How to Start Mining Crypto Profitably
Cryptocurrency mining is a profitable yet very competitive venture. But with a little of help and following the guide below you can learn the basics so you can start mining crypto like a pro.
The key to mining crypto profitably is to keep your personal costs down, including electricity and mining equipment.
Why should I mine cryptocurrency?
Mining cryptocurrency provides you with an opportunity to earn a small income of perhaps a few dollars per day. Digital currencies like Bitcoin, Ethereum and Litecoin are easily accessible for everyone to mine, even if you don’t have broad technical knowledge. In fact, all you need to get started is a computer or high-performance hardware. You could potentially earn up to $50 a day or more by mining cryptocoins.
Which cryptocurrencies should I mine?
Generally, nearly all major cryptocoins in the market can be mined. Bitcoin mining though, is reserved for large-scale operations. This is because the current up-front hardware investment costs coupled with the sheer computational difficulty of the mining process makes Bitcoin mining less profitable using consumer-grade hardware.
If you are a beginning miner, try mining Scrypt-based cryptocurrencies like Litecoin, Dogecoins, Peercoins, and Feathercoins. These cryptocoins not only provide cost-benefit for beginners, they offer a potential of earning decent income using consumer-grade hardware like CPUs and GPUS.
In essence, profitable mining of cryptocurrency requires the use of more expensive mining hardware known as ASICs (Application-specific integrated circuits). ASICs have unprecedented speeds and help you discover cryptocoins much faster.
It is worth noting that Litecoin mining using GPUs and CPUs is not profitable anymore.
How cryptocurrency mining works
In cryptocurrency mining environment, miners provide bookkeeping services to the blockchain network by utilizing their mining equipment to solve complex computational problems (blocks of transactions). Once a solution is found, all the transactions within their respective blocks are fully verified and validated as legitimate.
In return for their work, miners are rewarded with newly generated cryptocoins.
It is important to note that once the blocks of transactions are broadcasted on the network, miners compete against each other to solve these blocks. Hence miners with more powerful mining hardware may have an edge over those with consumer grade hardware. For example, In Litecoin mining, the most powerful hashers (miners) that contributed in solving the blocks are given the lion’s share of a predefined number of coins.
What you need to mine cryptocurrency profitably
In order to mine cryptocurrency and successfully earn crypto, you need:
Mining equipment — a built-in computer designed for mining such as ASICs or GPUs. Do not use your laptop or gaming console for mining since these devices may help you start mining but are not effective enough to generate income.
Reliable internet connection — strong full-time fast speed internet connection.
Join mining pools — a community of miners where your computing (hashing) power is combined with others to solve complex blocks of transactions to increase profitability.
Coin wallet — free and secure digital wallet in which you store your funds and keep a distributed ledger of transactions.
Membership at online currency exchange website — allows you to exchange cryptocoins for actual FIAT currency including USD, EURO, or other cryptocurrencies.
When you are ready to mine cryptocurrency, simply download free mining software from your preferred blockchain platform to get started. You also need to develop a strong appetite for reading and constant learning, as new mining techniques keep cropping up every day.
Successful crypto miners spend hours crafting their skills and mastering new mining techniques in order to maximize their profits.
The best place to make profits mining a single Bitcoin is in Venezuela.
Tip: Always check the market value of cryptocoins you decide to mine so you don’t end up sitting on hundreds of dollars in cryptocurrency, in case the digital currency falls in value.
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