How to become a miner of bitcoin, ether and other cryptocurrencies

Nowadays, almost everyone knows about digital currencies. Even without understanding all the subtleties of this sphere, there is hardly a person who would not have heard about the sensational mining of cryptocurrencies as a new industry of making money. In this article, we will help explain what "mining" is and whether it is realistic to create a mining farm right at home.

Mining is the extraction of cryptocurrency due to the power of the equipment used.

During mining, new structures are created, which ensures the functioning of cryptocurrency platforms. For a new structural unit, which is extracted in this way, a reward is provided.

Mining is reduced to a computational series, when the parameters are sorted out in order to detect a hash with the specified properties. In order to ensure the possibility of protection against secondary spending of repeated units, unique computational algorithms of cryptocurrencies are used, respectively, distinctive computing models are used for each cryptocurrency.

To find an acceptable calculation option, processes often take quite a long time, but the speed of checking the found solution is fast enough and takes much less hours. The more coins have already been mined, the more complex the algorithms for finding new ones become.

How to become a miner?

As mentioned earlier, miners are tasked with ensuring that cryptocurrency networks function properly, as well as maintaining transactions by users. To make it easier to understand the essence of mining, the whole algorithm of actions can be described as follows: the process of monetization of the computing power of technology.

With the significant popularization of cryptocurrencies, which has been observed recently, the complexity of the whole process has also grown. Due to the rapid growth of giant cryptocurrency farms, now you should not expect high incomes from mining on a home computer or video card at home. To get high monetization from the computing power of technology at the moment, you will need to create your own high-capacity mining farm with huge capital investments.

Bitcoin Mining and Ethereum Mining

For the mining of the forefathers of all cryptocurrencies - Bitcoin BTC, and another popular cryptocurrency Ethereum ETH , significantly high equipment power will be required, respectively, and financial investments.

It is important for miners to be able not only to launch the purchased equipment, but also to control the process of mining coins, in addition to provide the proper conditions for monetizing their own capacities.

Bitcoin and Ethereum occupy 85% of the capitalization of the entire market. The differences between mining Bitcoin and Ethereum are, first of all, on what equipment to mine cryptocurrency. Bitcoin mining will be most profitable on ASIC, Ethereum mining is also possible on video cards. It is also worth considering the cost of electricity, because ASIC consumes it twice as much as a video card.

When you choose a mining method and prepare your "farm", you need to choose the software corresponding to the cryptocurrency chosen for "mining".In addition to the technology itself, you will also need a pool and wallet for cryptocurrencies.

 It is worth considering that mining farms are very noisy and generate excess heat, so it is better to equip them in non-residential premises and pay attention to coolness in the premises and protection from sunlight so that the equipment does not overheat and work longer.

Mining or buying cryptocurrency - which is more profitable?

Definitely, high-quality mining is a more profitable strategy than buying cryptocurrency. The explanation for this is quite simple: if you buy Bitcoin, then, for example, in 10 years you will also have 1 Bitcoin, only its value will change. And being engaged in cryptocurrency mining, in 10 years there is an opportunity to get much more cryptocurrency and not only the same 1 Bitcoin.

How much can you earn from mining?

You can earn coins already in the first hours, but the equipment pays off after 9-12 months. The payback period varies depending on several factors: the price of equipment, computing power, daily income, cryptocurrency exchange rate, electricity costs, the complexity of the cryptocurrency network.

 In practice, it sometimes happens that the currency rises sharply in price and the equipment pays off in a couple of months. It also happens the other way around: the network becomes so complicated that the "getter" works at a loss, then you should take up another asset.

Recall: always use the mining calculator and calculate the future profit for the day, month or year ahead.

Conclusion

Miners are tasked with maintaining cryptocurrencies and monitoring transfers within the network. Computing equipment handles this by solving mathematical hash equations. That is, mining is also the monetization of the power spent by the equipment. It was possible to mine on a PC while cryptocurrency networks were relatively simple. But as the popularity of the crypto grows, so does the size of the miners' investments. Today it has become too expensive to mine Bitcoin, so you can pay attention to 1000 other currencies that will require small amounts.

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