Cryptocurrency Mining Guide – Step By Step

If you have following bitcoin throughout 2017 and have been impressed by the dazzling year which the first and most famous of the cryptocurrencies has enjoyed, then you might have come across references to ‘mining’ and wondered what that was. You might then have done a little independent research and discovered that the mysterious process of cryptocurrency mining, in fact, refers to what is a form of paid, computerised accounting service for the coin networks. Every transaction carried out via bitcoin or any of the other cryptocurrencies that are now available has to be verified and it is the miners and their computers who provide this service, twenty-four hours a day, seven days a week. In return for providing this service, the miners receive a payment. It is as simple, and also as complicated as that.

If you are about to start cryptocurrency mining, then you need to first acquire a thorough understanding of the process and also to set realistic objectives for yourself. A beginner using the sort of equipment available to the ordinary consumer will not be able to enter the world of bitcoin mining; the power costs and the processing requirements are simply excessive. There are, however, currencies available for the entry-level miner, such as Dogecoins, Litecoins, Feathercoins and Peercoins. The necessary costs to mine these currencies are not excessive and the newcomer could reasonably expect to make a small, but useful profit every day. If you want to mine cryptocurrencies for a second income, or for a living, then you face the prospect of more considerable upfront costs. Here is a short list of the items which you will require.

You will need a computer, which might sound obvious, but it should be a dedicated one, separate from your own personal computer because the miner will make it impossible to use the computer for anything else. Go for a desktop with a good performance, put it somewhere quiet and cool and arrange a fan to blow cool air on it while it is working. Remember that mining is an energy-heavy process. For more serious mining, you may need to go for a purpose-built model, which will cost you more. For the computer, you will need an ATI graphics processing unit or a mining ASIC chip. These will do the actual work of mining and accounting. You will also need a coin wallet, which is a free private database; a mining software package; membership of an online mining pool; and membership of an online currency exchange. How much you are willing or able to spend on this equipment will, in effect, decide how much mining you can do and how much money you can make. One final requirement is more personal; the true details of cryptocurrency mining are complex and in a state of constant change. You will need to keep up to date and to constantly research, study and learn about the cryptocurrencies you hope to mine and also about the market in general.

Spread betting, CFD trading and Forex are leveraged. This means they can result in losses exceeding your original deposit. Ensure you understand the risks, seek independent financial advice if necessary. The value of shares and the income from them may go down as well as up. Nothing on this website constitutes a solicitation or recommendation to enter into any security or investment.

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