Do you want to know how you can begin cryptocurrency mining and make money? If yes, read on. That’s because here, we will discuss several ways to do so.
Nowadays cryptocurrency has become incredibly popular among the masses. Even people who didn’t like the idea of crypto at first have gradually embraced them.
And it’s a no-brainer that you can make a lot of money from crypto. Provided that you are aware of this new yet strange currency, you might have heard the term “cryptocurrency mining.”
If you don’t know much about it, don’t worry. In this tutorial, we will inform you about some methods to mine crypto.
What is cryptocurrency mining?
But before jumping right into the methods, let us know a few things about the mining process itself. Cryptocurrency mining is the process by which new coins come into being.
Remember that only proof of work (PoW) blockchains are suitable for mining. Different networks utilize different algorithms.
Before you decide to enter this strange world, you need to understand the mining algorithm thoroughly. It is necessary for figuring out what type of hardware the network supports.
In the case of some crypto, you can use a dedicated mining tool like ASIC, while others permit the use of graphics cards for mining.
You too can become a miner if you possess the right mining tool or computational power.
Mining happens when special-purpose computers compete to solve complex math problems and consequently, verify a valid block.
The first computer that solves this problem gets the next block, and the entire process restarts. And the victorious miner receives a block reward that causes new crypto coins to generate.
Role of cryptocurrency miners
Miners are of utmost significance to the world of cryptocurrency mining. They not only help verify transactions but also ensure the safety and continuous activity in the network.
How does this happen? Well, whenever a miner verifies a transaction, they also assist in ascertaining the fact that no block is being added to the blockchain more than once.
So they resolve the notorious double-spending issue.
FYI, the crypto technology timestamps every single group of transactions and then transmits them to nodes. Every block also has a hash in it that possesses a timestamp of the earlier block.
Thus, it greatly reduces the chance of double-spending. Miners boost this security by verifying blocks.
Miners also increase network security giving their computational power to the blockchain. More miners on a network mean a higher hash rate.
That means there are sufficient decision-makers who contribute to preventing any security threat to the network.
Top 4 methods to start cryptocurrency mining
There are multiple ways to perform cryptocurrency mining. Here, we will give you four different methods to mine crypto. Are you ready? Let us check them out:
Method 1 – Cloud Mining
It is a well-known fact that cloud mining is perhaps the easiest and most popular method among miners. This type of mining is hassle-free as this comprises of you paying some big firm a particular sum of cash to borrow their “rig,” that is, mining apparatus.
By doing so, you are borrowing the mining process itself as well. The contract between you and the corporation states that during a certain period you will receive all of that rig’s earnings directly into your crypto wallet.
The organizations offering such cloud mining services are mostly equipped with lots, and we mean lots of rigs working together.
That means their mining facilities are massive and they are experts in this field. So it would be ideal for you if you’re interested to enter the strange yet fruitful realm of crypto but can’t afford or have no plans to get your own rig.
For your info, there are two types of cloud mining. One is free of cost, while the other is paid. Typically, many individuals wishing to mine crypto tend to opt for the free options.
However, it has some cons – the mining happens here at a snail’s pace, more conditions would be in place, and so on. Thus, it’s better to choose the paid cloud mining services if you carry the cost.
Here’s how they function: first, you got to find a cloud mining host. You can easily find one online. Then you need to go through their differently priced plans. Some hosts even provide the facility of customizing your plan.
Once you find your perfect plan, buy it by paying the host online, and then register your crypto wallet code. That’s it! Your cryptocurrency mining journey will now begin.
Plan prices and validities vary. So you got to pick the one that best suits your preferences and needs.
Usually, you would start to reap profits after six months or a year, and it would continue going higher. But you must remember that it is only an estimate, and crypto is known to be incredibly volatile. Hence, we can’t say anything for sure.
Method 2 – ASIC mining
As we mentioned earlier, you can mine crypto by utilizing ASICs or Application-specific Integrated Circuits if the network allows it. ASICs are dedicated tools that are widely used for cryptocurrency mining for their efficacy and convenience.
A lot of miners prefer these devices as they can generate way more crypto coins than their rivals – GPU or CPU.
While they are more than efficient at what they do, they have, however, attracted some controversy as well. When people got the news of the arrival of ASIC’s new version, many miners were outrageous.
They wanted ASICs to be banned as soon as possible. Why? It’s because ASICs are extremely powerful. So they make it almost impossible for CPU and GPU miners to compete in regards to both hash speeds and moneymaking.
