By design, Litecoin is faster than Bitcoin courtesy to its fast block generation. Since they use the same consensus algorithm, proof of work, it means the network incorporate miners who secure and confirm transactions moving from one account to another. Inevitably, thanks to Proof of Work, transaction confirmation and network security translates to mining meaning there is an opportunity for savvy Litecoin mining enthusiasts to turn a profit even in this deflating bear market.
More about Litecoin
Litecoin uses Scrypt has its hashing algorithm and in the process of mining, miners have to invest in hardware which consumes electricity to “hash out” or calculate complex mathematical calculations before confirming a transaction.
It’s basically a race and the first one to do so get block rewards which in this case is Litecoin on top of collecting transaction fees—often called Network fees. The idea of proof of work which Litecoin relies on and mining by extension is to prevent a long-term problem, the double spend and overcoming this means the network can keep on going without a risk of splitting.
Basically, mining rewards are some sort of incentives and in a distributed and decentralized systems, there are opportunities to make a regular income should we factor in the current spot price of Litecoin in the open markets.
There are various ways of litecoin mining and it all depends on your taste, preference and mining software in use. Today, I’m going to take you through some of them:
Litecoin Cloud Mining
This is a go-to alternative especially if you are short of cash or is reluctant on investing in mining gear. All you have to do is to search for a Litecoin Cloud Mining Service who rent out their data centers at favorable rates and subscribe. However, you have to contend with low profits and most of them are scams—so better watch out.
Join a Litecoin Mining Pool
A mining pool is simply a group of individual miners willing to collaborate when validating a block. The more the miners, the greater the hashing power meaning there are high odds of confirming a block. Once confirmation is complete, block rewards are split among the pool members. The only caution before joining a pool is reputation. Overly, Litecoin mining pools are characterized by fast registrations, high profitability but there are risks of service attacks.
Invest in a Litecoin Miner, go solo
Here, you buy the gear, connect to the Litecoin blockchain and if you are lucky, you get all the rewards. Factor in current Litecoin spot price and profits should be okay if electricity costs allow. At the moment the best Litecoin ASIC miners are Antminer L3+ mining at 504MH/s consuming around 800 w a day. The miner has four hashing boards and for continuous and uninterruptible power supply, we recommend Antminer APW5 Power Supply.
Mining can be a regular source of income but nothing beats due diligence. Most importantly, understand the legal situation regarding cryptocurrencies in your country and electricity costs. If it’s favorable, go ahead and make the Litecoin network stronger.