A lot of people are thinking how to benefit from the increasing popularity of cryptocurrencies. Since you are reading this article, we assume you are one of them. One of the things you can do is to become a miner. This may be a way to earn some income. On the other hand, thoughtless attempts may lead to significant money loss. Let’s take a look at the most important points.
What is crypto mining?
Have you ever thought how does cryptocurrency appear? It can’t be printed. It can be released. The process of releasing new cryptocurrency is called mining. However, crypto mining has another purpose. It is a process of verifying transactions and adding them to the blockchain ledger. Miner chooses and verifies transactions, put them together in blocks, add blocks to the blockchain. This is it.
Miners serve to the main idea of cryptocurrency. They help to spread control among a number of people. That makes networks decentralized. For doing their job miners get a reward. Usually it is some amount of cryptocurrency.
There are a couple of things you need to know before you start. It is important to mention that not all cryptocurrencies need mining. Also some of cryptocurrencies have their limits. They cannot be mined endlessly.
Although if you decide to start mining you should remember that significant profit can appear only if you invest quite a lot of money and time. Otherwise, it can be a profitable hobby.
What do you need for mining?
Different cryptocurrencies require different equipment. For mining some of them you will only need your computer and a special program. Others require special equipment.
The second type became a field for investments. Since various enterprises have resources they invest into warehouses and hardware. Thus individual miners are unable to compete. And the moment big enterprises start to take part in the mining process it becomes centralized.
The equipment may cost way more that average people can afford. Nonetheless, individuals may actually have a chance. They can join mining pool. This is an opportunity for miners to come together and survive alongside corporations. Mining pool is a good idea. Since big companies are interested in this kind of gainful activities, it is very hard for individuals to find something really worth mining.
How to start?
- First of all, you should choose cryptocurrency you want to work with. Do some research since now there are a lot of different cryptocurrencies. All of them require different mining equipment, time and money investments.
- Then you will need a digital wallet address. This is where you will receive your reward. There are a lot of wallets. So choosing may take some time. Remember to pick one suitable for your cryptocurrency.
- Download mining software. It is free and easy to install.
- Install mining hardware if necessary. Some types of cryptocurrencies require special hardware to mine. For example, Bitcoin. But there are also some cryptocurrencies that require only your PC.
- Make sure that your internet connection is stable all the time.
Here are some sources to find additional information about mining pools and technologies:
This website will be useful for choosing the cryptocurrency. Here you can check mining profitability of different coins.
Here is an interesting article about Bitcoin mining pools.
In case you are lost in all the possibilities, check out this website. There are a lot of mining pools explained.
An article about open mining pool MinerGate. You will find out its pros and cons and learn how to start using it.
This is a good instrument to compare some pools and to find the best one.
This platform will help you to analyze coins and pools.
This is a website of a mining company. You can find a lot of information about technologies that are used for mining. Also they provide a mining pool.
Here is an example of a resource where you can choose a mining pool.
So when you decide to take part in crypto mining, you should remember that significant profit can be achieved only if you are ready to invest in equipment. Mining from your PC can be a profitable hobby, but bigger money you can get only if you become an investor.