A Simple Guide To Mining Cryptocurrencies
In cryptocurrency mining, the first to adopt a technology are those who get the biggest rewards. While everyone has heard of Bitcoin, a decentralized cryptocurrency which was released back in 2009, numerous similar currencies have sprung up since then. With the information in this guide, you can learn the basics and get in on the cryptocurrency mining action.
Choosing an Alternate Currency to Mine
If you’d started mining Bitcoin with the best mining rigs back in 2009, you’d probably have thousands of dollars right now, but losing money is entirely possible as well. Upfront investments and maintenance fees, as well as the astronomical mathematical difficulty of the cryptocurrency mining process, make it unprofitable for consumer-level rigs. Today, the best ASIC mining hardware is typically used by larger-scale operations.
Feathercoins, Dogecoins, and Litecoins are all Scrypt-based, and they provide beginners with the best cost benefit. For instance, at Litecoin’s current value, you may earn up to $10 per day with basic mining hardware. Feathercoins and Dogecoins will bring a little less profit, but they’re becoming more common each day, and Peercoins can provide you with a reasonable return on the energy and time you spend.
Is Mining Cryptocurrency Worthwhile?
Cryptocurrency mining on a hobbyist basis can generate income of a dollar or two every day. The currencies listed above are accessible and easy for hobbyists to mine, and it’s possible to recoup the cost of the best graphics cards for mining within two years of work. However, it’s important not to rely on cryptocurrency mining as a primary source of income. To see substantial profits from the mining process, you should be willing to invest roughly $5000 upfront. This can get you the best hardware, with which you could earn upwards of $50 per day.
Keep Your Expectations Realistic
If you get into mining as a way to fill the best software wallets, you’re better off buying cryptocurrency with cash instead, and then putting them away in the hope that they’ll appreciate (grow) in value. However, if you just want a bit of digital spending money, cryptocurrency mining is a good (but slow) way to do it.
How Cryptocurrency Mining Works
The goal of a cryptocurrency miner is to do three things:
- Offer their bookkeeping services to the network. Mining is basically an always-on computer accounting service known as transaction verification.
- Get paid for those accounting services by receiving fractions of digital currency.
- Keep their personal expenses (such as hardware and electricity) to a minimum.
What You Need to Mine Cryptocurrency
You’ll need a few things to mine Feathercoins, Dogecoins, Litecoins, or even Bitcoins. They include:
- A no-charge private database known as a coin wallet. The best multi cryptocurrency wallets protect your earnings with a password and they keep a network-wide transaction ledger.
- A software package that’s usually made of stratum and cgminer.
- Belonging to a mining pool. The best cryptocurrency mining pools are composed of miners who combine their resources to achieve greater profitability. In some cases, best cloud mining contracts are beneficial as well.
- A membership in an online exchange, where you can exchange your cryptocurrency for conventional currency, and vice versa.
- A reliable high-speed Internet connection
- A dedicated mining setup in a temperature-controlled space
- A GPU or ASIC chip, which does the mining work and provides the accounting services.
There’s one more thing you’ll need: a healthy dose of curiosity. To be a successful cryptocurrency miner, you’ll need an appetite for learning. Technology changes each day, and there are always new techniques by which you can optimize your mining efforts. The best cryptocurrency miners spend several hours per week learning how to improve their mining performance. With the information in this guide, you can start the mining process on the right foot.