The mining process provides a smart decentralized way to digitize coins by creating an incentive for more people to do mining, ensuring new digital currencies every 10 minutes (the time required for one BTC block mining). Thus, the metal person acts similarly as a computer accounter available 24 hours / 7 days to complete the blockchain verification process and receives a paycheck through Block Reward.
To ensure the integrity of the network and its safety, the mechanism of increasing the difficulty in mining is implemented. This mechanism makes computing requirements more difficult, based on factors such as hardware available and the public interest.
Currently, mining pools are huge and proud to own the latest mining machinery, making the mining process harder than ever before. The current investment and maintenance costs required to solve the calculation problems of the process make Bitcoin mining simply unprofitable for individual metals using devices at the average consumer level.
Bitquin mining is profitable only for large-scale operations such as the above-mentioned mining pools, where China-based Bitmain managed to reap more than $ 3 billion in profits last year. While this difficulty is re-adjusted every 2,160 blocks or so, there is no direction on the horizon showing any possible decline.
But if you are a small fish searching for it in the mining sea for the first time, do not worry, as these mineral standards have been configured by many altcoins to ensure the consistent and fair distribution of their tokens. These currencies, while more volatile than Betcairn and offering less rewards, come with much lower entry barriers for novice minerals.
Things to know before mining any currency
You will need a set of things to start your mining trip, as follows:
1. Free private database - also known as your "currency portfolio" - a password-protected storage unit that maintains your transaction history over the network.
2 - free mining software package, such a package of AMD.
3. Membership in an online mining pool, a community of metals that combine their computers, to increase profitability and stabilize income. Mining outside the pool will certainly mean that you will not be the person to solve the arithmetic task.
4. Membership in an online currency trading platform, where you can exchange currency for the coins you have made for cash or betcuene.
5. Create suitable place for mining, preferably cool and air-conditioned.
6. Preparation of a desktop computer designed specifically for mining.
7. Provide the desktop with a high-performance "graphics card" / ATI / Nvidia (GPU) graphics processor, or more than one card to increase the mining capacity. Or buy a specialized processing device in mining, called the ASIC chip, will be cost anywhere from $ 90 per user to $ 3,000 per new, per GPU chip or ASIC.
8. Personal curiosity, yes, you need to read constantly, research and learning, as mining techniques are developing very rapidly, leading you to new ways to improve your mining results. The most successful metals in their work spend several hours each week studying the best ways to modify and improve their performance in mining and extracting digital currencies.
The fundamental love of the mining process!
As with any profitable activity, there are some fundamental risks that you should know when mining any currency:
Lost your digital wallet:
There are many ways this can happen, either by excluding yourself by forgetting your login data, or by damaging your hard drive.
Organizers of mining pools Non-trustees:
A mining complex, operated by non-honest supervisors, especially in unregulated countries, can deduct your earnings from the currency or take over the entire currency. Some mining complexes that charge membership fees can also reduce your profits.
Electricity costs can make the mining process unprofitable:
For most mining devices, the cost (14 cents / kWh) is the maximum you would like to pay for your mining hobby. Above 14 cents, currency mining such as Bitcoin, Litecoin, Peercoin or Feathercoin will not be worth the investment. You also need to think about the daily rate of your dollar profit. If your profit rate, for example, can be up to $ 2 per day, you need two years to pay off your investments in mining equipment (if you decide to sell right away rather than hold) ).
Pirate (Hackers):
A talented hacker can penetrate your mining complex and empty user folders, including your wallet.
The value of the currency you prepare can be reduced:
Let's say you decided not to sell your coins the moment you got them from the mining process, but preferred to keep them for a while. There is a possibility that the market value of your currencies changes over time - just like gold or any other commodity - if the value goes down, you might end up with a bag full of nothing.
How to overcome those risks!
Those previous dangers, while they are real and scary, can certainly be reduced. Here are some suggestions for managing these weaknesses in the digital currency mining process:
Good habits:
There are good habits to work with. Store your currency portfolio on detachable memory drive, so you can disconnect it from your computer and network if you do not use it. Transfer your coins regularly, from your online storage (if you're using cloud mining) to a removable wallet so you do not accumulate online. You can also develop a personal habit by keeping a backup copy of your wallet every two days, and keeping your password written in a safe place. In addition, do not click on any random twitter link that promotes gifts or "airdrops".
Good reputation for mining complex or cloud mining company:
Mining complexes or cloud mining companies that have active online communities and which have a good reputation are the best bet. Companies such as Hashflare, Genesis, Hashing24, Minex, Minergate, and NiceHash are well known.
Install an advance value for your electricity charges:
Some electricity providers will allow you to charge a fee (kWh / hour) for one or two years. If you can get it at a price (14 cents or less per kilowatt hour), do it. Sure, if you can fix the value of 10 cents per kilowatt-hour or less, that's excellent, not just for mining but for your own benefit as a consumer.
What is the easiest digital currency for mining?!
Another question with no correct and specific answer. Look at it this way: when a new digital currency comes into the market, it is somewhat unknown and easily mined, as there are not many minerals interested in it. But when that currency starts to get some attraction and becomes a common currency in society, people start turning their attention to that currency, making the mining process more difficult with each new device entering its network.
So the best way to monetize easy-to-extract digital currencies is to look at digital currency forums and groups, and to choose promising digital currencies that still lack a strong name in society.
Finally, mine, collect as many new coins as you can, and hope that the price will kick you off later, for example adding your currency to a huge currency platform or when the currency community expands and has a new external community.