The internet is full of information about cryptocurrencies. Many people take courses and try to learn how to invest properly to raise their income level. The digital money situation literally reaches a new scale and peaks, but there seems to be no further progress. The current boom in the potential of cryptocurrencies and the hype that surrounds them has urged many to try to make money in new areas.People who realized that buying their own equipment for mining was not a good idea began to study aggressively. Bitcoin hosting And cloud mining. Skeptics say it’s an unprofitable and difficult business, but others are profitable and enjoying their lives. Let’s go to the roots of what mining is and how to get started with Bitcoin mining.
What is Bitcoin Mining?
Cloud mining is one of the best ways to make money from cryptocurrencies, as it frees users from 24/7 control, expensive electricity bills, and other difficulties of traditional mining. It can be used to mine Bitcoin, Litecoin, Ethereum, and other digital money depending on the service. Unlike traditional mining, where you have to buy the equipment yourself, cloud mining uses a special cloud service that stores capacity in your data center. The idea is to rent the capacity of an existing company to avoid the problems of electricity bills, excessive noise in the apartment, and heat generation.
Step 1. Equipment for mining
Depending on the type, there are the following devices for successful digital money mining:
- CPU.. Its main function is to execute a series of instructions in the shortest possible time. CPUs are designed to run multiple chains at the same time, or to split an instruction stream into multiple pieces, run them individually, and then merge them into one in the correct order.
- GPU or video card.. Its main features are 3D graphics and rendering of visual effects. The GPU takes the polygon as input, performs the necessary mathematical and logical operations on the polygon, and then outputs the coordinates of the pixels. In fact, GPU work involves a huge number of tasks that are independent of each other.
- FPGA.. This is a chip used to create unique structures for digital integrated circuits.
- ASIC.. This is a device that performs only one task, cryptocurrency mining. It is much more powerful than traditional processors and graphics cards for mining because it focuses on just one particular application. Therefore, the ASIC can mine more coins. Each type can only mine certain types of cryptocurrencies. These are determined by the hash method. When choosing an ASIC for mining, it is important to evaluate each device by hash rate, power consumption, price, energy efficiency, currencies that can be mined, and where to install asik for mining.
Step 2. Required software
Software is not possible with mining. There are many programs on the web, but the best ones are thought to be:
- ECOS
- EasyMiner
- CGMiner
- BFGMiner
Step 3. Select a mining pool
Pool is a service that collects miners from all over the world to generate cryptocurrencies. Select a pool based on the following criteria:
- evaluation. Assessment plays an important role when it comes to online services. Determines the trust level for a particular pool.
- Total hash rate. The more it is, the better. The amount of hash rate determines the speed and probability of the block solution.
- Power. The smaller it is, the lower the reward. However, recovery includes not only the cost of hardware, but also the cost of electricity.
- review. They form a rating.
Besides, there are other criteria for dividing the pool. They don’t really play a role in the choice, but you can start over:
- function;
- Cryptocurrency type;
- Commission availability and its size.
- Power requirements.
Step 4. Create a Bitcoin wallet
To start investing in crypto assets, you need to create a personal Bitcoin wallet. This is basically the electronic equivalent of a regular wallet used to store cryptocurrencies. Bitcoin wallets consist of a set of numbers and letters. Stores information about currency circulation. When the wallet is formed, two keys, a public key and a private key, are formed. During storage creation, a special seed phrase consisting of 12 to 24 words is also formed. If the user loses the private key and seed phrase, they can forget the Bitcoin from the wallet.
Software wallets are most often the choice for mining. These Bitcoin wallets work on your computer, smartphone, or tablet. These must always be connected to the internet. The process of creation depends on the choice of program. However, we promise that it won’t take long.
Step 5. Keep up to date
The key to successful mining is to stay up to date and stay up to date with the latest news. Therefore, you can choose the perfect mining hosting and make a profitable investment to get even better money. Keep an eye on the information, learn new things, and pay attention.
Conclusion
Cloud mining is gaining in popularity because you can rely on hosted mining Bitcoin professionals to make a profit instead of spending money on expensive equipment.However, in this activity it is also important to know all the subtleties of the crypto business and to be able to select a reliable team to engage in digital mo mining.
