Litecoin, popularly known as “Digital Silver”, is the oldest digital currency after Bitcoin and still one of the top 10 digital currencies on the market. This digital currency, like Bitcoin, uses a proof-of-work algorithm to verify transactions. In this way, people who want to participate in the creation of blocks and verify transactions of this network, can join the group of miners of this network by providing special hardware. In this article, we will teach the simple expression of Litecoin extraction, introduce the equipment needed for this work, and then examine its profitability.
Equipment needed to extract light coins
The main thing we need to extract LightQueen is the extraction hardware (device). Today, due to the expansion of the mining industry, bitcoin, Litecoin and other digital currencies can no longer be extracted with ordinary and home computers as before. Therefore, the highest cost of participating in the extraction activity is related to its hardware. After the extraction machine, you need to have the right electricity for this. Mining activity consumes a lot of electricity and the cost and quality of electricity has a great impact on the profitability of this activity.
In addition to the proper extraction and power supply, some of the other most important equipment and prerequisites for mining are:
- Litecoin Wallet
- Fixed Internet (ADSL or TD-LTE)
- Suitable electrical cables and equipment
- Ventilation equipment (cooling)
Do not forget that the type and number of mining equipment can vary depending on the size of the activity. For example, it is obvious that we need more ancillary equipment for a large farm, but the above should be considered for each scale.
Extraction hardware (device)
On paper, and in theory, any computer hardware that can be processed can be used for extraction, but in practice, the extraction of this digital currency is only possible with special devices (ASICs).
From 2011, LightQueen was extracted with a graphics card (GPU) for a long time, until in 2017, Bitcoin company introduced the Antminer L3 mining device, and then more powerful models were introduced to the market.
ISIC devices have many times the processing power of graphics cards, and at a lower cost than many graphics cards, they provide a faster return on investment for miners. It is also very easy to set up ISIC devices, such as ADSL modem settings; For small scales, it is enough to power the device and after connecting to the modem, enter the information of the extraction pool in the software of the device to start the mining activity. Due to the superiority of ISIC devices, mining with a graphics card soon became obsolete, and today only the use of ISIC devices is economically justified.
Extraction devices are offered in different designs and models just like any other device, and each device may differ from the other in the following aspects:
Brand and model: Manufacturer of the device and its model. Example: Bitmain + Antminer L3 device.
Bitmain: Company name
Antminer: Series name
+ L3: Model
- Hash Rite: The processing power of the extraction device, which is displayed for LightQueen in megahs per second (Mh / S). Example: 600Mh / S, meaning that the device has a processing power of 600 MHz.
- electricity consumption: The amount of electricity consumed by the device in watts. Example: The power consumption of a mining device is 1400W.
The LightQueen extraction algorithm is called a “script”, which means that you must provide a device that supports this algorithm for digital silver extraction. With the exception of LightQueen, these devices can be used to extract any other digital currency that uses a script algorithm. DigiBite and Verge are among the most popular digital currencies that have an algorithm similar to LightQueen and can be extracted with one device.
Mining machines (ISICs) are used only for mining, and as more powerful machines enter the market – due to the difficulty of mining and the competitiveness of mining – older machines are gradually becoming obsolete and worthless.
The power consumption of a device and the electricity tariff are strongly influential in the profitability of mining. For example, in areas where the cost of electricity is relatively high, a device with a power of 600 MHz and a power consumption of 700 watts can be more profitable than a device with a power of 1,200 MHz and a power consumption of 1,700 watts. Under Iranian law, the use of domestic electricity and subsidies for extraction is prohibited, and activists must obtain export tariffs from the Ministry of Electricity after obtaining a permit from the Ministry of Industry.
In addition to the electricity itself, you also need the right cables and electrical equipment to extract to eliminate hazards such as device failure or fire.
As a Litecoin Miner, you need a Litecoin wallet to receive and save your income. Wallet software is completely free and can be easily installed on your computer or mobile phone. To begin with, the Walt Trust Wallet (Trust Wallet) Is one of the best options for storing LightQueen. You can install this wallet on your mobile phone through Google Play or the App Store.
You also need the Internet to extract. The speed and volume of the Internet does not matter much, but its stability and disconnection are important. ADSL and TD-LTE internet services are suitable for this.
In addition to making a lot of noise, mining devices get very hot, and a solution must be found. It is very important to have cooling equipment to increase the life and efficiency of the device.
