Cryptocurrency mining involves verifying transactions that are then added to the blockchain ledger. The people who are validating these transactions are called “miners”.
“Miners” solve complex mathematical calculations, and are rewarded with a new Bitcoin. This is also the means through which new Bitcoins are released into circulation. This entire process is what mining is all about.
Can I make money from mining Cryptocoins?
You can try it as a hobby, but don’t give up your day job just yet. You can expect to make a dollar or two a day, but if you want to potentially make around $50 a day, you will need the necessary hardware, which can cost around $3,000-$5,000.
How do I get started?
Firstly, get a coin wallet to store your earnings. This wallet will be password-protected and comes with an address in which you store/send/receive money. Like the compartments or credit cards in your actual wallet, these different addresses can each hold their individual balances.
You will also need a computer that’s equipped with a unique program that will allow you to solve complicated algorithms to earn Bitcoins. This requires a lot of computer resources, so it’s best to join a mining group so you can combine your computing power to effectively compete with others to solve the algorithms and earn more Bitcoins.
By working in a group, you will be given smaller and easier algorithms so solve. By combining the work, you are more likely to solve the bigger algorithm to earn a bigger share of Bitcoins.
Which alt-coins should I mine?
As a beginner, you can try Litecoins, Dogecoins, Peercoins and Featherscoins. If you don’t have very powerful mining hardware, you can earn around 50 cents to 10 dollars a day by mining Litecoins. Dogecoins and Feathercoins may be slightly less profitable but are also popular with beginners.
So are you ready to be a crypto miner? Bear in mind that this is a very simplified version of what crypto mining entails. But hopefully, you’ve learned enough to understand what crypto-coin mining is the next time your friends start talking about it.
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