What is Mining in Cryptocurrency?
As a beginner, maybe you’re being confused about the word ‘Mining’, well to explain this in a very simple way try to imagine gold and how they are being mined. But before you think of buying a physical shovel and mattock, let me explain how mining is done virtually.
Cryptocurrencies like bitcoin are mined with the use of computers. Mining requires specialized computers which can find solutions to difficult math problems in order to add a new block to the blockchain. Anyone who has access to the internet with the right equipment can participate in mining and earn bitcoin rewards. Mining is not that easy, but it depends on how much effort you are putting into your network. To start mining bitcoins, you need to have all the necessary equipment for a more effective and successful mining process. Things you need:
Get a Mining Rig- A mining rig can be costly, some choose to customize their own, while others often make an investment in buying the best rig to use.2. Bitcoin Wallet- You can consider this one as an online wallet where you can store your bitcoins etc... safely. Once you’ve signed up for a wallet, make sure to get your wallet address – you can see it as a long sequence of numbers and letters. In keeping your coins, you must copy your wallet address on a sheet of paper or you can use some storage device as your backup in case your computer crashes. So why do you have to do this? It’s just simply because when 4your computer crashes all your bitcoins will disappear and they will be gone forever unless you know your wallet address.
Find a Mining Pool- A mining pool is a group of miners that combines their computing powers to get more Bitcoins. Joining a pool will give an easier and smaller algorithm to solve. But before deciding to join a pool you have to consider a few things first, and these questions must be answered clearly. What is the reward method in the pool? How stable is the pool? What are the fees and charges for withdrawal? How easy is withdrawing funds? How frequently do they find a block?
Mining Program- Choose software depending on the equipment you are using – when GPUs and FPGAs you must use a host computer running these two; the standard bitcoin wallet, and the mining software. Consider also the OS (Operating System) you are using, for Windows the best software would be the Bitcoin Miner and BTCMiner, for Linux you can try CG Miner BFG Miner andEasyMiner, and if you’re using Mac OS, RPC Miner is the best for you.
The mining software will be the one to instruct the hardware to do the work of mining.55. Start Mining- All is set and you need to start the mining process, connect your miner, and power up – to start you need to put the mining pool, username, and password. Once configured you can now mine your first bitcoin reward. Best Wallets to Try1. Coinbase- This online wallet was founded by Brian Armstrong and Fred Ehrsam in the year 2011. The company launched to buy and sell bitcoin services in October 2013 This application operates exchanges of cryptocurrencies such as Bitcoin, Ethereum, Litecoinand Bitcoin Cash. This cryptocurrency has already assisted 10million customers and transacts worth $50 billion worth of digital-currency exchanges so far according to their site.2. Electrum-
This is one of the most popular Bitcoin wallets online. It is beneficial to both beginners and experts – Electrum focuses on speed and simplicity using low resources usage. This electronic wallet can handle complicated parts of the Bitcoin system by the use of remote servers. If ever you lose the wallet online during a computer crash, you can easily recover the wallet using a secret phrase.3. Trezor- Trezor is the first hardware wallet in the market and the first to implement the passphrase feature. The passphrase feature secures the funds and if ever the owner loss the device. Trezor is a small device designed to protect private keys from possible hackingonline.64. Nano Ledger S- This wallet supports almost all the popular cryptocurrencies and allows you to store them. It has a special feature that can store 2 kinds of currency at the same time in the same wallet, unlike others that allow only one.