Is Litecoin mining profitable?
There is no economic justification for bitcoin mining, at least at the time of updating (December 99).
This is because we say that bitcoin mining can naturally be profitable, but since mining is an investment and miners have to provide a lot of equipment, when bitcoin mining is more profitable, There is not much justification for spending money to buy LightQueen equipment.
Of course, this can depend entirely on your thinking. If you are really a supporter of LightQueen and predict that this digital currency will be very valuable in the future, obviously extracting LightQueen will be justified for you. Also, the profitability situation can change very quickly and may be very profitable at different times of Litecoin mining.
In 2017 and early 2018, mining Litecoin was very profitable, but after the Hawing event in 2019 (halving the mining bonus, which occurs every four years), this activity lost much of its profitability, and today, despite currencies such as Bitcoin and Ethereum, few people are willing to extract LightQueen.
The most powerful LightQueen mining machine at the time of this writing is the Innosilicon A6 + LTCMaster, which sells for $ 3,000 on foreign websites. The power of this device is 2.2Gh / s and its power consumption is 2100 watts.
The number of Litecoin mining machines on the market does not reach more than 10 models, while from the beginning of 2019 until the time of writing (mid-2020) no new machines have been introduced to the market.
On the other hand, new and more powerful devices have been introduced to Bitcoin over the years, and bitcoin mining is still much less risky than other digital currencies.
The best way to calculate mining profitability is to refer to a mining calculator. You can estimate your income by entering the processing power of the devices, the amount of electricity consumed and the cost of electricity in an extraction calculator. Then, by calculating the amount of costs, such as the cost of purchasing equipment and devices, the return on investment can be estimated. You can always use a digital currency mining website calculator to calculate the extraction profit.
Remember that the most important factor in assessing the profitability of an industrial activity is estimating the payback time. Return on investment refers to the period in which the initial costs of an investment are reimbursed, after which net profit can be experienced. For mining, the return on investment is the period of time that the cost of the device, equipment, location, etc…………………… Therefore, merely having an income cannot prove that an activity makes economic sense.
The question here may be that if extracting Litecoin is not profitable, then how is the security of this network secured and its transactions verified? In response, it should be said that Litecoin mining is profitable for the mining mafia and the companies that produce the mining equipment.
In fact, it has been a long time since a new mining machine has been introduced to the market by major manufacturers of mining machines, and according to experts, it cannot be ruled out that behind the scenes, Litecoin mining can be done with machines that have not yet reached other miners. This has happened to Monroe before, and when developers implemented a major network update to combat ISICs, the network hash rate dropped dramatically, with no mining devices being marketed for the digital currency. This showed that many extraction machines were working behind the scenes.
LightQueen also has tough supporters who do not aim to profit from LightQueen mining.
Join the LightQueen Mining Pool
After thorough research on the profitability of LightQueen extraction and then the preparation of the extraction machine and accessories, you should join a mining pool to start the extraction.
The extraction pool is a virtual place where the extractors gather their processing power and everyone tries to extract a block. In this method, each extractor benefits based on its processing power. It can be said that miners around the world give their hardware processing power to the extraction pool, and the extraction pool competes with all other pools in finding the equation of blocks on behalf of all miners.
With mining pools, miners will be able to dramatically increase their chances by consolidating processing power. The extraction bonus will be divided among the pool members according to their processing power. Without joining the mining pool, the miners’ chances of creating a block will be very small, and only large mining farms with thousands of machines will be able to operate independently.
To start the extraction work, you must select one of the LightQueen extraction pools and go to its official website to get the settings needed to start your device. As we said, setting up an extraction device is very simple and can be done with a few clicks.
At the time of writing, the best LightQueen mining pools in terms of number of miners and hash power are:
- Ant Money
To extract light coins, like bitcoin mining, you need mining hardware, or more precisely, a special mining device. Your mining machine must support the LightCoin algorithm, ie script, and for example, you can not mining with the LightCoin bitcoin mining machine.
You must also have the proper electricity, electrical equipment and ventilation equipment to do this so that you can experience extraction without legal risks and financial damage.
Before attempting to extract Litecoin, be sure to measure your profitability and return on investment and compare it with the profitability and return on investment of other digital currencies such as Bitcoin so that you can make a logical decision. Do not forget that mining, like any other industrial activity, is a kind of investment and involves many risks, so that sometimes it makes more sense to buy Litecoin and invest directly in this digital currency.