How To Mine Cryptocurrency
Cryptocurrency is an asset that is in digital form, used in exchanges and transactions. People use cryptography for the same reasons – for security purposes. The best example of cryptocurrency is a Bitcoin. Now, these currencies may be very contemporary, but they are definitely here to stay in the long run. Other examples of the same are Gridcoin, Namecoin, Litecoin, Ubiq, etc.
To mine cryptocurrency is to verify the transaction that is processed, and make an entry in the public ledger for the same, which is known as Blockchain. The way the government backs the USD or the currency of a country, in the same way, cryptocurrency is backed by the people who mine it. The mining rig requires three things – Motherboard, Graphics Processing Chips and a Fan, for ventilation purposes.
The process mainly involves the following steps :
Collecting Basic Equipment
- A coin wallet – which is essentially a private database.
- A mining software. You can go for either a free or a paid one, depending upon how much money you’re willing to put in.
- An internet connection that is stable and also fast, preferably over 2 Mbps.
- Being a member is some online currency exchanging facility where cryptocurrency can be exchanged for cash, or vice versa.
Selecting a particular Hardware
This is very important since there are many options available out there. Choose the one which suits you according to the hash rate(i.e. the indication of speed), the efficiency and also, the price. However, do not think of money as the ultimate criteria for a good hardware. Choose quality over quantity. This is because this is one of the main factors which will determine the returns that you get overtime. They are easily available on eBay and Amazon.
Although it is possible to mine bitcoins even without hardware, it will barely fetch you more than a few pennies in a year. So, it is definitely not worth it.
Deciding your Online Wallet
This can also involve being a part of an online mining group. This will help in learning more together. Moreover, everyone can contribute their own bit and that is how the profit and the stability are simultaneously maintained at the right level. Make sure that transparency is ensured when you’re choosing a particular wallet. Look for the most reputable ones, and do have a backup ready.
Choosing the correct Software
The software you choose should without a doubt be compatible with your selected hardware. The job of the software is to deliver the work to the miner and send back the information for the Blockchain. All software have different advantages and disadvantages, so make sure you choose the right one according to your needs.
How to Mine
In order to mine the Cryptocurrency, install the software that will the link between you and your server. After this, sync this software with the Blockchain. All of it is to be done with an extremely powerful server, with high-end capabilities and high-end graphics card that will make the working easier. Set your computer to talk with the blockchain in order to confirm transactions, receiving one job at a time, which is what you get paid for.
Post this, install the main mining software and start mining. Run the hashing algorithm, as it is integral to the entire program. In case your firewall causes any issues, allow it to complete the activity it wishes to work upon.
The profitability counter can be used, which helps in predicting how much profits you can make out of your inputs. You get paid for every transaction that you make and verify, by earning a few coins every few days, according to the amount of work you’ve done. Make sure that you are updated all through these because, in the process of mining, changes occur very quickly.
So as long as you’re ready to indulge in everything technical and willing to be competent with the hardware, Cryptocurrency mining is one of the easiest ways through which you can earn money while sitting at your home. It might sound easy, but it does require a lot of efforts and patience, in fact, it needs the miners to work for many hours a week to make it work and earn profits in the long run. So, according to the time and efforts, you can put in, choose wisely whether mining is a hobby for you or something you do full time.