Table of Contents
Have you ever wondered how crypto mining works? Don’t worry. Many crypto enthusiasts, even those who follow daily price changes of the top 30 coins, often have no idea about crypto mining. The first thing that throws people off is the term itself. It sounds like something done with heavy equipment on huge expanses of open land. So, if you want a clearer, more accurate idea of what the subject is all about, consider the following myths and facts.
Here We Go All About Crypto Mining
Anyone Can Engage in Creating (Mining) Cryptocurrency
All you need is a computer, some downloadable software, and a graphics card to create a new crypto mining. But the process is easier said than done. How does it work? In short, when you mine, you’re actually just using your computer’s power and memory to verify transactions on the blockchain. That sounds nonsensical the first time you hear it.
A good way to envision what miners do is to think of a traditional bank. Whenever a customer uses their bank card to buy something, an employee (or a computer) has to verify that transaction before it can be approved. But banks are centralized. The crypto market is not. Its main characteristic is that it is not a bank. Miners lend their computer’s computational ability to the decentralized blockchain, where crypto transactions are verified. For their trouble, those miners receive a certain amount of the coin whose transactions they’re helping to verify.
You Have to Mine in Order to Own Crypto-Coins
If you’re interested in trading Bitcoin on one of the various platforms available to investors or just holding a quantity of Bitcoin for potential long-term profits, you don’t need to learn how to mine. No one knows for sure because of the anonymity of the system, but it’s a good guess to say that probably 99 percent of all crypto-mining holders are not miners.
You Must be Patient if You Want to Mine
However, if you like the idea of hooking your computer up to the blockchain so you can mine various alt-coins, you had better be patient. For starters, you’ll need to spend at least several weeks learning how to set up your rig, as miners call it. After that, you’ll need more time to put everything into operation and start earning coins. But unless you have a sophisticated setup, it might be up to a year before you’re able to gain profits. Plus, just setting up a basic rig can cost around $3,000.
Anyone Can Mine Bitcoin from their Home Computer
For Bitcoin specifically, you can’t take part in profitable crypto mining creation from a standard home computer anymore. A few years ago, you could, but the world’s largest cryptocurrency now requires a very high-level setup. Unless you’re willing to invest upwards of $10,000 in a Bitcoin rig to mine new coins, consider tacking Ethereum, Monero, or Litecoin instead.
Pools Can Help You Succeed as a Miner
If you want to mine alt-coins other than Bitcoin, it’s possible to set up several PCs in your home, equip them with fans, and get to work. But, joining one of the many pools is a good idea because you can join forces with a network of miners and earn profits more quickly.