Interest in cryptocurrencies is growing steadily. Bitcoin and many other coins are becoming more and more popular. Therefore, in this article we will discuss the issue of cryptocurrencies digging, which is one of the methods of obtaining digital currency. If you do not know what cryptocurrencies mining is all about and how to start this process, this article is just for you!
Cryptocurrency mining – basic information
Cryptocurrency digging, or simply “mining”, is about approving new blocks and attaching them to an existing blockchain. Blockchain is a place where new coins are issued and new transactions are approved. The process of cryptocurrencies digging is handled by so-called cryptocurrency miners. Crypto mining is most often done by means of sufficiently powerful computers – cryptocurrencies computers. The crypto mining process is usually based on the Proof-of-Work (PoW) consensus algorithm or its Proof-of-Stake (PoS) alternative. In the next part of the article we will discuss what cryptocurrencies mining is all about, using both of these methods.
What does crypto mining consist in?
In order to dig a new block using the Proof-of-Work method, it is necessary to solve a specific cryptographic problem. In the case of Bitcoin, the problem is to find a sequence of characters, the so-called hash, which meets the appropriate equation. The miners’ task is to generate an output value, composed of the hit transactions, the hash of the previous block and a random number (nonce). The output value must be lower than the target value set by the protocol. The miner who generates an appropriate solution announces it in the network. The other participants check the correctness of the found hash. If the solution is confirmed, the block is considered excavated. Then the miner who generated the hash receives a reward in the form of a specified number of cryptocurrency. In the case of the Proof-of-Stake method, the extraction of coinage depends on many factors, and one of them is the state of the cryptographic wallet. The more coins you keep on your wallet, the greater the chance of getting another crypto-currency. However, the amount of coins is not a decisive element in the confirmation of the transaction. Other factors, including random factors, are also important. Such a solution protects against creating a monopoly. Mining with the PoS method does not require investing in specialized equipment. An ordinary computer is enough to dig cryptocurrency. On the hard disk you should install a wallet that contains the entire chain of blocks, i.e. all transactions from the beginning of the existence of the given coin. When the wallet is ready for operation, transfer coins to it and start digging. At all times during mining, the computer must be running and connected to the Internet.
Programs for cryptocurrency mining
In addition to the appropriate hardware used for cryptocurrencies digging, it is also important to have the software needed to operate this hardware. Most crypto diggers are relatively easy to use, but beginners often choose Claymore to dig with a graphics card. Another cryptocurrency mining program that monitors graphics cards and components is Open Hardware Monitor. It is useful in case of problems after long-term digging. For example, installed at the very beginning of the digging process, it avoids errors caused by overheating of components. However, the most commonly used program is Minergate. The program has already downloaded more than 3.5 million people. It is intuitive and easy to use, and you can download it for free.
How to start minig cryptocurrencies
The most popular way of cryptocurrencies digging is to use the so-called cryptocurrency excavator. On the market we can find two types of excavators: built on the basis of dedicated ASICs or a set of graphics cards. The advantages of this method of crypto digging are the possibility of reselling the excavator, as well as independent work management. However, excavation by means of an excavator is connected with the purchase of expensive equipment and high fees for energy consumption. In addition, it requires additional knowledge of how to operate an excavator. If you are a beginner miner of cryptocurrencies and are thinking about how to start digging , it is worth considering other ways. Crypto excavators are an expensive investment, which can often only be afforded by professional miners. We will tell you about cryptocurrency digging on your laptop and phone later in this article. The described earlier PoS method also allows for digging cryptocurrencies without the use of specialized equipment. It is also characterized by a much lower cost of energy consumption. An alternative way is to dig in the cloud, so called Cloud Mining. Simply put, crypto digging in the cloud is simply renting the power of excavators. There is a huge number of websites on the Internet that offer cloud mining. It is worth mentioning, however, that often mines offering such a system are scams, and do not have any excavators. Such a method of cryptocurrencies mining would be profitable if interested users had a real share in the work of excavators and an insight into the actual number of dug coins.
Digging cryptocurrency on a laptop
Digging a cryptocurrency on a laptop or computer is a way to get coinage without having to invest a lot of money in the purchase of an excavator or electricity. The Proof-of-Stake algorithm discussed earlier allows you to dig cryptocurrency only with your laptop or computer. Another way of mining with a laptop is to use a browser. The method is limited only to leaving the browser tab open. An example is the browser CryptoTab, which allows users to dig bitcoins while browsing the Internet. Another way of crypto mining through the browser are so called faucets. Using them is simple but requires regularity. The user can earn a fraction of the cryptocurrency for entering the website and watching an advertisement. Subsequent parts of the cryptocurrency are paid out after a given period of time, which should be waited for. The waiting time depends on the specific page.
Mining cryptocurrencies on the phone
There is also a possibility of cryptocurrency mining on the phone. In addition, this method can also be cost-effective. If you are going to dig crypto in this way, first consider whether the phone you use will be used only for this purpose, or as a daily smartphone. The first option is more advantageous because it allows you to remove all additional applications that add extra CPU load to the background. On your smartphone you should install an application that will allow you to extract crypto. The most popular is the MinerGate application, mentioned earlier. The program should be properly configured – determine whether the digging should be done only when the phone is connected to the charger, whether we want to use data transfer for digging, etc. Once the application is configured, you can start extraction. After collecting an appropriate number of coins, we can transfer them to the wallet of a given currency. However, please note that MinerGate, as well as many other applications, charges a transaction fee.
Graphic cards for mining
When selecting the right graphics card for digging, two criteria must be considered: power consumption and performance. If you have enough funds and are looking for the best card on the market you can invest in AMD Radeon RX Vega 56. This is the latest card from the AMD series, which dominates the cryptographic market due to its exceptionally high CPU speed (1.156MHz) and 8GB of memory. However, the card is very energy-intensive, so it works best in places where there is access to cheap electricity. The cost of purchasing the card is also high, so the return on investment requires much more time than in the case of other cards. If you are an average miner, it is worth considering buying a cheaper graphics card for digging, such as AMD Radeon RX580 or RX480. In addition to the low price, the advantage of the cards is less energy consumption. However, these are currently the most popular cards, which makes it extremely difficult to get them.