There are similar guidelines for all crypto currencies whether this is Altcoin, Bitcoin or Ethereum. The cardinal rules are practically the same. Mining can be done single-handedly or through a mining pool. A pool consists of miners who put together their resources and share rewards.
Speed is Important
Sophisticated mining requires specialized special hardware. Otherwise, you can mine all crypto currencies using the Central Processing Unit (CPU) or Graphics Processing Unit (GPU). The latter ensures better performance for cryptographic computations. Laptops with integrated graphics are recommended. However, it is still possible to mine Altcoins with the less-advanced laptop at much slower speed.
Dedicated graphics processors are required for GPU mining. Many Altcoin miners build dedicated equipment with the use of mother boards capable of accommodating numerous graphic cards through riser cables. Mining crypto coins is a very rigorous system. It can reduce the natural life of electronic parts. Thus, store the equipment in cool areas and monitor warranties.
You need to install CPUMiner software in the PC before starting to mine crypto currencies. The process is easy but requires use of command line on your desktop. Download the program from Source Forge which is available for Windows (64 and 32 Bit), Linux and Operating System (OS) X. Download the appropriate file from your OS and extract the zip file to your hard drive. It would be advisable to create a folder for CPUMiner on your PC desktop or laptop.
In mining Bitcoin today, you require customized Bitcoin Application-Specific Integrated Circuit (ASIC) chips that provides maximum performance of up to 100 times more than the capacity of older systems. Mining with the old high-speed video processor cards result in high electricity consumption which is not a practical alternative. There are companies offering superior platforms particularly for Bitcoin mining.
Another alternative is to acquire contracts for Bitcoin cloud mining. It shortens the process but heightens risks since miners do not have control over physical hardware. The two most common command line programs are BFG Miner and CG Miner. These can be downloaded for free. Or, opt for EasyMiner which comes along with Graphical User Interface (GUI). This type of application is a Click and Go Linux/Android/Program from Windows. Sign up for a Bitcoin mining pool. If you work individually, it is possible to mine Bitcoin for all eternity and you will never earn any coins. A fully-decentralized pool is the P2Pool which is well-recommended in the industry.
Make sure to install a Bitcoin wallet to receive the coins that you mine successfully. The features are very similar to the physical wallet. It can be a software app, web-based or mobile. The coins are transmitted to the wallet using an exclusive address that belongs to the user. This security measure serves as protection against possible threats. It allows two-factor verification or stores the address in an offline PC. Wallets are acquired by downloading software to your personal computer.
The most prominent Bitcoin wallets are the following:
- Kraken which is the biggest exchange in Europe with same day Single Euro Payments Area (SEPA).
- Purchasing Bitcoin Guide to get assistance in looking for local Bitcoin exchange in your country or region.
- Local Bitcoin allows users to find people in a specific community who are willing to sell coins to them directly. Just be careful with scammers.
Ethereum Mining is complicated. It is not practical to use the ordinary PC in mining Ethereum. For those who are not technology-oriented, the best way is to hire professional miners with appropriate mining equipment.
This is the concept of cloud mining which is used in Bitcoin mining. There are reliable providers who will not try to run away with your digital currencies. In Ethereum mining, it is vital to understand the concept of Smart Contracts.
The Smart Contract refers to objects with accounts on the Ethereum Blockchain. These include code functions with the ability to interact with similar contracts. These Smart Contracts keep data, make their own decisions and send ether to other parties. The Contract is defined by creators. However, their execution and services offered are provided by the Ethereum Network. Contracts exist and are executable (capable of running as programs) provided the entire network still exists. These will disappear once the Smart Contracts are made to self-destruct.
Cryptocoin mining may be described as a competition for superiority. It rewards early birds. Mining can be likened to the Gold Rush where investors make some profit by putting in money for equipment and months of mining. For neophytes, the suggested coins are Litecoins, Feathercoins and Dodgecoins. For example, a miner can earn 50 cents to $10 daily using the standard consumer-level mining hardware. The two other coins generate less profit using the same hardware.
Mining focuses on accomplishing the following:
- Provide bookkeeping for the coin network. Cryptocoin mining is fundamentally round the clock computer accounting which is known as “verifying transactions.”
- The miner gets a minimal reward for the accounting services by getting small percentages of coins every two days.
- It manages to keep electricity and hardware costs down.
Mining crypto currencies is a form of passive income which is a tempting investment. Yet, not all people have the technical competence to do this or space to purchase mining gear. The option is to rent hashing power through the worldwide web.
Mining will cost you money. The programs tap into the PC’s hardware resources which facilitates mining of Bitcoin, Altcoin, Litecoin, and Ethereum. Many guidelines, instructions and articles regarding Crypto Currency mining are published regularly. It is up to the discerning miner to read and understand the principles behind this unique venture.