Welcome back readers. In our previous article “How to Mine Litecoins Part I”, we thoroughly discussed the advantages of Litecoins over Bitcoins, and the various software available in the market that are used to effectively mine it. We discussed the kinds of software that are used to mine Litecoins. One which uses Graphic Cards, and other which uses traditional processors to mine Litecoins. We although emphasized more on the ones that use graphic cards, as the others are quite outdated.
In this article, we move further by introducing you with basic difference between solo mining and pool mining. In general sense, solo mining is what you do on your own, i.e. by solving a block yourself in a hope to receive a full block reward, while the pool mining brings miner a proportion – a small fee – upon mining Litecoins successfully, as he works in a team in which everyone is contributing to mine one or many Litecoins; the equal share among all is obvious then.
When you mine with, say 1000 miners alongside, you instantly make yourself a shareholder of a proportions of the mined Litecoins. It lifts your pressure and power to do all the job single-handedly and helps you solve a block more accurately, the reward of which is 50 Litecoins. This is how the Litecoins are earned.
There are also some negative points related to pool mining. One among them is the deductions (or commissions) pool organizers charger from users – usually 2% – when you withdraw your coins from pool to your wallet. Although the major trouble with pool mining is security. Suppose a successful hacking attempt is made during the time your coins were in pool, then seriously your money is gone within mere seconds. This can however be dulled by setting your mining software in a way that it keeps switching pools automatically.
The solo mining, despite being the safest, is only limited to those who can afford to pay high power consumption bills. If you do not like working in a team and wish to be the sole owner of you money, and also if you have sufficient computing power to mine Litecoins every other day, then solo mining is your deal. The chances still however is that you end up making nothing. Because practically it will take 100 days to uncover a single block, with a success rate of 90%.
In this case, we recommend you to go with Litecoin-Qt, the basic software to manage your Litecoins.
So should you use a pool, or follow a do-it-on-your-own approach, the risks are balanced on the both sides. Look out for other next and final article on How to Mine Litecoins to know about the equipment that are used in mining this altcoin.
To contact the reporter of the story, contact Jonathan Millet at firstname.lastname@example.org