Cryptocurrencies like Bitcoin have been around a long time now, and they’re not going away. The crypto industry continues to grow.
Instead of the unhealthy spikes, it’s a gradual, steady rise that has more people considering the field of crypto mining. If you know enough about computers and you have the right equipment, nothing is stopping you from getting your cut of the crypto pie.
What does crypto mining involve, and how can you make a profit doing it? This guide answers all your questions so you can decide if this sector of the crypto industry is for you.
1. What Does a Crypto-Miner Do?
The role of a crypto-miner is extremely complex. You’re dealing with currency, which means you must be precise, cautious, and secure.
In this job, crypto-mining involves taking a transaction made in crypto format and validating it. In essence, you move the transaction from the blockchain network it began on and into a ledger. This has to be done in such a way that no one can spend the same currency twice.
Picture it like a bank listing the account holder’s transactions on their statement. As a miner, you would review the transaction and then remove the currency from the owner’s account. Then, you place it into the proper new account where it now belongs.
The potential for digital manipulation increasingly complicates this distributed ledger. So, to prevent cyber crimes like this, you must be a verified miner to access the ledger.
2. How Are Miners Paid?
Crypto mining isn’t a salaried or dollar-per-hour job. How could it be when there isn’t a centralized authority figure to pay the miners?
Still, it’s a vital part of the crypto industry. Without miners, there is no one to validate transactions and ensure double-spending doesn’t occur. So, miners are rewarded through incentives.
As new coins are generated, miners are able to “win” them. More validated transactions mean a greater chance of winning coins.
Solving Hashes for Rewards
To be eligible for crypto mining and getting “paid,” miners must have machines that can solve cryptographic hashes. Hashes are digital signatures that secure data.
A hash includes a series of mathematical equations that can only be solved by following a chain of blocks. This part is where mining gets expensive. You’ll need a machine that can handle complicated equations.
Is the Cost Worth the Reward?
You’re competing with other miners to be the first to crack the crypto code. If you do, you add the block to your ledger, and the cryptocurrency is yours.
The rewards can be hefty, though, making up for the expense of electricity and machinery.
Some tech-savvy individuals use backdoors like a Hackintosh system to get a leg up on other miners. These are cheaper than Macs but work just as well. This article by Dossier Labs gives you a breakdown of the best motherboards to use if you want to start mining without spending a fortune.
3. How Can I Get Started?
If the complexity and the responsibility don’t bother you, crypto mining could be your next career. But what you’ll need to get started are computers with software that can solve those hashes.
CPU chips aren’t enough to handle the level of mathematical equations thrown at them. Instead, invest in computers with a GPU or an ASIC miner. You’ll also want a steady internet connection to keep your machines from disconnecting mid-hash.
Crypto miners must be a member of a crypto mining pool online to ensure they’re legitimate. These pools use algorithms to distribute mining tasks to each member, and then collect them when they’re completed.
Keep in mind that mining pools use varied algorithms. When you can solve higher complexity tasks, you’ll get the more difficult jobs that are worth greater rewards.
This isn’t necessarily about your intelligence. It’s mostly based on the sophistication and ability of the computers you’re using. Your ability to manage them is the other integral aspect.
The crypto-mining field isn’t for everyone, but if you have the skills and hardware, you have a world of potential in front of you.
Learn the ropes and solve the hashes before anyone else, and you could be enjoying the lucrative perks of the cryptocurrency industry.