How to mine Litecoin (LIKE A BOSS)

magicinternetmoney

So now that the world is having Bitcoin shoved down their throats, you have done your internet research, know what it is and why it exists. If you are reading this, you grew a pair want to jump on the bandwagon. But you are smart, you know unless you are “ballin’ outta control”, the investment of mining Bitcoin will not end well. This is why you are thinking about mining litecoin, you may not be a computer nerd but you know that you need to get in before litecoin blows up like Bitcoin has. (IMO, 2-3 years it will flirt with $1K, 10 years $10K)

So before I begin this guide, just know that it’s better to trade litecoin. Better if you know what you are doing of course, but understanding how to trade properly is ALOT HARDER! But that is a story for another day.

Mining is much easier and you will want to join a pool, unless you’re rich (In the event you are rich, hit the “contact thingsmicro” button up-top-there and I will help you out). But for all you poor people out there, you need to join a pool. The pool  that I recommend is no other that LTCrabbit. Before we get started, follow the link and create an account. Now I could go on and on about what pool is the best but just trust me, LTCRabbit is where its at. Go do it now, i’ll wait.

Make your account yet? Good, if not, stop reading and go do it as you will need it in a few steps. OK, now that your account has been made, go download the Litecoin wallet here, this is where you will store all your magic internet money (I bet you didn’t hesitate to do this step since I said it has to do with money…Fool). When you download and run your wallet for the first time, it is going to have to sync the entire blockchain. NOTE: This is going to take a long time, like a day, so don’t worry about it and let it do its thing.

You now need to encrypt your wallet, your wallet is extremely important if you haven’t figured that out. You want to make your encryption password very strong and please don’t make it the same as any other password you have. To encrypt your wallet all you have to do is open up your Litecoin wallet, click the settings tab and then clicky the encrypt wallet button. It will ask you to type in a password twice, do not forget this password! Write it down and put it someplace safe if you have to!

Last but not least, you need to tell LTCRabbit what address to deposit your Litecoins. To get your Litecoin address, open up your Litecoin wallet and click the receive button. Your address will look something like this “LNxsp1gtmNHQHGA8j3KxPPMY2pRy4RDkTB”. Right click on your address and copy it. Go back to LTCRabbit, log in and click ”my account”>”account settings”. You will see a “payment address” field, this is where you want to paste your Litecoin address, hit save. Now LTCRabbit know where to pay you out. While in the account settings, you can also setup automatic payouts for when your Litecoin balance meets an amount you defined. This is not necessary but its there if you want to use the feature.

Keep your wallet safe. If your hard drive fails and your Litecoin wallet is on it, say goodbye to any coins you had cause there is no recovering it; if someone steals your coins, you are never getting them back. To be extra safe, keep your litecoin wallet backed up offline and on external drive(s) aka cold storage. Don’t store all your coins with an online wallet, if you are going to use mobile/online wallets, only transfer what you need to them.

Got it? good, carrying on. So this is how to mine litecoin.

So here is the magic litecoin guide to get you noobs up and running.

Things you will need
1. A place to put all your “rigs”.
2. Hardware.
3. Software.
4. Time.
5. Patience.

Simple as that. Well almost, lets begin.

1. A place to put all your rigs.

You need a place to run your machine(s). Some place cool, like a basement, the cooler the better. If you plan on running lots of machines, you will quickly figure out that keeping them cool will become an issue. When I first started mining, I had 8 GPUs running full-bore in a poorly ventilated room, it only took around 15mins for the room temp to go from 67F to the mid 80s. These things are space heaters for real, so make sure these things are very well ventilated, if you understand thermal runaway you know what I mean. You cant mine with broken cards, so plan on keeping them cool or don’t mine at all.

2. Choose your parts and order them (my recommendation below).

Obviously you need money, just like any other investment, money makes money and you need to buy hardware! you need power supplies, CPUs, motherboards, ram, jump drives and of course, AMD video cards! Now if you have never built a computer before, don’t be intimidated, it’s kinda hard to mess things up. Building a computer is sort of like legos, all the pieces only go in one way. Literally, if you can read, you can build a computer.

Right.

