How Does Litecoin Cloud Mining Work

  • Posted on: 14 October 2017
  • By: admin

Two Methods Of Mining

Litecoin mining can be done on using two methods; the first one would be to mine directly through the litecoin mine and the other would be to join a network also known as cloud mining. The manner of both methods are the same when it comes to actually mining the litecoins, the only difference of the cloud mining to the direct mining would be that on cloud mining you join a pool of people or company to mine litecoins. There are advantages and disadvantages of both methods. Directly mining on the litecoin server means all the litecoins you mine is all yours, but in order to start mining you would have to spend thousands of dollars just to buy ASICs chips or a lot of graphics card, while the advantage of litecoin cloud mining would be that you the customer don't have to buy any hardware as litecoin cloud mining companies are already equipped with the hardware needed to start mining, although you do have to split all the mined litecoins its already worth it as you do not have to do anything, all you have to do is invest and the company will do the rest.

How Litecoin Mining Works

Litecoins are mined using mathematical algorithms; Therefore anything that has a strong computing power is used such as CPUs, GPUs, and ASICs. The most preferred equipment would be the ASICs or application specific integrated circuit chip, they are the most efficient hardware used as they were specifically made just for cryptocurrency mining. Approximately every two minutes new problems are created, miners then go to solve each complex mathematical equation, everyone who was able to solve the problems first are then rewarded with lite coins. Litecoin's difficulty on mining would keep on rising as more and more people start to mine, that the reason why a lot of people are joining litecoin mining as early as they can.