Bitcoin, blockchain, cryptocurrency – these abstract words have sneaked into our lives and everyday conversations as something valuable, although a bit obscure. We, the commoners, can’t see or touch Bitcoin as we can touch gold or diamonds, and we have no idea how crypto occurs and what is profitable. With the very idea of mining crypto, some of us find it hard to picture anything but seven hard-working dwarves digging in the Matrix-like digital cave. Even though you still don’t know how it functions, you still want to be that dwarf and find good investment opportunities.
To mine crypto, to put it as simple as possible means solving the algorithm of a block where some transactions have been stored and locked digitally. These transactions need to be found and be verified to gain their value, and after they are verified, the miner gets their share. So, to become a crypto miner, here is what you need to do.
Get some pro hardware
When cryptocurrency mining first began, a solid PC could handle it. Mining for cryptocurrencies now takes more than a good graphic card and a PC. There is specialized hardware for this purpose, most usually in the form similar to graphic cards, which is very powerful and fast, and consequently less affordable. Some crypto miners are, on the other side, joining their forces for drilling, and collectively mine for coins bringing together their computer power. It’s called the mining pool and miners share the profit they get according to power their PCs contributed to the whole process.
Create a wallet
Once you get your hands on cryptocurrency, you’ll need a wallet address where it can be sent. These wallets are basically well-secured software programs or services for storing public or private keys and they allow you to make crypto transactions and monitor them. You need to select the one which seems reliable and less attractive to hackers. The good idea is to put a little bit of effort into doing some research and reading reviews so that you can make a good choice and feel safe. Or you can choose a physical device, such as a hardware wallet, and be completely protected from hacker attacks. Basically, this way you eliminate any potential vulnerabilities and prevent your transactions from exploitation or censorship. To do any kind of operation with your crypto, you’ll need to connect the device to the internet.
Install mining software
While the very mining process is performed by the hardware, you’ll need software to connect you to the mining pool where your PC will do the digging, and blockchain to which the information you obtain is sent. This software can also monitor your hardware, provide you the information about your computer’s fan speed, temperatures, and hash rates during the mining. During this process, your hardware is stretched to its very limits, and it may get damaged, so it’s very important to keep an eye on all the relevant metrics. There are many software solutions depending on the type of crypto mining you will go for, as various cryptocurrencies use different algorithms, so you’ll need to find a specific tool. The choice of the software will also depend on your hardware, so take that into consideration too.
Get into the pool
Once you have these issues settled, you can find yourself the pool in which you’ll mine. As you’ll most certainly find various “mining pool” groups already there, your chances of solving an algorithm on your own will be pretty low, even with strong hardware. But you can join forces with one of them, share your piece of profit once the treasure is found, and get your return of investment more easily.
So, you don’t have to be a PC genius to start with crypto mining. You need an initial hardware investment which can be expensive, and a willingness to learn the basics and get the ball rolling.