So this is what you need to buy.
-CPU
-Motherboard
-Standoffs
-Power supply
-Ram
-Jump drive
-Video card(s)

2x.270x.litecoin.rig.900kh

Thats it. Now obviously there are millions of different options to choose from for each one of these types of computer parts, The trick is to figure out which ones are compatible with each other, which ones are the best etc. When picking out parts say on newegg, just look at the specs and you will figure out whats what. Video cards are the the most important bit, you will hear people say all sorts of different cards are the best for mining, the consensus is that the 7950 is the most efficient card. My answer is the best “binned” cards are the best. I like cards such as the Sapphire TOXIC and PowerColor DEVIL cards. Why? these are premium/enthusiast cards, the are among the most expensive in each of their product lines. This means that these are most likely to have the best binned chips, if they weren’t, then they would not be able to hit the clockspeeds they can.

This is important, there is this thing that folks call the “silicon lottery”. What this means is that with non premium cards, performance will vary from card to card, you will never know how well each card performs. For example, I have a bunch of Asus r9-270 (non-X) cards, some of them run stable at 420kh/s while some of them can only get 330kh/s and run really hot. The r9-270 is the exact same chip as the r9-270x, the only difference is the binning. If you have not guessed, the reason the 270 non-X cards are cheaper is because the chips cant clock as well so they are sold as lower performance cards. So with that being said, the X cards will have small variances between cards of the same model, the non X cards will often vary greatly. With the premium cards such as the DEVIL or TOXIC, you are almost guaranteed to get the best of the best as they sport the creme of the crop binned chips.

I use r9-270x’s. I use them because they are cheap, they would be easier to sell in the event the sky started to fall and they offer very good perf/watt. For example, I have 2 machines running 2x XFX 270x’s each. All cards run 450kh/s at 63-65C stock clocks and stock voltages. Both of these machines (4 cards) running at speed, pull 720watts at the wall. These cards cost $250 each. If you were to get a very good 280X, say the TOXIC, you could MAYBE get 900kh/s with a very good chip. The Toxic runs $500 nowadays. If you were to get DEVIL or TOXIC 270X’s and tune the mess out of them, 500kh/s per card should not be an issue. The only downside to this is that you need more PCI-e slots and PCI-e power (2x 6-pins per card).

I recommend the good (and more expensive) cards because you know what you are getting. If you looking to get a bunch of cheap 270′s, trust me when I say that you will have to put in ALOT of time just to get them all stable at acceptable hashrates. A small portion of them you probably will just RMA because they are just not good enough to hash 24/7 365. Get the good cards, you will get the best hashrates, they will undervolt nicely (for cards that aren’t locked) and they wont run hot as hell. The price premium will pay dividends in the long run, trust me.

Now I will make it easy! If you cant be bothered with picking out your own parts, buy the following parts and don’t look back. This setup will get you 950-1000 kh/s easy with minimal setup. If you decide to overclock and tune, you can get a better hashrate.

CPU=AMD A4-4000 $48

MOBO=MSI A88XM-E45 FM2+ $72

PSU=Corsair CX750M or Raidmax AX-735AP $80

RAM=Team ddr3 4GB $30

GPU=2X PowerColor Devil 270x $250

Jump Drive=Any 4GB drive will do $5

Screws and standoffs=APEVIA kit=$5

Grand Total=$740

You can get a case if you want. I use wire shelving because they are cheap, strong, look cool and will last a lifetime in the event that they no longer are used as your Litecoin “cabinet”. You can find them at your local home depot or wally world for like $40-50. If you are in the midwest, go to Menards or Fleet Farm because they are two of my favorite stores.

The reason I chose only a 2 GPU setup is because this hardware would be much easier to sell if litecoin crashed (which it isnt going to) or ASIC’s blew them out of the water. Note that prices of ASIC’s are in line with the hashrate you would get if you spent the same amount on AMD GPU mining equipment, this means the performance you would get from a $5000 ASIC would be very similar to the performance from $5000 worth of AMD GPU’s. Although ASICs will same you money every month on electricity, if litecoin crashed you would end up with a $5000 paperweight. If you bought $5000 worth of GPUs, at least you would be able to sell them to recoup some if not all of your money.

So now that you have all your parts, you need to put it together. If you dont know how to put them together go look it up on google, its like legos and will probably take you 5 mins to do once everything is unboxed.

