With cryptocurrencies entering the mainstream with a bang, more and more people every single day develop an interest in this new and strange world of blockchain. A lot of these people come to cryptos because they had heard that it’s possible to make money from them. If you’re one of those people, you’re in luck, because today I want to tell you how to mine cryptocurrency.
We’ll start by covering the term itself – we’ll talk about what is cryptocurrency mining and why people bother mining cryptocurrency in the first place. Then I’ll tell you about the different ways you can mine cryptocurrency – their pros, their cons and so on. Lastly, we’ll talk about some of the more popular coins when it comes to crypto mining.
To put it into very simple terms, crypto mining is a process in which a machine performs certain tasks to obtain a little bit of cryptocurrency.
The days of mining bitcoin with your PC are over.
As bitcoin mining difficulty has increased over time, individual mining at home has become unable to keep up with large-scale mining operations that use dedicated mining hardware.
If you are still interested in using your PC to mine other cryptocurrencies though, you are in luck. Fortunately, there are still digital currencies that you can mine in this way. Here’s the scoop on three of the best of these cryptocurrencies.
Monero stands out among other cryptocurrencies as it is widely considered as the most advanced anonymous digital currency. Monero is based on a proof-of-work algorithm known as CryptoNight, which is designed with certain specifications that make it difficult for Monero mining using ASICs to work well.
Some websites might be using your CPU to mine cryptocurrencies like Bitcoin without your knowledge.
Mining of cryptocurrencies like Bitcoin can be lucrative.
But there’s a catch: it requires time and a lot of computing power.
If you could somehow spread those computing demands out among hundreds — and sometimes even thousands or millions — of unknowing users, it would greatly reduce the cost and time of mining expensive coins.
As nefarious as that sounds, it’s exactly what several websites were discovered to be doing by IT security company ESET in September last year.
Previously, criminals would go about hijacking someone else’s computer to mine coins through a malicious program that was installed.
Mining is the process of using a computer to perform complex calculations on blocks of data which maintain the Bitcoin network. Miners are rewarded for their efforts with a certain amount of Bitcoin cryptocurrencies.
Bitcoin (BTC) is fast becoming the province of people using specialized ASIC (application-specific integrated circuit) devices, although if you have one or more powerful graphics cards you may still be able to generate a small profit by assembling your own mining device. You’ll learn more about this in the following steps.
The actual profit you make will depend on a number of factors. The first is your ‘hash rate’ – in other words, the actual processing power of your machine. Computers designed for mining, or ‘rigs’ as they’re commonly known, require large amounts of electricity, which will increase running costs.
If you want to know how to mine Bitcoin, you have two different steps you can take: Go through a cloud mining company, or buy and use your own hardware. We’ll look at both options and why, though neither are cheap, cloud mining represents the safest investment for your money.
Remember, research is important! Just as when it comes to buying Bitcoin or altcoins, you need to be aware that nothing in the world of cryptocurrencies is guaranteed. Any investment could be lost, so make sure you do your reading before pulling out your credit card and have a secure Bitcoin wallet standing by.
When Bitcoin was first introduced in 2009, mining the world’s first and premier cryptocurrency needed little more than a home PC — and not even a fast one at that. Today, the barrier for entry is far higher if you want to make any kind of profit doing it.