Cryptocurrency mining is a hot topic today. Once these currencies grew popular, people wanted to know how to acquire them. Purchasing cryptocurrencies, especially with their growing financial value, seemed hard, so people have been looking at mining. Mining cryptocurrencies are no easy task either. It requires investment and time.
To understand how mining works, let’s take a look at litecoin mining.
The first step to do anything with Litecoins is to have an account that can help you store, deal or trade in it. So first, get a Litecoin wallet. Once you have set up your wallet make sure to encrypt it properly and securely with a strong passphrase.
The next step is to decide how exactly would you like to acquire your litecoins. For the layman, it is easier to just purchase them with money. However, those interested in mining need to weigh their costs and gains beforehand.
There are two types of mining. Solo and Pool. You will need the same equipment with either of them, however, solo mining is very slow and could take several days. Pool mining, on the other hand, succeeds comparatively faster.
So, next, you need to create a rig. A rig is a computer designated just for mining. Since the programs used for mining are heavy and consuming, you will need at least two graphics cards, and ideally more custom-attached for better results. You will need a steady power supply as well as cooling equipment to ensure your machine lasts longer.
Also, consider purchasing an ASIC script miner. It increases the efficiency of Litecoin mining by manifolds. However, they are expensive and not easy to obtain. You can search for them over the internet though.
You can start mining using available mining programs if you wish to do solo-mining. You can also join a mining pool where several members come together to mine a single block. If any member succeeds all members share the Litecoins. Even though the Litecoins get shared in pools, pools are still faster than solo-mining.
If you are joining a mining pool, you need to create a worker in the pool and then start mining. The worker in a pool is like a username that records how much mining work you have done.
Cloud mining is a recent development in mining cryptocurrencies which offers you an alternative way to join mining without putting any effort. Cloud mining requires you to invest in a mining company which rewards you in Litecoins over time, for your investment.