In recent years, Cryptocurrency mining has become one of the preferred methods for many to . This system allows you to make profits without having to purchase any of these currencies, but by buying a specialized team that is responsible for obtaining them through the network.
So far, according to mining experts, it is still more profitable to mine the coins than to pay for them to make a profit on trading. However, you have to make a considerable investment to acquire the computers with the right features to earn enough.
If you are curious about cryptocurrency mining, this course is designed to answer all your questions.. You will know the investment that you must make, how the mine works, the potential profits, the methods that are currently used and which currencies are the most profitable to enter this interesting market.
How does cryptocurrency mining work?
Like the traditional miners search for mines of certain stones to make a profit, Something similar occurs at the virtual level, with the difference that virtual teams are used. The technical definition of this process is known as use computing power or hash to carry out transactions and the reward for the work are cryptocurrencies.
Coins have a particular algorithm or code, so a machine that is perfect for one type does not work for the other. Each time mining is done, over time new coins are created, which are processed in blocks and introduced to the market to be valued according to the cost they have at that time.
In this process dozens or hundreds of people are involvedwhich seek to be the first to decipher the established riddle. Whoever arrives first to complete the correct number of the transaction takes a certain block of coins. The higher the power, the same will be the possibility of increasing profits.
How much money is earned mining cryptocurrencies?
The profit you will get depends on the type of coin you start mining and the equipment you are using for this job. It is estimated that there are about 5,800 although the most popular are Bitcoin, Ethereum and Cardano. One way to know how much profit you can make in a month is using a virtual calculator.
With a home team, like the one used by online gamers who have a good graphics card, powerful processor and RAM memory you could get on average 120 euros per monthleaving the computer to work 24 hours a day continuously.
With a computer trained and custom built for the cryptocurrency mine, you can earn around 3,000 euros, although there are much more powerful machines that consume a high volume of energy that increase revenue. Of course, the expense to buy a computer of these dimensions is also high.
Mining vs Staking, which method is better?
The staking it’s based on have a certain amount of cryptocurrency in a virtual wallet to obtain in exchange a percentage of the profits as interest according to the duration of the operation. There are specialized platforms where you can do the process and generate income, with little investment.
East The staking system has characteristics that are very similar to the savings plans offered by traditional banks. when you place money for a certain term, in which you cannot mobilize that resource and therefore the bank pays you interest. Here, earnings depend on the amount of cryptocurrency you save.
These types of projects are gaining a lot of space among users, due to security and low investment. To mine, you have to buy equipment that normally has a high cost, electricity consumption and internet bandwidth. Certainly, the profits in mining are higher, but the expenses must be taken into account.
How much money do you have to invest to mine cryptocurrencies?
For mining you have to investbut maybe the question is What do I need to buy to carry out mining that is profitable? There are different things that you should take into account, starting with a team called ASIC, which exists in various valuesbeing the highest among €2,000 and €6,000 completely newAlthough used, the prices are lower.
Secondly, electricity calculations must be taken out, depending on the country in which you live. In addition, adequate cooling equipment must be added to avoid the collapse of these computers and a stable and high-speed Internet connection.
What to consider before investing in mining?
Enter a site sale of computer equipment specialized in mining and seeing the amount of money that can be earned monthly is very tempting.
However, it is convenient that you analyze the following elements:
- The cost of the equipment necessary to carry out the mining of cryptocurrencies.
- The amount of electrical energy that will be consumed each day and the implicit cost of being connected 24 hours a day.
- Expenses included in refrigeration and the necessary equipment according to the dimensions of the space where they will be installed.
- The type of coin to be mined and the profitability it will have in the short, medium and long term.
- The minelayer competition and the investment risks.
- The market changes of the cryptocurrencies.
How to calculate the profitability of my miners?
For all people, the profitability of cryptocurrencies is differentTherefore, in each case, the accounts must be drawn. Among other factors, you have to consider electricity costs according to the area in which you live, in each country the costs change. For this reason, it is important to consider investment, electricity and maintenance payments, added to the number of coins you will generate each day. From there, once the expenses have been calculated, you will calculate whether it is profitable to enter the cryptocurrency business.
