How cryptocurrency works?

Mining is one of the source of earning cryptocurrency. The word mining used in cryptocurrency world is same as the mining of any other precious metal. Cryptocurrency mining can easily be explained by gold mining process. Just think about gold mining. When a gold mining starts, it easier to find gold. But when you go deep to the mine, it becomes more difficult to find gold and requires more advanced tools.

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In the process of cryptocurrency mining, a source of mining income come from transaction. When someone make a transaction a complex mathematical problem creates. The miner who solves the problem get the rewards.

Another way of mining is creating new blocks in the network. In case of bitcoin mining, in every 10 minutes miner gets 1.5 btc as a reward and this value will be less in future. This is the case of bitcoin mining. All cryptocurrency is using nearly same process to reward it's miners. So in case of bitcoin, after getting 21million btc this rewards will stop.

For mining bitcoin required hardware is ASIC type and for other crypto required hardware type GPU and electricity. Currently it is very expensive to set up a mining rigs. If cheap electricity is available then mining could be profitable otherwise not.