Is It Easy To Be A Coin Miner? How Can You Get Started

After the introduction of first cryptocurrency — Bitcoin in 2009, coin mining still remains a mystery to a vast majority of public. It is the process through which the cryptocurrencies are made and transactions blocks are added on the blockchain. Miners create new blocks of transactions and receive new cryptocurrency as a reward. The definition of cryptocurrency mining may seem easy, but is the process of mining that easy?

Coin mining was once nothing more than a lucrative hobby for cryptocurrency enthusiasts. The only hardware people required 10 years back was a computer. Things have changed a lot with the evolution of cryptocurrencies and the blockchain technology. So, is it difficult or easy to be a coin miner? How can you get started? In this guide, we will tell you what you need to be a profitable coin miner:

Cryptocurrency Mining History

In 2009, the first bitcoin miners used standard CPUs to produce new coins. Intel Core i7 990x had the efficiency of 33 MH/s. With progress in the mining industry, people shifted towards Graphic Processing Units (GPU) because graphic adapters can run cryptocurrency calculations much faster than CPU.

Miners started to use several GPUs together to ramp up the computational capacity. But the weakest link of such systems was high power consumption. Bitcoin mining process progressed to Field Programmable Gate Array (FPGA). These devices didn’t increase mining speed much, but provided power efficiency and ease of use.

Then came ASIC platform — Application-Specific Integrated Circuits. With the increasing mining difficulty and resource intensity, ASIC emerged as a great tool to mine new world coins. Their only purpose was to run cryptographic calculations for mining. Their power efficiency is higher and used less energy to run as compared to previous mining tools.

Mining vs. Investment

Nothing is guaranteed in the world of cryptocurrencies. Whether you buy Bitcoin directly or purchase mining equipment to mine coins, your investment can be lost due to the high volatility of the crypto market. So you must consider your routes before going down the lane of coin mining. Here are the two options if you want to be a coin miner and earn good profits:

Option #1 — Cloud Mining

Cloud mining is the process of buying CPU power from dedicated data centers who use their own equipment to mine coins. When you rent CPU power for mining coins, you do not have to go in-depth of the working of mining hardware and deal with the heat and noise that comes with mining equipment. Companies that offer cloud mining services have set up their data centers in countries like China and Iceland where electricity is cheap. So cloud mining services are cheaper option. Read the reviews and ratings before finalizing your coin mining company. Pick a mining package considering the hashing power you need. After choosing your mining package, your mining contract provider will ask you to select mining pool. You choose a a global mining team to join. Do your research before joining any pool as each pool as its own pros and cons.

Option #2 — Mining Using Your Own Hardware

Personal Mining is a great option for expert miners. Mining cryptocurrencies like Bitcoins, Ethereum, and more require specialized hardware built using application specific integrated circuit (ASIC) chips designed specifically for mining. They are not cheap to buy or even run. There are different mining hardware available in the market which use different power supplies and have different hashing rate. The most praised mining hardware provider currently is Coinmining24.de. Based in Germany, coinmining24.de guarantees a 2-year mining hardware warranty and a guaranteed profit of at least 5–6.06% per month for the first 12 months. Apart from providing mining hardware, the company also offers high performance computing power, electricity, air conditioning, Internet, hardware configuartion, monitoring and maintenance, and insurance. To order your mining hardware, go to Coinmining24.de:

1. First select your desired mining hardware pack

2. Register to complete the process. Upon receipt of the order, you will receive a confirmation of purchase and the associated provider contract for your selected Mining Hardware Pack.

3. You can conveniently pay for our products by bank transfer.

Once your hardware has been setup, ready to go, you need to decide whether you want to mine cryptocurrency alone or as a member of mining pool. Doing mining all by yourself could mean greater rewards as you will get your profits plus coins as rewards. If you join a mining pool, then you will receive smaller rewards, but you will have to pay a small fee to be a part of a mining pool. Once you are done with it, then choose the right mining software. For example, Bitcoin Miner, BTCMiner and CGMiner are popular ones for Bitcoin mining. There are different software options for Linux, Microsoft Windows and Mac OS X. Link up your hardware with a secured wallet. Leading mining hardware providers such as www.coinmining24.de will help you connect your miner to your PC, configure the software as well as provide your support on how to min coins using the software.

Do Your Research

If you have the interest to mine coins, congratulations — you may be on your way to earning some good profits as a result. However, you need to be careful when selecting your mining option. Whether you would like to go with cloud mining or mining with your own hardware, do your research well as you can lose out on your time and investment.

Ready to Start Mining?

Cryptocurrency mining is a recent innovation and there is no mechanism to ensure trust. Before you go ahead with any of the two mentioned coin mining options, find a reputable company which can deliver what it promises. If you are ready to invest upfront in a mining hardware that pays you back over time, then go for personal mining and purchase best mining equipment from Coinmining24.de at the best price. If you do not want to invest much and wish to participate in a subscription-based model, then go with cloud mining contracts. Take some time to do your research before investing at your own risk!

Source Url: https://medium.com/@coinmining24/is-it-easy-to-be-a-coin-miner-how-can-you-get-started-b87c5d76e382 

Cryptocurrency Mining: The Ultimate Beginner’s Guide

Whether you are looking for ways to make money online or just came to know about cryptocurrencies, this article will introduce you to the world of cryptocurrency mining and how it can help you earn rewards and profits.

