Updated · Nov 26, 2022
How to Mine Litecoin [Beginner-Friendly Guide]
Updated · Oct 16, 2022
If you’re interested in mining crypto but know that Bitcoin is too difficult to mine and Ethereum is too complex, consider Litecoin (LTC). Litecoin’s blockchain is based on the Proof-of-Work (PoW) consensus algorithm but has a faster confirmation time and uses different hashing algorithms than Bitcoin Scrypt.
This makes LTC an excellent altcoin to explore. Still, learning how to mine Litecoin is similar to that of any other PoW virtual currency.
What Is Litecoin Mining?
Litecoin is another cryptocurrency that relies on the network of miners, which helps run the blockchain and validate transactions. Since LTC uses PoW consensus, you need computational power to receive this currency as a reward for maintaining its network.
Overall, mining this coin is similar to mining Bitcoin. You can mine Litecoin with central processing units (CPUs), graphics processing units (GPUs), or an application-specific integrated circuit (ASIC). And you’ll probably want to join a mining pool to increase the chance of finding a block.
How to Mine Litecoin?
If you wish to start mining this coin, consider the following seven steps.
1. Set Goals and Expectations
To become a Litecoin miner, you should first consider Litecoin’s power consumption. While wanting to earn LTC, you still need to pay for the possible high cost of electricity usage. Additionally, you must decide to mine for extra money or hold it and sell it later. These considerations should help you determine if mining is a good path.
2. Get Mining Hardware
Even though LTC is similar to BTC mining, those who mine BTC cannot use the same equipment for mining LTC. One of the best ways to mine LTC is to purchase ASIC Litecoin mining hardware and join the mining pool. GPUs are second-best, and CPUs likely won’t be as profitable as you would hope.
3. Configure Mining Software
Once you have the hardware, it’s time to connect to Litecoin mining software, which could include (among many others):
- Easy Miner
- Awesome Miner
Most mining software is free to start with, and many have user-friendly interfaces so that you won’t have significant issues with the setup.
4. Join a Mining Pool
Joining a Litecoin mining pool ensures that you can find a block to mine quicker than if you were solo mining Litecoins. Once you enter a pool, you’ll start sharing your processing power and earn rewards when you submit a valid Proof-of-Work, which includes two types of pools:
- Proportional—rewards distributed equally
- Pay-per-share—rewards distributed based on the mathematical laws of probability
5. Configure Mining Devices
Before mining, you need to configure your mining devices properly. Most of the software comes with detailed instructions on setting it up. What’s more, if you’re using Litecoin ASIC miner, it has a pre-installed program, so there’s no need to set it up manually.
6. Register Payout Address
You’ll need a payout address to receive the rewards you earn through mining. So it’s best to download and install your personal Litecoin wallet, where you’ll receive revenue.
Click the Receive tab in your wallet to get your receiving address, copy it, and enter it in the designated field in the software you use for mining. Depending on the software, you can receive a verification email or register the wallet in another way.
7. Start Mining
Once you’ve connected your Litecoin miner software, hardware, and wallet, it’s time to start mining. Follow any remaining instructions on your device and let the account monitor your hash rate, revenue, and payouts, and leave it to run to see how much you’ll earn.
LTC Mining Costs
Even though the LTC mining software is often free, there are other costs you should be mindful of, especially electricity costs. Your electricity bill will increase since you’ll use a lot of hardware power. So you should calculate whether it pays off to mine LTC or another coin.
Plus, the equipment you need to purchase (and its maintenance) can reach tens of thousands of dollars, depending on how much mining power you want.
Finally, there are specific fees you must pay—such as Litecoin pool mining and wallet fees—which is why miners sometimes sell a portion of their earned Litecoin to cover their expenses.
Miners claim that mining Litecoin is profitable if the earnings surpass expenses. Similar to digital assets, rewards and profits depend on the current Litecoin difficulty. You can use a mining calculator to check if mining this coin is currently profitable.
Since mining one block in Litecoin’s network takes a little more than two minutes with a reward of 12 LTC, miners with a good Litecoin mining rig can remain profitable if they live in an area where electricity is affordable.
An average miner can make $20 to $30 daily, but miners can earn more with more hardware and hashing power. Additionally, if you join a mining pool, you can increase your chances of mining more blocks and boost profitability.
