Crypto mining has been around for some years now, yet not many people are aware of its amazing potential as a new idea of building wealth. This post aims to educate all these people with the basics of cryptocurrency mining and why it is such a big idea for moneymaking.
Let’s get started with the start.
Crypto mining is the process of creating or releasing new cryptocurrencies as an outcome of verifying and processing the transactions involving cryptocurrencies. It happens on the blockchain, which is a distributed digital ledger recording the user transactions in a transparent manner.
People who help maintain the integrity of a blockchain by verifying transactions and adding them to the distributed ledger are called miners. These miners are rewarded for their efforts in the form of newly released cryptocurrencies.
Now, you must be wondering why mining is important or required in the first place. Here you go.
A cryptocurrency network like blockchain is free of centralized authorities to ensure transparency and privacy protection. But, in order for such a vast network to work securely, it needs a lot of computing power, which is contributed by distributed nodes (miners) located around the world. Each blockchain consists of thousands to millions of nodes or computers.
These miners are the ones who make it possible to generate new cryptocurrencies in a completely digital and decentralized manner by contributing their computing power for securely verifying the transactions. In short, crypto mining is required in order to keep a blockchain network secure, trustworthy and operational.
Now, comes the most important part. How do you make money with crypto mining?
In exchange for their help to keep the blockchain networks secure and trustworthy, miners are rewarded with newly released cryptocurrencies. So, you can say while mining is a way for keeping the blockchain running, the newly produced cryptocurrencies are rewarded to the miners for their efforts. It all works in sync, so the more you mine the more money you can make in reward coins.
For each transaction that a miner processes and verifies and successfully adds to the decentralized ledger, he/she is rewarded with the newly created coins as well as with network transaction fees.
So, by now, you must have a clear understanding of why mining is important and how it can benefit you as a miner. Now, let’s move on to other important things.
If you are looking to get started in the field of crypto mining, there are hundreds of crypto mining networks out there that can help you. Alternatively, you can consider setting up your own mining network or system by purchasing hardware, network power, electricity, etc., but that would be a much costlier option.
Most of the mining networks will require you to pay an upfront fee in order to access and use their network/ hash power. The things you get in return include access to mining networks, mining contracts, etc. The price will depend on things like hash rate, type of network you choose, contract period, maintenance fee, among others.
Keep the following things in mind while choosing a crypto mining network:
To mine efficiently and competitively, you will require access to cutting-edge tools and technologies along with the best quality mining resources. While this is difficult to do on your own, a good crypto mining network can give you all the facilities readily available so that you mine for the most rewards as per your capability and effort.
A mining network should be updating itself regularly according to market trends to ensure the best results for its miners.
Cost is one of the primary factors to consider while choosing a crypto mining network. Of course, you would want to keep the input cost minimal to ensure maximum rewards. Your first concern, however, should be to ensure that the network cost is not higher than the rewards you are expecting to get. This might happen because of the high energy cost, maintenance fee, and contract fee.
An alternative would be to sign up with a cloud-based mining network, which uses renewable energies like solar or wind for an electricity source. For instance, Pieta Network, with its solar-powered mining ecosystem, sounds like a good option. With the use of cost-effective and renewable solar energy, the cost of mining can be reduced to a great extent, thus increasing profitability.
Another thing to look for in a mining network is the range of cryptocurrencies they support. A cryptocurrency network supporting a large number of currencies might not always be the best, instead, you should choose a network that supports the cryptocurrency you want to mine and can offer the best prices.
While most of the crypto mining networks will pay on a daily basis, where your mining rewards are added to your wallet/account automatically each day, others may have a different payment frequency. Be sure to check the same while signing up with a new platform. Also, check the limit or rules for withdrawing your rewards tokens from the account, if any.
It is crucial that the network you are mining with uses the latest, state-of-the-art mining technology to ensure the best and optimum results. If you are looking for cutting-edge in crypto mining, you should seriously consider joining a renewable energy-based crypto mining system that can keep the cost low while giving you more reward coins for each transaction.
When using a third-party network for mining and storing cryptocurrencies, it is very important to take proper measures to protect your privacy. This is why you should be working with a network that doesn’t take user privacy for granted and strives to protect it at any cost. In fact, the user shouldn’t be required to share a lot of personal data with the network or other parties in order to be able to mine.
Crypto mining is certainly an activity worth your time if you are looking to make big money from the crypto industry. To ensure maximum profits from your mining activities, choose a mining network wisely and carefully.