongside a litecoin mining pool. Here is a guide on how to start litecoin mining.
What is mining?
The notion of cryptocurrency mining is very decisive in a digital currency network structured on a powerful consensus mechanism of proof of work. For example, Litecoin, bitcoin, and Ethereum are structured on this consensus mechanism, and this is why the dynamics of mining these three cryptocurrencies are similar to one another. And just like Litecoin, Bitcoin Mining is also a process along with innumerable benefits.
Miners get an exchange record broadcast from the different members present in a cryptocurrency network after a miner mined the last block. These individuals accumulate the entire record in a very structured way and then contribute their computing power to acknowledge desired hash.
Why go for Litecoin mining?
Two years after the bitcoin release, a software engineer from google acknowledged some fundamental problems faced by the bitcoin users, and to resolve these common issues, he founded litecoin. The developer of this coin is Charlie Lee, and the base model of this cryptocurrency resembles bitcoin, but he mutated the litecoin network by a massive amount. As a result, the spot price of litecoin is also very fluctuating as of any other litecoin.
The floor value of this coin is $200. Miners should focus on mining litecoin than other cryptocurrencies because of its speed. For example, Bitcoin miners, even if they contribute the most powerful computing device, can mint blocks in 10 minutes. On the contrary, litecoin allows a miner to form a new block in 2.5 minutes. Such attributes of litecoin depict its scalability.
The developer of Litecoin wanted it to be better and faster than bitcoin. That is why he adopted a script hashing algorithm rather than using hashing algorithm present in bitcoin. Similar to Satoshi Nakamoto, Charlie, the developer of litecoin, intended the utilization of standard CPUs for mining litecoin. But with the mining industry evolving, the minting of litecoin also necessitates high-end hardware like bitcoin.
When ASICs came, miners started to use this hardware for minting bitcoin. But some GPU miners were still not ready to shift to ASICs for mining bitcoin, so they started to explore different profitable coins that are minable with a GPU. Nowadays, the viability of litecoin mining is diminished with a central processing unit.
Undeniably, ASICs for litecoin mining are also present in the marketplace. Still, miners find GPU more comfortable to mint litecoin as GPUs make significantly less noise, are less expensive, and are readily available. Usually, people export ASIC miners from china, and it costs miners a lot of money, so GPU litecoin mining seems more affordable.
The most underrated but integral tangible piece of cryptocurrency mining is software. Software that allows a miner to mint BTC correspondingly permits to mint Litecoin. For example, BFG miner, CG miner, and awesome miner permit you to mine litecoin. This mining software are not typically designed for litecoin, but many features are present on such software.
Should You Join a Mining Pool or Go solo?
Mining without joining a pool can be risky unless you have bought magnificent mining rigs. Undeniably the spot block reward of litecoin mining is 25 LTC, but with increasing competition, the survival of solo miners in this business is becoming more challenging. On the other hand, Litecoin mining with a pool sounds like a reputable business, as based on processing power, you can make a decent income.
Electronic wallets that are compatible with bitcoin wallets usually support litecoin as well. In addition, many E-wallets are present on the web, offering consecutive cold and hot storage.
The portion mentioned above describes everything on how to mine litecoin.