You should be able to sell a part of your hardware if you start seeing losses. So be mindful of the current CPU, GPU, and ASIC prices. You can also consider investing in crypto by buying it on the exchange since it doesn’t require hardware expenses.
Alternatives for Mining Litecoin
In addition to purchasing an LTC mining rig and joining a pool, you can mine in a few other ways (seen below), which are beneficial if setting up hardware is too complicated or you don’t wish to purchase the equipment.
Cloud mining includes renting someone else’s mining rig and services. If you wish to start with Litecoin cloud mining, for example, you’d be the buyer, and the company that allows you to use its rigs would be the host.
Hosts are typically large organizations that own a mining farm—a facility packed with multiple mining rigs. You can rent the rig for as few as three months or keep your Litecoin mining contracts running for years. When you decide to mine Litecoin via the cloud, you’ll also be renting the rig maintenance and account/hardware management.
Renting a rig, however, is not as affordable as you might think. Your rig will earn some money, but you’ll also be charged a monthly bill for electricity. The rest of your earnings will be transferred (typically monthly) to your wallet.
Still, cloud mining is easy. You needn’t bother setting up software or hardware and joining the LTC mining pool. The cost of mining can be as low as $500, depending on the host and contract duration.
- No need to purchase hardware
- Mining starts immediately
- Consistent payments
- Excellent customer service
- Many platforms
- Could be expensive
- Some hosts are scammers
Mining Phone Apps
Mining with your smartphone will not likely give you enough incentive to stay in business. Using a Litecoin miner app is nowhere near the standards of ASIC, CPU, or GPU mining rigs. But it can be used as a good test to see how things work.
To use this practice, you need to download the Litecoin mining app and click around the app to receive the same rewards you’d find in a faucet. This type of mining is cloud-based, but you can use your phone to access it.
- Free to start
- Available for iOS and Android
- Excellent for beginners
- No need to purchase equipment.
- Many apps are scams
- Drains battery quickly
Mining Referral Programs
Mining Litecoin in 2022 is also possible with mining referral programs, which are similar to affiliate marketing. If you use the app or a cloud host and wish to recommend it to friends, you can do so and earn cryptocurrency.
Each platform, however, has its own banners and links you should use, which help the platform track your referrals.
This is another way to receive rewards in LTC without purchasing the Litecoin graphics card and dealing with setting it up. But you still need the wallet to receive your rewards.
- Easy to manage
- Helpful if you run a blog or have active social media followers
- Unlimited potential
- Earnings don’t depend on Litecoin difficulty
- You might need to refer many people to earn enough
- Some of the programs are not legit
Mining Litecoin can be profitable, depending on the equipment you purchase and electricity costs. ASIC miners are the best choice but are typically expensive, while CPUs and GPUs are likely to give lower earnings.
Once you set up hardware and connect it to the mining software, you should join a mining pool for the opportunity to earn more LTC. If you don’t wish to get involved with such, you could rent a cloud-based mining rig and reap its benefits.
And keep in mind that cloud mining solutions are not free. If you simply want to test the waters, you can download a mobile mining app, but this option most likely won’t pay off in the long run.
Is Litecoin easy to mine?
Mining LTC is no more challenging than mining other digital assets. You need to learn how to set up the hardware and software and join the pool for ultimate results. Plus, there are many options to mine this coin; you can expect tangible rewards if the difficulty doesn’t increase.
Can I mine Litecoin on my phone?
Specific mobile apps allow you to mine cryptocurrencies on your phone. But popular digital assets like Bitcoin are harder to mine than new coins. You can mine Litecoin on your phone but don’t expect huge earnings.
Is mining Litecoin profitable?
Mining Litecoin is profitable as long as the total earnings surpass the sum of your expenses, including hardware maintenance, fees, and electricity. You can find many mining calculators that tell you whether mining this coin is worth it. Plus, if you join a pool, you can increase your earnings.
How long does it take to mine 1 Litecoin?
Knowing how to mine Litecoin properly is essential to receive the highest earnings. Rewards for mining on Litecoin’s blockchain are 12 LTC per block. And the average time it takes to mine one block is two minutes and 20 seconds.
Velina describes herself as passionate media savvy and a versatile individual with numerous different interests, most a result of her Media & Communications BA. She has also developed a keen interest in Digital Marketing and Advertising. Her never-ending desire to constantly learn new things and enrich herself and her ultimate dream to go around the globe before 45 are her driving forces.
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