First launched in 2009, decentralized cryptocurrencies are now in everyone’s knowledge, whether they are from financial & investment background or not.
Indeed, the day-to-day growing market value of cryptocurrencies has moved the general public’s focus. From purchasing cryptocurrencies to cryptocurrency mining, ERA has shifted.
One of the primary reasons for such a high-end shift in focus is that cryptocurrencies like bitcoin are expensive.
Therefore, the general public doesn’t hold the financial power and stability to buy cryptocurrency. But, cryptocurrency mining has become a game-changer. It permits interested individuals to complete tasks online and receive rewards in the form of cryptocurrency like bitcoin.
Yet, only individuals with higher knowledge of online digital/technical platforms have gained through cryptocurrency mining. You can gain more knowledge by getting a sign up to british bitcoin profit.
That’s not as easy as it sounds.
Among the public, cryptocurrency mining sounds like a huge deal that’s only for those with high IQ.
Just kidding! 🙂
Cryptocurrency mining can give the command to those who learn it with patience and practice using the best cryptocurrency mining methods.
Several questions sprained their minds to overthink risks, pros, and cons for the fresh cryptocurrency miners. So let’s explore some basic information on cryptocurrency mining to get ready for earning crypto money in the future.
Here we go!
What is cryptocurrency mining?
Let’s comprehend the term cryptocurrency mining via a real-life example.
When a miner finds something precious like a diamond, coal mine, or oil, during Mining without associating with governmental or private incorporation, whatever, he mines, he holds the permission to keep it as a reward.
Similarly, cryptocurrency mining is a type of digital Mining where a miner completes several tasks. And, receives bitcoin (or, other cryptocurrencies) or several bitcoins in the form of reward.
Cryptocurrency mining tasks may vary from platform to platform. Some platforms reward cryptocurrency bloggers for contributing blogs on cryptocurrencies on their website.
Similarly, other tech-based platforms reward blockchain builders who complete all verified transaction blocks. This math-based task is officially called cryptocurrency mining. One can complete blocks by solving mathematical computational problems.
In this way, cryptocurrency mining allows people to earn without any beginning capital or investment. Among the professional cryptocurrency miners, cryptocurrency mining tasks are termed as “Proof of Work.”
In 2021, it has been a decade that people worldwide are practicing cryptocurrency mining.
Thus, new and cryptocurrency mining-specific computers have come into knowledge. They are called Cryptocurrency mining rigs.
Mining rigs operate continuously to create computation problems for the miner to resolve and earn a reward.
What You Should Know to Build a Cryptocurrency Mining Rig
One can purchase cryptocurrency mining rigs online.
However, they may come in parts.
The buyer may have to put the pieces together to start mining cryptocurrencies on its own for the machine or system.
Let’s begin with a checklist of components that you will require to build a cryptocurrency mining rig at your workstation:
- Motherboard: It is recommendable to pick a motherboard with 100% compatibility with your graphics card.
- GPUs or Graphics Card: GPUs are one of the main components here. A high-end quality graphic card will allow the rig to generate higher value coins, that too, more elevated in number. On the other hand, a medium-quality graphics card will only generate very limited or 3/4th valued cryptocurrency.
- Power Supply: Of course, you don’t want to lose all your performance during cryptocurrency mining due to a lack of power supply or random power cuts. Thus, pick a high-end source of power supply to keep going for hours or round-o-clock.
- Central Processing Unit or CPU: This is an essential component to ensure that the user experiences smooth cryptocurrency mining via rig. A problematic CPU may shutdown immediately, hang your system or create errors.
- Mining Rig Frame: Frames help you to keep your system together. They are optional, yet, highly recommendable.
Here are Some Steps to Build a Cryptocurrency Mining Rig
One of the crucial parts of the cryptocurrency mining rig’s building process is setting up all the frame components.
Begin with the motherboard. Please ensure that you place the frame near the power supply source.
After positioning the motherboard into the frame, move to the CPU. Plug it carefully and set it in a place where dust is less accessible.
Once the hardware has been positioned successfully, insert or place the graphics card carefully.
Cross-check the quality of graphics beforehand—power on the computer system.
Install the cryptocurrency mining rig software.
Popularly known mining rig software like Awesome Miner, CGMiner, and others are available in the market. Professionals propose to choose a software that you can handle as per your cryptocurrency mining skill set.
After the final installation of software, your system will automatically reboot a few tutors to become compatible with the software’s storage, configuration, and other settings.
Begin cryptocurrency mining!
How to Make Money by Mining Cryptocurrency?
Cryptocurrency mining has become a profession among those who keenly comprehend platforms like bitcoin mining, bitcoin gaming, buy or sell bitcoins, etc. Also, keep in mind that you should know and explore the best places to buy and sell cryptocurrency all the time to be aware of the exchange rates and not to have financial loss.
But, there are two faces of all professions: legal and illegal.
One shall always prefer to make money via legal methods of cryptocurrency mining.
Adopting illegal ways can cause the miner to face unwanted consequences when caught. So, how to make money mining cryptocurrency legally?
