The Crypto Mining Basics Explained
Unless you live under a rock, you’ll be familiar with the term cryptocurrency. Often, people think the only way to make money is by investing your own cash in buying and selling digital currencies. However, you can actually mine cryptocurrency and earn it yourself.
Some people mine cryptocurrency for profit, while others have a genuine interest in the technology and choose to get involved for that reason. Either way, you need to know the crypto mining basics before you get started.
What Is Crypto Mining?
The simplest explanation of crypto mining is that it’s a way of creating new crypto coins. Sounds unbelievably basic – doesn’t it? Well, it’s not. Generating new coins isn’t the only purpose of mining. It also exists to maintain a log of all digital currency transactions. Crypto miners from around the world exchange their computing power for the cryptocurrencies they mine for.
Can You Make Money Mining Crypto?
Yes, you can make money mining crypto. The vast majority of miners are doing it to earn their own stash of cryptocurrency. So, how do you make money? Well, your computer, or crypto mining rig, is racing against other miners across the world to figure out millions of mathematical equations – the first miner to successfully complete the equation is rewarded with cryptocurrency and a transaction fee.
Completing an equation is the equivalent of verifying a transaction. Once the transaction is verified, a new block can be created on the blockchain. Now, that transaction can’t be tampered with and is logged forever.
How Do You Mine Cryptocurrency?
To uphold strict security measures, prevent malicious intervention and stop double-spending, only verified miners can mine cryptocurrency.
Preserving the integrity of the blockchain is crucial to the success of any cryptocurrency. A proof of work protocol is established to ensure miners are verified and protect the network is safe from outside intervention.
Also, to successfully mine crypto, you’ll need a cryptocurrency mining rig and software such as Hive OS.
What Is A Cryptocurrency Mining Rig?
A cryptocurrency mining rig is a computer and arrangement of hardware assembled purely for the purposes of mining crypto. Basic mining rigs have the power to calculate up to 30 million math equations per second. Although that’s incredibly impressive, there are over 600 million equations happening every second on the Ethereum blockchain.
While some people stick it out and go solo, others increase their chances of being the first to solve equations by joining crypto mining pools, which essentially enable you to join forces with other miners and combine your hashing power.
On top of your mining rig, you’ll need to get yourself a cryptocurrency wallet. This digital wallet can be on the web or in physical form, allowing you to store your crypto offline. Power up your rig, connect your ethernet, sign in to your wallet and watch the crypto accumulate.
How Much Money Can You Make From Crypto Mining?
The amount of cash you can make is completely dependent on market conditions and the size of the rig you have – everyone will earn different amounts.
In 2021, Ethereum was at an all-time high, with mining profits going over $10 AUD per 100mhs per day. This is just going off the local currency and not the amount of ETH mined, which is vital to know. Currently, due to crypto market dropping overall, there is a lull in the number of active miners across all crypto coins, presenting an opportunity for new miners to earn. *
*This is what we believe, not financial advice. We don’t have a crystal ball and can’t predict the future. We hold no responsibility for your decisions and aren’t liable.
You should also factor in the cost it will take for you to start crypto mining and the ongoing overheads such as electricity and Hive OS membership/commissions.
Is It Worth Mining Cryptocurrency?
It depends on your goals. With a single rig, crypto mining won’t generate a full-time income. However, if you have $$$ to invest in rigs, hardware and energy bills, you could earn substantial amounts of money.Are you just starting out on your crypto mining journey and are looking for the perfect rig? We’ll give you expert advice, build a custom rig to suit your needs, complete a full setup and provide ongoing support. All you have to do is get in touch to start the process.