Many people wonder whether cryptocurrency mining is still profitable in 2019. Now the big players have taken control, with their industrial-scale operations, it can be hard for solo operators to compete. So where does Litecoin mining sit on the scale of profitable coins to mine?
This is a tricky question, and there’s no such thing as the right answer. Litecoin mining could be the next big thing if predictions that LTC price will reach over $700 by the end of this year are to be believed.
At the same time, it could be a total waste of time and money. Plenty of miners and investors believe there’s no space for altcoins to grow in the market. LTC price could just as easily drop to $5, after all.
Litecoin mining factors to consider
Litecoin mining is long-term investing. You need to do the maths, evaluate risks, and analyse the cryptocurrency market regularly to make sure your balance is still positive at the end of the day.
Before jumping into Litecoin mining, make sure you analyse all implications of the investment. Here are the Litecoin mining factors that you should consider when deciding whether it could be profitable for you:
The investment in hardware and software
Litecoin mining requires specific hardware, specially designed for Scrypt-based cryptocurrency mining, such as ASIC miners. This type of equipment is more powerful than the usual CPUs and GPUs and often comes with pre-installed software that allows you to start mining right away. The newer the hardware, the higher your chances of being competitive and claiming rewards.
The costs of electricity
Besides the initial investment in hardware, a power supply cord, and some fans for cooling the equipment, you shouldn’t forget about the power you need to keep everything running. This will greatly affect your electricity bill and influence your profits from mining.
Your previous experience in cryptocurrency mining
Your profits depend on your knowledge. If you’re still learning about cryptocurrency mining, you won’t be able to tell if your equipment is working at full capacity or if you still need to optimise your rig.
Your geographic location
This is a crucial factor that influences your costs, due to the differences in electricity prices around the world.
Miner and transaction fees
Whether you do Litecoin mining on your own, join a mining pool, or use cloud mining services, you’ll have to pay fees every time you get your block rewards and transfer your earned coins to your Litecoin wallet. The transaction fee is 0.02 LTC, but every mining pool and cloud services provider adds up other costs that you shouldn’t ignore.
Litecoin mining profitability and exchange rate fluctuations
Litecoin marketing could be very profitable if LTC price continues to rise according to predictions. However, things aren’t as simple as they seem. No one can tell for sure how Litecoin is going to evolve in the crypto market.
Looking back to charts from the past years, you’ll see that LTC’s highest price reached $320 back in December 2017. But things slipped down pretty quickly after this significant milestone.
Litecoin’s current price is a little under $73, which means that you may need months before recovering your initial investment in hardware and software (depending on the factors listed above).
Of course, the maths changes if the price goes up. But you shouldn’t count on that when calculating your chances of making money by Litecoin mining.
Your earnings depend on so many variables, from the mining pool you join to the equipment you buy, that you won’t be able to make accurate predictions by yourself. A Litecoin mining calculator can help you analyse possible earnings and show whether your operation will be profitable or not in the long run.
A calculator could guide you and help you optimise Litecoin mining operations to maximise your chances of making a profit. However, the tool alone won’t do the job for you. You still need to keep an eye on the market and be ready to switch to more profitable coins if needed.
Is Litecoin mining profitable in 2019?
It depends on how much you’re willing to invest in Litecoin mining and how the prices fluctuate in the coming months. There’s no doubt; if mining were completely unprofitable, no one would invest in mining pools and industrial-scale operations. They wouldn’t spend thousands of dollars on developing the hardware and software necessary to keep the ecosystem working either.
According to CryptoCompare, Litecoin mining could bring you profits of $14.57 per day. That’s more than $5,300 a year as passive income. If you store your digital coins in a hardware wallet and the LTC price goes up, you can make a small fortune on the Litecoin market. But just like everything crypto, it could easily go the other way.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.