A perfect solution is – Competitive Mining.
Here’s how to do it:
Competitive cryptocurrency mining generally revolves around continuing Mining without stealing electricity. Or Mining at the legal market value of electricity.
Apart from this, miners have been receiving a lot more cryptocurrency-based credit for verifying the authenticity of bitcoin transactions online.
Indeed, this chain of functions by the miners also helps the organizations from double-spending. So it’s a scoop of victory for both parties.
Here’s How Money Mining Cryptocurrency Works (Specifically, Bitcoin Mining)
Let’s say, a miner resolved or verified bitcoin transactions (weigh: 1 MB). It will mean that the miner has verified one block.
A miner that verifies a block (bitcoin transaction) with weightage less than 1 MB will remain ineligible to earn bitcoins.
But, it’s also crucial to note that, the miner here is not required to verify one bitcoin transaction to receive eligibility for earning.
However, he is required to verify bitcoin transactions of 1 MB or more in total. Now, a bitcoin transaction can be as small as to be calculated in kb only.
Hence, there is no ideal number of bitcoin transactions verification for eligibility. It can be one or one thousand or ten thousand.
How Much Can a Miner Earn?
Since the first launch of cryptocurrencies like Bitcoin, the reward per block has decreased simultaneously.
For example, in 2009, one block of bitcoin transaction verification was 50 Bitcoins.
In 2021, this value dropped to 6.25 BTC. as competitors or miners in the market have increased.
Thus, in simple words, if a miner verifies ten blocks in a day, he will receive 62.5 BTC. Not a bad earning so it can be considered as also one of the most profitable businesses aside from cryptocurrency exchanges where you can exchange BTC to USD, ETH to USD, etc. All in all, experienced miners only take 10 minutes to mine a Bitcoin.
What is the best method to mine cryptocurrency?
Cryptocurrency mining methods vary from the easiest ones to the challenging ones. This guide shortlists four effective methods to mine cryptocurrency.
Let’s take a glance.
Cloud Mining is highly preferred by those miners who do not have their mining rigs. Cloud Mining is a term for lease based mining processes.
For example, a miner rents a rig that already has the software and graphics card installed. One can rent from an independent lender or rig lending corporations.
However, during cloud mining, the miner has to cope with maintenance and electricity costs.
There are free coupled with paid cloud mining programs/rigs available in the market.
You can purchase cloud mining programs or packages for earning more bitcoins within the agreed period of the leasing agreement.
By definition, CPU Mining is a term in use for processor-based cryptocurrency mining. However, this is a less preferable option for mining cryptocurrencies daily.
The reason being, CPU takes up a lot of electrical power and overheats over a while. Apart from this, it also runs slowly.
Thus, CPU mining generates small revenue which remains either equivalent or less than your electricity bill.
Beginners can adapt CPU mining because it does not require additional components other than motherboard and CPU. Some may also use laptops for this type of Mining. But, it’s not worth it because it will ruin your asset.
GPU Mining is a type of cryptocurrency mining that operates via GPU Rigs. Those who do not own a personal rig or hold enough funds to build a rig may find GPU mining much easier on their pockets.
Starting cost of GPU Mining rigs is $3000. It’s much less than what it costs to build a mining rig manually?
Nowadays, GPU Mining rigs come with high-end features like a touchscreen interface, the ability to support a variety of cryptocurrencies, and internal & external damage protection.
ASIC stands for Application-Specific Integrated Circuits. These are specifically made to mine cryptocurrencies. It is one of the most effective mining techniques due to its very wide capability of producing cryptocurrencies in huge amounts.
However, it is crucial to mention that ASIC Mining receives a lot of criticism because it knocks off all the mining opportunities for GPU and CPU miners.
Are There Any Risks of Mining?
- Cryptocurrency mining utilizes U-M resources for the monetary profit of miners. But, it opposes the University Policy that speaks against the use of U-M resources for commercial or personal use.
- Cryptocurrency mining platforms and rigs may receive phishing content via email. Upon clicking, the attackers transfer malware, ransomware, virus to the computer system and steal away all the funds.
- In the event that your system contains personal data, your device or data may run at risk.
- Using public Wi-Fi to operate mining rigs gives easy access to the attackers. Hence, putting you at a security risk.
- Lurker can review your IP Address and rob you in person.
So How to Avoid Risks of Mining?
I’ll keep it short and just mention the mining risks:
- Don’t use computer systems that belong to faculty, staff, or University lab.
- Use a VPN or Virtual Private Network Service.
Cryptocurrency mining is one of the most meticulous processes in the world.
Hopefully, the mentioned information on cryptocurrency mining will help you begin your profession in the respective field.
It’s always recommendable for miners to generate a personal cryptocurrency wallet rather than depending on your skill trainer to do so.
AUTHOR BIO: Albert is a business and marketing professional having 8+ years of work experience in working with various Startups, businesses, and entrepreneurs in the fields of Marketing, SEO, iGaming, Cryptocurrency, Technology, Law, Pets, etc.