Cryptocurrency Mining Basics

Cryptocurrency mining is the newest trend among tech-savvy people these days. From Bitcoin to Ethereum and some altcoins, the prices pf cryptocurrencies have grown several times since their launch, with an ever-larger number of people buying and selling them. Cryptocurrencies are decenralized and there are no central authority to regulate them. They are generated through a process known as ‘mining’. So what is cryptocurrency mining, and how does it work?

Before you understand the process of coin mining, you should know what blockchain is? Blockchain is a public ledger of every transaction that has been carried out in that cryptocurrency. These transactions are assembled into blocks. These are verified to ensure every transaction is legitimate. Once the transaction is cleared, next sequential transaction block is connected to it. But what is a block? A single block in a blockchain contains cryptographic signatures and the transactions within the block.

How Exactly Coin Mining Works?

Cryptocurrency mining is used to validate transactions that have been executed over a blockchain network. This helps to protect transaction data through encryption as well as to store data into a decentralized manner. The primary goal is to ensure one coin is not spent twice.

The core of coin mining is block rewards. Rewards and profits are given to the people (called miners) who find a valid solution to the cryptographic hashing algorithm. Miners do computations that protect the integrity and security of the distributed blockchain ledger that tracks each transaction. For mining new blocks and doing computations in order to secure each transaction on the blockchain, they are paid out the currency they are mining as rewards.

Coin Mining Requirements

If it would have been easier to create a transaction block, then anyone could add it to the permanent ledger by creating fake blocks to earn rewards. That’s why blockchain algorithm is designed to make mining difficult. Miners are required to solve difficult computational puzzles — such as proof-of-work (PoW) scheme or Proof of Stake (PoS) — to generate new blocks. These computations cannot be performed on normal computers and CPU. For instance, in the PoW model — which Bitcoin, Ethereum, Bitcoin Cash and Litecoin use, to name a few — miners require high-powered computers with Application-Specific Integrated Circuit (ASIC) to solve complex mathematical equations that are part of the encryption.

Miners are required to compete with their peers in solving complicated mathematical problems. In regular intervals, they would attempt to solve a block having the transaction data using cryptographic hash functions. A hash function is a numeric value of fixed length that uniquely identifies data. You will have to run SHA256 double round hash verification processes to validate transactions and provide the requisite security for the public ledger.

What do you need to mine cryptocurrency?

• Free mining software package
• Membership in an online mining pool
• Full-time internet connection (With 2 megabits per second or faster speed)
• Hardware setup location or desktop computer with powerful processor
• A house fan for cool air across your computer
• A specialized processing device
• A coin wallet, private database

How to get started with crypto mining?

Step 1: If you want to set your own mining rig, then you may need to purchase mining hardware for the cryptocurrency you want to mine. Today, you can purchase most hardware on large eCommerce websites. Bitcoin is an expensive and most popular crypto, its mining cannot be done using CPUs. A fast CPU can do perhaps 40HMH/s and a good graphic card (GPU) can reach up to 1GH/s or more, but ASICs like Antminer S9 can do 14TH/s. The AntMiner S9 has more hashing power and this has been achieved with its total 189 chips that are spread over 3 circuit boards. Similarly, for mining Litecoin, you can use CPU’s with a dedicated graphic card. Ethereum can be mined using a system that has a Graphic Card (GPU) with at least 2 GB of RAM. Monero mining is usually done CPU/GPU as there are currently no ASICs for Monero. Your hardware will require adequate power for its proper functioning. For anything over 2 graphics cards, a 750W power system is recommended. Also, you need to find a motherboard with a minimum of 3 PCI-E slots.

Step 2: Once you have your hardware, the next step is to join a mining pool using your own hardware. If you don’t want to purchase costly hardware and wrestle with rig assembly and noisy miners at home, then join millions of people wh the world’s leading coin mining services provider — Coinmining24. It utilizes Antminer S9 hardware to mine new world coins and has mining rigs already set up and running. coinmining24.de is a legitimate business model that allows beginners like you to earn guaranteed 5% profits every month when you participate in their coin mining process. You can set-up your account and start earning your first coins from its coin mining services. You can mine any cryptocurrency and earn amazing rewards. You will get periodic mining rewards to your designated wallet.

Step 3: To get your coins after mining cryptocoins, you will have to set up a coin wallet or use your existing wallet to receive the cryptocoins you mine. The most important step in setting up your cryptocurrency wallet is by securing it from potential threats by enabling two-factor authentication or keeping it on an offline device such as Ledger Nano or Trezor that doesn’t have access to the Internet.

Is coin mining worth it?

If you want to setup your own mining rig, then you will have to pay more upfront. Businesses like Coinmining24 gives you the opportunity to participate in the coin mining pool and allows you to earn good profits on top of the coin rewards you will get after mining a particular coin. Since coinmining24 specializes in special, unique, and smart mining techniques along with advanced mining hardware, you can mine all types of cryptocurrencies at impossibly low fees with greater rewards.

Currently, Bitcoin mining is very expensive but if you mine currencies like Ethereum, Zcash, Monero etc., then it can be very profitable. By mining a cryptocurrency, you are not only profiting but also you are helping a cryptocurrency to grow.