What is cryptocurrency mining?

What is cryptocurrency mining?

August 14, 2021 Off By whatcani926do

In the era of active development of information technology and the widespread introduction of the Internet, many people are thinking about how to make money from the potential of the World Wide Web. Among other things, most pay close attention to so popular today’s cryptocurrencies. However, not everyone knows what mining is. Mining is the process of obtaining cryptocurrencies. In simple terms, mining is the activity of creating new blocks in the blockchain. Users are rewarded for their work in the form of commissions. Let’s try to understand this issue in more detail and assess our own prospects in this segment of the market.

What do I need for mining?

If you have been thinking about starting to engage in mining, you need to know what it will take. But first, let’s define what are your goals? At the preliminary stage, the future businessman needs to clearly define two basic issues, without which it is not even worth thinking about mining electronic money. We will call cryptocurrencies that way for ease of understanding, although in its physical and functional aspects they are different from the money we are accustomed to. Although now you can even get a plastic card with cryptocurrency at https://cryptopay.me/buy-bitcoins. But there are a lot of differences in any case.

Which cryptocurrency or several are supposed to be mined?

There are a huge number of cryptocurrencies today. Which one you want to mine is up to you. There are subtleties, which are not described in this article. The only thing worth noting is the following. Bitcoin mining is the most common. However, this is the most difficult cryptocurrency to mine. There are a lot of proposals on the market today. Even Venezuela has released its own cryptocurrency. In fact, any cryptocurrency can be mined – it is another question of expediency. Not all cryptocurrencies “come out” and take their rightful place in the list. It makes no sense to mine a currency that has no prospects and whose rate will be very low and will never go up.

What technical solution will be the basis?

Once you’ve decided which cryptocurrency to mine, you also need to choose a way to mine it. Here, it also makes sense to talk about two global trends:

  • Mining cryptocurrencies on your own hardware (be it a PC or even your own farms);
  • The use of so-called cloud technologies with the rental of technical capacity.

Similar to growing vegetables, cryptocurrency mining is carried out on “farms” – highly specialized equipment designed to perform a huge number of mathematical operations. As a rule, they consist of a large number of boards and similar-looking blocks, hence the name. It is clear that at the initial stages it does not make sense to talk about any substantial farms. So what do you need for mining at the start? Many professionals and experienced users recommend starting with video cards as the main source of computing power. then you can transfer this money to your cryptocurrency card using https://cryptopay.me/.