There are some cryptocurrencies buried in the deeps of the Internet, by chance? We don’t think so, but yes, we know what “mining” means in the physical world: “removing minerals from the ground”. It should be the same but on Internet with the cryptocurrencies, right…? Not exactly.
We’ll need Internet if we want to mine some cryptocurrencies, but these coins aren’t there specifically. And they’re not “coins-coins” like the cent inside your pocket, but pieces of informatics code. Like 0s and 1s ordered in digital files, that’s it. With a lot of cryptographyCryptography is the mathematical basis for secure communication that allows only the sender and intended recipient of a message to... More (very complex math) building and protecting them.
So, what’s up with the “mining” stuff? Why the cryptocurrencies can be “mined”? Well, that comes from the Proof of WorkProof of Work (PoW) lets one party proof the execution of an algorithm to another party. In the Bitcoin PoW... More (PoW). This one is an algorithm, and by “algorithm” we mean a set of steps and methods that are built —with math— to achieve a specific result or solve a problem. That’s exactly what the PoW does: develop a difficult math problem or riddle you must solve in order to verify virtual transactions and win some cryptocurrencies.
You, the “minerMiners secure some blockchain networks by ordering crypto transactions into blocks and verifying the blocks of other miners. For this... More” (and mostly your computer and related equipment), should dig into the riddle to “find” the digital coins, and that’s why the cryptocurrencies are mined. The crypto-mining is the mathematical process a decentralized blockchainBlockchain is a type of database storing an immutable set of data, verifiable to anyone with access to it —through... can use to verify its transactions and mint new coins at the same time. Don’t forget it!
Who can be a cryptocurrencyA digital currency running on a blockchain and built with cryptography. Contrary to central-bank issued currency, cryptocurrency issuance rules are... More miner?
Anyone… with patience and some basic informatics and cryptocurrency knowledge. Do you know how to use Google Chrome, what is a digital currency and how to change the settings in your Control Panel? Then you’re a viable candidate! Congratulations!
And don’t worry if you don’t know much about these computer things, you always can learn. Because there’re zero official requisites to become a cryptocurrency miner, at least with decentralized coins. That’s the whole point of “decentralizationThe transfer of control from one central entity to numerous smaller entities. Generally, cryptocurrencies are decentralized. Every crypto transaction is... More”: the more people participate on the network, the better.
They help to maintain the network (the blockchain) in a good state, with fast and cheap verifications for every transactionA cryptocurrency transaction is an entry on the blockchain ledger, noting sender, receiver and number of coins transacted. More and new coins in the wild. They’re cool. And you can be part of it.
What do I need to be a miner?
It strongly depends on what cryptocurrency you want to mine. It’s not the same for each one of them: some require this, others require that. Some are easiest to mine than others, that’s the truth. And that’s why you should learn first everything you can about the currency you are interested in.
In any case, these are common ingredients: electricity, powerful hardware, and a very stable Internet connection. The energy (a lot of it) in combination with your computer or your specialized equipment will be the one to solve the mathematical riddle (it’s not you directly, just in case). And yeah, there is specialized equipment for crypto-mining. They’re called ASIC machines (from “application-specific integrated circuit”) and they’re not usually cheap at all (+1.000 USD), especially if they’re designed to mine bitcoins.
At this point, Bitcoin (BTC) is the hardest cryptocurrency to mine, because the system’s mathematical difficulty increases as more miners participate (to increase the security too). According to Bitnodes, there are more than 10K nodes (miners) of BitcoinBitcoin is the first decentralized digital currency. It was created in 2009, by an anonymous founder or group of founders... all around the world. Hence the need for ASICs… and mining poolsThousands of miners compete on the reward which is only paid once per block. Miners who join a mining pool... More.
The mining pools, basically, are groups of miners who join through a webpage or company to accumulate more computer power together and have more possibilities to get the system’s reward. This happens because if you’re mining alone, your not-so-much-significant machine and power in the huge ocean of machines and power will give you a reward in about… two years. And that’s sad.
On the other side, we have cryptocurrencies like Monero (XMR). You can mine it with your CPU (and probably a pool as well) because its system is different and aims to be more inclusive. But wait: the crypto-mining is an exigent process that takes a lot of energy, hardware, and software resources. Even if you mine with your CPU, you should know it’ll probably be at its full capacity (which means it’d be very difficult using it with other purposes) and your energy bill will rise.
