Detailed guide on how cryptocurrency mining works

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Cryptocurrencies have flooded the world. Opening businesses, reaching into different areas of life, and revolutionary startups are now associated with digital money. Endless news about increasing prices of coins, popularity of certain cryptocurrencies fill our feeds. And how can you resist here and not try to join the industry? The best way to do it is to invest and start mining cryptocurrency. But first, you need to decide on the currency to be mined, the location or opt for miner hosting Minery. The choice is up to you, but you still need to know how cryptocurrencies mining works and if it is profitable to do.

Crypto mining in simple words

Mining cryptocurrency is about extracting digital currencies. It sounds pretty simple, but there is a complicated process behind it. Crypto mining is done through the implementation of mathematical calculations using computer technology. The process involves verifying blocks of data and adding transaction records to a publicly accessible distributed database known as blockchain. Transaction transparency ensures security. If someone wants to make unjustified changes to one block other users will be able to see it. And, as a consequence, prevent fraud. So mining ensures that the block chain is verified, where each new block contains valid information according to the previous one. Miners are rewarded for performing such mathematical calculations in the form of cryptocurrency.

Where to start mining cryptocurrencies?

Before you start mining, it is better to find a special place in which to mine cryptocurrency. You should not set up a farm, because this will cause a number of discontents even from your side. Nowadays, crypto hosting has been developed. These are specially designated places where you can store your equipment, and a team of experts will monitor the uninterrupted process of mining. It was the problems with mining at home that led to the emergence of special companies that are engaged in the placement of your hardware. Therefore, the professionals deal with the following problems:

  • Noise. To maximize heat extraction, miners set the cooler revolutions to high values. Staying close to such a room is difficult, because you will be constantly surrounded by noise.
  • Ventilation. Hardware during its operation emits a large amount of heat. There must be an inflow of cool air and extraction of heated air. The proper cooling helps to avoid overheating and will save from possible problems of equipment failure.
  • Power wiring. The extraction process puts a serious load on the network. It is better to separate the farm from the general home network and connect to separate fuse boxes.
  • Stable Internet access. Machines must be connected to the network at all times for mining. If the internet goes down, cryptocurrency mining will stop and the system will work at a loss.

Choosing high quality hardware

Investors are always choosing between ASICs and GPUs. But the choice most often falls on the first option. ASIC is an integrated circuit, which has a narrow range of applications due to a strictly defined set of functions. In mining it is special equipment for producing cryptocurrencies with a specific algorithm. ASIC has a lot of chips and a lot of memory and therefore has a higher hash rate. So ASIC can mine more coins than GPU.

ASICs are created for a specific algorithm, but there are still differences. They vary in:

  • Hash rate. Manufacturers try to outdo each other or just improve their results, so with each new model ASIC becomes more and more powerful.
  • Algorithms. ASICs come out for all new algorithms, and there is a competition on old ones in terms of performance volume.
  • Cooling. Since the device consumes a lot of electricity, it can overheat. Accordingly, it needs a good cooling system to work well.
  • Manufacturers. Here is a real competition, because everyone wants to create a powerful ASIC which will have no competitors on the market. Currently, the most popular models are Antminer S9, Antminer T19 84T, Whatsminer M30S+ 100T.

Final steps before you start mining

Once you have chosen the equipment you also need to focus on:

  • creating a wallet,
  • choose a pool to mine,
  • install the mining software,
  • start mining crypto.

To sum up

The answer on how to mine is simple: you need to choose a cryptocurrency and equipment. These are the basic steps that will ensure a successful process. But modern technology allows you to find the perfect devices and start mining currency from anywhere. Select the most convenient way to mine for yourself, buy high-quality equipment or put everything in the hands of professionals. Enjoy the exciting process of digital money mining right now.

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