Curious to know what is crypto mining?
Cryptocurrency’s popularity in the United States continues to rise. About 13% of Americans either traded or bought cryptocurrency over the past year. Bitcoin and Ethereum remain two of the most popular digital currency systems.
Through cryptocurrency mining, you can go beyond buying and trading cryptocurrency. Continue reading below for a complete cryptocurrency mining guide.
What is Crypto Mining?
It is a process of earning cryptocurrencies by solving various cryptographic equations. Every cryptocurrency transaction involves verification.
The process also uses a distributed ledger or a blockchain. It's where the cryptocurrency system adds the verified transactions.
Crypto miners verify and add the new transactions to the blockchain. They perform cryptographic calculations for every transaction.
Cryptocurrency mining can be competitive, with miners coming from around the world. The miner with the mathematical problems solved adds the new transaction into the blockchain. In turn, they receive cryptocurrency as payment.
The reward is usually 6.25 bitcoins for every transaction. Historically, the payout shrinks in half every four years.
What You Need to Mine Cryptocurrency
Solving an equation involves using high-powered computers. It uses application-specific integrated circuits (ASICs) within the computer. It can solve complex mathematical problems.
If you’re serious about crypto mining, prepare to spend a lot of money. A new ASIC device can cost hundreds of dollars. Some even reach up to $10,000.
You must also invest in mining software. If you wish to join the Bitcoin network, invest in Bitcoin mining software.
Thousands of cryptocurrencies are available out there. Aside from Bitcoin (BTC), the most popular ones include Monero (XMR) and Dash (DASH).
Though ASIC mining is the most preferred option today, other mining methods remain. CPU mining is the oldest option. However, it's the slowest and most impractical method.
It takes a lot of time to yield small gains. The gains may not be enough to cover the electricity spent on mining.
Another option is GPU mining. It combines a set of GPUs under one mining rig to maximize computational abilities.
The rig must have a good motherboard and cooling system. ASIC is the most efficient since they make more units than GPUs.
Is Crypto Mining Worth It?
Efficient crypto mining is expensive at first. Consider the electric consumption and the rig's hash rates as well.
The ASIC typically consumes 72 terawatts of power for every bitcoin. The process takes about 10 minutes to complete.
Check the difficulty level of the cryptocurrency. Going for the more complex ones may not be ideal for beginners. Read more cryptocurrency mining tips instead.
If you aren't ready to mine, start buying or trading Bitcoin. Type BTC ATM near me for the nearest Bitcoin ATM in your area. It could help kickstart your investment career.
Increase Your Tech Knowledge
Now you can answer the question, “what is crypto mining?” It's another option to make extra money. As technology opens more opportunities, continuous learning is essential.
Are you looking for more guides? Increase your knowledge by reading our other blog posts.