How do investors make money through cryptocurrencies? This is one of the most common issues of encrypted enthusiasts today. Relatively speaking, mining is the best way to earn free cryptocurrencies! Cryptocurrency mining is a process of verifying the transaction on the blockchain network and getting new coin rewards. Today, how do I make money by cryptocurrency mining?

What is cryptocurrency mining?

Crypto mining is the basis of the Bitcoin (POW) blockchain based on the Bitcoin (BTC) blockchain to provide security for the cryptocurrency network. In order to verify the transaction and create a new block, encrypted miners solved complex problems and added the transaction to a distributed book. Therefore, they will receive a reward of new coins.

The word encrypted mining is inspired by gold ore mining. Digital tokens are designed to be scarce. One of their distribution is to be mined through encryption. Similar to the golden miners who spend time and energy to obtain precious metals, cryptocurrency miners need to work hard and use electricity to provide motivation for the creation of cryptocurrencies.

Key Point

Encryption and mining are incentives for miners to get new casting coin rewards during verification and processing transactions.

Crypto mining is the basis for the workload (POW) cryptocurrency network of Bitcoin (BTC).

Most encrypted miners focus on mining Bitcoin because it is the most valuable cryptocurrency calculated based on market value.

Due to fierce competition, expensive mining equipment, high electricity prices, encrypted mining is not always beneficial.

Cryptocurrency mining instructions: workload certificate

Mastering POW's basic knowledge of consensus mechanism is essential to understand the definition of encrypted mining.

POW, like Bitcoin, the network aims to generate a calculation certificate for the order of transaction time. After verification, these transactions are finally determined, bundled into blocks and added to public classification accounts to maintain transaction transparency and irreversible.

In POW, in the consensus mechanism, miners spend time and computing power to solve complex mathematical problems to verify and complete transactions. If there is no miner, users may use cryptocurrency networks to forge "double flowers".

Miners protect the network by obtaining newly cast cryptocurrencies. In addition to block rewards, encrypted miners also obtain transaction fees.

How to become an encrypted miner?

What does it need to be an encrypted miner? The minimum tool required to start mining cryptocurrencies is:

Mining machine

electricity supply

Mining equipment-ventilation, energy monitoring, wires

Most encrypted miners are mainly focused on mining Bitcoin. As of October 2022, BTC was the first POW cryptocurrency and the most valuable cryptocurrency.

Other POW cryptocurrencies include dog currency (Doge), Litecoin (LTC), Ethereum classic (ETC), Monroe Coin (XMR) and Bitcoin Cash (BCH).

Ethereum (ETH) has been operated on the network until September 2022, and the network operation has completed Themerge and transitions to the consensus mechanism of equity (POS). POS miners do not need to protect their network.

There are two forms of mining cryptocurrencies:

1. Mining alone

Single mining sounds like: personal mining cryptocurrency, generate new blocks by yourself.

The payment is relatively large because the independent miners receive all the rewards. However, due to the competition between miners, separate encryption mining may have higher differences, and the waiting time is longer than usual.

2. Joint mining

Pond of mining is an encrypted mining. Miners and other miners collect resources to create blocks at a higher frequency than separate mining.

Here, block rewards are shared between mining teams. The proportion of rewards obtained by a single miner in the mining pool is roughly related to the hash computing power contributed by individuals.

Mining -the best way to get free cryptocurrencies

When you verify trading on the Internet, mining allows you to earn free cryptocurrencies. To start using, you only need to invest in mining hardware-graphics card and download mining software. Then you must decide whether to do it alone or add an encrypted mining pool.

Please note that on the network of the use of work certification consensus algorithms, mining is only applicable to custody cryptocurrencies. POW Bitcoin, Litecoin, Zcash.

For example, when you confirm a block on Bitcoin and Litecoin blockchain, you will get about 6.25 BTC and 12.5 LTC, respectively.

What is Bitcoin mining?

Bitcoin mining is the process of processing Bitcoin transactions, adding new blocks to Bitcoin blockchain, and introducing circulation.

Mining is a technical process that involves using special mining hardware to solve complex computing power (usually called hash computing power). Bitcoin miners have contributed a wide range of hash computing power and compete with each other to find the next block to win block rewards. The first miner to confirm the next bitcoin trading block will receive 6.26bTC as a reward. By 2024, the process of rewards will be reduced to 3.125BTC through the decrease of block rewards. Music every four years.

As a Bitcoin miner, you can choose to use it alone or become part of the mining pool to get Bitcoin rewards.

How to set up bitcoin mining business at home?

Now that we know what Bitcoin mining is, let's see how to build a Bitcoin mining business at home.

First, you need to choose the hardware of the mining Bitcoin.

Although desktop computers can be used to mine Bitcoin, it is unlikely to win anything for you BTC rewards. Therefore, you need to invest in hardware settings for Bitcoin mining design.

As beginners, you don't have to buy "new" hardware. Instead, you can buy hardware used online to save funds.

However, considering the mining technology and complexity -depending on your computing knowledge level -it is recommended to spend some time to learn the basic knowledge of mining to ensure how you know how to correctly operate your specific settings.

For example, the cooling and power costs in your area will play an important role in your mining settings.

Secondly, buy a bitcoin wallet for yourself to prevent you from.

In this way, if you can successfully dig out a Bitcoin block, you can get a wallet that pays you. This can be a wallet that is different from your daily transactions. Ideally, it should be non -hosted, so that you can control the Bitcoin you received.

Third, you now have hardware and wallets, and you need to configure your mining software.

According to whether you want to mining separately or to join the mining pool, you need to study the technical details of each option and determine the method that suits you. This will also affect the software you choose.

You can download and use a large number of free Bitcoin mining software. Each mining software uses a specific operating system. Various software can be used for Bitcoin, but some of them may affect your mining activities.

In the end, it is not the most important thing. Once you complete the above steps, you can use Bitcoin now. But before that, make sure you download a copy of Bitcoin's blockchain. Your miners will be prepared to minimize Bitcoin 24/7 without much supervision.

The above content introduces how to make money from cryptocurrency mining, and take Bitcoin as an example to explain the steps and methods of Bitcoin mining. There are many cryptocurrencies that can be mining by mining. You only need to invest in mining equipment to make free money to make money.