What a miner do on an average day?
After educating themselves, know almost everything they should know about the currency they’re mining, buy and install (or not) a good ASIC machine in a cold place (they tend to overheat), set up the necessary software and join to a mining pool… they can just rest, for a bit.
In the average day, a crypto-miner can go everywhere they want, to do anything they want. Of course, they must pay some daily attention to the wellbeing of their equipment and software and rarely disconnect them from the energy and the Internet. That would mean monetary loss.
Another thing: they should pay attention to the cryptocurrency markets and news. Like every cryptocurrency user, to be honest. This is the only way to take care of your capital.
What happens inside the mining system?
Again, depends on the cryptocurrency. The PoW algorithm comes in different types and with different processes inside. The bottom line? A copy of every transaction ever made rest inside the miner’s hardware (that’s the blockchain). Their equipment and software (the “nodeA blockchain node is a server that downloads the history of transactions and shares it with other nodes in the... More”) receive as well the new transactions made all around the world, and the job of this node is to check the operation’s validity by solving the mathematical riddle.
Once it’s checked, the node writes the new transaction on its own copy of the blockchain, receives the reward in the form of new coins and share the result with the network. The other miners repeat this process to register the new transfer in their own copies of the blockchain, therefore, increasing the security of the network.
And that’s it! Cryptocurrency mined successfully.
Not everything it’s crypto-mining around here
Just as you read and you need to know it: not every cryptocurrency works in this way. A lot of them use different algorithms, like Proof of StakeProof of Stake (PoS) was created as an alternative to Proof of Work (POW), supporting cheaper and faster transactions. It... More (PoS). In these systems, they don’t have any miners but “validators”: people with large holdings in that specific cryptocurrency, in charge to verify the transactions and mint new coins. Networks like Cosmos and its currency ATOM work with PoS.
But, well, that’s a story to tell later!
Wanna tradeBitcoinand other tokens? You can do itsafelyon Alfacash! And don’t forget we’re talking about this and a lot of other things on our social media.Twitter*Telegram*Instagram * Youtube*Facebook*Vkontakte
FAQs
You cannot mine just 1 Bitcoin, instead crypto miners will mine one block, with the reward set at 6.25 BTC per block. Each Bitcoin block takes 10 minutes to mine. This means that in theory, it will take just 10 minutes to mine 1 BTC (as part of the 6.25 BTC reward).
What is the most profitable crypto to mine for beginners? ›
Ethereum (ETH-USD), Verge (XVG-USD) and dogecoin (DOGE-USD) are the top three most profitable cryptocurrencies to mine, according to a recent report by Traders of Crypto. Note the barriers to entry in crypto mining are low so long as the right equipment is being used to set up a mining machine.
Can you get rich off mining crypto? ›
While mining may have been relatively easy in the early days of crypto, it has become a highly competitive business. Still, anyone can theoretically make money from crypto mining. Here's a look at the costs involved in crypto mining and how much you might feasibly earn.
How do you mine cryptocurrency step by step? ›
Use the step-by-step guide below to start mining Ethereum through a mining pool.
- Step 1: Check your Graphics Processing Unit (GPU) and update drivers. ...
- Step 2: Set up a cryptowallet. ...
- Step 3: Install the Ethereum mining software. ...
- Step 4: Join a mining pool and get server coordinates. ...
- Step 5: Configure the .
If you have access to a mining rig, you can mine bitcoin on your Android device. 4. Use a cloud-based bitcoin miner. There are several cloud-based bitcoin miners available for Android devices.
What do I need to mine 1 bitcoin a month? ›
For example, based on the current hash rate it would take fourteen S19 Pros to mine 1 Bitcoin per month. Or, put differently, one S19 Pro could mine 1 Bitcoin in 14 months (not accounting for a rise in hash rate over time). This calculator is the easiest way to figure out how long it will take you to mine 1 Bitcoin.
What is the easiest coin to mine? ›
Answer: Monero is the easiest cryptocurrency to mine now because it can be mined via browser extensions and free software over websites. It is even mined via crypto jacking. The mining code can also easily be incorporated into apps and websites to facilitate mining.
