What is mining In total, you will need the following to generate coins:
Electronic wallet. It can be downloaded from the developer’s official resource for a specific digital currency. It is a password protected container that will store the receipts received.
- Find out more about what cryptocurrency wallet.
There are currently different mining programs available on all popular operating systems (Windows, Linux, OS X).
Registration in the ‘online’ consortium of miners. The members of these communities are putting together their computing devices to make them more efficient. The coins received are divided among all participants.
Registration in the online exchanger. It will be necessary for those who wish to convert virtual currencies into ordinary money immediately.
Reliable internet connection. Ideally, the speed should be at least 2 megabits per second. The higher, the better.
Location for installing the equipment. It is good if it is a basement or some other cool space, or with air conditioning.
Cryptocurrency mining equipment. It may be a desktop computer, but it is still better to use special computers designed for this purpose. PCs, laptops, game consoles or conventional mobile devices not only do not provide enough performance, but they also cannot be used for their intended purposes during mining – the process consumes all of the device’s resources.
Quality cooling. Good ventilation is also necessary to remove hot air from the room. Mining forces “machines” to work at 100% of the load, which increases heat transfer. Therefore, it is important to keep the environment fresh.
And, of course, the personal curiosity of the coin miner is also necessary. After all, this market is constantly evolving and almost every day new discoveries are emerging in the area of cryptocurrency mining. Therefore, keeping up with technological changes and new methods to optimize the results of coin mining is a prerequisite for success.
Cryptocurrency mining equipment
Cryptomonadal mining GPUs are not suitable for mining cryptocurrencies – statements of this type can be found more and more today. And there is a lot of truth to that. The emergence of professional “farms” for the extraction of cryptocurrencies has significantly accelerated the launch of new currencies and complicated methods of cryptography. Therefore, it has become much more difficult for ordinary users, who only have non-specialized equipment at their disposal, to generate virtual money. However, GPU developers have significantly increased the performance of their devices in recent years, so GPU mining is still common.
At the beginning of the cryptocurrency era, the CPUs of ordinary computers were powerful enough to extract virtual currencies. But today, this method is hardly used. Especially when it comes to mining Bitcoin, Litecoin and other popular digital currencies. However, the expert tests of experts from the American online cryptocurrency blog of online resources have proven that using ordinary PCs you can still stamp virtual coins for yourself. Unless, of course, we are talking about young projects like Monero, Coin Magi, Cryptonite or DigitalNote.
Mining in special equipment
At the moment, the generation of new virtual money is 90% provided by industrial mining.
This is done by large data centers equipped with specialized computers based on the ASIC architecture. ASICs are integrated circuits that were originally optimized for a specific task. That is, cryptocurrency mining. They are often more efficient than CPUs and video cards and, at the same time, consume much less power. Computing machines based on the ASIC architecture are the main type of equipment for industrial cryptocurrency mining.
Profitability of cryptocurrency mining
Is it profitable for the average user to mine coins today? There will be a short answer: “It depends on how much he is willing to spend.” It is impossible to make an absolutely accurate forecast, as the profitability of mining in each specific case depends on several factors. Fortunately, there are now many support tools that can help you calculate the profitability of mining Bitcoins and other cryptocurrencies. These calculators take several parameters such as the price of electricity, the cost of your equipment and other variables and provide an estimate of the projected profit.
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- We recommend reading Cryptocurrency Mining. This book shares the vision of two cryptocurrency insiders as they analyze the hardware, software and strategies needed to extract Bitcoin, Ethereum, Monero, LiteCoin and Dash. The book also provides information on how to stay ahead of the curve to maximize your return on investment.