Before you start with Litecoin Mining, you should download a Litecoin Wallet from the website. You need the address of the wallet to get some coins as well. If you have them, you have to download the mining software. For Litecoin there are several programs available, depending on how the crypto currency is minted. For ASIC mining the best program is Scrypt. For graphics cards, especially Nvidia, the cudaMiner.
In this Litecoin Mining manual we run the mining software using a bat file. This means that a script is written. First a text file is opened. This file contains the complete address of the program, including the program itself (e.g. “c:cudaMinercudaMiner.exe). Then follows the address of the Litecoin Mining Pool, should such an one be used. The next element is the port number of the mining server, then the user name on this server, the number of workers and the own password. This text file is stored in the software folder as a bat file. The whole script can look like this: “c:cudaMinercudaMiner.exe – -scrypt -o “stratum: port” -u “worker” -p “password”. If everything worked fine, a double click on the bat file executes the mining.
What are the differences between Litecoin Mining and Bitcoin Mining?
The differences in mining lie among other things in the algorithm used. Both are mined using Proof-of-Work, but Bitcoin uses the SHA256 algorithm, while Litecoin uses Scrypt. SHA256 can only be mined with the special ASIC processors. With Scrypt you also have the possibility to use simple CPUs and GPUs. Another difference is the difficulty of mining. For security reasons, the difficulty of generating a new block is regularly adjusted for both crypto currencies.
The difficulty not only protects the blockchain from harmful attacks, it also places higher demands on the computers during mining. At Bitcoin, the difficulty is now so high that private mining is hardly possible. And the more the crypto currency is used, the more the difficulty will increase. This is no different with Litecoin, but the degree of difficulty is not so advanced yet.
Litecoin Mining – Solo Mining, Pool Mining or Cloud Mining?
With Litecoin Mining it is very difficult to generate so much hash power alone that the mining is also profitable. Although all coins are kept for yourself in the case of a successfully excavated block, it is questionable whether the sometimes immense electricity costs will be paid again. This can be checked beforehand with a Litecoin Mining Calculator. Most people will find that participating in a mining pool is more profitable. The hash power of all participants is bundled here. This increases the chance that a block will be mined. Then the yield is evenly distributed among all participants.
Such a Litecoin Mining Pool is the common method to mine Litecoin. With the Mining Pool you should pay attention to its reputation. Is it considered safe and reliable? Some might turn out to be dizziness. If you don’t want to buy your own rig, there is also the possibility to use a cloud. Here you pay a fee for someone else doing the mining for you. In return you get the dug LTC coins.