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A term that has been thrown around in the crypto communities noticeably as of late is cloud mining. This phenomenon seems to have taken over the cryptocurrency mining world - every day, more and more people seem to pitch into the activity that is cloud mining. Because of this, it is becoming progressively harder to mine certain specific crypto coins. That’s why today I want to tell you about Litecoin cloud mining.
We’ll start from the definitions - what’s Litecoin and what’s cloud mining. I’ll tell you about Litecoin’s benefits and why it’s worth mining in the first place. After that, we’ll cover some of the most popular places where people tend to go when thinking about cloud mining Litecoin.
However, before doing that, you should know that there are way easier ways to get Litecoin. Simply choose a secure cryptocurrency exchange for buying or trading Litecoin. A few options that you should take into account include Coinbase, Binance and Coinmama.
Now, let's find out more about Litecoin.
Litecoin is decentralized crypto that has its blockchain. Being decentralized means that it doesn’t belong to anyone specific person or organization - it has no central leader.
Litecoin is open-source, which means that anyone and everyone can contribute to the coins' wellbeing and its development.
What makes this crypto unique is its relationship with Bitcoin. Litecoin was initially a spin-off of Bitcoin, having almost identical data and parameters. However, there’s a catch - Litecoin is around four times faster than Bitcoin. In the grand scheme of things, this is very significant.
Four times faster usually equates to being four times more attractive. In Litecoins' case, this also means that it aims to have four times more coins than Bitcoin.
From the very beginning, Litecoin was intended as an upgraded, superior version of Bitcoin.
Now that we’ve covered some basic information on Litecoin, let’s move on to cloud mining.
To put it into simple terms, cloud mining is a process where you pay someone to rent out a mining rig and its services. There are usually two parties attending this process - the buyer and the host.
Let’s say that you, as a buyer, are looking for ways to profit from cryptocurrencies. Investing in stocks requires a hefty sum upfront (at least to notice any type of profit), you lack knowledge in the blockchain development area to pitch in there… But after some time you stumble upon an internet site offering cloud mining services.
Hosts (the people that own the cloud mining service) are usually big and corporations. It’s quite rare to find a single person who would offer cloud mining services, although it isn’t impossible.
Most of the time, the hosts own a few farms. A farm is simply a facility that’s filled with cryptocurrency mining rigs. When you want to strike a deal with the host, you simply rent out the rig in one of the farms for an agreed-upon amount of time.
More Than the Rig
A mining rig isn’t the only thing you rent out, though. You would also rent out the space to keep it in and the management and maintenance services.
You and the host agree upon a specific time for the rent. This could be anywhere from three months up to a lifetime (although the latter one’s quite rare). Most cloud mining hosts offer monthly payouts.
A maintenance and electricity bill is taken out of your earnings (these are calculated in various ways; it depends on each host) and the rest of your earnings are transferred to a crypto wallet of your choice.
Cloud mining (including Litecoin cloud mining) is considered to be beneficial for a couple of reasons. First of all, it’s super easy. All you have to do is buy the service online and wait.
Some higher-end cloud mining hosts offer additional perks, i.e. around-the-clock farm surveillance via a live stream on the internet, so you might want to check it out. Other than that, your work at this point is done - the host takes care of the rest.
Cloud mining is also beneficial to both the host and (most) of the cryptocurrencies out there (at least decentralized, open-source ones). Hosts make good amounts of profit and can continue to evolve their farms.
The cryptocurrencies themselves benefit from this by staying in a state of active demand - this boosts up their market positions and brings more attention to them.
So now that you have a general idea both about Litecoin and the process of cloud mining… Why would someone want to deal with Litecoin cloud mining? Keep in mind that whichever option you pick, you'll also need a reliable hardware wallet to protect your coins.
The reasoning behind this is pretty simple - the availability and accessibility of Litecoin.
As I’ve mentioned earlier, Litecoin is four times faster than Bitcoin. Let’s use this example.
The biggest problem with Bitcoin when it comes to cloud mining is that it’s very difficult to mine - it takes a lot of time and significant energy consumption to mine a noticeable amount of Bitcoins. This is due to a few reasons, but the biggest ones are probably supply and demand.
With Bitcoin’s mainstream popularity and success, a lot of people want to pitch in on the hype. A big amount of people equate to a significant amount of miners. However, Bitcoin’s set market cap dictates the pace of the game - and with so many people involved, the pace is getting slower by the week.
Just as with some other altcoins, it’s a different story when it comes to Litecoin. There are a much higher supply and a considerably lower demand for Litecoin than it is for Bitcoin. This makes Litecoin cloud mining a lot easier and much more profitable than the other, mainstream cryptocurrencies.
There are a lot of sites on the internet that offer Litecoin cloud mining services. The very first thing that you need to do before deciding on a cloud mining host is to figure out whether you want a free or a paid service. Yes, free cloud mining is a thing, but naturally, it has its drawbacks.
Hosts that offer free cloud mining usually provide little to no customer services when compared to the paid ones. Free cloud mining can be sketchy and risky - if you don’t know what you’re doing (or if you don’t do enough research), you might end up scammed.
Free cloud mining also tends to be a significantly slower process than the paid version. It might take months on end until you notice any amounts of profit.
With that being said, let’s cover some of the most popular sites for cloud mining Litecoin. The list isn’t put together in any specific order.
Mining Rig Rentals
Mining Rig Rentals is a US-based online cloud mining service. They offer a wide variety of (alt)coins to mine, including Litecoin.
The site is noteworthy in that it has no minimum orders, a very low withdrawal benchmark, it pays out the profits in up to twelve hours from the end of the rent and processes the payments super quick.
The site also offers a variety of mining pools to choose from - free of charge. One of the only drawbacks is that it struggles in the design department - the quality of the site still leaves some things to be desired.
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