As the cryptocurrency industry becomes more and more competitive, anyone who wants to mine bitcoin needs specialized mining hardware. Cryptocurrencies are much more profitable when mined with powerful processors. Mining of Bitcoin and cryptocurrencies
Cryptocurrency mining is meticulous, expensive but can be rewarding. However, mining has an appeal that attracts the attention of many investors as miners are rewarded for their work with crypto. Chips.
Most important cryptocurrency mining basics to know:
- With mining, you can earn cryptocurrency.
- Bitcoin miners receive Bitcoin as a reward for completing “blocks” of verified transactions that are added to the blockchain.
- Mining rewards are paid to the miner who first discovers a solution to a complex hash puzzle, and the probability that a participant will be the only one to discover the solution is related to the share of total mining power in the network.
- You need a GPU (graphics processing unit) or an application-specific integrated circuit (ASIC) to set up a mining platform.
- You need to consider the electricity expenses that cryptocurrency mining can consume. Depending on the country, it can be high and make your mining impossible.
How does the legitimacy of Bitcoin transactions work?
Miners are paid for their work as auditors. They do the job of verifying the legitimacy of Bitcoin transactions. Once miners have verified 1 MB (megabyte) of Bitcoin transactions known as “block”, these miners are eligible to be rewarded with an amount of bitcoin. You must be the first miner to find the correct answer, or the closest answer, to a digital problem. This process is also known as proof of work. How to mine Bitcoin and Ethereum?1. Get a cryptocurrency mining PC.
To start mining, you need a mining platform. In the early days of crypto mining, you could use an ordinary PC to mine. But today, these machines are going to bring in so little Bitcoin over such a long period of time that it’s not even worth it.
Currently, a special hardware called ASIC (Application Specific Integrated Circuit) is used to mine Bitcoins and other cryptocurrencies based on the same algorithm. An ASIC miner will mine Bitcoin faster and use less energy to do so. The most capable machines can solve up to 14 terahashes per second (meaning they make 1,012 attempts to solve 1 block per second) and are constantly lagging behind.
The price of a professional cryptocurrency mining computer is around $1 from donors, which can vary depending on the brand of PC.2. Get a Bitcoin/Ethereum wallet.
Setting up a Bitcoin wallet is important. This is where all your mined Bitcoins will be received and where you can sell, trade and manipulate them. Your Bitcoin wallet is also where you can manage your Bitcoin addresses.
Each Bitcoin address has a public key and a private key to match. The public key is used to receive Bitcoin – if you want to receive Bitcoin from someone, you need to give that person your public key. The private key is used to send Bitcoins. If you lose your private key, you will lose your Bitcoins forever at this address.
There are a variety of wallets to choose from, but we recommend a software wallet for beginner miners. It is safe, easy to manage and good for frequent handling of mined cryptocurrencies. 3. Join a Bitcoin/Ethereum mining pool.
Even the most powerful ASIC miners will struggle to mine Bitcoin today. A single crypto mining PC won’t be able to keep up with some of the huge mining farms around the world. The best solution: cooperate with other crypto miners in a “mining pool”.
In a mining pool, miners offer their computing power to the group. When Bitcoins are mined, the profit or bet is divided among the members based on the computing power they provide. This means that your income will be lower, but it will come regularly.
Be sure to search for mining pools before choosing one to join. Often there will be a membership fee (usually 0-2% of the reward received). When choosing a mining pool, register on the site and set up your account. You will receive a worker ID for your Bitcoin miner shortly after.4. Get crypto-mining software for your PC.
With the mining hardware, wallet and mining pool all planned, you will need a crypto mining client to run on your computer. This client is what connects you to the Blockchain and Bitcoin network. Your mining software will provide your mining work, collect the results and add information to the Blockchain. Mining programs also record statistics on your mining PC, such as temperature, hash rate, average mining speed, etc.
Depending on your preferred cryptocurrency and mining method, we can recommend the right software. Some popular encryption software includes:
- Claymore’s Double Ethereum Miner
- Phoenix Minor
Some mining pools will have their own software. Otherwise, there are plenty of free mining software to choose from, all with their pros and cons. We recommend using mining software that mines multiple cryptocurrencies and automatically chooses the algorithm to mine based on which one is most profitable at any given time.5. Start mining Bitcoin or Ethereum.
Plug in your mining PC, install the software, fill in your wallet and mining pool information, choose a device and start mining. Crypto values change daily. We recommend that you pay close attention to crypto news and trends! Components of a computer for crypto mining
The main components of a cryptocurrency mining PC are an improved GPU and a state-of-the-art power supply:
- Graphics card (GPU) – RTX 2060, RTX 2070 SUPER, RTX 2080, RTX 3060TI, RTX 3070, RTX 3080, RTX 3090
- 1000W + power supply
- multi-core processor – Intel i7 10700k
- RAM DDR4
- Best Plates – Mining Mother – Mining Expert Asus B250, ASRock H110 Pro BTC
* PortalCripto values the quality of the information and certifies the verification of all the content produced by its team, stressing however that it does not make any type of investment recommendation, cannot be held responsible for losses, damages (direct, indirect and incidental), costs and loss of profits.