What should I mine in 2022? ›
As of 15 June 2022, the best cryptocurrency to mine for most modern graphics cards is Ethereum (ETH). However, for some graphics cards, such as the Nvidia GeForce RTX 3060 and 3070, the most profitable cryptocurrency to mine is Ergo (ERG).
What coin should I mine? ›
Comparison of the Most Profitable Coins to Mine
| Cryptocurrency | Rewards per block | Estimated daily profitability |
|---|
| Vertcoin | 12.5 Vertcoins | $4.90 with 2.50 mh/s hash rate |
| Bitcoin | 2.5 BTC | $6 to $11 per with Nicehash. |
| Monero | 4.99 XMR | 10 mHz hash rate. |
| Ravencoin | 5,000 RVNs | $4.40 per day with 70 MH/s of hash rate. |
1 more rowBitcoin mining is still extremely profitable in 2022. Bitcoin miners are currently mining around $20 million worth of Bitcoin per day. That's $600 million per month. A mining machine costs $2,000-$20,000, making it difficult for anyone but professional miners to mine.
How Much Does A Bitcoin Rig Make? According to recent research, a Bitcoin mining machine (otherwise known as an ASIC) produces around $12,000,000 in Bitcoin revenue per day if its price hovers between $500 and $1000.
How much can you make per day crypto mining? ›
27, the estimated daily profit for an Ethereum miner using a single GPU was $4.59. For Feathercoin, by way of comparison, miners were estimated to lose $0.58 per day. Obviously, to generate a significant amount of profit, you'd need to host a large number of GPUs using these calculations.
How do you start crypto mining for beginners? ›
How To Mine Bitcoin
- Choose and Set Up Your Bitcoin Mining Hardware. Start by choosing the hardware you'll use to mine Bitcoin. ...
- Create a Dedicated Bitcoin Wallet. If or when you successfully validate a Bitcoin block, you need a valid Bitcoin wallet to get paid. ...
- Configure Your Mining Equipment. ...
- Start Mining.
Mining crypto has become more difficult, but there are still opportunities to use an old desktop or laptop to mine a crypto such as Shiba Inu. Created in 2020, it is an Etherum-based alternative to Dogecoin (DOGE), the meme coin made popular by Elon Musk.
Is wallet mining legal? ›
Conclusion. By and large bitcoin mining is a perfectly legal activity. Even in a few countries that do regulate the use of bitcoin, such as Iceland, mining bitcoin is still legal.
How can I get 1 Bitcoin for free? ›
Notable platforms like Coinbase, CoinMarketCap, SatoshiLab, Airdrop.io are all giving away free Bitcoins. Best methods of earning substantial Bitcoins for free include airdrops, bounties, tip bots, referrals, and shopping rewards.
How much is 1 satoshi worth? ›
A satoshi is the smallest unit of Bitcoin currency. 1 satoshi = 0.00000001 BTC.
How much is a crypto mining rig? ›
For example, one featured Bitcoin mining rig costs USD $1,767 to build and operate and generates $4.56 in profit per day at current prices. Thus, it would need to run for 387 days to become profitable. Factored into this number are electricity costs.
How many machines does it take to mine 1 Bitcoin? ›
Statistically speaking, a solo miner looking to generate 1 BTC per day would need to contribute just over 0.11% of the total Bitcoin hash rate. As we previously mentioned, this is equivalent to around 149.2PH/s or the combined output of 2,334 Antminer S17e mining units.
How long do bitcoin miners last? ›
If you are looking for a ballpark figure, you should assume at least 3 years of life out of a GPU. 5 years would be a fairly average lifespan. Even 10 years isn't unheard of. There are GPUs out there that like cryptocurrency are approaching their second decade of operation.
This is in line with Bitcoin selling reported by some mining companies in Q1 2022,” Moreno added. In January, miners' production cost appeared to be at around $34,000, separate data showed.
Is mining still profitable 2022? ›
Bitcoin Mining Companies
As the profitability of Bitcoin mining dropped in 2022, top crypto miners' share prices have also fallen. Fortunately, Canaccord Genuity analyst Joseph Vafi says the most efficient Bitcoin miners are still turning a significant profit on their rigs.
Which coin can I mine with my phone? ›
MinerGate Mobile Miner: with this mobile app, you will be able to mine multiple altcoins apart from Bitcoin. Some of the altcoins you will be mining are Dash, Monero, QuazarCoin, MonetaVerde, and DigitalNote. There's also an in-built wallet in the app for users to store the coins they have earned.
