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Mining cryptocurrencies in the right conditions can be a good way to make extra profits. In addition, miners are extremely useful for the encrypted world, as they validate transactions and make the whole process possible.
However, before the extraction process begins, and even before acquiring the necessary mining equipment, you must first decide which currency you wish to extract. The mine bitcoin, for example, was easy to turn back when it appeared for the first time. However, it was not profitable. However, those who saw the potential of this currency decided to do so, and quickly gained a fortune once prices rose.
Nowadays, Bitcoin mining is not just a difficult game to get, but it is also extremely expensive. For this reason, many aspiring miners choose not to worry about it. Instead, they decide to extract Litecoin (LTC).
About Litecoin (LTC)
Litecoin is a cryptocurrency similar to Bitcoin in many ways. It was created in 2011, under the heavy influence of Bitcoin. After all, then there were not many other cryptocurrencies that could have had a greater influence on them.
So, similar to BTC, LTC is also used to send payments between users. It is P2P and decentralized, which means that no entity controls the currency or its blockchain. Over the years, Litecoin has become popular and accepted by numerous exchanges that allow users to exchange it with a variety of other coins, or even traditional coins.
What does Litecoin mean?
As we have already said, Litecoin does not have a central authority or a governmental entity that would control the money, its offer or the way it moves. For traditional currencies, this is done by banks and financial institutions. In the world of criptos, this is done by the community itself.
Every mineable cryptocurrency has a group of people who are called miners. Miners use their computers, resources and time to confirm transactions on a specific blockchain. Once the transaction group (called a block) has been validated, the miners who worked to solve it receive a reward. This reward comes in the form of cryptocurrencies that were previously not part of the rolling offer.
In this way, miners influence cryptocurrencies in two ways: by validating transactions and making them so possible, and by bringing new currencies to the circulating offer. All of this can also be applied to Litecoin, which is why cryptocurrencies are one of the most important aspects of their existence.
Should you extract Litecoin?
The current price of Litecoin is $ 58.88 per currency. Although this does not make it the most expensive currency out there, it is still a pretty good price, which means the LTC mining can be profitable. However, this is true only under certain conditions. As mentioned earlier, mining cryptocurrencies were really easy when they first appeared, almost a decade ago.
Profit has been achieved even if people have extracted with their CPUs and GPUs, without any specialized equipment. Today, however, things are different and this can no longer be done so easily. Mining hardware specialized in the extraction of digital coins has been introduced and since then the mining sector has become a game for those who can afford it.
Nowadays, the extraction of CPUs and GPUs can not be profitable, since the premiums can not cover the cost. Even if you had free electricity, the profits you would make would not be worth the effort. Specialized mining equipment is expensive and is not even a safe investment. Some mining rigs could consume too much energy and sometimes they are not able to handle the difficulty of the network (which increases almost constantly). In addition, mining platforms take a long time to be delivered after ordering them, but it is also very difficult to sell them later.
On the other hand, in contrast to the individual mining, miners can also join various mine pools. These are groups dedicated to the extraction of a single currency sharing a percentage of their power and calculation resources. After a block has been resolved and a reward has been provided, each member receives a portion of that reward in accordance with the resources provided during the block resolution process.
Basically, what you give is what you get. Mining pools are often a good choice for beginners and miners who do not want to invest huge amounts of money in equipment. Moreover, they also have much better chances of coming to a new block than a single individual.
Final thoughts
So, what is the verdict? Should you extract Litecoin or not? Well, there's no definitive answer. The choice always depends on what the miner wants to do. Since everyone's situation is different, especially when it comes to the quality of mining equipment, the price of electricity and the like, everyone has to do their own calculations.
A profit can be made by those who choose to extract Litecoin, of course. However, the question is only whether or not it can match the cost of doing so. If doing something like that interests you, doing additional research is the smart thing to do right now. Collect all the information and then make the final decision.
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Disclaimer: this article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and / or its affiliates, employees, writers and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own in-depth research before investing in any cryptocurrency and read our full disclaimer.
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