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How to mine Litecoin?
There are at least national 180 currencies that are recognized in the world. The same rule works with digital currencies - there are different types of cryptocurrencies, for example, Bitcoin, Ether (ETH) or Litecoin (LTC).
Mining cryptocurrency is a good way to make money. People are willing to trade or buy it, it's used to buy services, etc. When the creation of cryptocurrency had been launched, its price was insanely high. LTC is considered to be the third largest cryptocurrency and it’s a good idea to start mining it.
There are only 84 million litecoins, there will be no more. Every two and a half minute a block appears. This block is generated by the recent litecoin transactions and this is when miners can find this block and to verify it. At the beginning, the miner was awarded 50 litecoins, in 2015 the price dropped in half. The reward will be reduced continuously till 84 million coins are mined. As it is known, any currency is valuable when society thinks it is worth buying. Mining litecoins is considered as a great idea to earn money. In this article we will review methods of mining litcoins. You’ll find out about three methods of mining litecoins, so that you can pick the option which fits your needs.
Pick Your Mining Company
This is the first method of how you can mine litecoin. Basically, you pay money so that someone else will mine coins instead of you. The company, or a cloud service, has its own hardware for mining coins. How does this method work? You buy a package which includes the number of coins you’ll receive and the hashing power with which these coins are going to be mined.
Someone may ask why should users buy packages if they can mine it on their own? For at least three reasons – you don’t have to pay for electricity, for repairing the machine if it gets broken, and because you won’t have to bear with the noise produced by mining rig.
Before choosing a company, complete a research. Review the comments about this cloud service, ask experienced miners whether it’s a good deal, etc. This is important since instead of finding a reliable company, you might encounter a scam. In order to receive profit and to successfully build a miner career, you need to be very attentive before registering an account and buying packages.
Choose A Mining Package
Mining package includes the type of coin someone will be mining for you, and the level of hashing power. Hashing power is the ability of a machine to process hashing algorithms. The more powerful a mining rig is, the less time it will take to make money.
If you pay for a pack with less hashing power, it would be difficult to find blocks quickly. This means that it'll take a long time before you receive coins. But it's a good idea to start with, especially if you are a beginner and not willing yet to spend too much money on mining.
Pick A Mining Pool
The second method of mining litecoins. It’s considered as one of the best ways to gain cryptocurrency. As it was mentioned above, there is a fixed number of litecoins – 84 million. If you mine solo, chances of finding and processing blocks are lower. But if you join a big pool of miners, whenever someone achieves coins, the profit will be spread evenly between participants of the pool.
Why is it better than mining solo or paying for a package? Even though you don’t get all the profit, you get it with a higher frequency. As it was mentioned, whenever one of the participants receives a reward, it is spread within a group. You can mine 24 hours a day, but might find only 1 block, which is approximately 25 litecoins. But if everyone is mining, a group as a whole can find 100 blocks.
Before joining a mining pool, it’s a good idea to analyze it. For example, how many participants it has, what is a minimum payout, consider their pool fee. Minimum payout is the sum of coins that you can withdraw to your e-wallet. It’s better to join a pool with a low payout since you can receive coins as soon as you need them.
Select A Wallet
You need to consider registering a secure e-wallet. You will store your cryptocurrency in this wallet, it’s important to choose a reliable service that can protect your money from hackers. There are official ratings of most reliable and secure e-wallets, you might want to review them before registering an account.
What if I want to mine with my own hardware?
It’s the third possible way of gaining cryptocurrency. To begin mining on your own, you need to buy a specific mining rig. Then you will need to set up this hardware, sometimes additional machines are required.
Bear in mind that you will need to pay huge electricity bills. Hardware eats up electricity and sometimes the revenue is not worth it. You should also remember that mining ASICs produce too much noise, and it’s difficult to bear with it. But at the same time, you gain more profit while mining alone.
Remember, before investing your money, analyze the situation on the market. Try to invest as much as you can afford to lose.