If you are new to cryptocurrency, you’re missing a big news of recent times. It all started in 2009 when an anonymous person named Satoshi Nakamoto released a paper on electronic cash – The Bitcoin, which devastated the current financial system for good. Successfully untraceable, this guy is still undercover. No one knows who’s this guy, is it He, Her, group, organization nothing about the person is known. It’s all done now, things have changed for good. Furthermore, the whole concept of cryptocurrency relies on the internet and that is why cryptocurrency is aka money of internet or digital money. Since its inception, mining cryptocurrency has been the backbone of this industry.
- What is Mining cryptocurrency?
- How to invest in mining cryptocurrency?
- what is the profit do I earn by mining cryptocurrency?
- How profitable is mining cryptocurrencies?
- How to start mining cryptocurrency?
- Which is the best cryptocurrency to mine?
- What makes a mining cryptocurrency difficult?
If these are the question that is bothering you then this post will just do fine for you. In this post, you will be learning everything about mining cryptocurrency. Furthermore, this post will also cover one of the best ways for mining cryptocurrency. Let’s get started with the ABC of the topic.
What is Blockchain technology? How does it affect mining cryptocurrency?
If I were to explain blockchain technology to a 5-year old I better be simple and clear. While you too might be new to this technology I am going to be super simple and clear so that you can understand this technology and start mining cryptocurrency.
The concept of blockchain got into the limelight because of cryptocurrency. No one knew what is blockchain back then. Soon after the craze of cryptocurrency caught fire, many came to know about this awesome technology that had cryptocurrency’s back.
The current systems are all central i.e all the data is in one center. What blockchain has done is, it has kick out the central system and took the records. While everyone on the system can maintain, verify and update the records so that no one can cheat or mess the records for their benefits.
The problem with the centralized system was that we didn’t even know that something went wrong or someone has attacked the system. Those in authority will not even make this news public and we might lose our valuables. Blockchain has been a breakthrough in this regards.
The blockchain is a software of a system where records could be stored, facts can be verified by anyone and security is guaranteed. This way no one can cheat the system by editing records because everyone using the sytem would be governing.
Blockchains store the information across the network of personal computers, this way the information is decentralized and distributed. This means there is no central authority to run it, everyone is in power. Even the attacks are not powerful enough to disarm this software.
Read also: What is cryptocurrency? Everything you need to know, RIGHT NOW!
How does blockchain work?
Those who run this system hold bundles of records in their personal computers submitted by others aka “blocks” in a chronological chain, hence the name “blockchain”. The blockchain uses cryptography to ensure that records that get approval once are not editable by anyone else. If you run the system and once you approve a record, even you cannot edit or alter it ever again.
Bitcoin was the very first implementation of this concept. Bitcoin, as you must be knowing is the digital money that you can send to anyone across the world. How we traditionally transact money is a history now. People from all over the world help move the digital money by validating Bitcoin transactions made by others on their personal computers. Bitcoin implements blockchain in order to track records of ownership of this digital cash. Hence only one person can be the owner of a particular record at a time and money can’t be spent twice.
Why would people spend electricity for this process?
People who invest their time and money in this process earn a small fee.
How does mining cryptocurrency work?
Every time someone makes a transaction of any altcoin, say bitcoin, this data is in a list aka “block”. Many such transactions made during a set of period of time are in one single block. And it is the miner’s duty to confirm it and write them into a general ledger. This is called mining cryptocurrency.
In simple terms, blockchain is the list of blocks that contain data of such transactions. Mining is the process of confirming these transactions and writing them on a general ledger which is accessible by anyone on the network.
How does Blockchain affect mining cryptocurrency?
So now you are aware of what is blockchain and how blockchain works. But what you gonna wonder is how is blockchain affecting mining cryptocurrency? Let me take you to a flashback where I mentioned the functioning of the blockchain.
