Yesterday, I have shared few ways from which we can earn cryptocurrency.
Today I came back with one of the same topic i.e cryptocurrency mining. If you are thinking whether we can really earn the cryptocurrency through data mining then the answer for the question is Yes, we can earn cryptocurrency through data mining.
Many of us are not aware of this, so I thought I should write on this topic.
Bitcoin Mining
It is the process by which transactions are verified and added to the public ledger, known as the block chain, and also the means through which new bitcoin are released. Anyone with access to the internet and suitable hardware can participate in mining. The mining process involves compiling recent transactions into blocks and trying to solve a computationally difficult puzzle. The participant who first solves the puzzle gets to place the next block on the block chain and claim the rewards. The rewards, which incentivize mining, are both the transaction fees associated with the transactions compiled in the block as well as newly released bitcoin.
Steps for Mining
There are few steps you need to consider while you are mining.
Step 1: Choose the effective hardware
The heart of mining is the bitcoin miner or mining rig, which is a separate computer that handles all the mining work. There are many, many types of miners with different shapes and sizes.
Choosing your bitcoin miner is a very similar process, you want to choose a fast miner which will help you to mine faster and a slower, less capable miner will earn you less money.
Step 2: Choose your wallet
There are an many bitcoin wallets, both online and software-based. They come with different features, including amount limits and payment frequencies, all of which you should consider when choosing a wallet. Eg Myceliun, Copay, Armory etc
Step 3: Download the software
Now you need to install your mining software, which will allows you to control the mining process and check out the specs on your mining hardware to make sure everything is optimal.
If you don’t have much experience with basic command interfaces, then GUIMiner is probably you’re best for you, as it offers an easily-digestible interface.
Step 4: Join a Mining Pool
Mining pools are communities of bitcoin miners who work together and share the reward. At least, that’s how they are supposed to work. Even official bitcoin organizations usually don't recommend any specific mining pool, It’s hard to know which pools is good or better.
There are questions which may help to choose a better pool:
How long has the pool been around?
What fees do they charge?
How do they divide up the bitcoin rewards?
How frequently, on average, do they find blocks?
What sort of withdrawal options do they offer?
I cannot guarantee the amount which you will be able to mine through the combination of hardware and software but I can say the above steps help you to Earn Cryptocurrency through mining...