Litecoin is based on Bitcoin, so if you are already familiar with Bitcoin mining, learning about Litecoin mining will be straightforward. Despite the similarities, there are a few key differences between mining Litecoin and mining Bitcoin.
Litecoin has 2.5-minute block intervals instead of 10-minute block durations, to start. As opposed to a 21 million coin maximum supply, Litecoin has 84 million coins available. Last but not least, Litecoin uses the scrypt algorithm instead of Bitcoin’s SHA-256 system.
When Litecoin first began, the miner who solved each block was given 50 LTC. Every 840,000 blocks, the Litecoin network splits the block reward in half. After this has happened twice, the third block reward cut is planned to happen somewhere in 2023.
The differences between Litecoin and Bitcoin are largely irrelevant while learning how to mine Litecoin. To start mining Litecoin, you only need a machine that can handle the scrypt algorithm. After downloading the required software and installing the device, you may start mining Litecoin.
How Much Can a Litecoin Miner Earn?
How much Litecoin a miner can earn depends on a number of factors, some of which were discussed in the section above on mining expenses. Profits must be sufficient overall to cover the cost of electricity and the initial hardware investment. If they weren’t, it wouldn’t make sense to start mining LTC.
Joining a mining pool, using a cheap electricity source, and getting cheap hardware will provide a miner the highest chance of making money. Anyone looking to mine Litecoin might only have access to one of the three choices, joining a mining pool.
This is because there is already intense competition for mining equipment, making it difficult to find it at a bargain, and electricity prices vary depending on where you reside.
The final factor that determines how much a miner can earn is the price of Litecoin. The price of LTC must be high enough to cover the costs of mining. Otherwise, a miner has a higher chance of losing money than winning it.
How Much Does Litecoin Mining Cost?
Due to increased competition, the price of profitable Litecoin mining equipment has increased dramatically. Since enormous mining farms have increased demand and taken over the mining sector, mining rigs have needed more electricity, which boosts the cost.
Cheap ASIC miners can be obtained for as little as $500, while a fully designed mining system can cost up to $15,000. A miner often needs more than a year to repay their investment.
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