3. Software

Next you need to take your jump drive and burn Linux to it, a specific version on Linux to make mining litecoin super easy. Now that you made an account at ltcrabbit, you can download said version of Linux here. You want to download the file named “SMOS-LTCRabbit-Edition-V2 (1 GB)“, save this to the desktop or someplace else where it is easy to find. After the download starts, go here and download Win32 disk imager.

After both of these are downloaded, plug your jump drive into a USB port, start up Win32 disk imager and browse for the image file “SMOS-LTCRabbit-Edition-V2″ easy to find on the desktop or where ever you saved it to. Once you have chosen the image make sure that the Device it is to be written to is your jump drive, it should be chosen automatically but it never hurts to double check. Now all you have to do is click the write button.  This will take a few mins to write so go get a beer.

Once the image has finished being written to the jump drive, all you have to do is plug it into your Litecoin rig and power it on. After a min of two of pressing the power button on your litecoin rig, it will be mining litecoins, but not for you! What you need to do next is go into the config file (its on the desktop of your litecoin machine named cgminer.conf) and put in your info instead of the default ones. We will get to that in a second. For now, go ahead and double click the “stop mining” file that is on the desktop.

No that the rig has stopped mining, you want go ahead and make a worker at LTCRabbit. This is very simple to do, once you are logged in to the website, click on “my account” in the navigation menu, and then click “my workers”. Under “new worker” you will need to make a username and password for the worker. You can name the worker whatever you want, I choose to name my workers after the pools name followed by a number, I always use the letter “x” as my password. You dont have to worry about password strength here.

For a beginner, the whole username and password thing may be confusing, let me explain. Your LTCRabbit username and password are not the same as your worker username and password. For your LTCRabbit account, you want to make your password a secure one that you can remember. Worker usernames and passwords do not have to be secure, the worst that can happen if someone got a hold of your worker username and password is that they can mine litecoins FOR YOU! No one cares about your worker user and pass because they dont want to mine for you, they want to mine for themselves.

So lets assume your LTCRabbit username is “timmy123″, you make your worker username  ”rig1″ and you set that worker password to “x”. What you end up with is “timmy123.rig1″ with a password of x. You can be creative as possible when making worker usernames if you like, but like I said, I name my workers after the pools name followed by a number. I name them this way because , if you have alot of rigs, it makes it easier to know what rig is what. More on that later though.

So back to the cgminer.conf file that is on your desktop. double click the file, delete everything in it and paste in the configuration below. before you save the file, make sure you replace “jermboslice.ltcrabbit50″ (this is one of my worker usernames) with your workers username! Do not remove the quotation marks! If you do not replace the username and password, you will be mining for yours truly!


{
"pools" : [
        {
                "url" : "stratum+tcp://us.ltcrabbit.com:3334",
                "user" : "jermboslice.ltcrabbit50",
                "pass" : "x"
        }
],
"api-listen" : true,
"intensity" : "19",
"vectors" : "256",
"worksize" : "256",
"kernel" : "scrypt",
"auto-fan" : true,
"lookup-gap" : "2",
"thread-concurrency" : "15232",
"shaders" : "1280",
"gpu-powertune" : "20",
"temp-cutoff" : "85",
"temp-overheat" : "75",
"temp-target" : "65",
"expiry" : "30",
"gpu-dyninterval" : "7",
"gpu-thread" : "1",
"log" : "5",
"queue" : "1",
"scan-time" : "30",
"scrypt" : true,
"temp-hysteresis" : "3",
"shares" : "0"
}

After you paste this into the config file (make sure to replace my worker name and PW with yours), hit file save. Click on the start mining file that is on the desktop and that’s it! You are now mining Litecoins for yourself!

Congrats! You are now on your way to becoming a Litecoin Mogul! If you have found this guide helpful and want to tip a brother, do so here LNxsp1gtmNHQHGA8j3KxPPMY2pRy4RDkTB. If you are stuck on something or need more help, feel free to leave a comment or hit the contact thingsmicro button up top.

Happy mining, cheers!

Jerm

About Jerm

Jeremiah Johnson is the tall, dark, handsome Co-Owner of IcerTechnologies, an I.T. Hardware and Software company. A stock trader and technology enthusiast, Jeremiah is always digging deep into industries to see what the future holds. ThingsMicro.com is his personal blog where he writes about anything he finds interesting in life. Readers beware of poor, unedited grammars. His opinions are his own. (I like Turtles)