The newest trend that is rising in this technologically advanced world is cryptocurrency mining. Yes, every one of you has heard about Ethereum, Bitcoin and the profits about them! Over the years, a number of cryptocurrencies are gaining popularity and thus a number of people are buying and selling them. So like that, many of you are interested in investing in it and that is why you should know how you can mine them. So, here is an easy guide to crypto mining that you can follow!
What is crypto mining?
Basically, the mining of cryptocurrency has 2 functions. First, you need to add all of your transactions into the blockchain after verifying and securing it and then releasing the currency that is new. When you are going to mine cryptocurrency, you need a special program along with a computer. This program actually helps you to compete with peers when you are trying to solve a very complicated mathematical problem. This way a block has to be solved using hash functions. When you mine a block you will get 1.2 bitcoins.
Now that you have learned about crypto mining and its needs, you can go through an easy guide to crypto mining.
First thing: Knowing your roots
You should always know that in which direction you are heading! Though mining of cryptocurrency is comparatively new and different from 2009 when Bitcoin was first mined. In the present scenario, there are over 800 types of cryptocurrencies. So you must choose it wisely before you start mining and trade it.
Second thing: Presence of intelligence
Your growth cannot be expanded until and unless you know all the fundamental things about cryptocurrency properly. So you should know that there are two types of coin present in the market. One is pre-mined and another form is mineable. Based on the nature of their own blockchain, normally the majority of these cryptocurrencies are mineable. But a number of crypto coins which are already mined with the help of insiders can be also available for sale. By this way, only profit is made by insiders. So in other words, crypto coins that contain proof of work can be easily mined and one’s proofs which are at stake are normally pre-mined.
Third thing: Keeping trust in the future
If this was about fifteen years ago, and you were trying to do anything on the internet, there is no doubt that you could have made a lot of money. So if you are guided well in the case of cryptocurrency, them in the present day also you can earn millions! The field is very competitive and there are some roadblocks present. But you should keep your belief that the world will be changed by cryptocurrency!
Fourth thing: Calculating hashes
If you want to create a block successfully you must calculate your hashes properly that actually fulfills all the requirements. So the handiest way by which you can achieve to get matching hashes is by calculating as many of them until and unless you find a matching one. After you have received a right hash you can create a new block. It is like competing in a situation where you have to guess the weight of the cake. You will get an unlimited number of guesses but the one who guesses the right weight first actually wins.
Fifth thing: Minimum requirements of crypto mining
In the past, you could mine crypto-coins by simply using a normal computer but now the things have changed! Since lots and lots of people are mining these days as the competition has maximized, the effectiveness of the hardware requirements is also increasing. This includes high-end GPU, moderately powerful processor and particular chips which are meant for mining only.
So in order to mine successfully, first you need to invest a lump sum of money to get the hardware’s right. Also, the electric bill will rise as you need to run the machines for 7 days week and that too for 24 hours each day! Mostly miners spend their income from mining to cover these running costs of equipment only.
For example, the network of Bitcoin actually processes 5.5 quintillion hashes every second. So if you don't have the proper set of equipment you cannot process these huge calculations in a very short period of time. So the chances of you getting the match reduce. For this reason, mining pools are created where a number of miners join together so that they can share all the costs of computer and power and then finally gets rewarded for their performance.
So, now that you have gone through an easy guide to crypto mining, it will be easy for you to assemble your thoughts and ideas before you start mining crypto coins. So why are you waiting? Let’s get rich!