There is a fundamentally different way to process "Scrypt" that is used in Litecoin.Initially this made it easier for people with home computers to mine, but now dedicated mining machines calledASICs can process Scrypt coins, making it difficult to get in without a large investment.If you join a mining pool you can start seeing returns almost immediately, and if you try your hand at mining, you will be able to have everything setup in an afternoon.
Step 1: Understand the basics of mining.
In order to increase the amount of cash in circulation, traditional currencies are printed.Machine-generated cryptocurrencies are generated by complex algorithms.More currency is released into the market when a block is finished, usually as a reward for the miner that finished the block.As more currency is mined, mining methods become more difficult.It helps prevent all of the possible currency from being mined immediately.The longer you wait to start mining, the less likely you are to solve blocks on your own.Individuals have a better chance of making money from mining with the creation of mining pools.The mining pool gives all of its members a share of the reward if any of them solve a block.If you finish the block on your own, you won't get much reward, but you will have a higher chance of seeing results.
Step 2: Consider other options for mining.
Unless you're willing to pay thousands of dollars for a dedicated mining machine, or you don't care about the lifespan of your home computer, there's very little reason to mine Litecoins.If you use a home computer, running constantly puts a serious strain on your hardware components, and the electricity costs of mining often outweigh the value of anything you mine.One of the fundamental principles of cryptocurrencies mining is that mining will increase in difficulty.Unless the value of the Litecoin increases, it will be harder to make a profit.If you want to use a speculative investment or use an alternative form of payment, it's better to just purchase them.
Step 3: Purchase or build a computer.
The computers used to mine coins are called "rigs".To be effective when mining Litecoins, you need a computer with at least two graphics cards.Four or five graphics cards should be attached in a custom setup.This requires more work than building a standard desktop computer, so you can either purchase these online or build your own.You will want the same amount of system and graphics card RAM.It's important to keep your components alive longer with specialized cooling for your mining computer.
Step 4: Consider a miner.
Dedicated mining machines can increase your mining power, but they can be expensive.You can save on electricity with low-power models of the Scrypt miners.One of the benefits of using a Scrypt miner is that you can change it to mine a more profitable coin if you choose to.There is a way to connect a low-power miner to a Raspberry Pi.You can find Scrypt miners for sale online at retailers such as Zeus Miner.If you want to be on a waiting list for the more popular models, you have to put your name on it.
Step 5: Is mining worth it?
Make a projection on how much mining you will have to do to make up the cost of the equipment, power, and internet once you've decided on some equipment.If you can purchase the same number of coins than you will earn mining, you should just buy the coins.The processing power of your equipment is about the average for a high-end graphics card.The computer uses 600 watt of power to mine.Assuming that you're mining alone, mining at the current rate will cost you $520 per year, and you will never break even.
Step 6: You can get a wallet.
You will need a wallet to hold the coins that you earn while mining.The wallet program can be downloaded.There is an official wallet for mobile devices.The bootstrap file can be downloaded.You will not have to wait for your wallet to sync for the first time.If you want to protect your wallet, click "Settings" "Encrypt Wallet".Give it a strong password.
Step 7: You can join a mining pool.
It is a good idea for new miners to join a pool instead of trying to mine alone.You have the chance to make big rewards for completing a block, but the chances of you doing that are very low.A mining pool combines the efforts of everyone in the pool to complete a block, and then any rewards are split among the group.You will earn less for completed blocks, but have a better chance at a steady income.If you join a pool, make sure that your wallet is linked to your account so that you can make money.
Step 8: You can make a worker in your pool.
A system called "workers" is used in mining pools.These workers represent the work you do while mining.Depending on the mining pool you join, the process for creating workers varies.When you register, many mining pools will create your first worker.The worker's name will usually be "username1".The majority of beginners won't need more than one worker.If you have a lot of mining rigs, you can create more workers.Track efficiency across your machines by assigning a worker to each piece of mining equipment you have.
Step 9: You can download a mining program.
Cgminer is a good all-around mining program.It can mine Scrypt up to version 3.7.2.You can get it here.The program is designed for use with the processor.This is less efficient than using a graphics card, but for some it's the only way to go.You can get it here.
Step 10: The mining program should be configured.
Different mining programs have different processes.The instructions for setting up cgminer are below.The "stratum" (address), port number, and worker information are some of the details you will need to know.Instructions on configuring your miner should be in your mining pool.C:cgminer is an easily accessible folder.To open the command prompt, press Win+R and type cmd.Go to the folder.To use cgminer.exe, you need to type 'n'.Open Notepad and type the following, using your mining pool information.
Step 11: To begin mining, double-click your.bat file.
The mining process can begin once your miner is connected to your pool.The results of your mining will be displayed in the command prompt window, such as the rate you are mining at and how much you've accomplished.Some miners will give you market value and pool information.Don't run any other programs while the computer is mining.Anything else you do will hurt your miner's efficiency, which will lower your profits.
Step 12: Your system hardware should be monitored.
Mining is taxing on your hardware as it pushes it's maximum limit.If you keep an eye on your temperatures, you can keep your equipment safe.It will kill your hardware much quicker if you run your equipment 24/7.It might be a good idea to power down every once in a while.
Step 13: Continue to check your finances.
You should compare your power bills and computer costs against the coins you are earning through mining.If you aren't making a profit, you may want to consider selling your equipment.If you want to calculate up-to-the-minute profitability reports, use online profit checking tools.Refer to your power bill to find out how much power you use each month.If you want to strike it rich, leave your mining pool and mining solo.If you have a lot of experience mining in a pool, a good grasp on the Litecoin market, and a serious mining hardware setup, this should only be considered.Make sure to use a profit calculator to make sense of mining solo.