This article is meant to give a basic overview of mining bitcoin and other cryptocurrencies. It’s meant to give you an overall understanding on the topic and provide you with a chance to get more advanced further information and instructions via longer PDF file which can be downloaded at the bottom of the article.
There are two main functions in cryptocurrency mining:
- Securing and verifying – when someone is making a transaction it must be confirmed by other devices in the blockchain. This is one job which miners must do and get rewards for it.
- Releasing new currency – this is when through solving extremely hard mathematical problems you get rewarded a new bitcoin (or other cryptos)
There are currently 3 ways you can start mining and profit from it and we will cover all of them.
Having your own mining devices
There are currently two types of mining devices:
#1 Mining rigs – which are high-end computer graphic cards (GPUs) all connected to a ring and software. Using the mathematical capabilities of those boards you solve mathematical problems to get this crypto. There are few advantages in using them – one is that in case you decide you no longer want to do it you can try and sell them individually to other people looking to mine or looking to use them for gaming. The other huge advantage is you can mine different coins with them, not just a specific algorithm.
#2 ASIC miners – which are application-specific integrated circuit devices. It can only mine cryptocurrencies that are using the algorithm for which the devices are created for. For example, you can buy one which can only mine bitcoin or bitcoin cash or similar, all In the SHA256 algorithm. Those miners are usually better designed for this job because literally can only do this one thing – mine.
There are several challenges in this method. The cost of those miners isn’t small. The way to get it a bit cheaper is ordering it directly from the manufacturer in China, but then you will have to wait about 2 months or more to get it sometimes. If you go for GPU racks it should be much easier for you to get it faster, but again because of the rising demand, the manufactures pumped up their prices. Once you got them and you set them up keep in mind they will increase your electricity. Additionally, if you go for ASIC miners they produce a ton of heat and noise, so keep that in mind if you plan on becoming a miner.
If you want more information about how to calculate what is most profitable to mine in any given time or you want to know how and where to get those devices and some other information about this method, please download the Bitcoin Masterclass PDF at the bottom of this article and join our community on Facebook or Telegram.
In this process, you do not buy or setup any device yourself. You simply rent devices in big warehouses that have plenty of them. They have them all setup and working. They take care of the noise, heat, and maintenance of all the miners – you simply pay them using fiat currency like the US dollar.
This is a very popular way of profiting because you will be able to acquire bitcoin on a lower price than buying it on an exchange, but of course, you will also have to wait for it to be mined.
There are plenty of places where you can rent your hashing power but be careful as most of them are scams.
Contact us if you are looking for an advice we do mine ourselves, so we could be helpful. Just join our community and ask away.
Using your smartphone or your CPU (personal computer processor)
The reason those 2 are combined in 1 method is that they are both absolutely utterly completely useless.
Do not fall for this!
Yes, it sounds very intriguing thinking you can make something from nothing, but no… it really is too good to be true.
And it is true that you might be able to make some money off it actually, perhaps $0.05 or even $0.10 per month, but is it really worth your time?
So here it is!
Those are the methods you can use in order to start mining.
I have to say that if you want to join the crypto ecosystem starting with mining is a great way, but if you are looking for quick turnaround you could start thinking about other strategies such as trading or simply buying cryptos you truly believe in and holding it. There are projects that go 25,000% in price in the term of 12 months, so perhaps this is better than mining?
And let me say one more time:
- Download ‘The Bitcoin Masterclass’ to get further insights on this whole topic
- Join our Facebook group
- Join our telegram channel
- Connect with people and be active!
I hope this article does help you out!
To the moon,