The blockchain is a list that has data of transaction which miners approve and create more altcoins. A fraction of mined altcoin, miners get it as a reward and rest other go into the market for further trading. So blockchain is the source where the raw data converts into a newly mined altcoin.
Competing for coins
Mining is not as simple as the definition is. There is a huge competition out there. Every other person wants to become the richest person than the next. Almost all the cryptocurrencies have the code so as to make it more and more difficult to mine with time.
Here’s the sweet spot, every time someone successfully creates a hash (the value that you get after confirming a transaction) they get 25 Bitcoin as the reward (or any altcoin, the results remains the same) and here’s a catch. It is super easy to produce a hash, modern day computers are powerful for this. If it were this easy, all the Bitcoins would be mined in minutes. The algorithm of bitcoin is so that it keeps getting difficult more and more. The network has something called “Proof of work”
What is the best way to Auto-mine any cryptocurrency?
So far so good, you’re now familiar with almost everything you need to know about mining cryptocurrency. Except for one tool that gonna be the catalyst in your mining process. One important thing I didn’t tell you in this post is that there are dedicated equipment for mining cryptocurrency.
But these equipment is super expensive and hard to maintain. This leaves no option other than open source tools, which is exactly I am about to tell you about.
Best way to mine cryptocurrency – Minergate
MinerGate is one place where all emerging cryptocurrency is mined. It supports 15 cryptocurrencies already and more are coming soon. All you have to do is Sign Up and start mining, it’s that simple. But before you jump into this, let me tell you something about MinerGate and here it goes.
What is MinerGate?
MinerGate is a mining pool created by a group of crypto enthusiasts. This is one of a kind place where you can mine multiple cryptocurrencies without compromising on the hash rate of any altcoin.
How to mine cryptocurrencies on MinerGate?
With the help of all the supported Miners,
- You can download and install the suitable miner
- Login to MinerGate to start the mining process
- Select the CPU cores and/or GPU intensity you’d like to use for mining cryptocurrency.
- Click start, sit back and relax. The computer will take care of the rest.
How can earn on this platform?
Once you start mining cryptocurrency, you will see the updated balance on your dashboard. You can withdraw the funds to your crypto wallet or create the respective wallet of the cryptocurrency you are working on. Once you are done with mining cryptocurrency, it will need a confirmation from their servers. It is an automated process, no action needed. But since a lot of people are mining and waiting for their funds to get confirmation, it takes some time.
The time depends on miner’s hashrate, higher it sooner it get’s confirmation. Also, the version of mining software you are using would make the difference, desktop version gives you the most profit than mobile or web version.
- You – Your estimated hashrate
- Status – Shows whether you are online or offline
- Total mined – Total amount for the whole account history
- Unconfirmed – Amount of mined coins which are waiting for confirmation from our servers
- Blocks – Number of blocks you found
- Total shares – Amount of shares you have sent
- Good shares – Total amount of correct shares to be rewarded
- Bad shares – Total amount of incorrect shares or shares which were sent too late. You cannot get these shares as a reward.
- Pool – Estimated hashrate of MinerGate.com
- Miners – Number of people who mine this currency on pool
- World – World`s hashrate
- Blockchain height – The current blockchain height for this coin
- Difficulty – The current difficulty for this coin
That’s it. All you gotta do is, download-install-mine-repeat. You have the miner software, you have your PC/Laptop, just keep mining multiple cryptocurrencies at a time.
Mining cryptocurrency is taking the internet by the storm. Furthermore, the crypto industry is not gonna stop any soon. Hence it becomes obvious to invest your time and money in mining cryptocurrency and earn the fruit out of it. Furthermore, coming to the part of earning money out of it, yes you’re going to get real money by doing this. I am sure you wouldn’t want to miss it.
Over to you. What do you think of Cryptocurrency? Is it a bubble? Have you been investing in any of the cryptocurrency? While you think of an answer. Why not take them down in the comment section below?
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