Litecoin Mining Guide
How to mine Litecoins – Litecoin Mining Guide
The Litecoin Mining Guide is all about Litecoin, which is is a cryptocurrency like many others, although it uses a distinctly different algorithm for processing transactions. This algorithm is known as “Scrypt”.
Initially, it was possible for everyday individuals to mine cryptocurrency with their own computer, but special mining hardware known as ASICs can now validate these coins more quickly.
Nevertheless, if you want to try your hand at mining, you can make significant progress in just a few days. When you join a mining pool, you can see lucrative Litecoin returns yielded almost immediately.
1. The Litecoin Mining Guide – introduction
Mining algorithms become more complex as more money is mined for. The mining pools were created to give individuals a better chance of making money from mining. Mining pools apply all potential processing capabilities of its members to generate blocks.
If a block is validated by a participant in the pool, all members receive a share of the reward. You will get far less reward than if you had finished the block yourself, but secure a higher chance of seeing actual results.
2. Litecoin Mining Guide – common difficulties
With high electricity prices, the costs of 24/7 mining can often exceed the value of earnings. Litecoin Mining will only grow in difficulty because constant requirements for power is a fundamental principle of mining for cryptocurrency in general.
If you use Litecoin for speculation or as an alternative payment method, it is usually better to simply buy the cryptocurrency.
Computers used for mining coins are called “rigs”. To make mining Litecoin profitable, you need a computer with two or more GPUs. However, it is better to set up five or six GPUs in a user-defined configuration.
You can buy them online or try to build one yourself. Although this requires more work than building a standard desktop computer, it’s worth the effort. You need special cooling equipment for mining computers in order to keep essential components functioning for longer.
Startup stages for Litecoin Mining projects
Start by getting yourself a Litecoin wallet. You need this wallet in order to hold coins mined. You can install the wallet by downloading it from litecoin.org.
Encrypt your wallet by heading into settings and selecting the relevant encryption option. You’ll want to ensure your wallet is protected by a strong password.
The next step is to enter a pool to prospect with collective mining. New miners should join a mining pool instead of going solo. If you mine alone, the chances that you mine a block are very low.
A mining pool combines the computing power of all pool participants to complete the block. The rewards will then be split between you and the pool members. Don't forget to link your wallet to your pool. An important part of our litecoin Mining Guide.
Mining pool workers
A mining pool uses a system of so-called “workers”. These workers are assigned to you and represent the work you do during the mining process. The process of creating workers depends on the mining pool you decide to join.
Many mining pools automatically create your first worker when you register. The worker is usually named in accordance with your own username. Most beginners looking to mine only need one worker.
You can create additional workers as you progress should you use multiple mining rigs. As a rule, assign a worker to each existing mining equipment setup so that you can track the efficiency of your machines.
The mining process and its configuration
Beyond this Litecoin Mining guide, download a mining program. Depending on your needs, different mining programs are available to best meet your requirements:
- cgminer – a universal mining program primarily developed for Bitcoin, although Scrypt can also be used with versions up to 3.7.2.
- cudaMiner – a miner for NVIDIA GPUs.
- cpuminer – a miner for CPU mining. Much less profitable than if with a graphics card, but the dual mines offer the possibility for additional income.
The following instructions have been put together to demonstrate how to configure cgminer Windows within the Litecoin Mining guide. You need to know your mining pool connection details, including the address, port number and worker information. Your mining pool should include detailed instructions for configuring your miner for the pool.
- Extract the cgminer program into a folder. Press the Windows button and R, before typing “cmd” to open the prompt. Navigate to the cgminer folder.
- Enter “cgminer.exe- n” to search for your graphics card.
- Open the editor and use your mining pool information to enter the following: Start “c: cgminer” – scrypt – o STRATUM: PORT -u WORKER -p PASSWORD
- Click on file and save as, saving it as a .bat file.
In conclusion on the Litecoin Mining Guide
Double-click your .bat file to begin the mining process. Once your miner is configured and connected to your pool you can start the mining process properly.
The command prompt window displays the results of your mining analysis, such as the hash rate at which you mine and how much you have achieved. Some miners will also provide you with the market value and further information about the mining pool.
Do not attempt to run any other programs during the mining process. It will affect the efficiency of your miner, reducing your profits. Monitor your system hardware effectively. As it is constantly being pushes to its operational limits, mining is very demanding.
Keep an eye on temperatures to avoid overheating that might damage your equipment. Further on the Litecoin Mining guide, running your equipment around the clock gives you the best mining results, although you should consider shutting the rig from time to time.