If you are not new to cryptocurrency mining, you most likely know that each crypt has its own parameters that must be considered when choosing hardware for its mining. Understanding certain technical aspects and properties of the crypto will help to achieve the best results and, accordingly, get the most benefit. Although there are three types of mining equipment (CPU, GPU and ASIC), in fact, only with the help of ASIC (Application-Specific Integrated Circuit) you can make good money on litecoin mining.
ASIC outperforms CPU and GPU in terms of power, which means that you will have a much better chance of getting mining rewards. Mining is a kind of race, and using ASIC, you will feel like driving a Ferrari. Of course, this pleasure is also not cheap, and you will have to pay a big sum to purchase this mining rig. However, only with this type of hardware does Litecoin mining make sense. To date, the most advanced and powerful Litecoin ASIC is Bitmain Antminer L3 It mines crypto at 580 Mhash/s and consumes 880 Watts per hour of operation. ASICs price depends on the model and can range from $300 to $750.
As we already understood, mining digital silver requires a significant investment, so you need to be sure that this coin is worth it, and in order to understand if this crypto is right for you, you should also pay attention to the history of Litecoin.
Litecoin’s Long History
Litecoin (LTC) cryptocurrency broke into the crypto world in 2011. Crypto developer Charles Lee wanted to create an improved version of Bitcoin, giving his digital brainchild all the advantages of the first cryptocurrency, as well as eliminating the existing disadvantages.
Just 2 years after its creation, Litecoin was rightfully considered the main reserve cryptocurrency after Bitcoin. And in 2016, having overtaken many existing altcoins, it became the second most valuable and important cryptocurrency. It had grown incredibly; even Bitcoin did not have such a dynamic back then.
Litecoin cryptocurrency popularity peaked in 2017, and many people spoke about it for a reason. Fall 2017 saw the release of version 0.14.2 with improved security and platform performance. During this time, Litecoin continued its run until 2021, reaching an all-time high of over $412 in May, according to CoinMarketCap. But as we all know, the value of cryptocurrencies is not static, so let’s take a look at the price of Litecoin in the past and today.
The total supply of Litecoin is capped at 84 million, so the deficit level will be maintained over time. This could potentially have a positive impact on the growth in the price of LTC, caused by the increase in demand.
The volatility of Litecoin crypto fluctuates relative to the value of Bitcoin. The lowest price for 1 LTC was recorded on January 14, 2015, when only $1.11 were given for 1 coin. Litecoin peaked at its highest value ever on May 10, 2021, when the price was 412.96 per coin.
Today, September 28, 2021, for 1 LTC you can get $145.91. And for better or for worse today, the cryptocurrency is ranked 17th in the coinmarketcap rating, being no longer the most popular crypto after bitcoin.
Litecoin Mining Pool
For a beginner LTC miner, it is best to try your hand at one of the mining pools by joining forces with other miners. There are hundreds of different Litecoin mining pools, however below are the three most beneficial.
Litecoin Mining Pool
Litecoin Mining Pool started operating in 2011 and to this day offers its miners such advantages as reliability and no fees.
The amount of Litecoin mining rewards received depends on the amount of energy and electricity that the ltc miner invests. This reward system is called pay-per-share (PPS).
You also get free and instant payouts. As for security, two-factor authentication is available.
Chinese mining pool Antpool occupies one of the leading positions in mining. It generates approximately 25% of all blocks, and periodically ranked first in the ranking of performance pools.
AntPool mining pool also provides cloud mining. This feature is implemented through the NashNest service.
Although Antpool does not charge any join fees, they retain all transaction fees for all blocks that are used in the pool. However, all block rewards are generic.
The amount you get depends on how much you deposit. The payments are made on a daily basis.
Launched in 2014, ProHashing now is one of the largest LTC mining pools and of course the most advanced. This allows users to mine Litecoin and other SHA-256, Equihash and x11 coins. It should be noted that ProHashing allows mining automatically, which increases the profitability of mining.
The pool stands out from its competitors with a unique payment system similar to the PPS model. The system guarantees that you can receive various coins and receive payments in other currencies, including fiat ones. The service does not charge a transaction fee, but users pay a fixed 4.99%.
Litecoin Mining Calculator
Before joining the mining stream, it will not be superfluous to weigh the pros and cons in order to understand whether it is worth the trouble. Special mining calculators will be great helpers in this task. They will help you calculate the cost of electricity, the power consumption of the devices you plan to use, and the cost of the LTC coins themselves, for which you can exchange them on the exchange. The CryptoCompare calculator or the Litecoin pool calculator will help you outline the approximate net profit from Litecoin mining, both are popular and easy to use.
Summary – Is Litecoin mining worth it?
It is clear that the best way to mine your LTC is by using ASICs. Rather, this is the only option that makes sense at all. However, even with all this, is it beneficial?
Considering the high cost of ASIC hardware, LTC volatility and electricity costs, the big benefit of mining Litecoin becomes questionable. Most likely scenario is that in the first year of mining, the hardware will only pay off, and profit starts only from the second year. When selecting an asset for GPU or CPU mining, it is better to pay attention to other coins. It will be more profitable than mining “digital silver”.
If you nevertheless chose to mine with ASIC, tally up all costs using a mining calculator. What you definitely shouldn’t be doing if you want to become a Litecoin miner is to save on your mining rig, as this will affect your bottom line.
Disclaimer: Please keep in mind that the content of this article is not financial or investing advice. The information provided is the author’s opinion only and should not be considered as direct recommendations for trading or investment. Any article reader or website visitor should consider multiple viewpoints and become familiar with all local regulations before cryptocurrency investment. We do not make any warranties about reliability and accuracy of this information.