Cryptocurrency mining - where to start
Mining is a way to earn money, which, with the right approach, can bring great profits. The most important thing is to learn how to earn income on cryptocurrency, not to be afraid to take risks and believe in yourself. In the article I will tell you how to start mining cryptocurrency at home.
The extraction of Bitcoin or another cryptocurrency is based on resolving computer targets and deciphering the next block of the chain, in order to extract fees in the form of electronic coins. Let's describe in simple terms what the basis of mining is, what methods of “mining” are there, to what extent this way of earnings is promising.
Types and ways of mining
The first cryptocurrency is Bitcoin, which was invented by Mr. Satoshi Nakamoto (nothing is known about the real person).
The distinctive features of modern virtual cash include:
- The limited number of coins.
- Known universal output.
- Unregulated emission of cryptocurrency.To date, there are no government structures that control the production of any virtual currency. So, it is available to anyone.
Bitcoin is a kind of encrypted code, the total cost of which depends on the degree of demand in the markets.
How can mine
Given the available information, you can more clearly articulate the concept of mining.
The action is carried out in the following ways:
- Independent activity (solo-mining). In this case, the miner uses personal equipment to get coins, and the earned monetary unit is left for himself.
- Mining in pools. In order to increase productivity, citizens are pooled and use the common potentials of computing equipment to extract cryptocurrency. Further profit is distributed, taking into account the participation of each person.
Where to start mining at home
In this section I will consider the following questions:
- How to start mining on your personal PC in 2018?
- You are a beginner and do not understand how to mine?
- What needs to be done, what is it for, how to organize the process at home?
The first part of the plan:
- Pick up the currency.
- Get a wallet.
- Pick up a pool.
- Download the program.
- Start mining electronic coins.
Independently making a cryptocurrency without serious power will not work out, therefore miners working at home rally into pools. This is a certain number of computers that combine their own actions to find the required unit. When the block is found, the funds are divided according to capacity.
Farm or cloud?
Cryptocurrency for 2017, after a sudden increase in the value of Bitcoin, gained fame. The resources of cloud mining, which offer rental facilities for the extraction of coins, have become popular.
The most experienced earn their own cryptocurrency, creating a farm at home. Let's analyze the positive and negative sides, and find out what is preferable, cloud mining or our own farm?
What is cloud mining? At first, experienced computer scientists in a very narrow environment became Bitcoin miners. The demand for mining grew with bitcoin and its distribution. With the increase in the number of miners, the mining period grew and grew, while earnings fell. At that time, the founders of leading farms had the idea to share their own power with others.
Advantages and disadvantages of cloud mining
- Big income - maybe double your investment in a year. If we consider that the electronic currency will only grow, then it is even more attractive.
- At the same exchange, you can buy different coins and diversify losses from falling.
- Almost all the resources there is a "affiliate", which is also possible to earn.
- There is a possibility that the pool will simply turn out to be dishonest (a swindler) and after a while, it will disappear with the miners' finances.
- Significant investment to make a profit.
Farm excellence and weaknesses
As a result of the popularization and raising of cryptocurrencies, ordinary citizens also began to engage in loot.They started to buy video cards and build farms - some in the garage, some in the apartment, some in the workplace. In this regard, the price of video cards has grown, and now the most powerful ones will not be “found in the afternoon with fire”.
- Own farm - it sounds attractive, almost like its own automobile plant.
- In reality, it is possible to make good money, reimburse the cost of equipment and reach an income.
- Costly equipment. Here it is necessary to be aware that the more you acquire video cards, the more coins you can get. The price of a farm can reach tens of thousands of dollars.
- To mount a farm and make settings, you need to be an experienced geek.
- You can go to the minus. It is a lot of dangers - from failure of equipment, before currency exchange rate falling.
What is mine?
In addition to bitcoin and bitcoin cache, there are a lot of other cryptocurrencies that will provide income to miners. The list includes the 10 most profitable and necessary for 2018. They all have their pros and cons.The rate may change, for this reason, to pick up the currency, you need to continuously monitor the situation on the market.
- Ripple - to acquire.
- Dash - mine.
- Litecoin - mine.
- Monero - mine.
- NEM - to acquire.
