Litecoin is a cryptocurrency (cryptocurrency) like Bitcoin, but with a different "Scrypt" algorithmic process. This algorithmic process initially made it easy for personal computer users to mine Litecoin, but ASIC mining engines can now process the Scrypt algorithm, so without a large investment, it will be more difficult for you to start mining. However, if you still want to try mining, you can start overnight, and if you join mining, you can earn Litecoin immediately.
Step
Method 1 of 3: Before Starting
Step 1. Understand the basics of cryptocurrency mining
Traditional currencies are minted to increase the amount in circulation, but cryptocurrencies like Litecoin are generated by machines that crack complex algorithms. Once a "block" of the algorithm has been processed, the currency will be released to the market, as a reward for the miners who complete the "block".
- The mining algorithm gets more difficult as more currencies are mined. It is designed to prevent all currencies from being mined quickly. As a side effect, the slower you wait to mine, the less likely you are to be able to complete the blocks yourself.
- Mining was created to help miners earn money from mining. Mining directs all participants' processing capabilities to complete cryptographic blocks, and if the block is successfully completed by one of the participants, all participants will get a share of the profits. By joining mining, the results you receive are indeed less, but the chances of you getting results will be greater.
Step 2. Consider other alternatives for earning cryptocurrency other than mining
In fact, unless you don't have to pay for electricity and don't care about the life span of your home computer, or you're willing to invest thousands of dollars in a dedicated mining machine, you don't have to mine Litecoin, just buy it. The electricity cost to mine 24 hours is often more than mine, especially if you use a home computer, and mining cryptocurrencies will cost your computer.
- Mining Litecoin will become more and more difficult over time, according to the main principles of cryptocurrency mining. This means that it will be harder and harder for you to make a profit, unless the price of Litecoin rises significantly.
- If you're mining Litecoin as a speculative investment, or to use it as a payment method, you're better off buying Litecoin outright, instead of mining.
Step 3. Purchase a mining-only computer
In the cryptocurrency world, this particular computer is known as a "rig". To mine effectively, you must have a computer with two graphics cards. Ideally, have a computer with 4-5 graphics cards. You can buy the computer on the internet, or assemble it yourself, although assembling this mining computer is more troublesome than assembling a regular computer.
- Purchase system RAM for the amount of RAM the graphics card has.
- Design a special cooler to make your computer last longer.
Step 4. Consider purchasing an ASIC Scrypt mining engine to increase your mining capabilities
Effective mining machines can be quite expensive. If you want to save electricity, you can also buy a low-power mining machine.
- One of the advantages of the Scrypt mining engine is that it can be used to mine other, more profitable Scrypt-based cryptocurrencies with minimal changes.
- You can buy a USB ASIC miner and plug it into a Raspberry Pi to mine with less electricity.
- The ASIC Scrypt mining engine sells quickly, but you can buy it on sites like ZeusMiner (zeusminer.com) and ZoomHash (zoomhash.com). If you want to buy a particular model that is popular, you may need to put your name on the waiting list.
Step 5. Calculate the profit from mining
After selecting the device, take a look at the Litecoin market trends, and calculate how many coins you will have to mine to cover the cost of the device, electricity, and internet. If you can buy the same or more coins as you mine, you should buy coins instead of mining.
For example, if your mining device has a hash rate of 200KH per second (such as a mid-range graphics card), requires 600W of electricity, your electricity costs are $0.1 per kWh, and you mine yourself, the costs you will incur (in March 2015) is $520. Your capital will not return
Method 2 of 3: Setting Mine
Step 1. Get a Litecoin wallet to store your mined or purchased coins
Download Litecoin Wallet from litecoin.org. There is also an official Litecoin wallet for mobile phones.
- Download bootstrap.dat here. This file will speed up the process of syncing your wallet, which generally takes 2 days.
- Encrypt your wallet by clicking "Settings" → "Encrypt Wallet". Create a strong wallet password.
Step 2. Join mining
Beginners are advised to join various mining sites in cyberspace, instead of mining on their own. When you're mining on your own, you might be able to make a big profit when you complete a block, but the chances of you completing the block are very small. Mining will collect computing resources from all members to complete the block, and share the results with all participants. The results you get from mining are indeed less than the results from mining yourself, but the chances of you getting a steady income will be better.
When joining mining, make sure your wallet is linked to your account, so you can retrieve the mining results
Step 3. Create a worker in the mine
Mining uses a worker or worker system. The worker under your name represents the mining process on your device. The worker creation process varies, depending on the mining you're following.
- Many mines will create a worker when you register, with the name "username_1" or "username.1".
- Most beginners don't need more than one worker. If you have more than one mining machine, you can create additional workers. Generally, each worker is associated with one mining machine, to track the efficiency of the machine.
Step 4. Download the miner program
There are several cryptocurrency mining programs that you can choose according to your needs:
- cgminer - This versatile program was originally designed for Bitcoin, but can be used to mine Scrypt up to version 3.7.2. Download the old version of cgminer at the following link.
- cudaMiner - This miner program is designed for nVidia graphics cards. Download cudaMiner at this link.
- cpuminer - This program is designed to mine through the CPU. Although mining via CPU is very inefficient, but for some users, this option is the only option for mining. Download cpuminer at this link.
Step 5. Set up your miner program
The setup process will vary depending on the program. Below is a guide for setting up cgminer in Windows. You'll need to know the details of your mining connection, such as stratum (address), port number, and worker information. Your mine should provide that regulatory information.
- Extract cgminer to an easily accessible directory, such as C:\cgminer.
- Press Win+R and enter cmd to open the command line. Go to the cgminer directory.
- Enter the command cgminer.exe -n to scan the graphics card.
- Open Notepad, then enter the following command. Replace the fields with information from your mine: start "c:\cgminer" --scrypt -o STRATUM:PORT -u WORKER -p PASSWORD
- Click "File" → "Save As", then save it as a.bat file.
Method 3 of 3: Mining
Step 1. Double click the.bat file to start mining
Once the miner program is set up and connected to the mine, you can start the mining process. The command line window will display the mining results, such as speed and how many results you have mined. Some miner programs will also display market value and mining information.
Avoid running other programs on the computer while mining. Programs that you run on your computer other than the miner program will reduce the miner's efficiency, which in turn will reduce your profits
Step 2. Monitor your system
Mining Litecoin is very hard on the hardware, so you need to monitor the temperature of the device so that it doesn't overheat and damage.
It is recommended that you turn off the device every few days/weeks. Mining 24 hours is more profitable, but also your hardware will damage faster
Step 3. Check the profit
As you mine, check your electricity bill and hardware costs, and compare them to the coins you earn from mining. If you are losing money, you may want to sell mining equipment to reduce losses.
- Use a profit checking program such as CoinWarz (coinwarz.com) to check the profitability report. Look at your electricity bill to find information on the price per kWh and the amount of electricity you use each month.
- If you already have sufficient hardware and want to get rich, try leaving mining and mining on your own. This step is only worth considering if you have mining experience, know the Litecoin market, and have good mining hardware (ideally, a stack of ASIC miners in a temperature controlled environment). Make sure you calculate the profit to ensure that your decision to mine yourself is not a disadvantage.
