The easiest way to mine cryptocurrencies


If you are interested in cryptocurrencies, you were probably trying to understand how cryptocurrency mining works. In simple words; it is using CPU/GPU to solve mathematical problems; in fact, it is just transaction encryption which is in the block, then attaching that block to the blockchain. Next step is, how to start mining. You need to download software, or buy a miner, in both cases, you need to know something about cryptocurrencies and IT. If you want to mine populayou need ar cryptocurrencies, e.g., Bitcoin, you need a lot of hash power, but let’s go back to when it was possible to mine Bitcoin on your PC.

MINING

You need to download mining software, e.g., Bitcoin Miner and a wallet where your cryptocurrency will be stored. Then you need to set all the functions, and you are ready to mine. This was the simple part. Now, you need to know, that mining is consuming an enormous amount of energy and it gives off a lot of heat, so you need to find a way to cool your hardware. In case of PC, it is easy. The problem appears, when you want to use ASICs. ASIC [application-specific integrated circuit] is more efficient than GPU, but consumes more energy, and you need to reduce its temperature. That is why you need to calculate how much energy will it consume (hardware and cooling system) and how much BTC will your miner obtain. When you want to mine Bitcoin and use one or two devices, with the current difficulty level, it will probably generate more costs than income. That is why you should consider mining pool.



The mining pool is an association of miners, who combine their hash power together to have bigger chance solving the cryptographic problem and receiving block reward. However, the reward is divided between all miners, who participated in solving. Some mining pools divide the reward proportionally to hash power they implemented to the mining pool. But there are more ways how mining pools can resolve the reward problems. It seems pretty complicated.

Can it be easier?

Of course, that is why cloud mining exists. When you decide to work with company that sells cloud mining packages, the only thing you need to think about it how much money you want to invest or how much cryptocurrency you want to get. Cloud mining is in fact, leasing hash power from the company, you don’t need to think about your miner, where you will place it, or how will you cool it, you don’t need to think about device maintenance, every one of those problems, we will solve. You only need to consider how much and which cryptocurrency you want to receive!

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How much do you know about mining cryptocurrencies?

What exactly is the difference between pool mining and cloud mining? Is it easy to start mining cryptocurrencies on your own?
Feel free to check the answers for these questions yourself, as starting tomorrow, we will share our knowledge with you on Rockwall blog