So you want to get started with cryptocurrency mining, huh? Cryptocurrencies, like Bitcoin, are revolutionizing the way people transfer value between one another. With the ability to send low-fee transfers anywhere in the world within minutes, the blockchain technology that makes it all possible has taken the world by storm over the last ten years. At the core of it all are what are known as “miners”. Miners confirm those transactions and ensure the integrity of the immutable ledger where they are all recorded.
What Is Cryptocurrency Mining?
How To Mine Cryptocurrency
Before you can jump head first into mining your first bit of cryptocurrency, there are some things you’ll need. Cryptocurrency mining requires computer hardware and software at the minimum. In order to get the most out of that hardware, you may want to work together with others.
It used to be that one was able to mine Bitcoin well enough with nothing more than a home PC. As the mining difficulty has increased, though, using simple CPUs became less and less profitable. People learned that graphics cards typically used for high-end gaming were capable of producing much better results. Anymore, though, it’s becoming necessary to build what is known as a “mining rig”.
A mining rig is essentially a collection of hardware designed to do the work quickly and efficiently. These days, there are a number of companies who sell hardware purpose-built for mining. They're made to give as much computing power as possible while consuming as little electricity as they can. The overall profitability of a mining rig will depend on the gap between the amount of cryptocurrency it’s able to mine, and the cost of electricity required to power the mining rig. Click here to learn about the best Bitcoin mining hardware of 2019.
Most cryptocurrency mining hardware uses ASIC (application-specific integrated circuit) chips. These were created to be really good at one task at a time, such as solving the logarithmic equations involved with mining. Once one has the hardware to mine, they’ll also need software to point all the computing power in the right direction. Much like with hardware, there are numerous options when it comes to cryptocurrency mining software. Some are little more than command consoles. Others are very user-friendly, having sleek interfaces that make it easy for beginners to get started.
Cryptocurrency Mining Pools
There’s also the question of whether one wants to try and mine solo or team up. Solo mining has the potential to try and collect an entire block reward, but can be difficult. Joining a pool of other miners to split rewards earned by the whole. The former is only recommended for those who have invested a considerable amount into their mining rig. Otherwise, it may take an egregious amount of time to receive a reward, if it ever solves the equation the fastest alone at all. A mining pool is a great way to earn a steady flow of rewards for contributing to the total power of the group. Each time the pool as a whole solves a block equation, the reward earned is divided among all the miners in the pool depending on the amount of computing power they contributed. Click here learn more about the top cryptocurrency mining pools!
Cryptocurrency Mining Hosting
Maintaining a mining rig can be a difficult task for someone just starting out, or all together unfeasible for someone who may not have the space required to set up the hardware. A mining rig will produce a considerable amount of heat with all that hardware running at full tilt, and you’ll have to consider the electricity cost of cooling when calculating your total profit. If all of this sounds like too much, don’t worry. There are other options out there for getting into the cryptocurrency mining game.
If maintaining the hardware is your only drawback, there are companies that will host and maintain hardware for a fee. These companies will often seek out the best rates on electricity. They will also keep your hardware running efficiently to ensure you continue earning.
There’s still plenty of time to start mining cryptocurrencies. It can even be argued that one is best off getting started as early as possible. No matter how you choose to go about it, cryptocurrency mining can be a great way to secure your financial future. Mass adoption will help reign in the next generation of money. Those smart enough to get in early will see the greatest returns.