What is currency mining?

Conventionally, when governments need currency, they simply print them out. But this is not in the case of cryptocurrencies, they need to be discovered. People mine them just like they mine gold. Thus, the computers across the world compete with each other to mine the crypto currency. Let’s take a look at what’s on earth the cryptocurrency mining is?

Before we discuss the cryptocurrency mining, first consider our banking system. For example, if a person sends some amount of money to other, then what would be the proof of the transaction between both of them? Who assures the transaction has been done? For the normal banking system, it is the bank who verify such payments through the receipt and passbooks entry.

We all know that no financial authority regulates the cryptocurrencies. Then who confirms the transaction made in cryptocurrency? In such concern, the miners come to action. The role of the miners is to confirm the transactions and register them into the public ledger called Blockchain. Later the miner transfers the details to other miners so that they could validate the transactions. The first miner that validates the transaction will get the reward. The rewards attract miners and increase their numbers. The increase in miners also increases the rate of validation of transaction, which consecutively secures the payment.

Systematic Guide to mine bitcoins

1) Arrange Customize hardware

Initially, it was okay to mine bitcoins through ordinary desktop, but now mining through the simple desktop can cost more than one can earn. Thus, it would be better if you arrange a Bitcoin custom hardware for this purpose.

2) Install the Bitcoin mining software

When your device is ready, then it is the time to download and install the Bitcoin mining software. There are many available in the market you can choose any of them.

3) Decide whether to join Mining Pool or mining alone

When you join a pool, all the members in the pool share the resources and divide the rewards. On the other hand, mining alone is difficult as the competition is pretty tough. It is recommended to join a pool as it gives a quicker return.

4) Get a Bitcoin Wallet

There are two ways to setup a Bitcoin wallet – the first one is your local and the other is online. The online wallet provider that hosts your wallet cannot access it. However, it would be better if you go locally set wallet, as you will not rely on others.

5) Start your miner

Now, you can start mining the Bitcoins. Take a look at your profitability and take decision smartly.

The Final Word

The bitcoin mining has competition; it has been a beneficial venture for long period. Nevertheless, the scenario has changed with the inception of customized mining hardware. It is recommended that one should join a pool for mining such currency. Many prominent and reliable Bitcoin mining pools are available to join. One can consider Antpool, BitFury pool, BTCC, and few others as a better option.