What is Crypto Mining?
Unmasking Crypto Mining for the Average Joe
You may know of Bitcoin, which was the first cryptocurrency released in the world. To acquire Bitcoin, you can either buy it or mine it. If you want to start crypto-mining today, you can still join the digital currency rush if you understand the basics.
What Should You Mine?
If you started mining in 2009, you would be worth thousands of dollars today. However, you could also have lost money in numerous ways. The sheer mathematical complexity of the process does not make it profitable for consumer hardware. Today, Bitcoin mining is the preserve of large-scale operations.
However, there are still crypto coins that you can mine. These are Dogecoins, Litecoins, and Feathercoins. If you are a beginner, these are the best ones to start with. As more people mine, your choices could get slimmer because mining will require more costly hardware.
Is Crypto Mining Worth it?
As a hobby, it is worth it. You can generate a small income of about a dollar or two in a day. However, when used as a second source of income, it is not reliable. It only becomes worth it when someone is willing to spend about $4000 in initial costs.
Have Reasonable Expectations
If your objective is to make a major second income, then you should just purchase digital currencies. You can then tuck them away and hope that they will rise in value like silver or gold bullion. If you are going to mine crypto coins, you need to keep electricity costs below $0.11 per KW. For instance, mining with four GPU video cards will cost you about $10 every day.
How Mining Works
Mining is essentially offering a bookkeeping service. It is a 24/7 computing process of verifying transactions. You will then get a small reward for these accounting services by getting fractions of coins every few days. To do this, ensure that your hardware and electricity costs are kept down.
To mine coins, you will also need a coin wallet, which is essentially a private database. It is a password-protected storage device, where you can keep your earnings and maintain a ledger of all transactions. You will also need a reliable Internet connection, a cool location for your hardware, and a membership at a currency exchange.
In essence, mining requires a computer and a program designed to solve complex equations. This will require a huge initial investment, especially if you are mining high-value crypto-coins such as Bitcoin. You can start with your current computer, but you will not have access to it as it mines bitcoins. The best route to go down is to have a dedicated computer.
You Need Personal Curiosity
To be a successful miner, you will require an appetite to read and learn often. That way, you will not fall for any scams. The technology is constantly evolving, and new techniques of mining are always being developed. Successful miners spend hours each week to understand the best ways to improve the performance of your coin mining.
Do you think crypto mining is worth the effort? Leave us a comment below.