Trading online gives you a lot of opportunities, much more if you have started trading when the first ever cryptocurrency was introduced in the market. The first cryptocurrency, Bitcoin, has not gained much attention to traders online not until it’s value has reached a dashing 4-digit figure. Yes, a Bitcoin now cost $$$$, imagine how much it’s value way back then that you’ve wished you’ve invested more and have gained a lot lot more today. Let me guide you on the basic og Cryptocurrency and how it works.
What is cryptocurrency mining and how it all started? Cryptocurrency mining is the process by which transactions are being verified and added to a public ledger—which is the primary means of releasing cryptocurrency as a decentralized form of money. A technique called cryptography which uses elements of mathematical theory and computer science that evolved during World War II to secure data tightly is being used. To date, cryptography is used to secure communications, information and money online—without having to go through tight and waste of time processes in banks.
With the start of the first decentralized cryptocurrency which is Bitcoin in 2009, a lot of cryptocurrencies are now emerging in the market such as Ripple, Dash, Ethereum, ZCash, Monero and the recently added Litecoin and Dogecoin. Introduced in 2009, Bitcoin has been distinguished as the first cryptocurrency. Since then, these cryptocurrencies burgeoned in use and popularity. Do you know that there are more than 900 known active forms?
Mining cryptocoins has rewarded its early adopters. Nowadays, there is a ‘digital gold rush’ where cryptocurrency miners can make a small profit through equipment investment, and then spend months mining for cryptocoins to recuperate one’s investment. A person can retrieve $1000 in hardware costs in about 18-24 months.
For beginners, Litecoins, Dogecoins, and Feathercoins are three Scrypt-based cryptocurrencies that provide the best cost-benefit ratio for beginners. Bitcoins are not a good choice for beginners because it is more complicated to process, which makes it unprofitable for consumer-level hardware. However, if you are diligent and have the capacity to learn and invest, Bitcoin would be the best choice to go with.
Litecoins, Dogecoins, and Feathercoins, which are all highly accessible for beginning miners, can make people 50 cents to 10 dollars a day with just consumer-level mining hardware. Think of cryptocurrency mining as gathering ‘digital gold dust’ instead of ‘collecting actual gold nuggets.’
Cryptocurrency mining aims to accomplish three things, namely: (1) addin transactions to the blockchain for security and verification; (2) releasing new currency; and (3) keeping miner’s personal cost down, including electricity and hardware. POW (Proof of Work) should contain the individual blocks added by miners.
What’s needed to for mining cryptocoins? Here are some:
- Coin wallet. This is a free private database that stores miner’s earning and keeps a network-wide ledger of transactions.
- Mining software. This package should be made of cgminer and stratum.
- Online mining pool. This is an online community of miners who combine their computers to increase profitability and income stability.
- Online currency exchange. This is online website where miners can exchange their cryptocoins for conventional cash, vice-versa.
- Reliable full-time internet connection. Ideally, 2 MPS or faster.
- Hardware setup location. Miners can situate their hardware in the basement or in any other cool and/or air-conditioned space.
- Desktop or custom-built computer. Miners can use their own desktop, but having a space desktop is recommend. Laptops, gaming consoles, and handheld devices are not ideal to use in mining for it is not effective enough to generate income.
- ATI graphics processing unit (GPU). This will cost anywhere from $90 (used) to $3000 (brand news). The GPU will be the mainstay for accounting services and mining work.
- House fan. Mining generates substantial heat, and using house fans can greatly help in cooling your hardware during the mining process.
- Personal curiosity. Miners should be adequate readers and learners, as there are dynamic technology changes and new technique for optimizing cryptocoin mining results.