In the early days of Bitcoin, any cypherpunk with a moderately decent computer processor had enough processing power to mine and earn thousands of BTC in no time. However, as more and more users got into the game, the difficulty of mining BTC increased and a mining arms race began in earnest. This eventually led to the creation of powerful mining rigs that required more robust mining devices. We explain to you in 4 steps how to easily mine your cryptocurrencies.
Crypto mining: what is it?
It is a method by which new digital currencies are generated within the network. That said, it is a deeper process and integral to the proper functioning of a cryptonet. The network, backed by blockchain technology, is wonderfully complex.
Basically, there is no central body to process and manage the transactions that take place within the network. Transactions within a blockchain network are processed and validated by this process known as “cryptocurrency mining” and those who perform the activity are referred to as “miners”. Each transaction is verified by miners and then added to the blockchain ledger.
How to mine cryptocurrencies?
We just walk you through the process in four steps:
Step 1: Buy Bitcoin mining hardware
To mine bitcoins, you need special hardware. This is called a mining rig. Ordinary home computers could mine bitcoin early in the history of money. Due to the popularity of Bitcoin, the complexity of the algorithm had to increase, thus requiring more computing power.
Today, for cryptocurrency mining, the majority of miners use ASIC chips that they buy on https://asicmining.fr/. For many miners, when it comes to higher computing capacity and lower electricity consumption, Bitcoin ASICs outperform CPUs and GPUs.
Step 2: Install the software of choice to mine Bitcoin
You now need to download the software required to connect your mining rig to the Bitcoin blockchain, once you have set up your Bitcoin mining rig. New blocks are added to the blockchain by software, and bitcoin mining can be there with several free software.
Step 3: Join an online Bitcoin mining pool
Despite the latest hardware and software, an individual could not mine Bitcoin. Big mining rigs backed by big mining companies are not attractive to small miners. A Bitcoin mining pool provides the solution. The group can use the combined computing power of individual miners to compete collectively. The pool operator charges slightly lower fees and rewards than personal mining. However, by using a pool, you can ensure frequent rewards.
Step 4: Mining cryptocurrencies
Now that you have chosen a pool, you can start mining bitcoins. Plug in your mining gear, connect it to an electrical outlet, access the Bitcoin blockchain using whatever software you choose, enter your Bitcoin wallet details and choose a mining pool, and you're ready to mine.