Easy Way to Mining your First Cryptocurrency: Litecoins
Litecoin is among the pioneers of the cryptocurrency universe. The coin currently sits at number six among the top ten digital assets by market capitalization. Furthermore, Litecoin is currently trading $56 during press time, with a market cap of $4.6 Billion. Charlie Lee invented Litecoin as an alternative coin for bitcoin, after a disagreement brought about an unseen hard fork.
Lee’s eventual plan was to make bitcoin more faster and powerful. However, the bitcoin community did not take this lightly, and like in any other blockchain community; resulted to a split that eventually resulted to a hard fork. Indeed, it was a way to improve on Bitcoin’s proof of work algorithm, the SHA-256, and replace it with a more electricity conserving algorithm, the Script four. While Bitcoin had a limited supply of upto 21 million coins, Litecoin had a rather whopping figure of up to 84 million coins.
You can Easily obtain litecoin by exchanging fiat for the LTC in a crypto exchange such as Binance. Additionally, you might decide to take the more technical pathway and set your own mining rigs. It is ultimately as rewarding as any venture, despite the amount of CPU and GPU power required.
This post is meant to help you navigate the ins and outs of litecoin mining. Litecoin operates under the basis of blockchain management.
Successful Steps to Mine
There are three fundamental options to choose from while mining Litecoin (Or any other digital currency).
Joining mining pool
Using cloud mining
Solo mining help to mining litecoin while at your home place. This involves buying of specialized hard to mine the litecoin which is known as ASIC (application system integrated circuit).
A step by step guide on how to run solo mining;
Create litecoin wallet- fast create a private wallet before starting to mine, where you can keep our litecoin secure by use of a private key.
Select hardware to use - from the list of options provided choose the hardware that you can use to mine litecoin such as ASIC or GPU mining rig. Compare the available hardware it advisable you consider cost and ventilation available.
Installing software- ASIC hardware mostly is embedded with installed software to be used in mining litecoin. If else you, choose the graphics will need to download free software to help you in mining. However, it’s advisable to download software from trusted websites to avoid some risk involved with free downloads.
Start mining – after installing mining software follow the provided instructions from the software package. Ensure you store all the litecoin you earn in a secure wallet.
Create a wallet- select a wallet that contain the feature that you prefer and have good security feature.
Choose a mining hardware- select a hardware miner such as the graphic mining rig or ASIC miner.
Install software- if your preferred choose is graphic it is likely it may contain installed software but for ASIC you will be required to download litecoin software miner.
Choose a mining pool- check different litecoin mining pools and compare fees, rewards and minimum payout. It is worth noting that some mining pool may have recommended software.
Start mining-when you earn reward from your mining make sure you transfer them to your private litecoin wallet.
Select a cloud mining company- take a research and find a company with the best offers and benefits. However, take caution against scams.
Choose a mining package-select a package that is provided by the mining company. Consider cost, running time, mining equipment needed and the form of payment that you expect.
Pick a mining pool- after selecting a package you need to choose a mining pool. Always compare the fee, minimum payout and size before choosing your mining pool.
Start mining- this is the last step and you now can start mining your litecoin using the cloud mining method. Always make sure you move the profit gained to your wallet and it has a private key for security purposes.