 |
| image by nairamartz.com |
CRYPTO CURRENCY
MINING
(THE COMPLETE BEGINNERS GUIDE)
CONTENT OUTLINE
(i)What is Crypto Currency?
(ii) What is the Mining of Cryptocurrency?
(iii) Mechanisms Of Crypo Currency Mining.
(iv) How Crypto Currency Mining Works?
(v) Tools Needed For Crypto Currency Mining.
(vi) Conclusion.
You no doubt must have heard about cryptocurrency and the latest trends of the moment known as Crypto Currency Mining
OK and that’s why you my reader has decided to carry out a personal research and that’s why you are here reading my blog nairamartz
Welcome as I take you on a step by step approach, by the way my name is Chidume Sam,iam a blogger and a content creator, ASAP’.
What Is Crypto Currency?
Crypto Currency is a digital or virtual money that lives in decentralized network known as ” Blockchain” more so Crypto Currency adopts it name”Crypto”from the word encryption’ which means secured, encrypted and with a secret key (encryption) which is meant to run on the peer to peer system free from fraud and centralized or government and banking interference (Crypto) are not runned or managed by any bank or financial institution or nation and this absence of a middle man is one of Cryptos great advantages every Crypto Currency is a global entity, Bitcoin was the first in 2009 then 2015 Ethereum was introduced and became the Second major Crypto, since then thousands of other Cryptos have been introduced, which includes Litecoin, doge coin, Cadano (ADA) etc notwithstanding that some are mostly scam coins that takes advantage of the trend of the moment, with the inventors hoping to make a ”hit and run off’
as some even declare they are just for Jamboree and ”funny funny‘ hmm!!
What Is the Mining Of CryptoCurrency?
Crypto Currency Mining is a concept introduced by and by, years back which has presently become an industry with a widest reputation and interest.
The mining of ” virtual gold” in the form of Crypto Currency is often seen as a means of making quick scam monies, Honesty the industry is filled with hype, scams and time wasting promotions, that poses room for errors, not withstanding there are profitable mining platforms and there’s still room for beginners to make profit from Crypto Currency Mining, do your personal research, observe and plan carefully.
Crypto Currency Mining and basic Insights:
Crypto Currency units, like bitcoin, Ethereum etc are generated and secured through a mathematical structure known as ” mining” this mining process involves user’s doing tasks like solving simple arithmetics,within the peer to peer system (ie, mining for gold tangents) it could also mean veryfying a transaction, miners thus’own and run a bunker as a result of creating solutions through puzzles, referrals, veryfying a transaction miners or bunkerers are rewarded newly minted coins crypto currency mining companies uses best encryptions and securities to fortify the system from hackers and crooks whose aims is to subvert the process.
Mechanisms of Crypto Currency Mining
Crypto Currency Mining uses two methods the prove of work(POW) algorithm and proof of stake (POS) what is proof of work system? A computational puzzle that was created to take Crypto Currency Miners a while to complete as to curb, spammers, bots, proof of work (POW) method uses massive electricity and is quite a complicated phenomenon
How POW Works
A challenge string, is presented sometimes a casino game rolls challenge, to target a number eg, roll 9995 and get a doge coin, and this enormously takes time to complete. A like finding a number that prove the challenge and miner hardware is rated in hashes,is the means or unit of measurement of the challenge (H/S) eg 1 Exahashes per seconds
Proof Of Stake(POS)
Dynamically the proof of stake method operates in a very different way POS miners compete to comfirm transactions based on how much cryptos they have locked and hodled (STAKED) for a targeted time from a personal point of view proof of stake is less complicated than Proof of Work and Proof of Stake uses Considerably less Electricity.
How Crypto Currency Mining Works plus Types of Mining
(1)INDIVIDUAL MINERS
Anyone can purchase specialized miner hardware and connect to the internet over the years this method has been used, as new currencies come online always, moreso individual miner can both the POW
And POS methods respectively
PROS AND CONS FOR INDIVIDUAL MINERS USING POW AND POS,METHOD
PROS OF POW
If you have the Electricity and Data and can afford a lot of gadgets then you can make a lot of profit using the (POW) system
CONS OF POW
Proof of work demands the use of hardware (Mining and Software, gadgets) which can be expensive for a beginner to venture in although gadgets like mobile devices can be be used through applications or software therfore to achieve greater mining profit you will need a lot of gadgets electricity, data, all this can spell COSTS for a beginner.
PROS OF POS (PROOF OF STAKE)
You can participate and earn huge profits if you you staked or purchased units and holded for a set of time then if luckily there’s hype then you stand a chance to gather PROFITS and restake your capital
CONS OF PROOF OF STAKE(POS)
This could be risky too, especially if you lost your IDS seed, phrases, you stand or probably might loose all, because it means you cannot verify or proof your stake on the Coin as the, trends and crazy rushes many unresearched DUMMIES may loose their stake, resources to SCAMM Crypto Currency Mining, which promise them so so and so, and you my READER you don’t want to be Such, RIGHT?
(2) CLOUD MINING
People can rent time on a cloud mining services and pay a monthly fee although it’s expected to be a return on investment, this is not guaranteed and users take a risk by joining and paying monthly fees
BOT MINING,Is also similar to Cloud mining, Artificial Intelligence (Ai) can undertake the task of mining while you invest a certain fee for a harvest or return on Investment hopefully, although there is is not guaranteed as people usually get scammed and loose their hard earned money, to this some of this schemes pay earlier investors but those who joined after, becomes the scape goats to be prey upon, thats why one must carefully research before joining such.
TOOLS NEEDED FOR CRYPTO CURRENCY MININGS:
(a.) HARDWARE :some of which runs into thousands of dollars.
(b.) SOFTWARE
(c.) ELECTRICITY
(d.) DATA
(e.) MOBILE DEVICES AND PC
CONCLUSIONS!!
Crypto Currency investments and mining can be lucrative and you can earn a fortune running into thousands of dollars doing this, but also know that you can as well loose a lot of money doing this without proper research and homework.