How long does it take to mine 1 Dogecoin? ›
Answer: It depends on the mining equipment and pool hash rate. However, a single block gives 10,000 DOGE, and it takes a minute to mine one. So it could take you much less than a minute to mine 1 Doge even on a mining pool.
What is the most efficient crypto to mine? ›
List of the Best Cryptocurrency to Mine with GPU
- #1) Bitcoin.
- #2) Ethereum.
- #3) Monero.
- #4) Ravencoin.
- #5) Bitcoin Gold.
- #6) Feathercoin.
- #7) Dogecoin.
- #8) Litecoin.
One GPU can mine roughly 0 ETH each – one RTX 3080 GPU can mine 100 ETH each. A dollar a day is about six hundred fifty-six coins.
What is the best crypto to mine now? ›
Our List of the Top Cryptocurrencies to Mine
- Bitcoin. If you have the capital and are willing to put the effort, Bitcoin (BTC) continues to be the number one choice amongst cryptocurrency miners across the world. ...
- Ethereum. ...
- ZCash. ...
- Grin. ...
- Monero. ...
- Ravencoin. ...
- Litecoin. ...
- Dash.
How much energy does mining take? The Digiconomist's Bitcoin Energy Consumption Index estimated that one bitcoin transaction takes 1,449 kWh to complete, or the equivalent of approximately 50 days of power for the average US household.
How much crypto miners make a month? ›
Crypto Mining Salary
| Annual Salary | Monthly Pay |
|---|
| Top Earners | $160,000 | $13,333 |
| 75th Percentile | $100,000 | $8,333 |
| Average | $84,866 | $7,072 |
| 25th Percentile | $48,500 | $4,041 |
Bitcoin miners receive bitcoin as a reward for completing "blocks" of verified transactions, which are added to the blockchain.
#1) Antminer S19 Pro
This is given the highest hash rate, efficiency, and power consumption. At the power efficiency of 29.7 J/TH, this crypto mining hardware generates a profit of $12 daily with an electricity cost of $0.1/kilowatt.
How much can you make mining at home? ›
Home-Based Crypto Mining Profitability
With a normal PC, this could generate anywhere from less than a penny to around a dollar a day on the high end ($0.0001 – $1 USD). If you're a gamer with a fast GPU-powered PC, you could generate $1 – $10 a day, or maybe more.
How many Bitcoins are left? ›
How Many Bitcoins are Left to Mine? How many of the 21 million Bitcoins are left? There are 2.3 million Bitcoin left to be mined. Surprisingly, even though 18.6 million Bitcoin were mined in just over 10 years, it will take another 120 years to mine the remaining 2.3 million.
How do you mine cryptocurrency fast? ›
The easiest way you can get in to bitcoin mining is by participating in cloud bitcoin mining. Cloud bitcoin mining allows for an individual to pay for the use of hardware and software needed for bitcoin mining without expending the cost of overhead associated with a personal mining rig.
How can I start mining at home? ›
Want to Start Mining Crypto? Do THIS! | How To Mine Guide - YouTube
How much does it cost to mine 1 Bitcoin cash? ›
In a recent report seen by Decrypt, investment bank JPMorgan estimates that the production cost to mine one Bitcoin has dropped from $24,000 at the start of June to just $13,000. Bitcoin's production cost is an estimate of the average cost for mining one Bitcoin per day.
Is mining bitcoin cash profitable? ›
Is BitcoinCash mining still profitable? Yes, mining BitcoinCash is still profitable - based on the mining hardware hashrate of 140.00 TH/s, electricity costs, and pool / maintenance fees provided.
How many Bitcoin cash can be mined? ›
The supply of Bitcoin Cash is capped at 21 million, the same figure as Bitcoin. 6 Bitcoin Cash also started off using the same mining difficulty algorithm—known technically as Emergency Difficulty Adjustment (EDA)—which adjusts difficulty every 2016 blocks or roughly every two weeks.
How long does it take to mine 1 Bitcoin 2022? ›
How Long Does It Take to Mine One Bitcoin? In general, it takes about 10 minutes to mine a block, and a block will award a number of coins to whoever mines it.