Mining Pool What is it and why should I be in one?
The mining pool are pools of miners coming together to mine cryptocurrency blocks and obtain benefits that are distributed equitably. In this server, the members share the hardware to solve the algorithms of a particular coin.
Before joining a Pool, you must Analyze how big it is. With a large number of affiliates, the income will be less. When the minimum payment is high, the longer it will take to receive the winnings. This option can be very beneficial for people who want to get blocks in less time and consistent rewards. According to the particular needs, make the decision that best suits you.
Learn how to mine cryptocurrencies from home
There are various methods used to mine cryptocurrencies from home and if you got here it is because you saw the conditions that must be met for this job to be profitable.
Take note and learn to extract virtual currencies like an expert:
With Antminer
This is one of the most powerful miners currently on the market. Due to their energy, it is estimated that they could mine up to 0.5 bitcoin per month, this without including the costs of electricity and cooling necessary for the equipment. This Bitmain S9 miner was hit hardest by the block reward reduction in 2020. To the decrease the profits of miners halfway down, team it currently does not generate enough revenue to remain profitable.
with a rig
When talking about a mining RIG, reference is made to the union of several components, whether they are CPU, GPU and FPGA. in order to extract cryptocurrencies. But it is not only buying the modules, but assembling them in a convenient way so that the investment is profitable.
The types of coins that can be obtained with these equipment will depend on what you choose. But the most common are Ethereum, GRIN or RavenCoin. The advantage is that they are low cost compared to other cards and offer earnings that are stable in the long run.
With the computer
These are the easiest to install and set up at home. Put simply, it is the union of several computers to mine a particular currency. Miners try to find equipment that has a lot of cores or motherboards to maximize their power. Although more powerful equipment has come out that occupies an important place in the market, it can still be done with these home computers, managing to get coins like Grin, Ethereum Classic Zcash, Monero and Ravencoin.
with GPU
They are one of the most popular, since they are join multiple graphics cards to speed up the mining process. Each one offers a power and added all becomes a powerful mining. The maintenance and assembly is very cheap, being an alternative if you are starting out in cryptocurrencies.
One aspect that cannot be left out is that if you are working with a cryptocurrency and it stops being profitable, you can change to another only by changing the software used. Some of the coins that can be mined are Ethereum, Ethereum or Zcash.
Best pools to mine cryptocurrencies
Due to the power required to decipher the equations that lead to the final reward for mining a coin, many people prefer to join with others and solve collectively. At the end, the achievement is shared by those who pooled the resources. Before joining one of those pools, it is convenient to review their qualifications and reliabilitytaking into account the security and methods for the withdrawal of funds.
Hundreds of these groups can be found on the internet and below you will find out the five that have good recommendations:
ethermine.org
This is one of the pools for Ethereum. Just by entering your site you have all the operating details such as active miners, price and hashrate. Likewise, it is possible to track the most recent statistics by days and hours. In addition, the amount of blocks obtained is shown.
The way to join and be part of the pool is to reach the upper right tab of the page in the option “Start mining”. you have the possibility of choose the operating system and the type of card that your computer has. The control panel displays all the information of interest to the user, including mining assignments.
antpool.com
Although the page is mainly for Bitcoin mining, there are also pools available for Bitcoin Cash, Litecoin, Zcash, Dash and Monero Classic, among many others. Once the account is created it is very easy to move around the portal, since it is very intuitive. On the control panel shows income and hashrate from the rest of the miners with different time intervals. The commission is a maximum of 2.5% and is backed by a technology manufacturer such as Bitmain Technologies.
f2pool.com
If you do not handle another language well, this pool is in spanish, which facilitates its operation, completely clearing up any doubt that may arise. Apart from the above, it not only works with Ethereum, but with many others with which you can test to measure its performance.
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