Also, the fact that the miner with ASIC would get the maximum earning is problematic. However, using ASIC for cryptocurrency mining is not banned yet.
So it is perfectly fine to utilize this amazing tool if you feel like it.
Method 3 – CPU mining
Another method to mine crypto coins is by utilizing processors which is known as CPU mining. Although many miners used this method a few years back, that is not the case today.
More and more miners are drifting away from CPU mining for various reasons. Firstly, it is annoyingly slow. Months after months might pass, and you would not see any remarkable revenue.
Another big problem is that the money you make wouldn’t be that much when compared to the huge cooling and electricity costs you have to bear.
So where’s the profit in that? The cost might decrease a bit if you have cheap electricity and a good cooling facility in your place. If not, you’re in trouble.
While it might seem it isn’t worth dedicating your time and energy, many miners still prefer this method. It’s because, for CPU mining, all you need to have is a desktop and some necessary programs.
It is even possible to do so on a laptop. But it won’t be a good idea. The mining process may cause your laptop to overheat in a few hours.
Therefore, it’s best to stick to desktops. Also, the fact that CPU mining is so easy to perform entices lots of first-time miners who are quite nonchalant about all the minute details and can’t wait any longer to start cryptocurrency mining.
Method 4 – GPU mining
GPU mining ranks high among the most famous and reputed methods of mining crypto. Whenever we hear the term “cryptocurrency mining,” one of the first things that come to our minds are GPU rigs.
As we said above, cloud mining service providers themselves use hundreds of thousands of GPU rigs, and they are very experienced. So they are proficient in what they do.
GPU mining has gained this much popularity because of its efficiency and low costs. However, that doesn’t at all mean that making the rig is anywhere near cheap. It is not.
What we are trying to say is that it won’t cost you as much as CPU mining when it comes to cooling and electricity. Plus, both its hash speeds and productivity is great too.
GPU rigs mine crypto by using graphics cards. A typical rig would need around 2 to 8 graphics cards to perform its intended task. A decent GPU mining rig would cost you around 3000 USD.
It may sound like a huge sum of cash at first, but you would only benefit from it in the long run. Also, you would start making profits this way much faster than CPU mining. So it’s definitely a good investment.
Conclusion to start a cryptocurrency mining
Now that you know more about cryptocurrency mining and the four effective ways to do so, it is time for you to start your voyage as a miner.
Pick the method that you feel is ideal for you. Needless to say, the world of crypto is full of opportunities. It is up to you whether you want to grab them or not. Good luck!
- Best Multi Cryptocurrency Wallet
- Best Freelance Websites That Pay In Cryptocurrency
- Advantages and Disadvantages of Cryptocurrency
- Latest Cryptocurrency Taxation in India
Top 15 Richest MLB Teams in the World (Update Aug 2022)
Top 10 Best Canva Alternatives of 2022 [Free & Paid]
Top 11 Most Expensive Guitars in the World
Top 8 Most Futuristic Cities in the World
Top 10 Best Internet Explorer Alternatives of 2022
Top 11 Biggest Houses in the World (Update Aug 2022)
Top 11 Most Expensive Houses in the World (Update Aug 2022)
Top 15 Most Expensive Hotels in the World (July 2022)
How to Make a Resume in Google Docs? (With best photo source)
Top 21 Most Expensive Colleges in the World (Update July 2022)
Top 15 Richest Racing Drivers In The World (Update July 2022)
How to create a YouTube channel and make money? (11 Best Strategies)
Top 17 Richest NFL Players in the World (Update July 2022)
Top 15 Most Expensive Engagement Rings in the World (July 2022)
Top 11 Most Expensive Restaurants in the World (July 2022)
How To Become A Social Media Content Moderator in 2022
- Miscellaneous2 months ago
Lone Wolf Quotes – That Will Trigger Your Soul and Mind
- Miscellaneous2 months ago
Warrior Quotes – That Will Make You More Stronger
- Quotes2 months ago
Best Shrek Quotes About Life From The Shrek Series
- Miscellaneous2 months ago
Letterkenny Quotes – That Will Make Anyone Laugh
- Super Hero2 months ago
Captain America Quotes – All Are Ultimate Leadership Quotes
- Politicians6 months ago
Most Powerful Vladimir Putin Quotes – That Will Blow Your Mind
- Miscellaneous2 months ago
Dalai Lama Quotes – That Will Change Your Values and Vision
- Entrepreneurs2 years ago
Elon Musk Quotes – Every Entrepreneur Should Read Once