Cryptocurrency mining
What is cryptocurrency mining?
Cryptocurrency mining is the process in which miners use computing power (hash) to process transactions and obtain rewards, in this case cryptocurrencies. In other words, it is the process of adding new transaction records as blocks to the blockchain. Or also, what is the process of registering blockchain transactions, in exchange for a reward, delivered therein type of cryptocurrency which is being mined. For example, if Bitcoin is mined the reward is in BTC.
One of the main characteristics of mining is the concentration of resources. That is, it requires a large amount of computing power that can meet mining demands. In addition to allowing all participants in the mining network to agree on the effectiveness and accuracy of the blockchain. In addition, not only must you have a large computing power mining machine, you must also ensure a stable electrical power network.
Mining requires specific software for solving mathematical problems, and verifying the legal transaction that confirms that a block is a block. These blocks are added to the public ledger (blockchain) approximately every 10 minutes. When the software resolves the transaction, the miner will receive a certain amount of digital coins. The faster the miner's hardware can process these math problems, the more likely they are to verify transactions and receive their rewards.
What does it take to mine cryptocurrencies?
To mine a certain cryptocurrency, you need suitable hardware to mine that coin. Depending on the coin, you may need an ASIC miner (a computer dedicated to mining a certain coin) or a computer with a high-performance GPU (graphics card). In some cases, you can even use a CPU (central processor) as well. Different hardware may be required for each type of coin to be mined. Using the wrong hardware will only result in losing money.
GPU-based miners can effectively mine all types of coins as long as they can be mined with graphics cards, but this rule does not apply to ASIC miners. For example, ASIC mining machines that mine Bitcoin (SHA256 algorithm) cannot be used to mine Zcash coins (Equihash algorithm). This is because the two currencies use different algorithms. Miners who mine SHA-256 algorithm coin are not good at mining other algorithms. This is important to keep in mind.
So it is best to make sure you have a mining machine that is suitable for extracting the coins you want to mine. You also need a stable network connection that stays up and running. Stability is the key, not speed. Additionally, a stable and low-cost electrical power source is required. Since electricity prices greatly affect profits, it is necessary to find the cheapest electricity.
Cryptocurrency mining process and rewards
In the cryptocurrency mining process, the hardware is placed at the service of a network of cryptoassets such as Bitcoin, Ethereum, or any other type of cryptocurrency. What this hardware does is provide its power to confirm that the transactions made on the network by its users are valid. Once the validation of these transactions is done, they are grouped into blocks. These blocks are later added to the blockchain. Basically this is the cryptocurrency mining process.
The reward for mining bitcoin or any other cryptocurrency is generated every time a new block is added to the chain. This reward is made up of two parts: The commissions paid by the users participating in the transactions that make up the new block added and the new digital currencies put into circulation. Hence, it is so attractive for miners to make large investments in machines and systems in order to mine cryptocurrencies.
In summary, the process of mining cryptocurrencies such as Bitcoin, Ethereum and others, consists of validating and grouping transactions, made by users within the given network, into blocks that will later be joined to the chain of blocks known as Blockchain. This process, in addition to generating a new amount of digital currencies that will be granted to the miner, along with the commissions paid by those who carry out the transactions that make up the added block, also provides security to the network.
What types of mining exist?
In the process of mining digital currencies we find two types:
- PoW, (Proof of Work): which in our language would be proof of work. It is the most used system in mining currencies such as Bitcoin, Ethereum, Litecoin and Monero. This type of mining requires high-powered machines capable of solving a series of hash puzzles. Until these puzzles are resolved, a new block cannot be proposed to add to the Blockchain chain. Nor will new miner reward digital coins be generated.
-PoS, (Proof of Shake): which translated means proof of participation. This model is based on the purchasing power of the miner. That is, the more cryptocurrencies you have in your possession, the more you can mine. And, it is a motivation mining model. And it was created as an alternative to PoW seeking to solve the problems it has presented. Currently there are many cryptocurrencies that use the PoS system because it helps maintain their value in the market.
How to get started in the field of mining and how to mine Bitcoins
Cloud Mining or cloud mining is the procedure by which anyone can start mining cryptocurrencies without having the necessary hardware. It is done through a remote and shared data processing center, located in what we call the cloud. In this way, anyone who wants to start in this field can do so without having to face the high costs of acquiring the very expensive equipment necessary, as well as the high costs of electricity, nor is special technical knowledge required, paying only the corresponding amount for the service provided to the provider and using the PC or a mobile phone.
One of the most famous cryptocurrencies is bitcoin and, therefore, mining Bitcoins becomes an appealing idea for many people. But how to mine Bitcoins? The process can happen in two ways, it can be done in the cloud or with your own hardware. To do it through the cloud, you only need to choose a company and a mining package, then associate it with your wallet, so that the mined bitcoins reach it. Without a doubt, this is the simplest process and, although the profitability may be lower, it is a great way to achieve profitability quickly.
We present you the 3 best cloud mining sites:
Cómo iniciarse en el campo de la minería
2.- Equipos de hardware de minería:
Cómo habíamos comentado antes se necesitan equipos de alto rendimiento para el minado de bitcoin, muchos de ellos son bastante caros, son difíciles de configurar y tienen un consumo de electricidad muy elevado lo que dificulta su instalación en un hogar convencional.
Cómo ha sido siempre la política en My Crypto Box de facilitar el acceso a principiantes de este tipo de tecnología, te presentamos un pequeño equipo de minado, barato y divertido, se trata del Nerd Miner T Display S3 V2.0, este pequeño aparato es muy fácil de instalar y consume muy poco. Lo podrás encontrar en la Tienda Online.
Para minadores más exigentes presentamos el equipo Lucky Miner LV06 500G.
Lucky Miner LV06 es una máquina de minería de criptomonedas compacta, segura y portátil, que utiliza un chip ASIC, diseñada para la minería personal y familiar. Esta máquina de minería utiliza tecnología avanzada y componentes de alta calidad para garantizar una alta eficiencia y un funcionamiento estable a largo plazo. La máquina de minería Lucky Miner LV06 admite múltiples criptomonedas de algoritmo de (BTC, BCH, BSV, DGB..., hasta 42 tipos), y es adecuada para múltiples modos de Minería (SOLO, PPLNS, PPS, PROP...). La puedes encontrar en la tienda online.
How to save bitcoins or any other mined cryptocurrency:
As we had mentioned previously, to mine cryptocurrencies you can do it through the cloud and to do so you only need to choose a company mining, any of the 3 that we present above, hire the mining package that best suits you, and later associate it with your wallet, so that the bitcoins or any mined cryptocurrency are stored in it.
The cold wallet that we provide you is the most secure in the world, it cannot be hacked and you can purchase it with the Crypto Pack in its Silver or Gold version that you can buy in the online store.
