What is mining, who can become a miner

It is not enough to have one laptop to earn money mining in 2022. The user will have to invest heavily in expensive equipment to be a success. If there is no such opportunity, it’s better to join the pool and receive a share of the total income.

What is crypto mining

In natural mines, workers search for a variety of minerals, including precious metals. Cryptocurrency mining is akin to this process, but the means and place of getting crypt are different. The work is done in comfortable conditions without dirt and dust, which workers have to endure. To solve problems, you need to possess expensive computer equipment that copes with complex mathematical calculations.The essence of mining is to be the first to decode the block in the blockchain to move on to another one. Every decoded block brings a reward. This process motivates the player to continue exploring.Electronic currency does not have an organization like a national bank to perform supervisory functions. High incomes stimulate businessmen to make transactions legal and control their originality. The work is aimed, first of all, at preventing attempts to double use crypto funds, send spam messages, and launch denial-of-service attacks.The concept is generally based on PoW (Proof of Work). The service created on the idea of Hal Finney, aimed at ensuring the security of digital money using the SHA-256 hashing algorithm. Bitcoin became the first to apply this concept. Currently, Proof of Work is used with other cryptocurrencies as well.There is another mechanism to secure and achieve consensus of crypto. The system is called Proof of Stake (PoS). It is less resource-intensive, but has a significant drawback: it may allow attacks by a miner controlling 51% of the network.

Who can become a cryptocurrency miner

The situation with cryptocurrency mining has changed a lot since the emergence of the industry. At the very beginning of the journey, coins could be earned with the help of a single computer. Now everything has changed. Competition is unprecedented. To get started and be successful, you should to pay attention to some points:

• a stable income is not guaranteed. You may lose your invested funds;
• it is necessary to purchase several expensive devices. These may be a graphics processing unit (GPU), field-programmable gate array (FPGA) or application-specific integrated circuit (ASIC);
• mining is complex and tedious;
• equipment consumes much electricity.

How to start

If you are ready to overcome the difficulties described above and start, you should act according to the following algorithm:

1. Purchase special devices to receive bitcoins. Each of them has its own merits. The use of GPUs and FPGAs increases power by a factor of 100 by consuming a bit of electrical current. In turn, ASIC provides a hundredfold increase in hashing power, which affects the performance of crypt mining.
2. Sign up to a pool. It's hard to earn money on crypto alone. Miners have learned to cooperate in order to get more opportunities to extract electronic money. They pool resources and share the winnings fairly. Each participant receives his part of the winnings in proportion to the share of participation in the pool.
3. Select and download the software. The most popular command-line utilities are BFGminer and CGminer. For convenience, some programs apply a graphical user interface (GUI). There are mining pools providing their own software.
4. Create a wallet. It is enough to download it to your computer. Bitcoins get into the wallet through a unique address known only to you. We recommend that you protect your wallet with two-factor authentication or leave it offline.
5. Begin to mine cryptocurrency. For this, you need to run double processes for checking the SHA256 hash function (Secure hash algoritm 256-bit). This is necessary to verify transactions and protect the Bitcoin network.

Stay up to date with changes in mining complexity and crypto prices. It will help you to succeed in business.

How much crypto can you earn

The question is of most interest to people who want to start earning cryptocurrency. Technically, there are no barriers that cannot be overcome to start this activity. But to earn decent money, you must have at your disposal several expensive high-power units. As well as the price of purchasing equipment, you need to remember about the impressive costs of electricity.In a short time, competition in cryptomining has greatly intensified. It happened due to the unprecedented increase of bitcoins’ prices. In pursuit of super profits, miners raised the power bar to an incredible height. More successful were businessmen who created huge farms in the areas with cheap electricity. It is difficult for a novice player to compete in such conditions.There is always a way out. Many types of cryptocurrencies have divorced on the market. Their profitability is different and can change every day. To calculate the income, the player can use the online calculator. To do this, it is enough to enter variables into it.You can understand the profitability of Ethereum from this example. By the end of December 2021, one unit of the GPU brought its owner $ 4.59 daily. If to talk about expenses, then miners on Feathercoin lost $ 0.58 every day. Obviously, without large capacities, it is impossible to earn decent money.

What hashrate means

The word refers to a level of computing power. It influences the efficiency of earning crypto. The number of miners with a high hash rate is constantly increasing. This circumstance make the tasks more complicated. To solve sophisticated puzzles, miners have to increase capacity.Over time, the hashrate changes rapidly. At the beginning of the emergence of cryptocurrencies in 2009, it was measured in hash per second (H/ s). The rapid industry development has led to the fabulous speeds. They are now measured in billions, trillions, or even quadrillions of hashes per second.To get an idea of these scales, let's see how much one can earn on one TH/s (trillions of hashes per second). Against the background of global growth in the hashrate, individual miners’ incomes are decreasing every year. But if you take into account the performance of all TH/s on the Internet, you will get 85 000 000 Terahash.

What equipment is better to use

Earning crypto brings money and pleasure if electricity is inexpensive and your equipment high-speed. The creator of Bitcoin initially intended to produce a resource to apply with ordinary computers and laptops. But miners were greedy for money and used graphics cards to increase the power.Over time, this was not enough. In place of graphics cards more productive ASICs came. The most successful farms use them now. The devices mainly focus on areas with cheap electricity.Before buying an expensive ASIC, you should pay attention to some points:

• power of the hashrate. The higher it is, the more productive and expensive the device is;
• equipment efficiency. You need a device that can convert most of the electricity consumed into bitcoins;
• Cheap devices will not give enough cryptocurrency. You should not save on this.

The appearance of ASICs revolutionized the field of earning cryptocurrency. If GPUs were still available to the average person, then purchasing even a single ASIC for an individual, became problematic. A good device costs several thousand dollars. That’s why, large cartels began to appear, where thousands of devices are concentrated.

Optional Equipment

Purchasing separate machines to earn bitcoins does not exempt you from buying additional equipment. For the reliable operation of the farm, you will need:

• power sources to transmit and use electricity;
• cooling fans. With severe overheating, the devices stop working. There should be a lot of fans to ensure smooth operation of the enterprise;
• spare generators. They will help to continue the production of cryptocurrency in the event of a failure of electrical networks.

Conclusion

Electronic money appeared recently. In such a short period, it has made a huge leap forward. Millions of people are engaged in mining. Many experts believe that cryptocurrency has a great future. In their opinion, it will replace fiat money soon.