When we mention the cryptocurrencies, the first thing that comes to our mind is Bitcoin and the blockchain network that is used to find them in cyberspace. Many people are interested in this market, knowing that Bitcoins and other currencies can reach pretty high rates compared to the American dollar or Europe’s euro. Some of them want a quick profit, but also there are people who are crypto enthusiasts and want to go deeper into this network.
Cryptocurrency mining is different from investing, trading, and exchanging digital money. You need the proper equipment to do that and a good power supply that will support the mining process and crypto tasks that need to be solved, so the miner can find these coins in the blockchain.
The mining tasks are basically math problems and they are pretty easy at the beginning, becoming more complicated in the higher levels of the network. There are a few ways to mine crypto coins, including:
This is a process of renting a machine named rig that finishes the mining process alone. After you earn enough crypto money, the renting service will charge you some fee about the electricity cost, and you can transfer the rest to your digital wallet. You can choose between the free, but slow mining, and paid and fast cloud mining.
This is a very slow way of mining and the miners are getting a really small amount of cryptocurrency worth money. Often, this revenue is not enough to cover the power cost and cooling system. Be careful not to use your laptop to perform CPU mining tasks, because it can’t handle the power and electricity requirements of the network.
This method is the most popular and probably when you research the mining on the Internet, most of the results are related to it. Cloud miners use GPU rigs that use graphic cards to mine. This is expensive to build because you will need to upgrade your computer with a few graphic cards, but it’s not that power consuming like accessing the blockchain with a powerful machine.
This is an expensive application-service integrated circuit device that results in a lot of mined crypto coins. But, it’s also controversial, because it’s so powerful that it can be used to rob other miners who prefer some of the previously mentioned methods.
What cryptocurrency to mine?
The obvious choice is always the Bitcoin because it’s stable and most of the other currencies depend on its worth. If you want to mine Bitcoins, you need a more powerful computer and advanced cooling system that will help you keep the whole installation healthy and durable. You can dig your Bitcoins using the cloud method, by choosing a portion of the network where these coins are stored. You need to choose your trusted cloud provider, so you can avoid possible scams. According to southafricatoday.net, after you receive the payment, you need to store it in the wallet, so no one can access and steal them.
If you want to mine Ethereum, you need to join the network that is similar to Bitcoin’s. You solve problems and provide proof of work, so you can get rewarded with Ethers. You can’t use the ASIC method to mine Ethereum, but of course, you need a powerful computer to perform these tasks and get your coins.
When it comes to Litecoins, they are distributed to the miners through a similar network like the Bitcoins. It’s still possible to mine them with the computer you have at home. You can choose between solo mining, mining pools, or cloud services. Just like for Bitcoin and Ethereum, you need to solve puzzles and math equations, and you get Litecoins as a reward. If you choose the GPU method, you will receive more worthy Litecoin prizes. You only need to install software that will bring you to the Litecoin world, and you can start earning immediately.
Tether is another one popular cryptocurrency, but most of the miners are avoiding it because it was backed by the USD and its value was closely related to it. So, before you try to mine this cryptocurrency, we strongly recommend you do some deep research on the topic because in the past, it was very controversial and it was used to manipulate the rates of the other crypto money.
Bitcoin Cash is a younger brother of the Bitcoin because it’s its derivative. The miners need to solve complicated math tasks, so they can get rewarded in Bitcoin Cash. They must mark the transaction as legal and legitimate, but also need to put new tokens in the network. Bitcoin Cash’s value is lower than Bitcoin’s, but the basics are the same. ASIC method is one of the most popular with this currency, but you need to be aware that it requires a lot of electricity to be mined.
Can you mine Facebook’s Libra?
Libra is planned to be launched this year by Facebook, so we still don’t know how they plan to implement this currency in the network. There are only some basic codes present in the crypto market that are in an experimental phase.
All the Libra transactions will be managed through cryptography networks. Many companies are interested in this currency. The initial idea was established in 2017 and around 50 Facebook engineers are currently working to create these coins. But, how will it work? Probably they will use some blockchain-based network, but we still have time until we see it. What we currently know is that Libra will be backed and supported by the fiat currencies.
If you decide to mine cryptocurrencies, you should be aware of every aspect of that process, including the negative sides and possible risks. Bitcoins are the most valuable currency in the crypto market, but they are also the hardest to mine. If you are changing your mind, you can always try trading and exchanging, or even buying crypto coins and waiting for the right time to sell them, so you can earn some cash.