With the advent of Bitcoin and the success of this currency, the mining of this currency became equally popular. As a result of this sympathy from the public, real businesses have appeared and developed around digital currencies. There are currently all kinds of ways to buy crypto or to mine, all kinds of hardware devices specialized in mining or storage, etc. We hear more and more often around us about crypto, in a friendly discussion between the presenters of a show, in our circle of friends, from the driver who drives the taxi, Bitcoin has become one of the most beloved topics of discussion.
The beauty is that in any market there are people who have their role in the perfect functioning of the field. There are the trading enthusiasts, there are those who prefer long-term storage and, of course, there are the miners, without whom any action would be impossible. But what is cryptocurrency mining and how is bitcoin mined?
What is cryptocurrency mining?
To understand how the crypto market works, it is necessary to understand what a miner means. In principle, the miner is the one who accepts the exchange of virtual currencies. When you make a transfer, the transaction is verified by a computer system. This transaction is added to a string of other transactions, which form a block. Block addition is done by miners. The miner uses a computer that validates the first transaction by solving some mathematical calculations. Add transactions to the blockchain and receive cryptocurrency as a reward. To find out what blockchain is, you can consult other useful articles for this purpose on our blog. To receive a reward it is necessary to have a very fast computer to be the first to receive the coins.
The coins received as a reward are automatically added to a wallet. The miner sells Bitcoin to exchanges and is subjected to the same mining process. The miner generates new coins on the market by solving these mathematical calculations. The choice of mined currency depends on the type of computer you have.
How do you mine Bitcoin?
A special mining device is required. The most profitable way in mining is to have an Antminer from the official company Bitmain as high-performance as possible and the energy costs to be as low as possible. You can purchase this Antminer hardware device from the online shop, so everything is simple, has an intuitive interface and is easy to configure. After you have bought the device from Bitmain, you can start mining in the available ways: individually or in pools. These options have, of course, their advantages and disadvantages.
When you mine alone, you act without competition. You let your computer make money by installing a special program, which is always safe, that is, there is no possibility that your laptop will be infected and you withdraw your money to your own wallet. Learn more about what a Bitcoin wallet is by accessing our blogs. The disadvantage of this option is that the mining process becomes more and more complex and requires a lot of expensive equipment, for which you have to invest a lot to bring you the desired profit.
What does mining pool mean?
The mining pool is safer and more advantageous from a financial point of view. Several enthusiasts meet on the forums and form a team, each with their own computer. Everyone gets a part, problems are solved faster and the reward depends on the hardware used. That is, the one who has the best computer receives the biggest reward because that PC is considered to have worked the best.
Mining exists, it is one of the options used for cryptocurrency enthusiasts, but who do not want to buy or sell. But you need a large first investment and to calculate if the profit is greater than the invested amount. It is also good to mine future cryptocurrencies, whose price will increase over time and generate profit for you. The more the chosen currency's price increases over time, the more your profit will be constant.
Regardless of what you are passionate about in the crypto market, whether we are talking about mining or trading, everyone should know about these two ways and start investing in the future monetary system.