Crypto mining is a course of action in which cryptocurrency is being generated via the use of computing power. Mining of cryptocurrency ensures the release and existence of new crypto coins in the already existing and circulating supply of cryptocurrency. Crypto mining is a factor responsible for making crypto work in a decentralized system without the need for a third party or central authority. Crypto is mined with the use of Hardware, Software or both. Crypto Mining is also known as Altcoin Mining, Cryptocoin Mining or Bitcoin Mining.
The major goal for most cryptocurrency miners is to be rewarded with valuable cryptocurrency tokens. Well, you don’t have to be a miner to own cryptocurrency. You can buy cryptocurrency; you can even earn it by performing some activities online like playing games, watching videos, etc.
Crypto currency mining occurs in a “Mining Pool”. The people who do the job are called Miners. Crypto miners receive bitcoin as an incentive for carrying out “blocks” of confirmed transactions which are added to the blockchain. In the process of mining, you can earn cryptocurrency without having to put down money for it.
BENEFITS OF CRYPTO MINING
- Use of accessible hardware and software resources for mining crypto.
- Gain and save crypto for future transactions.
- Pool resources with others to create and distribute cryptocurrency.
THE WORK OF A CRYPTOCURRENCY MINER
Miners get rewarded with incentives for the job they do. They are responsible for confirming cryptocurrency transactions. This is meant to keep crypto currency users honest. By verifying/confirming transactions, miners are helping to curb the problem where by for example, a bitcoin owner illegally spends the same bitcoin twice. They verify transactions to make sure that users have not tried to spend the same bitcoin twice.
CRYPTOCURRENCY MINING POOL
Since the mining incentive is paid to the miner who discovers the solution to the first block (the mathematical problem to be solved), the probability of finding the block is equal to the portion of the total mining power available on the network. Mining takes place in a Mining Pool. Miners contribute their computing power to a mining pool and gain a percentage of the yield. The percentage depends on how much computing power is contributed to the pool. The mining pools are created to solve this problem. It means pooling of resources by miners who contribute their computing power over a network, to split the reward/incentive equally between everyone in the pool, according to the amount of power they contribute to the probability of finding a block. If there is no mining pool, a lot of computing power could be added to the network with the possibility that the problem will not be solved.
HOW TO START CRYPTO MINNING
Crypto mining serves as a source of income for crypto miners. Expenses like electricity, internet connection, and computing mining hardware also affects the net income generated by cryptocurrency mining.
In order to start mining, crypto currency miners will need either a GPU (graphics processing unit) or an application-specific integrated circuit (ASIC) in order to set up a mining rig, stand-by cooling system for the hardware, a 24/7 internet connection, a valid crypto mining software package, and membership in both an online cryptocurrency exchange as well as an online mining pool.
As an aspiring miner, you should note that as cryptocurrencies have risen in both popularity and worth, competition has increased to a large extent as well and now includes big organizations and enterprises with more extensive resources than most individuals can compete with.
In conclusion, should you start crypto mining yourself ?
I will suggest you make a clear observation on which cryptocurrency has the most profit. If you’re to mine bitcoin on your own, the money that will be spent on investment will be high. Money will be spent in getting equipments, stable power supply and others. Also the device cannot be kept in your room because it generates heat, it makes noise and this can’t be convenient. So, doing it on your own will be difficult. The best thing is to join a network of crypto miners and work together in a mining pool.
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