- Stratis - to acquire.
- WAVES - to acquire.
- Stellar lumens - to acquire.
- Etherium classic - mine.
- Etherium - mine.
Selection and acquisition of iron
A mining farm is a PC with 5-7, and sometimes more, video cards. The number of connected video cards affects the total computing power. By applying a special transaction recording program, the farmer carries the utility of BlockChain. In common terms, a person leases the performance of a video card, earning an exchange of electronic currency. Earn coins are displayed on the cryptograph.
Which pool to choose
A pool is a server that shares a payment task between all participants. As soon as one of them hits the target, a block is created, and participants will receive a reward.
- Power pool.Pools that have not yet gained power, will not be able to make a decent offer of profitability. Explore ratings, find out pool statistics, for example, on BTC.com or on Blockchain.info.
- Perhaps you need to improve the performance of the video card.If you start mining with old equipment, the income will not be able to recoup even the cost of electricity.
- Method sharing benefits.Usually the earnings from the decision of the blocks are distributed in proportion to the contribution involved.
- Payments.Find out if it is possible to transfer the money to the card or to the electronic wallet, as well as the percentage of the commission of the resource.
Which miner is better
Typical ASIC for getting cryptocurrency is done in the form of a chip. It is not subject to firmware and stands out for the highest performance. High-quality models are equipped with several processors made on the basis of the chip, power supplies and fans for cooling. Having figured out what constitutes ASIK, we will determine the characteristics of the selection of equipment:
- Useful hashrate action.
- Electricity consumption - such devices consume a lot of energy and on the eve of the acquisition, it is necessary to compare the power of the network and the device.
- Value for money and good quality - sets the payback period of ASIK.
Before buying, consider, it may be more expedient to invest money in cloud mining resources, where you rent the power of the same ASIKs,but they are located in a remote center and are served by professionals.
Download wallet or register online
At first glance it seems that the wallet on your PC is more reliable - only you use it, and no one can dispose of your coins. However, the home personal PC is also not immune from hacker attacks, and when PC repair is required, the ability to access the wallet itself is lost.
To exchange for a different currency, you also need a purse on the exchange, therefore, there is no point in installing it on your PC. If only for the illusion of security, to withdraw coins from the stock exchange on your PC.
The downside to finding a wallet on the stock exchange is the same hacker attacks. In a period of steep decline, certain exchanges make it difficult for users to withdraw.
There is no trust at all in the online stock market, it is not clear who owns them, and whether they will disappear with a wave of their hand. Stocks are also concerned, but they are more reliable.
Cryptocurrency trading without mining
Contrary to the fact that the cryptocurrency is present in the isolated digital world, the developers are constantly engaged in its adaptation to the present conditions and the possibility of using it for the purpose ofmake a profit. It is possible to have earnings on a cryptocurrency even without investments, you just need to understand all the methods.
Recently, only lazy media have not reported on the rise of cryptocurrency, on forecasts for Bitcoin, opportunities and prospects. Such notes raised the credibility of electronic money, and many rushed to the Internet to search for stable income on cryptocurrency. However, the Internet is filled not only with important and business announcements. Full of "scam", looking forward to newcomers. Funers do not sleep and systematically build traps.
Trading without mining is the process of buying and selling coins on special platforms - exchanges. After registering on the stock exchange, you replenish your account with real money, then buy a cryptocurrency, and after its growth, you usually sell and receive dollars, which can then be brought offline. The most popular exchanges are yobit.net, binance.com.
Is mining profitable in 2018?
The answer directly depends on what your tasks are and which year is not important. Let it be 2018 or 2019. If you want to get rich quickly, then this method is not for you.
Return on investment will take at least 10 months.In addition, you need to consider that you will need a lot of knowledge, especially if you are a non-specialist in computer science. First you need to choose the right equipment, install and configure, find cheap video cards, and today it is not easy.
Beginners have the impression that if they do not invest at the moment, the day of benefit will disappear. This is one of the psychological tricks, which works almost 100%.
Mining, despite the difficulties, can bring real income, if you do not make a mistake in the approach. Understanding the nuances of mining cryptocurrencies and investing, you can earn. This was confirmed by a large number of people all over the world, so why not join them?