The Beginner’s Guide to Cryptocurrency Mining
If you’re interested in learning how to mine cryptocurrency, then you’ve come to the right place. Here you’ll find a complete beginner’s guide to cryptocurrency mining.
Looking for a beginner’s guide to cryptocurrency?
Take a look at these stats. Cryptocurrency has reached a record $600 billion in market value.
When we consider it was invented less than a decade ago, that’s a massive growth rate.
Bitcoin accounts for 72% of the market. But in 2017, we began to see other stars rising.
What does that mean for you?
Opportunity, pure and simple. Bitcoin is the forerunner of cryptocurrencies. It’s been around the longest and received the most attention (especially from miners).
For you, that translates to heavy competition.
With other cryptocurrencies rising, you have the opportunity to get in on the ground floor. Newer cryptocurrencies have fewer miners. Less competition equals higher rates of pay.
And that, my friend, translates to a greater return on your investment. You’re about to get an introductory lesson in crypto mining. Sit down, buckle in, and read on.
Your Beginner’s Guide to Cryptocurrency
Let’s start with a little background information.
A cryptocurrency is a form of digital money. It’s used for online purchases and transfers. And it’s gaining popularity in the brick-and-mortar marketplace.
Unlike other forms of payment, it provides two parties with a safe, reliable means to exchange money without reliance on a third party. It’s especially useful when the two parties in question don’t trust one another. Those parties no longer need to rely on banks, governments, or private institutions to make an exchange.
What is Blockchain?
The blockchain technology gives cryptocurrency its unique, peer-to-peer security. This technology is a continuously growing list of records which are called blocks. They’re linked and secured using cryptography.
Essentially, each block includes a mathematical snapshot of the previous block in the chain.
This snapshot makes it implausible to change any block. You’d have to change all the other blocks that came before it.
It’s what gives cryptocurrency its security.
What is Cryptocurrency Mining?
When you “mine cryptocurrency” what you’re doing is performing computations. These computations protect the integrity and security of the blockchain ledger. In other words, you’re creating the cryptography-based snapshot.
Without getting too technical, your computer performs lots of impressive math. That math creates greater security for the cryptocurrency. You get paid (in cryptocurrency) for your computer’s work.
It’s essentially a subcontracted work project.
What do you need to mine cryptocurrency?
- Coin wallet
- Mining software package (free)
- Membership to an online mining pool
- Reliable internet connection (two megabits per second or faster)
- Space to set up hardware
- A powerful computer, designed for mining
- High-output, or industrial, fan (cryptosystems run hot)
To turn a profit, you’ll need to invest in a computer designed for crypto mining. Unlike traditional builds, these desktops need little CPU power. Your device requires graphics processing power instead.
This means state-of-the-art graphics cards. The systems start at about $3,000 for the low-end model.
You’ll also need a coin wallet, which is a set of encryption keys which control your blockchain account. Tack onto that mining software. It’s the stuff your hardware uses to do the math.
Lastly, you’ll need a mining pool. Hordes of miners pursue popular currencies. The only real way to ensure a payout is to work with other miners.
You pool your resources. Then the payout is distributed according to the percentage of work your computer performed.
Now that you’ve finished the beginner’s guide to cryptocurrency, it’s time to consider what to do.
If you’ve decided, it sounds like something worth pursuing, then do. Your. Research. Learn everything you can about the market and the equipment. Make an informed decision when you’re ready to invest.
If you want to discover other alternative methods to make money in 2018, read these money-making articles on our website. Go on. Take a few minutes right now and head on over.
So long and good luck!