For the first time, people started talking about mining cryptocurrencies in 2009 – that’s when the first Bitcoin was mined. And it’s still one of the most popular topics in online forums, being on the same level as playing at https://slot-hyper-strike.com and watching series, like the Game of Thrones. So what is included in this concept? And how much can be earned on mining?
What Is Cryptocurrency Mining
Mining is the creation of cryptocurrencies, which takes place through solving algorithms of computational tasks. Simply put, it’s the process of mining any virtual coin, not just Bitcoin, but it’s mined most often.
How Mining Works
When mining, new transactions are added to a special database – the blockchain. It is on it that all the actions carried out in the cryptocurrency network during the entire period of its existence are recorded.
A part of the blockchain is a block. It’s where transactions are recorded. This happens after the calculation of the hash, that is, the potential solution. Each cryptocurrency has an average time to create one block.
So how do you find a potential solution, or in other words, how do you find a hash to get a reward for it? In fact, the problem of finding the right answer was invented by the creator of Bitcoin.
You find the solution, you get paid. It would seem that everything is simple, but it’s not so. The task itself is difficult, and to solve it, you must try many variants of answers. But if it worked, after checking the network, the miner adds the block to the cryptocurrency network.
In order not to find the solution too quickly, every two weeks it can be made more difficult.
What Miners make Money on, Who Pays for Mining
It’s for making a record of transactions in the blockchain that a miner is rewarded. Interestingly, over time, the amount of pay decreases. Each cryptocurrency has its own special algorithm for reducing the remuneration.
For example, Bitcoin has had its reward halved when it writes 210,000 blocks. At the birth of mining, you could get 50 Bitcoins for a successful job.
It turns out that the network itself “pays” for mining. It’s sort of like a reward to the miners for keeping it running by confirming transactions.
The Main Ways and Strategies of Mining Cryptocurrency
There are several methods of earning virtual money. Let’s consider all the possible methods and strategies of mining.
This is one of the most popular and affordable types of “mining” cryptocurrencies. To start mining, it is enough to rent the desired amount of computing power (in the language of professionals “hashrate”) in one of the remote data centers. There are services that offer not only the capacity but also the equipment itself, which can be bought back later.
Cloud mining has a lot of advantages. For example, you don’t have to buy equipment, deal with its configuration and literally round-the-clock monitoring of its work. That is, you pay for the selected lease period and get cryptocurrencies in your wallet.
However, cloud mining has a significant disadvantage – the chance to run into a scam project or an unscrupulous data center. In the first case, you immediately lose your money, in the second – all the earned cryptocurrencies will go to pay for the costs of the service itself, in particular, electricity. Therefore, before entering into a contract, read the terms carefully.
Mining on Video Cards
This is another popular way to make money. Moreover, it is often more profitable than cloud mining. One of the disadvantages of video cards is their short warranty period – only three years. On the other hand, they are easy to reconfigure for new algorithms.
Pay attention to power consumption, otherwise all the mined coins will go to pay for utilities.
Special Equipment for Mining
To earn coins, you need to buy ASICS. This is the name of a small device with integrated circuits, designed for mining crypto coins using a certain algorithm.
ASICS refers to energy-efficient equipment. Together with small parameters and fast payback period, this makes cryptocurrency mining devices popular.
However, ASIS isn’t suitable for those who decided to engage in mining in an apartment. The high noise level makes mining at home almost unrealistic. That’s why those who want to mine coins have to rent a special room or book a place in a mining hotel.
Mining in a Browser
You can mine cryptocurrencies through a simple computer via an installed miner program. It turns out that you just open a website, run a miner and start earning. To mine in this way involves the power of the site visitors’ PCs.
Browser mining is only possible if you have a computer with a powerful processor and video cards. You also need to choose a site that has a built-in miner. All that remains is to run the process of mining and make a profit.
But this method also has a significant disadvantage – the possibility of running into a hidden miner, which will “underground” use the power of your computer. A big nuisance can also be the infection of your PC with a malicious virus.