Litecoins and Dogecoins – Mining for Beginners.
There is so much attention on Bitcoin right now that we have the tendency of forgetting other coins. That’s right, there are Litecoins, Dogecoins and Feathercoins too. Don’t get me wrong, they are not nearly as valuable as bitcoins, but are definitely worth considering.
You can earn anything between 50 cents and 10 dollars per day when you use consumer-level hardware to mine Litecoin. You won’t earn as much with Dogecoins and Feathercoins now, but not for long. The question to ask now is this,
Is it worth it to mine Litecoins, Dogecoins or Feathercoins??
If you intend the mine it as another source of income, don’t, it isn’t worth it. Apart from the fact that it is not a very reliable source of income, the amount you’ll make is not so much. You need a minimum investment of about $5,000 to get any significant return.
My advice, if you decide to mine cryptocurrency, do it as a hobby. Think of it as collecting gold dust, not nuggets. The proper way of making a substantial amount from cryptocurrency is to use your money to purchase some and tuck it away somewhere with hopes that the value will someday rise. Now that you get all that, let’s move to the next sub-heading.
How Does Cryptocoin Mining Work?
There are a few easy steps to take for you to start mining your Cryptocoin. However, before you proceed, there are a few things to note.
- The purpose of mining is to provide bookkeeping services to the coin network.
- You receive fractions of the coin every couple of days as a reward for your services.
- You need to keep your personal cost down
- This article deals primarily with mining scrypt coins. (Litecoin, Dogecoin and Feathercoins)
Here is a list of things you will need if you are interested in mining any of the above named digital currency.
A coin wallet
In case you are wondering, it’s a secure container where your earnings are stored. It also keeps a network-wide ledger of transactions.
Get a free mining software package that is made up of both cgminer and stratum.
A mining pool is a community of miners who combine their computers. A membership in such pool will not only increase profitability. There’ll be a stability in income as well.
Online Currency Exchange
You need to register at an online currency exchange. This is necessary if you are interested in converting those virtual coins into regular cash, and vice versa.
You need a minimum speed of 2mbps. The connection must be reliable.
A Hardware setup location
You need to find a well-ventilated location to set up your hardware. Mining generates a substantial amount of heat. As such, an air-conditioned space would be ideal.
Get a separate computer dedicated to mining alone. It is not a good idea to use your laptop, mobile phone, PlayStation or Xbox for mining. These devices are just not effective enough to generate substantial income.
An ATI GPU or a mining ASIC chip
Finally, you need an ATI GPU or an ASIC chip. This will be the workhorse in charge of the accounting services and mining work. You can get it new for $3,000 and used for $90.