Litecoin is a fork of Bitcoin. Considering Bitcoin as gold, Litecoin is said to be the silver with the aim of having a cryptocurrency for everyday purpose. It was created by Charlie Lee who is an ex-Google employee, who had the vision to create a lighter version of Bitcoin.
Cryptocurrency mining, in general, include two functions; to add transactions to the blockchain, and also to release new currencies, and each block added by miners contain a PoW (proof-of-work).
In mining, you need a computer and a special software program that helps in solving complicated mathematical problems. With huge computer resources, miners attempt to solve blocks having transaction data using cryptographic hash functions.
Litecoin uses some fundamentally different algorithm for processing, called the Scrypt. Initially, it was easy for people with personal computers to mine, technological advancements brought about special mining machines called ASICs (Application-Specific Integrated Circuit) that now process Scrypt coins like Litecoin, this makes it difficult to mine without a substantial investment. Setting up a miner for yourself will take some hours and joining a mining pool will give you instant returns on investments.
Choosing A Litecoin Wallet
Whether you are mining for yourself or joining a mining pool, you need a Litecoin compatible cryptocurrency wallet to store your mined coins. Wallets are likened to physical wallets that are used to hold fiat currencies. Because cryptocurrencies are digital, digital wallets are required to store the Litecoin cryptocurrency.
The Litecoin Core wallet can be downloaded from the litecoin.org official site. There are few other wallets used to hold Litecoins; the Ledger Nano, Jaxx, Exodus, Coinomi, LoafWallet, and LiteAddress wallets. You can store your Litecoins on an exchange as well, though it’s not advisable to keep more than you need for regular daily transactions there. A large number of your assets should be stored on a hardware wallet.
Getting Set To Mine Litecoins?
To start mining for yourself, you need to purchase or build a mining rig. In cryptocurrencies terms, computers being used to mine are called rigs. In order to be effective, you will need a computer with at least two graphics cards. These can be purchased online or you can build them yourself.
You should also consider having an ASIC Miner. They have dedicated mining machines that increase your mining power. Though it’s expensive, ASIC miner comes in low-power models and also allows you to save on electricity supply.
Choosing a Miner
Solo miners put a lot into consideration when choosing the right miner to mine their favorite cryptocurrency. It is important to make use of the fastest and the most efficient miner for mining in order to recover invested funds in quick time and also start making substantial profits as you mine.
The ANTMINER L3+ is world’s most powerful Litecoin miner by Bitmain, a company that produces the fastest ASIC miners. With the L3+ Scrypt miner, Bitmain has created miners not just for Bitcoin but also for Litecoin mining. The Antminer L3+ is an upgrade of the L3 with twice its hash power.
Features Of The AntMiner L3 Plus
- The Miner has an impressive hash rate of ~504 MH/s which is way beyond the ~255 MH/s of the L3.
- It consumes way less electricity compared to other miners in its category. With a 800W power consumption which costs about 10% of your profit weekly, it’s still profitable mining Litecoin with the L3+.
- AntMiner L3+ is lightweight. With a weight of 6.5kg, the miner is lighter and cost-effective when it comes to shipping.
ROI on Litecoin Mining
The L3+ is selling for $1,536 USD. With its harsh rate, you are able to generate annually up to $3,266 USD mining Litecoin. That translates to about $63 weekly, $9 per day. That’s doubling your investment used to purchase the miner in a year.
This is indeed more profitable to mining some other cryptocurrencies which would take some 2 years to break even on your investment.
Consider Joining A Pool For Litecoin Mining
Having a very powerful device for mining is great, but you can still earn lower compared to when you join a mining pool, joining resources with other miners gives you a chance to earn bigger rewards for completing blocks on the blockchain. Though you earn less for each block completed, you have a much better chance of a steady income joining a mining pool.
When joining a pool, it’s very important you enter your correct wallet address so that you can collect your earnings at pool payout dates.
Litecoin is another liquid cryptocurrency after Bitcoin and its also one of the most recognized and accepted. There are also other scrypt cryptocurrencies like the Litecoin that may be more profitable to mine. It simply means that some coins may be more profitable to mine in USD terms at any giving time. You can use the Coinwarz platform to check what scrypt cryptocurrency is profitable to mine instead of Litecoin.