Cryptocurrencies are undoubtedly promising. They have affected finances positively in many ways we can’t imagine, from decentralization to immutability. However, many are still blind to the potentials of cryptocurrencies; while we might not call them archaic, they are far behind. Cryptocurrencies pose to be the solution to money issues we face day today. Let’s talk about how you can get cryptocurrencies by what we call mining. Mining, as the name implies, is an act of extraction. Here, we will be considering how you can mine cryptocurrencies for yourself. It’s just one of many ways you can get cryptocurrencies. You can get cryptocurrencies by other means: Trading, Airdrops, Completing tasks to earn cryptocurrency in return, among many different ways.
What is cryptocurrency mining?
Bitcoin, being the first cryptocurrency to be created, was the first to be mined. So, we will use Bitcoin mining as the case study and then talk about mining other cryptocurrencies. There are three ways to get bitcoins, unlike other cryptocurrencies. You can buy bitcoin on exchanges, trade other currencies for Bitcoins. To trade your currencies, be it fiat or other currencies for Bitcoin, you can use trading bots like the bitql app. They can be accepted for payment of goods and services. For example, Starbucks, Microsoft, and other companies accept bitcoin as a means of payment. You can get paid in Bitcoin for your goods and services. The last means of getting Bitcoins is mining. Bitcoin mining is receiving Bitcoins as a reward for creating new bitcoins by solving puzzles or completing blocks of verified transactions added to the blockchain. Bitcoin mining is now considered to be hard, as it is nearly impossible without an ASIC processor. That brings us to mining other coins known as Altcoins. You can mine altcoins at home on your personal computer. These coins are simpler to mine compared to bitcoins.
Here’s an overview to get you started on mining altcoins:
Get your wallet ready
To start mining, you will need a cryptocurrency wallet to store your coins. If you require advice on the best wallet to use, visit reputable forums.
Choose suitable equipment for the task.
Considering a low-cost mining process, you can use your PC’s CPU or GPU. The GPU is a better option as it has a better result at cryptographic calculations. However, altcoin miners build their machines to speed up the mining process by doing one or two things to their motherboard. They do this to raise the PC speed level, as the regular PC takes a longer time. Make sure to provide a cooling system for your PC as the process increases the temperature level.
Choose between Solo or Pool
For starters, pool mining is recommended. Pool mining is a type of mining whereby different people unite their resources and share the rewards accordingly. You don’t need to do all the job alone; you don’t need to go out of your way to get resources to start. Pool mining gives you an avenue to meet people with who you can share. Although, rewards may be negligible as it is shared among different people. It is safer for starters to go with pool mining.
Decide on the coin.
You would have to decide on the coin you will be mining.
Download Mining Software
Find suitable mining software available to use, and connect to your hardware. If you’ve decided to mine on your own, make sure to look out for the best and legitimate software to employ for your task.
Mining is an excellent way to own cryptocurrencies. However, proper and accurate knowledge is needed to get the best out of it. Without the technical know-how, it can be a very fruitless venture.