Investing cryptocurrencies in mining can be a very lucrative business. From the comfort of your home, you can earn a real fortune. But before you start investing in it, here is some basic information – what is mining, what currency is the best, and how to start with it.
What is crypto mining?
Trading with cryptocurrencies is becoming more and more popular all over the world, but we can freely say that the market is still unexplored enough. People are sending bitcoins to each other, and if they do not follow transactions, very soon they won’t know who has which amount of money. Miners are there with the role of the bookkeepers. Even those who are dealing with it are not able to understand the basic technology. Many people find it profitable to invest in crypto coins, especially in mining. Mining is a validation of a transaction. Miners are the ones playing a very important role in digital trading by providing a bookkeeping service for the community. Their main task is to solve some complex cryptographic tasks, after which the transaction can be confirmed. After they finish their job properly, they got rewarded with bitcoins. We can freely say that their job is also to put new currency in circulation, miners are “minting” new currencies. Sending bitcoin anywhere is called a transaction, whether it is done online or documented by banks. The miners do the same – they make the grouping of to a public record – blockchain.
Crypto mining is a distributed consensus system, which means that people all around the world are involved. In other words, it is the confirmation of transactions waiting to be included in blockchain technology. We will not make a mistake if we compare crypto mining with gold mining; the only difference is that crypto mining takes place in the virtual world.
What currency is the best?
Many cryptocurrencies took its place in such a lucrative business. There are hundreds of currencies (Ethereum, Dash), but we can freely say that Bitcoin (BTC) is the most popular one and the one that marks a constant rise. You don’t have to be an expert to know it. It is enough to ask somebody or even to type the word “mining” in the browser. Using bitcoins, you can invest or pay the bill. To find more, check cryptoengine. When it comes to mining, BTC is number one.
How to start investing?
There are three ways of getting bitcoins: purchase at exchange offices, exchange for goods and services, and mining of new ones. Before you start investing, our recommendation is to check the potential profit by using a calculator of profitability. What you have to know is your hash rate, which is the speed and equipment you are planning to invest in. The rate of hash is the number of operations hardware can do to break the mathematical problem. The rate is measured in megahash, gigahash, or terra hash per second (MH/s, GH/s, TH/s). The higher speed it is, the chances for block mining are better. Another important thing is energy consumption. Choose the hardware that will not spend more energy than you can earn, having in mind that it is the best way to work if it works constantly.
The price of bitcoin is high, and that fact increases the constant increase of people who are trying to mine one or more Bitcoin blocks.
Like we already mentioned, it is crucial to have the proper equipment, but also it is important to create your bitcoin wallet and to find a mining pool. It is a group of people mining together. If you are doing it by yourself, the odds for earning are 1:1.000.000 or even less, but if you join the group of miners, your chances are 1:1.000, depending on how big the pool you joined in.
Another important thing is downloading of the mining program. There is no universal software, and many pools have their own.
Now when you found a proper software, make sure that you wrote the right public address where the parts of your earned bitcoins will be settled. Our recommendation is to follow on a daily basis how it works, having in mind that the mining machine is a great electricity consumer, and it should work 24/7.
Types of mining
There are many various methods of mining: cloud, CPU, GPU, and ASIC mining.
Cloud mining is, at the moment, the most popular way. That is the process in which you don’t have to do anything. Usually, a big corporation is paid to finish everything for you; the only thing you have to do is to “rent” their mining machine (rig). Through this period, the earnings have been directly transferred to your cryptocurrency wallet, excluding rental and electricity expenses. This is suitable for people who are not interested in their own rigs, or they consider it too expensive.
In the past, this method was quite popular, but nowadays, fewer and fewer people choose this option. The reason for it is a very slow speed, and very small amounts of money are possible to earn. On the other hand, the advantage is it is not a large electricity consumer.
Graphics Processing Unit is a hardware chip. We can also say it is a form of Bitcoin mining in which cryptocurrency transactions are being verified. New crypto coins are being created by using graphic cards. This is probably one of the most popular methods. Unlike hardware, it is also applicable to use with other cryptocurrencies, not only bitcoin. The reason for it is it’s cheap and efficient. It might cost a lot to construct it, but once when you pay for it, it is great.
Application-Specific Integrated Circuits (ASIC) – it is well known and can produce great amounts of cryptocurrencies compared to GPU and CPU. It is a very powerful method that robs other miners who are using GPU and CPU rings.